Bitcoins has tons of advantages over other regular payment methods and other cryptocurrencies. It has a peer-to-peer focus, thus making this cryptocurrency user-orientated. Not only that, but it allows people from all around the world to make substantial profits and possibly, turn them into millionaires. It managed to make a lot of users wealthy and provide them with a better life.
Even though all of these benefits that be reaped by investing in Bitcoin, governments around the world still oppose it and consider it as an outlaw currency. We wanted to take a look at this case and explain why are they trying so hard in making sure that Bitcoin does not become a legal currency. But first, let’s see how people make money with Bitcoin.
Using Bitcoin as A Profit
Mining is core in the process of making a profit with Bitcoin. Not only does it reward users with Bitcoins but it also allows the network to maintain its stability and keep progressing forward. Mining is a crucial part of Bitcoin’s self-sustainability. Users allow the network to be updated daily by recording and verifying Bitcoin transactions. That is the main definition of mining. Each recorded transaction becomes a block and it is integrated into Bitcoin’s blockchain. The more transactions users record, the more Bitcoins they will receive as rewards.
The beauty in this process is that even though it is extremely hard, it is completely free, thus the revenue that people make is pure profit. And if you are wondering where do you sell Bitcoins, the marketplaces are known as trading sites. The more reputable the trading site is, the better its services are, hence the higher your profit can be. When you decide to visit website that specializes in trading with Bitcoin, make sure it has a huge daily profitability rate and counts thousands of registered users from all around the world.
Now, let’s get back to the main topic and explain why authorities dislike Bitcoin.
Excludes Banks From The Process
When using regular payment methods such as credit and debit cards, banks act as the middlemen of every transaction and process all payments. Since they are fully in control of these processes, they often impose various fees. Through fees, they can profit and earn a hefty profit.
Since Bitcoin is self-sustainable and users process the transactions, banks are completely cut from the process and they are not able to profit off users that use this cryptocurrency for payments. While users save money with each transaction, this could be a serious threat to banks.
That is why they lobby hard against Bitcoin and are very successful in it since banks and governments are in a tight relationship. Both of them control the flow of money in every country.
Governments Cannot Control It
The second reason why it is so opposed by authorities is that governments cannot control it. Regular payment methods are highly centralized and controlled by banks and governments. That is not the case with Bitcoin. One of the best features that this cryptocurrency has is the fact that it is highly decentralized.
Governments are never fans of something that they cannot control; hence they are putting a lot of effort into making sure that Bitcoin stays an outlaw currency.
Bitcoin boasts tons of advantages, which is a given. These advantages are the reason why people have accepted it. Its network counts over 5 million users from every part of the world, but because governments and banks oppose it so much, it is impossible to determine what the future holds for it. Some believe that it may be legalized in the distant future, while some believe that it will always remain an outlaw currency.