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Anonymity – Bitcoin’s Strongest Feature Is Also Its Legal Weak Spot

bitcoin law
Anonymity - Bitcoin's Strongest Feature Is Also Its Legal Weak Spot 4

Bitcoin is a type of cryptocurrency that appeals to many because of the anonymity it can provide. It is secured by cryptography tech that makes it impossible to find users based on transactions.

Although Bitcoin is perhaps the best known of the fast-growing cryptocurrency markets, there are a vast range of products that come within the ambit of ‘cryptocurrency. Essentially though, Bitcoin has lead the way for the various products in that it was developed as a decentralized technology, called blockchain, which has inbuild or inherent encryption. But different terminology and regulatory rules vary throughout the world.

Even though Bitcoin is constantly in the news, it is still a mystery and this makes it hard to regulate and protect. So while the anonymity may seem good, it’s also potentially its weakest aspect.

Why Is Bitcoin So Mysterious?

Anonymity - Bitcoin's Strongest Feature Is Also Its Legal Weak Spot 5

The biggest mystery about Bitcoin is that Satoshi Nakamoto, (left) the computer programmer who invented it is not known. It could be a group of people, or it could be a pseudo name for one person. If only he or she was known, there could be answers to many cryptocurrency questions.

But there is more mystery and intrigue. Bitcoin is also mysterious because it is purely digital. The internet has made it easy for anybody to access information anywhere.

But maybe most importantly, the value of Bitcoin goes up because they are mysterious and rare.  If Bitcoin creators, marketers, and traders share everything online, the system can be compromised and the currency could become obsolete.

It is speculated that the inventor of Bitcoin owns at least five percent of the entire cryptocurrency. That is a significantly large share because they are rare. If they fulfill their dreams and Bitcoin becomes a world currency, then the richest person in the world will be the one with the largest share of Bitcoin. 

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Source: https://pixabay.com/photos/hand-adult-people-business-wealth-3077533/

The Rollercoaster of Investing in Bitcoin

Over time, the value of the bitcoin has gone up and down in many extreme swings. Bitcoin works with blockchain tech which is not easy to crack unless you are an expert. Many people do not have an idea of how it works. This is both a good thing and a bad thing. The good thing about it is the mystery and exclusivity. Exclusive things are expensive. If you crack the system, you can reap a lot from it. 

The flip side is that many scammers hide in the mystery. There are no regulated laws of trade in cryptocurrency. Many scammers hide under this loophole and con unsuspecting victims. Bitcoin theft is also very high amongst miners.

Those who invest the crytocurrency or use it for any reason need to be careful, particularly if they are a serious bitcoin miner. Digital platforms are full of hackers and malware that can compromise cryptocurrency systems.

That’s why there’s growing demand for Bitcoin recovery funds.  Regardless of your knowledge of Bitcoin, even those who professionally use them, such as traders who use cryptoassets, have had them stolen or lost. The demand for expert services that are able to recover the Bitcoin assets continues to rise as the cryptocurrency usage rises also.

Can the Law Regulate Crypto Currency?

The legal policies around the cryptocurrency landscape are not very solid. When the concept started, it was not as popular enough for a governing body to care. Now as more people become interested, it should be recognized and regulated just like other investment avenues. The tricky part is that you cannot regulate a currency unless you have all the facts. As of today, the cryptocurrency is not consistent enough for regulation. However, some governments have set up cryptocurrency regulation bodies. 

Some central banks in some regions of the world have tried to educate people about cryptocurrency. Some governments have gone so far to set up sites where you can report scammers and get legal help getting your money back. 

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Source: https://pixabay.com/photos/right-advocacy-lex-attorney-jura-4703922/

At the end of the day, the controversy of bitcoin lies in its strength which is also its weakness. It is very volatile, hence you cannot derive long term investments patterns from it.

The cryptocurrency community is growing fast, and more people are becoming a part of it. It has the potential to make it big time, but it is going to be a long and slow process. Maybe in the future, there will be solid guidelines and regulations for Bitcoin miners and investors. In the meantime, the fast-evolving market requires solid services and expertise able to handle the markets and how they function.

Source:

GlobalPayBack is an asset recovery service that uses legal expertise to recover losses sustained through binary option fraud and other losses incurred in the cryptocurrency market.

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