Is Cryptocurrency legal?
February 18, 2019 8:02 am,
Cryptocurrency has become a common term over the past few years, among the technology geeks and also the common crowd. Digital currency is the superset of cryptocurrency and includes both cryptocurrency and virtual currency. The main difference between them is that virtual currency is sometimes centralized, while cryptocurrency is always decentralized. This makes cryptocurrency more easy to use but also more prone to security risks and legal regularities. The very first of cryptocurrency is Bitcoin and has been launched in 2009 by Satoshi Nakamoto. Since then, the digital currency has become more and more familiar to the commoon folk. Now there are numerous altcoins like Ripple, Litecoin and so on, but the basic characteristic and idea behind them remains the same.
The concept of decentralized money was first introduced by digital currency. It means that there are no authorities or regulatory bodies looking over the activities and transactions of digital currency. The up side to this idea is that the dealings can be done in lightning speed when compared to the fiat currency. This is because there is no scope for further delay as there are no intermediaries other than the buyer and seller. The down side of decentralized money is that there is no single person to hold responsible if anything goes wrong.
Even though cryptocurrency is used widely by a large number of people, it is not yet regularized or legal in all parts of the world. The legal issues arise mainly due to the decentralized nature of the currency. Also, there is innumerous number of security issues related to the use of cryptocurrency. Since the transactions are carried out online, it is difficult to stay away from hackers and other threats. Also, digital currency is the talk of developed countries. These are the ones who can afford to even think about advanced monetary transactions such as this. Even in developed countries, this is not entirely legalized. Different nations have their own take and set of rules when it comes to cryptocurrency. It is not a legal tender as it is not created and supplied by the respective governments of the countries.
Bitcoin and all other similar cryptocurrencies work on the blockchain technology. By solving complicated mathematical problems, the miners get bitcoins as rewards. The transactions carried out by each and every person over the blockchain are stored as blocks and this is open for verification by other users. The problem of double scaling has been completely eliminated by this concept. Every user has to verify two other transactions in order to carry out their personal transaction. This makes all the processes transparent and corruption free. Apart from the threat from the hackers, every other aspect of the cryptocurrency is absolutely safe and easy.
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