Cryptocurrencies have become part of today’s popular culture and many people are familiar with them or at least with their largest representative Bitcoin. In its infancy, Bitcoin was intended for utopian purposes. Founded by the enigmatic Satoshi Nakamoto and with the help of several fans of all kinds of computer technology, Bitcoin was supposed to provide every person in the world with easy access to capital. This access to capital would be available through participation in the “ecosystem” of this technology, called mining. Also, there was a desire for independence from the state and any form of central control, so that this technology would be controlled by the decentralized community. Over time, Bitcoin has gained in value, thus attracting the attention of people who have imitated this technology. Other cryptocurrencies soon appeared that offered different capabilities than Bitcoin, such as Ethereum.
It is known from historical experience that some countries have reacted aggressively to new technology that could harm their sovereignty, but we also know that some countries are integrating new technology.
Although they are spread all over the world and there is a growing interest in investing in people and companies, there are still many countries where cryptocurrency trading is considered illegal.
Morocco
Cryptocurrencies are illegal in Morocco because they believe they violate foreign exchange market regulations, which implies penalties.
Algeria
In 2018, Algeria completely banned the purchase, sale, use, and possession of cryptocurrency through the Financial Law of Algeria. Every use is punishable.
Bolivia
Bolivia’s central bank banned the circulation of virtual currencies 7 years ago. The use of cryptocurrencies is illegal, a The Bolivian surveillance service has arrested about 60 cryptocurrency promoters. These were people who taught others how to engage in cryptocurrency trading.
Kuwait
The Kuwaiti Ministry of Finance does not recognize the use of cryptocurrencies in commercial transactions, and the central bank prohibits banks and companies from trading cryptocurrencies.
Nepal
The Central Bank of Nepal has issued a statement claiming that all Bitcoin-related transactions are illegal. The local crypto exchange was shut down and seven people were arrested for exchanging bitcoin.
China
China’s regulation of cryptocurrencies does not officially exist, but China’s attitude and measures towards cryptocurrencies are very hostile. China does not have a law regulating cryptocurrencies, nor does it recognize cryptocurrencies as a means of exchange or payment, and Chinese banks also do not provide services with them. In 2013, cryptocurrencies were defined as virtual commodities, and citizens were free to trade them even though they were warned about the risks.
Qatar
Qatar is another country in a series where cryptocurrencies are considered risky and illegal.
Ecuador
This country banned cryptocurrencies in 2014. Many argue that the reason for this is the placement of its own digital currency that is not a cryptocurrency, but that this was a way to reduce competition.
Cryptocurrency trading
Cryptocurrency trading is becoming increasingly popular, but any investment of money is risky. Cryptocurrencies are simply bought on the stock exchange by transferring money to one of the stock exchanges where the price of the cryptocurrency we want is auctioned, when the price reaches that level it is done the transaction, and money is exchanged for the required amount of cryptocurrency. Cryptocurrency trading depends on several factors, the first of which is the size of the cryptocurrency in which it is planned to invest. A large number of investors prefer to invest in already known cryptocurrencies, although this does not necessarily mean security. Some cryptocurrencies initially have low profits and therefore low prices, but that does not mean that they will remain so in the future. The second criterion is the development of cryptocurrencies which means that the cryptocurrency will become attractive for investment if it is estimated that in the near future the price could rise. Learn more about cryptocurrencies on supplychaingamechanger.com.
Cryptocurrencies new financial instruments
Several governments have tried to gain control of cryptocurrencies, while some are likely to issue and own currencies. Interestingly, many governments have ignored the emergence of cryptocurrencies, all the way up to the moment individuals did not become multi-millionaires in a short period of their growth values. Many people claim that cryptocurrencies are the ideal way to trade could bring down the classical monetary system. Bitcoin is like a representative of all cryptocurrencies along the way development survived the negative attitudes and attacks that ultimately actually helped his acceptance and affirmation. Bitcoin has attracted many investors and is accepted as a financial instrument. The value of Bitcoin is influenced by supply and demand as well as the level of knowledge about the technology at which it is the foundation of cryptocurrency. The advantage of cryptocurrencies over classic currencies is limited offers which are why they are more protected from inflation.
Conclusion
Cryptocurrencies are digital coins that are impossible to copy or arbitrarily produce. They function as electronic records of certain values stored in electronic banknotes on websites that provide this type of service. With the development of information technologies, they have become an increasingly important factor in the economy, and are growing development began to worry central banks that had to respond to their growth. A cryptocurrency is a fully digital currency whose use is based on trust-based on cryptography. The rapid development of information and communication technologies has led to very powerful home computers, which allow the use of powerful cryptography standards which are practically impenetrable. They are produced by many people all over the world using software that solves mathematical problems. Decentralization and regulation of the system are considered to be the biggest advantage of cryptocurrencies but also proved to be a major cause of high volatility because the price of bitcoin and other cryptocurrencies depends exclusively on the supply-demand relationship. The operation of cryptocurrencies is based on blockchain technology that promises to solve some of the biggest problems in financial technology. The invention of blockchain and consensus systems will significantly reduce the cost of organization and coordination on large systems. Blockchain is a distributed database that, for practical purposes, impossible to change. The application of blockchain technology and the realization of direct instead of centralized transactions can greatly introduce changes in the socio-economic world.
