Welp MagazineCryptocurrency and bitcoin adoption is a new concept that will come into reality anytime soon. But, according to the experts, there are plenty of problems standing in the way of bitcoin becoming a mainstream currency in the future bitcoin revolution official site. Even if there is going to be highly advanced technology in bitcoin, which will make it the best digital token available in the market, there will always be some challenges in its path to becoming one of the most significant technological developments.
You will find that bitcoin is a prevalent cryptocurrency worldwide, and people are using it like Fiat money. Therefore, if you feel like bitcoin should be the modern technology of finance, you should pay attention to the details we will provide you today. We will be giving you some of the most crucial reasons why bitcoin is not being accepted legally by the government in the below-given details.
Volatility
Despite the advantages that bitcoin can deliver to the people by making an investment or trading in it, the government is not yet ready to make bitcoin a mainstream technology or currency because of its volatility. You will find that volatility is only profitable if people are trading in it. Regarding using bitcoin as a form of Fiat money, positivity is a critical factor. The technological developments will also not stop bitcoin from fluctuating, which is why it is not being accepted by the government as a legal form of money anywhere in the world.
Cyber theft
Security of bitcoin is considered the highest regarding the form of money available worldwide. But, a very prevalent concept in the cryptocurrency market that you are supposed to understand is cyber security theft. Yes, even if cryptocurrencies provide you with the best level of security, illicit activity practitioners find it very easy to steal your digital tokens. Moreover, along with the coins, they can also steal your information which can be used for illegal activities.
Inability to self regulate
Regulation of the prices of Fiat money and its valuation in the global market is made by an automated system. It is embedded into the Fiat money system by the government and the technology. However, bitcoin or any other cryptocurrency available worldwide is far from doing such kind of thing. Cryptocurrencies can not regulate their prices on themselves, so they are not becoming mainstream anytime soon. The government feels that the immature nature of bitcoin makes it not accepted in the legal system any time soon. Therefore, you should not plan on investing in bitcoin if you think it will become mainstream.
Tax issues
Making an income out of the cryptocurrency market is a dream for many people. Even more, many people make millions of dollars out of the digital token market by using the cryptocurrency bitcoin for trading and investing. But, for the government, it is a highly complex thing. The valuation of cryptocurrency keeps changing all the time; therefore, the government may find it very difficult to tax the income you make from cryptocurrencies. In India, the government has imposed a 30% tax on cryptocurrency income, but in other nations, it will be tough to take such a step.
No regulations
The lack of rules and regulations in the cryptocurrencies like bitcoin is another principal reason why bitcoin is not being adopted in mainstream technology. You will find a bitcoin to perform a lot of things, but you should know that the bitcoin market is not the same. Therefore, it is not being accepted by the government anywhere in the world.
Less mainstream adoption
Very highly advanced technology is infused along with bitcoin and other cryptocurrencies, but still, they are not very well accepted in the mainstream. The less and inadequate mainstream adoption of the cryptocurrencies like bitcoin is another very prevalent reason why the government is not joining hands with this new technology of crypto coins. You are going to find cryptocurrencies are prevailing all over the world. Still, the cryptocurrency government is not accepting them because they are not being accepted by private entities with open hands yet.
Reputation for criminal use
The adoption of cryptocurrencies is one of the most important as well as very well popular concepts all over the world. Just like the Fiat money system, cryptocurrencies are also being used for illegal and criminal activities, but with crypto coins, it is even more. Therefore, the government is scared of the illegal uses of cryptocurrencies. As the reputation is not very good in this department, the government does not like to accept cryptocurrencies legally.
