300°

Governments want to regulate bitcoin – is that even possible?

The UK government has shown its intention to regulate bitcoin and other digital currencies, drawing them into the realms of financial regulation applied to banks and other financial services. But bitcoin is not a bank or a financial company based in the City. How would regulation apply to something that exists in the cloud?

Stringerbell3318d ago

Was it two weeks ago that a successor site to the silk road was shut down. As a result bit coin took a 30 percent drop in its value. This is why even the most hard lined neo-liberal economists don't put any stock in bit coin. You'll never hear in the news - local crack house raided as a result the Euro lost half its value today. Best of luck to any of those invested in this.

ZoyosJD3318d ago

Money is purely faith in repayment. The more widely something is accepted, the more faith is put into it. If bitcoin was supported by various governments and used for more than illegal substances and services, it wouldn't be so volatile.

The reason current currencies are used so widely is because they have been chosen to be supported by various governments.

That is why a government supported and regulated digital currency would be such a prominent step in acceptance and common usage.

annoyedgamer3318d ago

Government regulated = government controlled. That always leads to massive inflation and tracking. What I buy and sell is my own business not some rich politicians business.

Speed-Racer3318d ago

There has to be some kind of regulatory body to prevent major currency shocks. Buying and selling goods in the long term would be extremely challenging because of the huge fluctuation in Bitcoin prices. I was surprised to see companies selling at fixed prices back when bitcoins were worth over $1000 US but now it's around $244 US. Anyone with a basic understand of macroeconomic will know this is true.

I understand that Bitcoin wins in the sense that you can trade anything, even illegal goods without getting caught, but who's going to be responsible when you lose all a major chunk of assets should the price flat line? Unless there is government intervention, it will never take lead like the US, Pound, Euro or Franc.

ZoyosJD3318d ago

This is exactly the problem. People want someone the save there *financial assets* when things go to bad (government support), but don't expect someone to take a portion and some information (taxes and anonymity) to do so.

You simply will not get one without the other. Although this could be implemented in a way that anonymity could be kept, I doubt it would happen.

As I was saying before bitcoin's volatile nature is due to a lack of faith in repayment *mainly* caused by a lack of government support and widespread common usage.

80°

Why Crypto Idealogues Won’t Touch Bitcoin ETFs

The arrival of spot bitcoin ETFs in the US offers easy access to the masses. Purists will steer clear.

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90°

Bitcoin energy consumption falls sharply as prices drop

After plummeting in June, the price of Bitcoin has remained at such a low level that it is causing the

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techbriefly.com
60°

Bitcoin plummets to $23k as entire crypto market struggles

Inflation and expected interest rate hikes likely play a part in Bitcoin's dropping value.

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knowtechie.com