BITCOIN LEGALITY AND IMPACT
Bitcoin happening to be what is improving the economy of most country happens to be an illegal activity in others...
Countries without bitcoin
1. Algeria
According to the "Journal Officiel" (28 December 2017):
Art. 117. — The purchase, sale, use, and holding of so-called virtual currency is prohibited. Virtual currency is that used by internet users via the web. It is characterized by the absence of physical support such as coins, notes, payments by cheque or credit card. Any breach of this provision is punishable in accordance with the laws and regulations in force.
2. Egypt
"Egypt’s Dar al-Ifta, the primary Islamic legislator in Egypt, has issued a religious decree classifying commercial transactions in bitcoin as haram (prohibited under Islamic law)."
3. Morocco
On 20 November 2017 the exchange office issued a public statement in which it declared, "The Office des Changes wishes to inform the general public that the transactions via virtual currencies constitute an infringement of the exchange regulations, liable to penalties and fines provided for by [existing laws] in force."
The following day, the monetary authorities also reacted in a statement issued jointly by the Ministry of Economy and Finance, Bank Al-Maghrib and the Moroccan Capital Market Authority (AMMC), warning against risks associated with bitcoin, which may be used "for illicit or criminal purposes, including money laundering and terrorist financing".
On 19 December 2017, Abdellatif Jouahri, governor of Bank Al-Maghrib, said at a press conference held in Rabat during the last quarterly meeting of the Bank Al-Maghrib's Board of 2017 that bitcoin is not a currency but a "financial asset". He also warned of its dangers and called for a framework to be put in place for consumer protection.
The Impact of Bitcoin on The Global Economy
The Impact of Bitcoin on The Global Economy is a emerging trend, Bitcoin has firmly made it to the mainstream. At one time, few people have thought that Bitcoin is only an obscure hobby or a pipe dream that will die out in the next few years. But today, the story is quite different. You can see that Bitcoin has now become a real investment opportunity and is making its way to create a severe impact in the world.
This popular type of cryptocurrency gained a lot of attention when its price hiked from around 572.3 USD in August 2016 to approximately 4,764.8 USD in August 2017. It makes up about 64.01% of the total value of all cryptocurrencies as of 9 March 2019 with more than 7.1 million active users.
How Bitcoin Transforms Global Economy
The story of Bitcoin is indeed just getting started, but it’s already transforming the global economy.
Here are some visible impacts of Bitcoin on the worldwide economy.
1. Shifts in Global Investments
Many investors are now adding cryptocurrencies, particularly Bitcoin, into their portfolios. This is most likely because bitcoin allocation higher their chances to improve portfolio upside.
#2. Separates Transactions from the Dollar
Cryptocurrencies do not require any connection to the U.S. dollar. The involved parties of a financial transaction are given another avenue to participate in the global economy while, at the same time, circumventing U.S. economic policies.
Even though it might seem like a threat to the government because the U.S. dollars act as the reserve currency for the global economy (which is the primary source of US’ global power), it enables more international transactions.
#3. Eliminates the Need for Middlemen
Bitcoin as a whole is inherently designed to allow peer-to-peer electronic transactions between counterparties without the intervention of any third party. It does not require an intermediary, or a go-between, unlike the traditional currency. Transactions are validated in a decentralized fashion. This fact has made banking institutions anxious, as it eliminates the need for their service.
#4. Encourages More Overseas Transactions
Since lots of people living in countries around the world with weak economies still don’t have a bank account, Bitcoin comes in handy to engage them with the global internet economy.
That way, people who live in typically less developed countries have a chance to connect with the internet economy. All that is needed is a digital wallet to make transactions anywhere in the world.
In the last three months of 2020, each day saw an average 287,492 confirmed Bitcoin transactions worldwide.
The transaction it’s quite fast, transparent, confidential, and secure.
#5. Reduces High Reliance on Fiat Money
As a decentralized currency, Bitcoin is free from any economic and political issues that often can affect traditional currencies. That’s where Bitcoin is designed to be a digital currency that can be an alternative for authorized or fiat money.
Today, customers have become more reliant on digital transfer (as it’s convenient in the sense of transaction speed) as a handy means to pay for products and services. Using Bitcoin as a payment method can reduce the reliance on traditional or authorized money.
What is more interesting is that the people who have already dabbled in Bitcoin believe that their virtual cash enjoys the same level of security as authorized money.
#6. Regulation of Bitcoin
Now that Bitcoin has become ubiquitous, both national and regional authorities prompt to grapple with their financial regulations. In this matter, central banks are working hard to put this ad hoc financial system under control. It can lead to laws specifically addressing this cryptocurrency and speculative bubble that Bitcoin will potentially cause.
#7. Starts New Era of Crowdfunding
Talking about Bitcoin and cryptocurrencies isn’t complete without mentioning ICOs. In 2017, it was the talk of the technology town as it has become the leading crowdfunding method for blockchain-based startups. This new method of crowdfunding allows companies or organizations to raise capital in the form of cryptocurrencies.
From the cart above, CB Insights reports that over 5x more capital deployed in ICOs compared to the equity financings to blockchain startups in 2017. At the end of 2017, the number jumped to a whopping 7x.
#8. Environmentalism
Every coin has two sides, so does Bitcoin, so to speak. Other than the direct and straightforward impact that Bitcoin gives to the global economy, it also impacts the environment– in a not-too-subtle way. Bitcoin mining requires a sophisticated software and hardware infrastructure system, and it reportedly accounts for a more significant deal of energy than the entire world uses today. It takes at least a staggering 77 TWh (Terawatt-hour) each year to operate the computers and networks that power Bitcoin operations.
#8. Opens Access to a Credit System
Bitcoin enables unbridled access to a reliable credit system since it’s a type of unregulated digital currency that’s based wholly on data. If the price remains stable for an extended period, it’ll be able to bridge people who are isolated from global merchants continuously. Thus, it will open new markets as well as new opportunities that can contribute to sustainable and inclusive growth in the global economy. What’s more interesting is that Bitcoin does not require any pricey fees for transactions, which makes it much more appealing for its users– and people who are considering using it.