Why is Bitcoin Allowed (Why Doesn’t the Country Ban Bitcoin)?

Why is Bitcoin allowed? Why is Bitcoin allowed to exist?

This is because the policy of the President of the United States, Donald Trump, on digital currencies is the same as his previous ban on encryption, which prohibits people from buying, holding, and using these assets. This means that the US government should not invest all its funds in any new technology or innovation, but should only use all of its cash for daily payments.

But at the same time, there are some questions to consider: Why should Bitcoin usage be blocked? Why should Bitcoin usage be restricted? Is Bitcoin a digital currency that can store value? Why can’t it circulate elsewhere? Why do we allow people to accept its existence without a central authority? Why does the Federal Reserve support Bitcoin?

According to a report by Bloomberg on May 13th, Jerome Powell, the chairman of the Federal Reserve, stated that he is studying how to make the global financial system more democratized by introducing new banking infrastructure: “If a country wants to establish a completely new economic structure and achieve this goal, it must ensure sufficient support to obtain approval.” Additionally, “When you see the inflation rate rise to 2%, this happens,” he further added. “So, if you look at the growth rate of the US dollar, you will find that the dollar has become one of the world’s strongest reserve currencies. So, many people think this is impossible now, but once we have more regulation, we will have our own central bank.”

Although Bitcoin is designed as “digital gold”, it may enter the market faster in many aspects than most people imagine.

As we discussed in our recent article, due to Bitcoin’s decentralized nature, it can serve as a means of value exchange and can be verifiably traded – fundamentally changing the way people access information. In fact, with the emergence of blockchain technology and increased mainstream adoption, Bitcoin is indeed a real commodity, and it provides another option. Bitcoin’s birth was intended to replace traditional computing devices such as paper bills and hard drives, as well as some use cases similar to the internet.

So, if that’s the case, is it worth it for the general public to get involved? I believe many people have never thought about it this way:

1. Do not use your phone lightly. Many times, people don’t care about wallet addresses or just worry about losing private keys that would render their accounts inaccessible. However, if you have a mobile application, you can download and install it through that app.

2. Pay more attention to network security and avoid phishing attacks. Although this method may bring risks to users and is susceptible to damage, the main benefit to remember is that Bitcoin is not an overnight thing and it does bring various possibilities, such as anonymity and immutability. Even if someone tries to exploit their data for fraudulent behavior, such as eavesdroppers or even monitors, they can easily control the user’s passwords.

3. Protect individuals from illegal activities and criminals. Just like those unwanted products in the gold and silver industry, Bitcoin is also a ubiquitous tool.

Why Doesn’t the Country Ban Bitcoin?

According to CCN, the US Securities and Exchange Commission (SEC) has recently defined cryptocurrencies as commodities. However, the agency stated that Bitcoin does not meet the securities attributes defined by the Investment Company Act. This means that anyone can buy or sell it to make a profit; if someone buys Bitcoin but does not receive the corresponding returns, this situation would become very unfair and could result in fines of up to $1 million or even more. So why doesn’t the country ban it? The reasons are as follows: First, Bitcoin’s anonymity makes its price easily susceptible to fraudsters, making it prone to fraudulent activities and money laundering. Second, although most investors use Bitcoin for payments, these digital assets have a high speculative nature, hence the high risk. The third reason is due to the drawbacks of Bitcoin’s anonymity, which prevents them from fully controlling the source of their funds and the use of income generated by using Bitcoin.