Bitcoin- the Cryptocurrency is Banned in Some Countries
A cryptocurrency is a digital currency founded on Blockchain technology that uses cryptography as a way of security. Perhaps, Satoshi Nakamoto is a brilliant person or a pseudonymous name for a team of geniuses that invented the first bitcoin in 2008.
cryptocurrency is merely a medium of exchange. It is a digital asset, which is planned to check financial transactions are safer using powerful encryption, to track the output of additional units, and to display asset transfer. Unlike the centralized dominant and regulatory system of digital currencies and banking, cryptocurrency uses decentralized monitoring methods.
Why is Bitcoin the Cryptocurrency Prohibited in Some Countries?
The demand for cryptocurrencies is rising every day. Bitcoin is the most broadly used form of cryptocurrency. Despite improving in popularity, cryptocurrencies are prohibited in some countries. Saudi Arabia, Algeria, Bolivia to name a few.
Let us check why come countries consider Bitcoin as a threat to the nation;
In some countries, Bitcoin and other Cryptocurrencies are reasoned troublesome as they cannot be monitored or organized by the government and financial institutions. Whatever justification a nation furnishes for banning crypto, it is all about keeping the standard of its financial system.
The cryptocurrency market appeals to people and criminals connected with tax evasion and money-laundering.
Our traditional banking institutions, which are accepted by most governments, are being challenged by the cryptocurrency division. This means transactions take place right in our normal banking system and can be carried out by a person who has not used the bank before, making it hard to track the transaction.
For religious rationale, Saudi Arabia has outlawed Bitcoin, a controversy that it is different from Muslim law. Iceland forbade Bitcoin to assist itself against too much money leaving the country. On the simple ground that it does not control, it was prohibited by the Bolivian Government.
In 2015, Ecuador issued its national cryptocurrency as an amenable scheme connected to the local currency, adding convenience to orderly transactions. More countries have lined up to launch their digital currency.
CBW - External Analyst