Centralized currency makes the government and banks exert their economic influence over its people or other countries. They also command how currencies can be transferred, enabling them to trace its movement, dictate who profits from such movement, implement taxes on it, and trace unlawful activity. All control is lost when non-government bodies create their own currencies. With the advent of the bitcoin wallet, governments fear economic slowdown as it won’t be able to handle the flow of money in its country which is a vital power needed to control inflation or recession, which is essential to its fiscal policy.
The crime rate has increased or decreased?
Many crimes have been reported when it comes to decentralized currencies. Websites that sold drugs used Bitcoins for the transactions as they are untraceable. Several hacks have been administered and around $8.6 million has been lost in earlier transactions. Proper care has to be taken by users like creating system backups and using antivirus.
- Future of Bitcoin
It is safe to say that cryptocurrencies are going to be there in the long run. You can use them to buy videogames or other products online. Even at regular stores around the world. However, Bitcoin is not a currency with a legal tender category in any territory and based on the regulatory actions of many nations, that status won’t be changing anytime soon.
The final word:
Digital currency then evolved from plastic cards to online wallets, or e-wallets, that worked similar to bank accounts. Using bitcoin wallets was easy and it made it easier to generate huge profits. To make a transaction, instead of a cheque or cash, you could just transfer your money with a click of a button. In the age of e-commerce, there is little need for cash.