While Bitcoin Promises to be the solution to the international money transfer issue, people are still afraid to implement it because of one reason: It’s not regulated. Regulation is whereby a government or concerned authority makes rules to control how something is undertaken or the way that people behave. However, at the moment, Bitcoin is not regulated, and most governments across the world have not been able to control the acquisition and use of Bitcoin. That means any central bank can’t control the way Bitcoin is generated and used. But Bitcoin regulation can be a good thing for buyers, sellers and exchanges. Here are the advantages of regulating Bitcoin activities:
Regulation of Bitcoin will reduce scams
Bitcoin is a relatively new technology, which means few people know its dynamics. In other words, most people who are looking to invest in Bitcoin don’t know its roots and how it works. Such people can easily get scammed. Regulation means Bitcoin will be a legal system and so the government will dedicate a ton of money for its awareness. If any government spearheads anything, awareness can spread like wildfire. Part of the awareness effort will include educating people on how to spot scams, and this can help minimize scam statistics.
Bitcoin exchanges will be streamlined
Bitcoin exchanges are not regulated, which means they can charge any transaction fee they want without consequences. Bitcoin owners and investors bear the biggest brunt when Bitcoin exchanges impose hefty transaction fees. It negatively impacts their profit margins and can make the whole Bitcoin investment process worthless. With regulation, these exchanges will be closely monitored, and a cap will be placed on the highest percentage they can impose on transaction fees. And this can ensure Bitcoin owners and investors get decent profits.
Someone will be accountable in case of Bitcoin hack
Bitcoin is the safest cryptocurrency out there. But despite that, more Bitcoin exchanges are hacked each year. The sad part is that nobody takes responsibility whenever a hack occurs. The owners of the stolen Bitcoins have no choice but to suffer in silence. With regulation, the government will require that the Bitcoin owners be compensated if it was their fault. This will compel Bitcoin exchanges to fortify their platforms to prevent any hacks from occurring.
With regulation, people will not be skeptical about the safety of the network. This will allow Bitcoin to truly grow and become the currency of the future.