Is Bitcoin Legal?
Although many people and potential investors have wondered about the legitimacy of Bitcoin, is Bitcoin legal? Yes it is – it is a completely legal and acceptable form of payment for many online retailers. Theoretically, only individual states could ban cryptocurrencies like Bitcoin, however, there are no plans to move in this direction.
On the contrary, the first states are already considering the introduction and full acceptance of cryptocurrency. In times of technical renewal, the more relevant question will soon be whether traditional currencies, such as the euro or dollar, still meet people’s needs.
Bitcoin, on the other hand, stands for the quick processing of purchases and can be conveniently stored on e-wallets. Last but not least, to find out is Bitcoin legal, it stands for a high level of privacy, a value that is increasingly under pressure from society.
Safety is also a top priority at Bitcoin. Encryption over the blockchain makes it almost impossible for third parties to access private transaction data. Bitcoin also stands for rising prices and thus high-value stability. Since its launch in 2009, this cryptocurrency has been able to multiply the price per coin.
Meanwhile, the $15,000 mark per Bitcoin could soon be cracked. An end to this development is not in sight. This should be proof enough for the question, is Bitcoin legal.
Legally, investors are on the safe side with Bitcoin, but beware – possible price gains may need to be taxed.
What does its legality depend on?
In each country, there are financial supervisors who check the security of various investment products. Since Bitcoin is not spent or mined by states, but rather privately, the government regards it as an investment.
As such, it checks whether the Bitcoin is based on a fair and legal concept. Since this is the case, every private investor can trade with the coins on request. In addition to downloading a wallet software, it may also be necessary to register on a Bitcoin exchange.
Other aspects that are repeatedly investigated are so-called pyramid schemes. These can only last as long as existing users can advertise new customers.
With Bitcoin, this is not the case. Instead, it is an innovative concept that essentially does not differ from traditional money planning. Rather, it can be said that Bitcoin brings the previously common monetary system into the 21st century.
Online purchases play a central role and physical money in the form of coins and bills is losing more and more popularity. In addition, every transaction should be handled by smartphone.
This is also the case with Bitcoin. As a pioneer in the investment class of the crypto field, the future of Bitcoin is looking bright.
Will Bitcoin be banned?
Questions of whether will remain Bitcoin legal, have and will continue to be asked for at least a little while longer. This is due, in part, to the fact that many online forums have incited panic by suggesting selling Bitcoin before it is banned.
Behind such statements is usually the aim of buying many coins at a low price. In fact, there is no reason to fear that cryptocurrency will soon be banned. After all, even the state benefits from it to some extent, namely, when investors have to tax their Bitcoin profits.
This is always the case if the coins are repelled after less than a year. This period is also known as the speculation period. Although there are exceptions to the rule, the amount of tax usually depends on the personal income tax rate.
In addition, it would be far from easy for the state to ban Bitcoin just like that. The hurdles set for this are high and so far not a single party has advocated or even sought such legal action.
The question “will it remain Bitcoin legal” can, therefore, be answered with a clear “YES” for the reasons mentioned above.
Are there reasons for banning cryptocurrencies?
In countries with authoritarian systems, it may make sense for the respective ruler to ban Bitcoin. After all, the Coins as a cryptocurrency are a promising alternative to traditional money.
Citizens could sooner or later decide against the national currency and clearly for the Bitcoin. The consequences of Bitcoin legal?
The national currency expires and it would be increasingly difficult for the state to borrow money on the markets on good terms. However, a change of perspective from the state to the citizen shows one thing quite clearly—private investors benefit enormously from Bitcoin and other cryptocurrencies, which is why a ban would be at the expense of ordinary citizens.
Either way, it will be exciting to see how Bitcoin evolves in the future. It shouldn’t be too long before the coins can be used not only online, but also in tried and true supermarkets.
It would make life easier for people and it would be easier than ever to spend money wisely, after being the Bitcoin legal.
Bitcoin legal in Germany and elsewhere
At the moment, this question of whether Bitcoin remains legal can only be answered with a clear and resounding “YES”. The barriers to such a ban are high throughout Europe and the move would clearly be at the expense of the citizens.
Therefore, apart from a few authoritarian states, no government has an interest in restricting citizens’ rights with such a ban. After all, states already benefit from Bitcoin through taxes.
Bitcoin and other cryptocurrencies are the currencies of the future and simplify the lives of all citizens.
Alexander Weipprecht is the managing partner of Provimedia GmbH. As a trained IT specialist for application development, he has been advising leading companies on the following topics for more than 10 years: online marketing, SEO and software. Cryptocurrency is becoming increasingly important to businesses and investors. Through Coin Report and Krypto Magazin Germany, Alexander wants to give all people easy access to the subject matter.