If you wish to use bitcoin for making transactions, perhaps you would like to assume that it is legal. The primary reason for the same is it nowadays, people are adopting the ecosystem of digital tokens. Moreover, digital tokens like bitcoin can deliver more benefits to people; therefore, anyone is willing to accept them. But, apart from this, you need to be very well aware that bitcoin is not legal. Yes, even though there has not been an utterly illegal status for bitcoin, some nations of the world where I got bitcoin as a not-so-fitting digital token for trading and investing. Apart from all this, some nations do not support the concept of bitcoin because they believe it is fatal for financial stability. So, many things are standing in the way of making bitcoin legal, and you need to know them. If you are interested in bitcoin and Ethereum read more about Bitcoin vs. Ethereum: a detailed comparative analysis.
The concept of cryptocurrency is way older than bitcoin. However, bitcoin came in 2008; people started to know about it. Every other digital token came after bitcoin that we are using nowadays. Moreover, bitcoin gave rise to the popularity of the non-fungible tokens, which are pretty exciting topics of discussion and use nowadays. Many people have invested money in non-fungible tokens to make money. However, the main reason why people should invest in the non-fungible token is to collect some unique items. It must not be merely for selling them in the future and earning profit. It is to initiate collectables and art so that artists can make money. But, regardless of what thing is created for, people use it for their benefit.
You might have seen by now that the cryptocurrency nature is very fluctuating. Regardless of what cryptocurrency is used for trading or making transactions, you will find it fluctuating. So, it is tough to decide if the valuation of bitcoin will be higher or lower in the future. Therefore, if bitcoins are supposed to be legal, they should also have a perfect valuation. But, due to the fluctuating nature and the volatile price movements, people find it very difficult to fix a particular price for bitcoin.
Difficult to control
You might have seen that many people speculate about bitcoin, but they failed to reach the best point that bitcoin will reach. Well, it is all because of the fluctuating nature of bitcoin prices. You can speculate in bitcoin, but the accuracy is minimal. There is only luck by which you can easily make money through bitcoin speculation. However, in most cases, the speculations turn out to be wrong; therefore, you may fall into a pit of losses.
No central authority
The intention behind creating bitcoin is to provide people with a decentralised mechanism. Therefore, no central authority was created to regulate and control bitcoin. However, it would help if you understood that when there is no central authority in regulating a particular investment opportunity, it can go out of the hands of the investors. Moreover, it can act as a bubble and burst at any time. So, the uncertain future of cryptocurrency without any centralised media makes it very difficult to legalise it.
No physical basis
Every legal thing exists in the physical world. Yes, you might have witnessed many things in your life, one of which is digital currencies. Digital currencies, which are an Internet version of the Fiat currency, are very well popular nowadays. Cryptocurrencies inspire them, but they are much more reliable because of their physical existence. Something is backing Them, and therefore, they can be regarded as the best option for investment. On the other hand, legalising cryptocurrencies is complicated because they do not exist physically.
The white paper rules
Even though there are no rules and regulations for controlling bitcoin prices or making it legal, there have been Some critical things in the white paper. Even though the white paper does not restrict its uses, it also specifies a few things about its nature. If the cryptocurrency becomes legal, it will have to be controlled by the government; therefore, it will no longer remain a crypto coin. It will be a digital token of the Fiat currency, which is not what the white paper specifies.
Difficulty in fixing price
Due to the highly fluctuating nature of cryptocurrencies, people might find it difficult to speculate on the prices. People can speculate when the prices keep fluctuating, but they can never be sure. The same will be the case when people try to regulate bitcoin and fix a particular price. Whenever a price equilibrium is achieved, it will again fluctuate; therefore, designing one particular valuation for bitcoin is next to impossible, making it impossible to legalise it.