Cryptocurrencies have managed to come a long way since 2008. When the first cryptocurrency was established in this year, nobody thought that they would touch the heights that they have reached. Some studies show that there may be as many as 7 million crypto users in the world.
But even though they have tons of advantages over regular payment methods, many governments around the world still consider them as outlaws. That is exactly the topic that we wanted to discuss in this article. We are going to take a look at the reason why so many people are fond of cryptocurrencies, what is their legal status and what the future holds for them.
Why Are People Fond of Them?
As mentioned above, cryptocurrencies are superior to regular payment methods. They provide users with instant transactions, greater security, and they allow them to void unnecessary fees. But the main reason why people are so fond of them is that they provide them with a chance to make a profit.
Let’s take Bitcoin as an example. This cryptocurrency holds a price tag of around $40,000. Additionally, the second-most valuable cryptocurrency is valued at $2,000 (Ether). As you can see, they are extremely valuable and successful traders make a significant profit by trading them.
If you are wondering where the process of buying and selling cryptocurrencies takes place, the answer is trading sites. The only thing that you need to do to gain access to these sites is register. The good thing is that registration at reputable trading platforms such as Prime Advantage is very fast and simple. It is easy to complete, regardless of your age and skill.
Now, let’s check their legality.
Cryptocurrencies are In the Law’s Grey Area
Considering the fact that cryptocurrencies are still new to the market, most of them fall in the law’s grey area. That means that the countries do not have specific regulations about them. Hence, they are not illegal, and people can trade with them.
But, since Bitcoin is a bit more popular cryptocurrency and a majority of crypto users trade with it, some countries around the world have created laws about this specific digital asset. With that being said, the countries that have deemed Bitcoin as an illegal asset are China, Russia, Vietnam, Bolivia, Columbia, and Ecuador.
In all other countries, such as the USA, Bitcoin is treated differently. Here, it is not classified as a currency, but rather a money services business. Hence, using it as a payment method is allowed, but it is subject to property taxes.
El Salvador is the Only Country That Has Legalized a Cryptocurrency
The only country in the world that has completely legalized a cryptocurrency is El Salvador. Recently, the country’s Congress ruled in favour of legalizing Bitcoin as El Salvador does not have an official currency.
Considering the fact that Bitcoin can be used as a payment method, the president stated that by legalizing it, it will be easier for Salvadorans who live abroad to send money to their friends and facility without having to pay fees on exchanges.
What is their Future?
The future of cryptocurrencies is very hard to determine. That is due to the fact that they cannot be controlled by governments and bank have no possession of them, so they cannot make any profit from the transactions. Just a reminder, banks often impose added or hidden fees on online payments with regular methods and that are the number 1 way through which they make money.
Since banks and governments are key factors in law-making decisions, it is unlikely for cryptocurrencies to be fully legalized in the near future.