Currently, the cryptocurrency market is a bit like the Wild West. It’s unregulated, it offers a dose of anonymity that can easily be abused, and it seems impossible to control. Since it’s not regulated by the government, the current Bitcoin price varies wildly from day to day. Even though transactions are not taxed, they’re legally subject to taxation, something that’s not always easy for the government to enforce.
From the emergence of Bitcoin and Ethereum, all the way to Facebook’s Libra, blockchain technologies and crypto have been raising dust and changing the concept of finance as we know it. We know the whole thing’s exciting and innovative. But is it safe? Since cryptocurrency transactions operate on open online ledgers, the need for a trusted intermediary is completely eliminated.
Given the fact that banks build their entire business on being trusted intermediaries and handling transactions for other people, the very existence of cryptocurrency exchanges is an affront to them. Banks are worried, governments are terrified, financial experts are torn between glee and gloom, and consumers simply don’t know what to think.
infographic by; fortunly.com