Bitcoin and Cryptocurrency
What made Bitcoin so revolutionary was the fact it was the first widespread decentralized currency. No central bank or authority is dictating policies on the currency. In its place, developers, hard-line code, and a robust community would dictate changes.
While Bitcoin has, for the most part, run its course unaffected by legal authorities for the first nine years of its life, countries all over the world are finally beginning to acknowledge cryptocurrency as something to stay.
The U.K. stated last week comparing cryptocurrency to the “wild west,” urging the Financial Conduct Authority (FCA) to prioritize overseeing this sector. Within the same period, New York’s attorney-general office published a report filled with concerns about market manipulation and lack of investor protection.
A similar sentiment echoes around the world, including the Reserve Bank of India of which is primarily concerned about how crypto will affect their economy. As time goes by, headlines like this are only going to become more common. The interesting question isn’t if cryptocurrency will be regulated, but rather when and how.
Still, while many recoils at the idea of this, maybe regulation is just what the doctor ordered.
Why Regulation Would Be Good for Bitcoin (and Crypto)
Bitcoin’s newest peak was at the end of 2017, where it reached new records of price and media mania.
Anything that involves numerous large investors and an asset that’s as volatile as bitcoin is undoubtedly going to attract attention from everyone, including regulation.
The same thing is occurring in the stock market, with marijuana stocks from the likes of Tilray being scrutinized heavily by the American SEC and even being compared to the cryptocurrency buzz due to its volatility only two months after its IPO.
— Bloomberg Crypto (@crypto) September 19, 2018
However, the stakes are much larger than a quick buck for Bitcoin. With numerous banks, major corporations, and prominent figures betting large on cryptocurrency, regulation will be needed to not only help mitigate risk but also to continue further attracting new interest.