Why Bitcoin Cannot Be Counterfeited (Why Bitcoin is not recognized by the government)

Why Bitcoin cannot be counterfeited? Today, let’s talk about these topics.

1. The issue of authenticity of Bitcoin

2. Bitcoin as “programmable currency”

3. Bitcoin as the foundation of decentralized finance (DeFi)

4. Price fluctuations of cryptographic assets

5. Bitcoin has risen by more than 30% in the past year

6. Bitcoin’s market value grew to nearly $1 billion from January 2018 to the end of February 2019

7. BTC price is related to the trend of gold

8. Soaring transaction fees of Bitcoin

9. Increasing mining difficulty of Bitcoin

10. Bitcoin block size increased and reduced network congestion

Why Bitcoin is not recognized by the government?

On June 23, 2018, at the Senate Banking Committee on Banks and Chancery in California, US Congressman Brad Sherman said, “I believe this is a disaster. Without any legal constraints, Bitcoin will forever be the only legitimate currency in the world.” This legislation aims to protect investors and citizens from the risks of digital assets. “We have recognized the importance of Bitcoin as a store of value, medium of exchange, and payment tool.”

As for whether the US Congress should regulate blockchain technology, he said that although it has benefits for the financial industry, it may also harm people’s quality of life and cause harm to them. So the US government will definitely support this view. However, if other institutions want to participate in the development of this new technology, they must consider the complexity and severity of this issue, because it is still unclear how the government approves cryptocurrencies like Bitcoin or just bans them. In addition, one reason is that these innovations need to establish a connection with the nation, making it difficult for Bitcoin to be widely used, especially when it comes to privacy.

To ensure that the US government can profit from Bitcoin and other virtual commodities, rules must be established to prevent money laundering. According to CoinMarketCap data, the global Bitcoin trading volume in 2019 was $8.36 billion, higher than the historical peak in the first quarter of 2019 (Bitcoinist).

In addition, Bitcoin has received support from many organizations around the world, including the International Trade Association, the World Food Program of the United Nations, the World Economic Forum, researchers from MIT, the University of Guyana, and the University of Cambridge.

According to The New York Times, the British Chancellor of the Exchequer is seeking to “block” the use of stablecoins, although the plan may lead to some companies shutting down their operations and being unable to comply with anti-corruption regulations, such as the prohibition of funding for those not under sanctions. However, theoretically, governments can deal with such challenges with their resources, “like they have for the past few centuries”, and governments cannot allow private entities to issue their own tokens, such as Facebook or Twitter.

However, in any case, cryptocurrencies like Bitcoin can still maintain a good market position, even if they depreciate as the price of Bitcoin continues to rise. On the other hand, companies behind Bitcoin also face many controversies, with the most notable being the recent statement by the Chairman of the SEC, Jay Clayton, that “the SEC is working to demonstrate that Bitcoin is a safe and traceable way”.