Crypto, From every part of the globe, the new global trend is encountering major issues. The safest currency is backed by the safest technology, Blockchain. However, countries like China have completely banned it, and it is currently trending in India that India may introduce legislation to regulate cryptocurrencies, as well as reports that India may ban only private cryptocurrencies. Almost all coins dropped by 25% as a result of this revelation. Crypto was designed for a free market and, above all, is unrestricted by government rules. In a perfect world, the free flow of cryptocurrency would be a visible item to keep an eye on, but in ours, crypto has found its way into every unlawful activity, including money laundering, drug trafficking, fraud, and terror financing.
Cryptocurrency is a marvel of financial technology. Whether or not certain countries accept it. Until now, crypto has been free-flowing in some financial markets, while it has been outlawed in others. To ban cryptocurrency is to choose to be disabled for the rest of your life. I disagree with its prohibition but not with its regulation. Even yet, everyone will call for it to be independent of the government. And, from time to time, every government will issue a regulation, causing it to lose confidence. It is currently free-flowing; you can exchange it for anything with anyone and you are not required to pay any tax to anyone.
Regulating the cryptocurrency will benefit the government by monitoring and trading and will certainly make some capital from it. Without regulating central banks may feel it erode their monetary sovereignty. For example, Bitcoin is nothing but backed by an algorithm while stable coins are backed by reserved dollars. The stable coins may give hope to its holder to switch national currency and make national currency stay out of activity. Central banks will lose the ability to regulate monetary policy and inflation. These stable coins will only make dollars even stronger and stronger and hence the country that uses the dollar may never regulate them.
There are also certain issues with cryptocurrencies, such as investors investing money in a cryptocurrency other than domestic money, which will benefit the investor but injure central banks by increasing outflows of local currency. As a result, economic instability will emerge. Cryptocurrencies, on the other hand, are more volatile. Bitcoin, for example, has varied between $1000 in 2017 to $60000 recently. The swings aren't making a difference in the market right now, but at this rate, the cryptocurrency will undoubtedly make a difference in the economy's stability.
In terms of cryptos, I am more bullish. I believe it can function well in the market if rules are kept to a minimum. At the same time, I am concerned that it may lead to the emergence of a new binary society. Some will take advantage of non-crypto holders, while large crypto holders will gain an unfair edge from the government. However, it is only a matter of time before it completely replaces the nation's money. However, Crypto must finish the marathon and let the rising star shine in the dark world.
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