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Regulation and Legislation of Cryptocurrency

In this article, we will take a look at the role that cryptocurrencies play today and at the changes that may happen for them in the future.

More and more things are going online these days and monetary transactions and business are no exception. You have probably heard about cryptocurrency and all the potential it supposedly possesses. Maybe you are thinking of investing in it or perhaps even mining it yourself. Cryptocurrency can be difficult to get a proper grasp on, but essentially speaking it is a form of digital currency that is not controlled by banks, financing companies, or any other outside interests. It is therefore a completely free and decentralized currency. It is completely digital and does not exist outside of the internet. Basically, cryptographical functions are used in order to conduct financial transactions using cryptocurrencies such as Bitcoin and Ethereum. Cryptocurrencies utilize blockchain technology to obtain decentralization, transparency, and immutability. In this article, we will take a look at what exactly cryptocurrency is and what it could possibly be in the future.

Deal with Cryptocurrency and Blockchain

Cryptocurrency appeared pretty much out of nowhere in 2008 when the unknown and secret creator, with the alias Satoshi Nakamoto, accidentally invented a peer-to-peer electronic cash system with the first cryptocurrency, Bitcoin. The main thing about Bitcoin (and other cryptocurrency) is that it is decentralized. It is not subject to the same regulations as banks or other currencies and, because it is digital, it transcends borders, which basically makes it a free currency that cannot be controlled by banks or governments.

Because of its decentralized nature, cryptocurrency was recently debated in the Supreme Court, where the legislative side of it was discussed. We will get back to the legislation in a second, because cryptocurrency is actually already well-regulated in most states and it’s not hard to imagine that cryptocurrency will play a large role in how we shop online in the future. There are already places that have implemented cryptocurrency as a payment option, and places like Amazon and Ebay are likely to offer the option at some point. You might even be able to use your Bitcoin or other cryptocurrencies to deposit money into gaming platforms, which are usually frontrunners when it comes to online payment options, or maybe even use them to pay for your UberEats on a Friday night. The possibilities are endless with cryptocurrency. We all know the importance of protecting our personal information online and Bitcoin is a secure and safe way of doing transactions that could be the key to the future.

Legal Side of Things

Photo: Unsplash 

When Bitcoin was created it became clear that only 21 million Bitcoin was in existence and no more will be created. Every once in a while, a Bitcoin is released and will need to be mined in order to become available. The mining of a Bitcoin is essentially the coin being released and the whole Bitcoin community then actively searching for a hash key through a rather complicated puzzle. Once that puzzle has been completed and the hash key has been located, the Bitcoin can be created and put into the blockchain. The miner now owns the Bitcoin and can add it to their wallet.

While cryptocurrency and blockchain mining is legal in nearly all countries, cryptocurrency is not (yet) legal tender. Although the exchange and transactions of cryptocurrency is legal and regulated in America. Because of the decentralization of cryptocurrency, Bitcoin and other cryptocurrencies exist in a deregulated marketplace. The transactions are nothing like regular bank transactions and, while it definitely seems that the market of cryptocurrency has gotten more secure and the transactions have become safer, there have been thefts of cryptocurrency in the past. Major corporations have had large amounts of cryptocurrency stolen and that does raise a security concern.

Payments with Bitcoin and other cryptocurrencies are subject to the same anti-money laundering laws and regulations as other currencies and legal financial transactions in the U.S., but there have been concerns with cryptocurrencies possibly being traded on the Dark Web. This is notoriously known for being extremely secure and out of reach for regular law enforcement agencies.

Cryptocurrency can be exchanged and traded across country borders with no limitations, however, the exchange rate can be quite steep sometimes because of the volatile nature of the unregulated currency. While cryptocurrency and the mining thereof is legal in America, it is actually illegal to have and mine in a few countries such as Australia, Canada, and Iceland.

Invest in Сryptocurrency

There are a few ways you can get started if you want to jump on the cryptocurrency band wagon. You can learn how to mine them and create your own or you can buy them from others. Once you have acquired your preferred cryptocurrency you will have to store them in a wallet. A wallet is online, which is more secure and preferable than the paper version of a wallet. There are a few platforms and online wallets that will help you get started with your new venture.

Altcoin News, Bitcoin News, Blockchain News, Cryptocurrency news, News

Julia Sakovich , 2020-06-17 18:00:21

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While Bitcoin’s price seemingly moves without rhyme or reason — collapsing by dozens of percent and embarking on face-melting rallies on a whim — the cryptocurrency market is filled to the brim with fractals.

Related Reading: Analyst: Bitcoin Price Likely to Fall to Low-$8,000s as Chart Remains Weak

A brief aside: A fractal, in the context of technical analysis and financial markets anyway, is when an asset’s price action is seen during a different time. This form of analysis isn’t that popular, but it has proven to be somewhat valuable in analyzing Bitcoin.

One recent fractal popularized by a well-known cryptocurrency trader is implying that BTC is going to return to the low-$7,000s in the coming days.

Bitcoin Fractal Implies Retracement to Low-$7,000s

A well-known crypto trader going by “Tyler Durden” on Twitter recently posted the chart below, which shows that a Bitcoin price fractal may be playing out. The fractal has four phases: horizontal consolidation marked by one fakeout, a surge above the consolidation phase, a distribution, then a strong drop to fresh lows.

If the fractal plays out in full, BTC could reach the low-$7,000s again, potentially as low as $7,100. This would represent a 20-odd percent collapse from the current price point of $8,800.

It isn’t only a fractal that is hinting Bitcoin has the potential to visit its lows. As we reported on Saturday, Bloomberg believes that if the GTI Vera Convergence Divergence Indicator flips red, a downtrend could push the cryptocurrency back to $7,300.

Related Reading: Stephen Colbert Pokes Fun at Bitcoin in Monologue: Mainstream Gone Wrong?

Can Bulls Step In?

But again, many believe it is irrational to have such bearish interpretations of the cryptocurrency’s chart at the moment. As reported by NewsBTC earlier, Popular crypto trader Mayne recently noted that the “people waiting for $6,000” are irrational. He quipped that Bitcoin retracing and consolidating after its fourth-biggest bull move in history ($7,300 to $10,500, a 42% gain) is perfectly par for the course, but noted that it’s totally possible we can go lower from $8,800.

The medium-term technicals support this.

Trader and CoinTelegraph contributor FilbFilb found that by the end of November or start of December, the 50-week and 100-week moving averages will see a “golden cross,” which he claims is far more significant” for the Bitcoin market that other technical crosses.

Also, a Bitcoin price model created using Facebook Prophet machine learning found that the leading cryptocurrency is likely to end the year at just over $12,000. What’s notable about this model is that it called the price drop to $8,000 months in advance, and forecasted a ~$7,500 price bottom for BTC.

To put a cherry on the cryptocurrency cake, Crypto Thies observed that when Bitcoin bottomed at $7,300, it bounced decisively off the 0.618 Fibonacci Retracement of the move from $3,000 to $14,000, which correlates with the two-week volume-weighted moving average. He added that summer 2019’s consolidation was marked by Bitcoin flipping major resistances into support levels, implying that a bullish reversal and subsequent continuation is likely possible in the coming weeks.

Featured Image from Shutterstock

Nick Chong , 2019-11-10 12:00:38

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