Why Bitcoin Can’t be Cashed Out (Why Bitcoin Hasn’t Been Banned)

Why can’t Bitcoin be cashed out? Editor’s Note: This article is from Orange Book (ID: chengpishu), authorized by Odaily Planet Daily for reprinting.

Why can’t Bitcoin be cashed out?

In the world of blockchain, everyone knows who they are. But the oldest currency in the world is the US dollar, which is what we call gold. Its market value is about 10 trillion yuan, and it is currently less than 100 billion yuan. There is an unknown aspect in the world of all financial assets – fiat currency. If fiat currency is compared to the legal digital currency of a country, can you say it has no value? So why hasn’t Bitcoin emerged? Let’s take a look at it from two perspectives:

1. Why did Bitcoin have problems?

Many countries currently do not issue their own legal digital currencies;

2. Developed economies such as China and Japan have a poor attitude towards cryptocurrencies, and the policies of most regions in China are relatively relaxed. 2. US regulatory agencies believe that Bitcoin, as a speculative investment product, has certain risks and will be subject to government regulation, which means they will not be allowed to be traded or circulated; 3. Due to the prohibition of cryptocurrency-related activities in various countries, Bitcoin cannot be used as legal tender as defined by some countries. All these are because our country has always been unfriendly to virtual property, especially in China. For example, the overseas banking system in the United States is already very mature. Even abroad, many companies have begun to get involved in Bitcoin, but they don’t really understand what true encryption assets are. 4. Bitcoin itself is a gambling game, and many people think it is a form of gambling or fraud, so they follow suit. After Bitcoin stood out, people discovered its flaws, such as its excessive price volatility and extreme market conditions, leading to drastic price drops. The reason why Bitcoin is in this situation is mainly because its consensus mechanism is not particularly strong, and it cannot guarantee its stability and security. 5. Members of the Bitcoin community do not acknowledge whether he is really a criminal, and some even call him a “fraud”; 6. Many exchanges are following market developments and continually improving their systems, forming a large interest group, which in turn affects the operation of the entire market, ultimately leading to its declining reputation.

Why Bitcoin Hasn’t Been Banned

The value of Bitcoin has always been controversial because it is a digital currency, and its price and scarcity make its volatility and practicality higher. However, in recent months, the US government has already banned Bitcoin trading.

Why? Because these regulations are targeting the field of cryptocurrency, and US President Joe Biden’s attitude towards the industry seems to be not as good. In the Wall Street Journal released in March 2020, the billionaire pointed out, “We are now at a global crossroads.”

But at the end of 2017, US lawmakers began considering regulating Bitcoin as legal tender rather than securities. 1. California State Financial Services Department (FSB). FSB stated that they are “studying” how to use California’s fiat payment system – which may make it easier for banks to accept unmanaged payment methods such as Bitcoin. 2. The Royal Canadian Institute of Sciences has approved the permission to allow investors to buy and sell Bitcoin and other cryptocurrencies. 2. The Governor of the Bank of Japan: Will not ban any cryptocurrencies priced in US dollars. 4. The Swedish Tax Agency: No plans to ban cryptocurrencies. 5. The Russian Minister of Finance: Tax benefits cannot be obtained through Bitcoin or other cryptocurrencies. 6. On May 13th, the New York Times reported that if a law is enacted and implemented, the Caribbean region can exempt partial goods and services taxes. 7. Deputy Governor of the Bank of England: Bitcoin should not be regarded as an investment product or a substitute for currency. 7. French Finance Minister Le Gate: There is currently no policy support for Bitcoin. 8. Li Dongrong, Chairman of the China Blockchain Application Association: The central bank should develop trustworthy technology for enterprises. 10. Former head of the US Department of Justice warned against involvement in illegal activities. 12. SEC Chairman Gary Gensler suggested, “I believe that all countries need to take measures to protect consumer interests.” 11. US congressmen request the formulation of relevant laws on cryptographic technology. 12. Members of the European Commission: Bitcoin is not legal tender. 1. After the establishment of the Federal Deposit Insurance Corporation in the United States, Bitcoin has become a popular investment tool. In addition, due to concerns about the speculative nature associated with gold and potential hacking attacks, the US Congress has also made some suggestions. But in the end, the US Securities and Exchange Commission chose to give up.