Bitcoin is not only legal in various countries but also a recognized medium of exchange. Several countries across the world continue to embrace the value of Bitcoin for several reasons.
Unlike countries such as Algeria, Morocco, Nepal, Bolivia, and Ecuador that have banned Bitcoin, several countries worldwide, including the US and the UK, have legalized Bitcoins’ use. Generally, the legality of Bitcoin mining is determined squarely by your geographic location.
With the growing competing interest with traditional currencies, Bitcoin mining has been banned to discourage the ripple effect on fiat currencies. This is why the use of Bitcoin has completely been banned in various countries.
So, why is Bitcoin mining allowed in some countries and banned in others? We put all that into perspective.
The risk in Bitcoin mining
The key risks associated with Bitcoin mining are regulatory and financial implications. Bitcoin mining has a serious financial risk to miners. To some extreme extend, miners can break the bank to purchase expensive mining equipment to fail to achieve a return on investment.
To mitigate risk factors associated with purchasing expensive mining equipment, joining a mining pool is an ideal option.
However, it is essential to conduct in-depth research about Bitcoin mining’s perception in various countries before investing in Bitcoin equipment.
While Bitcoin is welcome in many countries around the World, other countries are concerned about the volatility aspect of Bitcoin. Some of the notable factors that have led to the ban of Bitcoin in some countries include perceived links to illicit trade like money laundering and drug trafficking.
While some countries have banned virtual currency, others discourage crypto transactions in financial institutions. These are some of the drawbacks that are gradually crippling the spike in demand for Bitcoin.
Uncertainty about the future of Bitcoins
The uncertainty about the future of Bitcoin is another aspect that makes it challenging for various nations to incorporate it into their financial systems fully.
Coupled with high volatility and competition from other cryptocurrencies, the future of Bitcoin remains unpredictable. This is why most nations are skeptical about fully endorsing the currency for use in their system.
On the flip side, Bitcoin mining is accepted in several countries across the World. Crypto enthusiasts can not only mine but also trade the currency against fiat currencies on exchange platforms. Often recognized as an asset, Bitcoin users can carry out transactions across various platforms and pay using Bitcoin.
The following are a few countries that you should never dare trade Bitcoins
China cracks down crypto miners and has completely banned the use of Crypto in all banks and financial institutions. Payment processors are banned from accepting crypto or Bitcoin transactions.
Though Russia has not rolled out regulations guiding the use of Crypto in the market, buying goods and services through Bitcoin is illegal.
Though not regulated, the Vietnam government emphasizes that Bitcoin is not a legitimate method of payment.
Bolivia, Ecuador Columbia
Bolivia has banned the use of Bitcoin and other Crypto. On the other hand, Columbia has banned the use of Bitcoin for transactions or investments. However, Ecuador passed a vote in the assembly to ban cryptocurrency in their economy completely.
Most of the countries that have criminalized the use of Crypto in the economy banned trading Bitcoin and discouraged Bitcoin mining activities. This means before investing in any crypto mining venture, you have to review government policies regarding the use of virtual currency.
Failure to adhere to government policies related to the use of Bitcoin may land you in trouble and even unprecedented legal implications.
Despite being banned in some countries, the use of Bitcoin continues to gain momentum big time just read more here. Forex trading platforms, e-commerce industries, and several giant outlets are already accepting Bitcoin transactions.
With increasing concerns about online transactions’ safety, cryptocurrency has been embraced as a great alternative in supporting safe online transactions.
If you are wondering whether to mine Bitcoin or not, then you have to ascertain whether your country allows Bitcoin mining and transactions. Though the future of Bitcoin appears bleak, growing demand for Bitcoin makes it a perfect alternative currency for transactions.
Despite perceived volatility, the value of Bitcoin has been increasing big time. This is attributed to a limited supply of the currency that has led to a spike in demand. The bottom line, Crypto is legal in several countries across the World.