With all of the negative publicity related to drugs and investment scams found whenever Bitcoin is mentioned in the mainstream media, there are plenty of people out there who believe that the digital currency is illegal. While there have been harsh statements made in regards to Bitcoin by certain governments around the world, it still remains completely legal to use or trade Bitcoin almost everywhere. Let’s take a closer look at the legal questions surrounding Bitcoin right now and where they may go in the future.
Bitcoin is the first and most popular cryptocurrency. Due to its decentralised nature, the price of Bitcoin is not controlled by any government, organisation, or company. Hereby, all our experience with price determination of traditional fiat money is not applicable in this case. Furthermore, Bitcoin price fluctuations are a subject for trading Bitcoins and earning on the price difference. To predict the next rise or drop in the Bitcoin price, it’s good to know what makes it do so.
In the early days of Bitcoin, many critics would point out the fact that the digital commodity could not be considered money because there really wasn’t much you could do with it. Although there were a few websites that sold niche items, such as alpaca socks, there wasn’t really any chance for someone to rely on bitcoins for daily purchases. For better or worse, Silk Road was the first website to actually show that bitcoins have value as a payment system.