A payment system created by Satoshi Nakamoto, Bitcoin was released around 2009 as a free-source source software. Although, Nakamoto’s identity has remained a mystery and has never been known, Bitcoin however became the Bitcoin has developed greatly from being insignificant to be the most famous trend among its kind, and is now being called a ‘cryptocurrency’, a digital asset.
Bitcoin’s most unique characteristic is not likely with the traditional and conventional currency that is usually printed, but it’s a kind of electronic payment system which is highly based on a mathematical proof.
Conventional currencies are being controlled by centralized banking system but for Bitcoin who isn’t controlled by any single institution, it is now being treated by the US Treasury as a virtual currency that is decentralized. The purpose of Bitcoin’s existence is primarily to create an entirely independent currency from any central authority, as well as can be instantly transferred electronically with almost zero to none transaction fees.
Towards the end of year 2015, the merchant traders available that accepted Bitcoin as payments for goods and services went beyond 100,000. Financial regulatory authorities and major banks like the Banking Authority of Europe for example have informed that Bitcoin users aren’t protected by refund rights or chargeback, even though the major financial center’s experts confirmed that Bitcoin can give valid and legitimate financial services.
However, the criminal’s increased usage of Bitcoin have been specified by law enforcement agencies, financial regulators and legislative authorities as a huge cause of concern.
Azteco, a bitcoin voucher service owned by a certain Akin Fernandez have remarked that there will come a certain time where the manner the Bitcoin is generated will be changed sooner or later. The Bitcoin generation’s rate everyday will be “halved’ literally that will cause to change the Bitcoin’s perception completely, even though it has been always difficult to predict the people and the merchant’s reactions to such kind of move.
It has been predicted that the volume of Bitcoin transactions is concluded to triple this year since it’s highly probable that they will with a Donald Trump presidency. There are observers of the market have viewed as well that the digital money’s price could spike in case of such probability will happen prompting market turmoil worldwide.
The Panama Papers outrage that emerged around May this year caught the attention of the European Union with regards to fighting of the powerful and rich’s strategies to tax avoidance in order to accumulate wealth by having new standards.
The present guidelines aims to end the loopholes and one of the measures suggested are endeavors to stop trading anonymously on digital currency platforms such as Bitcoin. Significantly more research must be executed by the Banking Authority of Europe as well as their Central Bank with regards to the best systems to manage the virtual currency’s standards since as of now, no EU legislation is available to govern them.