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  • Essay / The Growing Popularity of Digital Currencies - 536

    Digital currency is a kind of electronic money, which has gained popularity and attracted the attention of many entrepreneurs. It differs from other electronic money because it is a cryptocurrency. This means that no one can track the transaction. The most widespread cryptocurrency is Bitcoin. As a new product on the market, digital currency has become a very controversial topic. Indeed, it is difficult to decide whether this is a successful venture or not. Currently, the product has more disadvantages than advantages. First of all, digital currency is not secure enough. According to the official Bincoin website, “Bitcoin on mobile lets you pay in two simple steps. » This means that a customer does not need to create an account, sign up and swipe their card. It seems like an advantage that a person can stay incognito and buy time, but it becomes less secure. The official Bitcoin website warns that encrypted transactions are not absolutely secure. Not being tracked does not guarantee security. Users are not insured using cryptocurrency. Traditional e-money, which can be tracked, has more advantages in this case. Another weakness, which makes digital currency incomplete, is that bitcoin is not controlled by the central bank. Payment is made directly between users, without an intermediary. This attracts many people, including thieves. Being unable to control bitcoins, few countries have made the cryptocurrency illegal. There are also a number of countries that have not made it illegal, but rather have created specific laws regarding bitcoins. For example: “Meetings with policymakers in the UK in September suggested that bitcoin-based companies would not be required to register with regulators, at least for now, while they consider their regulatory position. The UK's newest post suggests that bitcoins will not be treated as money, but will instead be classified as single-use vouchers, which could attract a value-added tax (sales tax) on everything bitcoin sold. most advanced country in regulating Bitcoin and virtual currencies. Although some issues remain unresolved, the German government has exempted Bitcoin transactions held for more than a year from the 25% capital gains tax. He also classified bitcoin as a form of private money. Finland released a bitcoin regulatory guide in September, which imposed a capital gains tax on bitcoins and taxed bitcoins produced by mining as earned income. Swedish financial regulator Finansinspektionen now considers bitcoin as a means of payment, according to guidelines. issued last year. Exchanges must register with it and meet the requirements faced by other financial institutions.” (coindesk, 2013) Regardless of the fact that bitcoins have these disadvantages, their popularity is growing more and more. Some small businesses, like travel websites, have