Is Bitcoin Legal

Is Bitcoin Legal?

The concerns on bitcoin’s legality

Why is this?

Fiat currencies such as dollars, pounds, euros and others are created and controlled by a central authority, the central bank. They have the law's backing, which means citizens can buy, sell, or keep the currency. If anyone tries to create or falsify the currency, they would be convicted. However, bitcoin isn’t like fiat currencies, and legislative policies about bitcoin are still fluid.

Another reason why people may be sceptical about the legality of bitcoin is its anonymity features. Although all transactions are publicly recorded on the blockchain, a bitcoin user's identity can remain completely anonymous. This is because the records displayed on the blockchain contain only the amount transferred and the public keys used.

Bitcoin’s status across the world

In fact, at the end of the first quarter of 2020, countries like U.S.A, United Kingdom, Japan, among other developed countries, legalised bitcoin use. Even though countries like China may have heavily restricted bitcoin, holding bitcoin isn’t a crime. In fact, in March 2021, Chinese company Meitu announced that its subsidiary Miracle Vision had purchased more bitcoin and ether. The company noted that it now has about 16,000 ETH valued at $28.4million and 386.086 BTC valued at $21.6 million. With its recent addition, the company has in its possession cryptocurrencies valued at over $90million.

Final thoughts

Disclaimer: This article is meant to provide general guidance and understanding of cryptocurrency and the Blockchain network. It’s not an exhaustive list and should not be taken as financial advice. Yellow Card Academy is not responsible for your investment decisions.