- Bitcoin is the most recognized and highly used cryptocurrency.
- The Bitcoin trends in the crypto market keep fluctuating.
- The government plays an important role in the trends of Bitcoin.
Bitcoin cryptocurrency trends in the market change due to the actions of governments all over the world. The government has to implement enforcement laws on cryptocurrencies to reduce the possibility of fraud and crimes.
Bitcoin Trends
Bitcoin, a crypto coin, is a form of digital currency just like other cryptocurrencies. It is not controlled by any government, authority, bank, or financial institution. Hence, it is decentralized, unlike our physical currency. It was the first established cryptocurrency, a digital asset that can be exchanged. It was developed by an anonymous Satoshi Nakamoto as a “new electronic cash system” in 2009. It is completely decentralized that even Bitcoin owners are anonymous with no details related to their accounts, names, social security numbers, or other identifying features.
The Bitcoin price has decreased by 4.47% in the last 24 hours. It is the world’s first cryptocurrency that is stored and exchanged securely on the internet through a public ledger. The smaller unit of Bitcoin is satoshis and each satoshi is equal to 0.00000001 BTC. In today’s time, the virtual world and the internet play an important role in deciding the final demand for any cryptocurrency in the market. Memes and the social media world are changing the cryptocurrency industry daily. The volatile and erratic nature of digital currencies make sometimes the use of cryptocurrencies riskier and there can be any situation of the market in the future.
Government’s Role
Government is very concerned about cryptocurrency including Bitcoin as fiat currencies play in a country’s economy. The cycle of transactions in the US economy relies on a chain of trust between transacting parties that involves borrowers, lenders, and consumers. Governments distribute and regulate the flow and use of money in an economy through a series of intermediaries such as banks and financial institutions.
Bitcoin is a decentralized system that has the potential to dismantle the traditional currency system. Its network is away from the government’s system and hence, away from intermediaries as well.
The government around the world is trying to understand the effect that the cryptocurrency might have on their economies. There are three main reasons why the government is wary of Bitcoin:
- Bitcoin Ties to Illegal Activity: Bitcoin is a favored conduit for criminals for financial transactions. The Silk Road case was the most famous example of a crime involving Bitcoin. It is very difficult for law enforcement to trace parties involved in the fraud transactions.
- Bitcoin Is Not Regulated: The world is still trying to figure out ways of regulating cryptocurrency.
- Bitcoin Can Circumvent Government-Imposed Capital Controls: The government exerts control on economic and fiscal policy. Government controls prevent outflows of a currency because exports could debase its value.
Conclusion
The government plays an important role in the trends of cryptocurrencies including Bitcoin. The government controls fiat currencies, whereas cryptocurrencies are decentralized and independent of any central authority controls which increases the possibilities of fraud, criminal cases, cheating in transactions, etc. Hence, enforcement laws have to be implemented for cryptocurrencies by the government which fluctuates the trends of cryptocurrencies.
