One of the incredibly fast-growing needs of today is definitely the story of cryptocurrencies. Until 2018, there were only rumors and speculations about what cryptocurrencies are. Nowadays, even every child has heard about them. These so-called virtual currencies are also generally accepted, as are international payments over the Internet.
They are far from being tied to business accounts. Their use is very simple, and their great benefit is that there is no fee for transactions in international payments. Simply, anyone with internet access can use them.
To make all this easier to understand we’ll point out once again their definition: cryptocurrencies represent values, or better said a record of those values in electronic form. So, they only exist in the virtual world and are housed in electronic wallets. Several websites provide you with e-wallet services. You can buy them (on stock exchanges or simply with the help of ATMs), sell or create so-called mining.
Of course, it is clear to everyone that all this cannot work without a specific program. A special database that will store and give you an overview of your cryptocurrencies is called Blockchain. This technology is easiest to explain as a financial book where all your moves are recorded. How popular and reliable this technology is, it’s best shown by the incredible investments in them and the world’s strongest telecommunications operators.
Maybe you are interested in learning more about cryptocurrencies and Blockchain, and maybe you have been mining for a long time about this. Overall, we’re sure you didn’t really know some interesting facts about this, we can freely say “trend”. In this article, we present 6 things to know about blockchain & cryptocurrency laws and regulations, which we came to with the help of our friends https://the-bitcoin-millionaire.com/pl/.
1. Although everything sounds simple, be very careful
Fast earnings sound tempting to everyone. However, the average citizen can get into big trouble if he/she is not well versed in knowledge related to cryptocurrencies. The great danger lies in the fact that this system, although it seems to be, is not completely safe.
There is no consumer protection system here in any sense. There is simply no address that the user of this system can turn to if there are any irregularities or violations of rights. There is no guarantee. This is an absolutely virtual world. It is not even known who is the founder of the most popular cryptocurrency Bitcoin. Only a pseudonym you can’t refer to is known.
2. Cryptocurrencies and electronic money are not the same things
The generally accepted position at the international level is that virtual currencies are different from electronic money. The main reason is that cryptocurrencies or those virtual funds cannot be calculated traditionally, but exclusively in a virtual unit of account.
However, this firm stance changed in 2012 when the division into electronic and digital money emerged. Like this digital money was given a special place in the world of finance, as well as the possibility to connect it with the real economy, besides just doing virtual payments.
It sounds much simpler than it is, especially when you are aware of the fact that there is a legal gap here when it comes to cryptocurrency regulations.
3. Legality of cryptocurrency
The well-known G20 summit, where people from the governments of 19 countries, including the European Union, met, discussed the legitimacy and adoption of cryptocurrencies. 11 of them supported the legitimacy of cryptocurrencies. 4 countries accepted it but with certain restrictions, while 3 countries remained neutral. Only China stood out, which then strictly banned the use of cryptocurrency.
The list of countries banning or denying the use of cryptocurrency continues to change. Countries, where it is absolutely illegal to mine cryptocurrencies, are still: Bangladesh, Bolivia, Morocco, Nepal, Ecuador and Kyrgyzstan. Russia is in a dilemma about whether to ban cryptocurrency payments or not.
4. Cryptocurrencies can be exchanged with Fiat currencies
In special online markets, cryptocurrencies can indeed be replaced by Fiat currencies. Fiat currencies are money whose value depends on economic policy as well as the economy of a country. Unlike private cryptocurrencies, fiat currencies are printed by the government of one country. This means that in this trade, the exchange rate can certainly change depending on the major world currencies. More precisely, depending on the American dollar, the European euro, the Japanese yen, etc.
If you ever dare to make a move like this, take good care. It is this exchange that is most conducive to cybercrime. This is the most commonplace of abuse by hackers.
5. Every cryptocurrency owner has their own, private key
Private keys confirm identity, allow access and exchange. It wouldn’t even be called private keys if the user couldn’t create and protect himself. The keys consist of numbers that can be combined by the user, from 1 to 78 digits long. There is also the possibility that the user gets the key using a random number generator. The key is the ticket to this virtual world. The key is simply to guard your virtual business and reduce the possibility of any scam or irregularity.
However, not everything is so simple. The key is everything and without it you are nothing. If the owner happens to lose his access key, simply everything he has invested and built so far has fallen apart. All that remains is a great loss. Of course, you can create another key and start over, but you won’t succeed to return the old money.
Statistics show that more than $ 30 billion worth of bitcoin was lost forever for this very reason. The owners simply folded their private keys from the bitcoin wallet. We seem to have indulged too much in banks knowing that every time we lose a PIN for our card, the bank can issue us a new one. It’s not like that here.
So keep your keys well. We recommend that you store them in multiple digital locations and write them down on paper, just to be sure you’re going to have it always.
6. Do you know who owns the biggest bitcoin wallet?
Surely the first thing that comes to mind is the founder of Bitcoin, Satoshi Nakamoto. He may own the most bitcoin but scattered around different bitcoin wallets. The FBI is considered to have the largest amount in one bitcoin wallet.
Interest in virtual currencies has never been higher, and it is only growing day by day. Many companies are adopting cryptocurrencies as payment methods to attract new partners or customers. There are a growing number of crypto ATMs around the world in countries where this exchange is allowed. There are almost 1,800 of these in 58 countries
However, before embarking on this type of investment, we suggest that you study the law and regulations on cryptocurrencies in your country, and then gather patience for a good period of learning and research.