How will a legalized bitcoin work or look like

[donalfonso]

So I have been wondering what if a Government somewhere in the world wants to legalize bitcoin or any other crypto for that matter. How would it work.

First of all the government will be trying to legalize a means of exchange that it neither controls the demand, supply and creation. It can't even be used as a means of effecting economic change like other currencies can be used by controlling money supply and interest rates.
And if we are equating bitcoin to the possession of assets like gold or diamond. They cant even control bitcoin mining, like they issue licenses to mine gold or diamond
So is bitcoin being a legal tender even possible and how would it work.

If you are looking to know how Bitcoin will look like if it is legalized by a country, just look at it's state at Japan. The government there doesn't give a dam about the demand, supply and creation of Bitcoin. They also don't give a damn on Bitcoin mining. They only regulate it and let their citizens pay their due tax for using btc. You shouldn't also ask how would it work because obviously, it is used also as an alternative payment method.

Thanks for this, your use of the phrase "alternative payment method" makes perfect sense and even explains what other peeps are trying to point out better.

[donalfonso]

So I have been wondering what if a Government somewhere in the world wants to legalize bitcoin or any other crypto for that matter. How would it work.

First of all the government will be trying to legalize a means of exchange that it neither controls the demand, supply and creation. It can't even be used as a means of effecting economic change like other currencies can be used by controlling money supply and interest rates.
And if we are equating bitcoin to the possession of assets like gold or diamond. They cant even control bitcoin mining, like they issue licenses to mine gold or diamond
So is bitcoin being a legal tender even possible and how would it work.

Bitcoin is not meant to be governed. Bitcoin is freedom. Your concept of legalization is quite limited. Thinking that legalization will affect Bitcoin is an ignorant premise by itself. You don't even know the definition of legal tender.

Definition of legal tender according to investopedia - Legal tender is any official medium of payment recognized by law that can be used to extinguish a public or private debt, or meet a financial obligation.
My thoughts on bitcoin was based on the above. you can give your own definition. maybe we should work with it. From responses so far. Only Japan fits such definition.

[Colinator]

I would support the legalization of bitcoin and mining. However, I read the opinions and suggestions that the members of the government make and I am perplexed. They want to impose taxes at a rate of 50% of transactions or 55% on mining it is too much in my opinion. I guess that giving to the state 10% or 20% of the profits would be honest.

[spacesniper93]

Legalized bitcoin is the dream of every Bitcoiners. Legalized Bitcoin will give them more confidences with their Bitcoin when they're spending or holding them.
Japan and US are the only countries that accepted Bitcoin in general but i think that number will increase in the near future.

[bigbosma]

Governments should understand that bitcoin is a way to improve the status of the country among the leading countries of the world. It's a technology that can be useful in all sectors, it is high salaries and more.

[bololord]

So I have been wondering what if a Government somewhere in the world wants to legalize bitcoin or any other crypto for that matter. How would it work.

First of all the government will be trying to legalize a means of exchange that it neither controls the demand, supply and creation. It can't even be used as a means of effecting economic change like other currencies can be used by controlling money supply and interest rates.
And if we are equating bitcoin to the possession of assets like gold or diamond. They cant even control bitcoin mining, like they issue licenses to mine gold or diamond
So is bitcoin being a legal tender even possible and how would it work.

q
If this bitcoin legalized with some countries who doesnt used bitcoin it will lead to the progress of their country. The people there will help have there work by means of bitcoin. Those users will be given a chance to make there life rich.

[EmmanCryp]

I thought few countries have already legalized Bitcoin transactions and can be traded or used as a means of payment?? But it cannot really be the official currency of any country

[CarnagexD]

As it stands now a firm grip on how the exchanges operate is more than enough to take care of most of it.

What'll be truly interesting is if and when it becomes a majority closed loop. There'll always be a need to interact with fiat, but if large swathes of the population spend most of their economic lives in crypto I don't really know how any government keeps a hand in with that.

The actual system of Bitcoin in terms of transaction is all for nothing or what we could say enough for mostly the needed work to established a well developed system on transaction that could also provide an opportunity for people to earn and to gain profit out of their given investments. I think it is the most peowerful key Bitcoin could have for it to become a decentralized currency.

[Yakamoto]

So I have been wondering what if a Government somewhere in the world wants to legalize bitcoin or any other crypto for that matter. How would it work.

First of all the government will be trying to legalize a means of exchange that it neither controls the demand, supply and creation. It can't even be used as a means of effecting economic change like other currencies can be used by controlling money supply and interest rates.
And if we are equating bitcoin to the possession of assets like gold or diamond. They cant even control bitcoin mining, like they issue licenses to mine gold or diamond
So is bitcoin being a legal tender even possible and how would it work.

Bitcoin would never become legal tender for a country since it would require an entire revamp of the payment systems and would force basically then entire country to start accepting something that likely only a small minority of the population actually uses. If there was to be some kind of movement for something like that, however, it would be incredibly costly and ultimately relatively unfruitful for the country giving it that classification.

If it gets legalized in the sense it isn't a currency but it exists, it will be taxed and that'll likely be the end of it.

[kingkonjac]

the first thing they would do is putting taxes into btc, for example when you wish to cash out your btc you would have to pay income tax. And they would licence exchanges and make them pay taxes.

[lasry]

A legalized bitcoin would most likely looks like a fiat, difference to normal fiats is that it would be the global fiat which can be used by everyone in all countries in this world. And I wonder if it would stabilize if legalized, maybe governments would start controlling it. And we cryptolovers are all looking forward to crypto legalizations.

[Washball]

Bitcoin and other cryptocurrencies will be soon accepted by many governments, but not without regulations. First of all, transactions will be taxed. You will have to pay VAT. Exchanges will have to inform about all transactions. Profits made from investments will be taxed much higher, about 50%. This means cryptocurrencies will be no longer decentralized.

[Astie117]

legalizing bitcoin is a bit tricky though... you need to register first i think to the government which you must pay taxes inevitably and probably they will also must take control of it too...