In its purest form, cryptocurrency or crypto currency is a kind of electronic money that can be sent directly from person to person (peer-to-peer) without going through a financial institution, or a bank. Generally if one party is currently sending funds or other parties, of course, must be processed through the bank. In this case, the bank serves as an intermediary. Well in this crypto technology, the payment is made directly without an intermediary.
Transactions conducted between two parties in a network are then verified through a specific encoding or cryptographic process. Well, Bitcoin is one of the existing cryptocurrency types, and is very popular. In addition to Bitcoin, there is also a crypto currency similar to various names, such as ethereum, litecoin, etc. Many of these crypto currencies are short in demand until they die one by one. In Bitcoin, if there is a two-person transaction, the other party in the network can decode or verify the occurrence of the transaction, will be rewarded with bitcoin. This step is known as bitcoin mining (mining).
In response to the emergence of bitcoin, regulators in various countries have diverse attitudes. Starting from the open, half control, control, to prohibit. But of all the regulators in the world, there is a similar attitude, that is, not recognizing bitcoin as a legal means of payment. So in any country no one considers bitcoin as the official currency. Authorities in various countries are also paying attention to the use of bitcoin as a tool of corruption, money laundering, and financing of terrorism. Therefore, the International Financial Action Task Force (FATF) has issued numerous warning signs and warnings for financial actors associated with bitcoin use. Associated with its function as a speculative investment, the Financial Services Authority has also reminded the public to be wary of speculative investments, in particular confirming that bitcoins do not have an investment license. This means the risk of investing in bitcoin is the responsibility of the bitcoin owner.
Regulators in many countries are used by bitcoin, Blockchain. This is different from bitcoin. If it's like a bitcoin locomotive, then the blockchain is a rail. Above the blockchain can be placed a variety of cryptocurrency, such as for trade, agriculture, import export, health, to various contracts of sale and purchase. The future of technology, many say, is Blockchain. Chris Skinner (2015), a fintech observer, says that the world will shift from "internet things" to "value internet". Anything that has value, can be entered and developed into the Blockchain network.
The Canadian Central Bank has tested the blockchain for interbank payment settlement. They named the Jasper pilot project. The Central Bank of Singapore (MAS) has a UBIN project for similar trials. There are also Bank of Japan and several other central banks that try blockchain technology.
In the future, the development of technology can not be avoided and can not be dammed, including in the field of finance. The growth of bitcoin, or cryprocurrency, in the future, is unpredictable. Some see it as a digital asset, or commodity, or money. It is slippery (elusive). But as a regulator, wherever, the role of stewards of stability and consumer protection takes precedence. So, as in many countries, banning bitcoins is one step to maintain stability. But that does not mean that sandboxes are regulatory, regulators are trying to balance risk factors with innovation.
You know, there are some kind of transactions you shouldn’t make with Bitcoin. Even from the definition of it you can know that, it’s just meant for peer-to-peer transactions.
I don’t really know how to explain this, but some people usually think that Bitcoin is everything and that it should be used to replace fiat cause that’s what it was meant for, they don’t understand Bitcoin and they don’t how it works. I just wish that these people will some day get to understand how this works.
