Cryptocurrency Regulations Useless without Due EnforcementSeptember 23, 2018
There is no use wasting time imagining a world where Bitcoins will survive without regulation.
In his statements about the viability of using Bitcoins, Sheffield Clark stated, “You can get Bitcoin more into the mainstream media, put more kiosks on the streets, make it more easily accessible for all, and further educate the masses on its adoption, but until it is practical for someone to be able to buy a gallon of milk with it or put their life savings into it without having the risk of losing 20% of it in a week – adoption a high level by the general population will continue to be very slow if not stagnant.”
If the mass adoption of Bitcoin should survive, it takes hardcore regulation. It is not possible for Bitcoin or their peers to be able to survive without regulation.
The best use case for Bitcoin in the process of binding the physical and digital world so far is to be able to exchange cash for Bitcoin, which is further invested in Altcoins for speculative purposes. With regulation, the viability of Bitcoin and its peers will improve.
Sheffield Clark, CEO of the world’s largest Bitcoin ATM network Coinbase, stated, “With the time and cost that it takes to use Bitcoin to pay for everyday items as currently constructed, is not realistic for most people to use it in this way. It doesn’t make sense for them too. It is not easier or more cost efficient than traditional financial instruments at this time.”
Several CEO interviewees in the digital currency world are of opinion that improved regulation is the only method to streamline solutions to most of the problems faced by the crypto space.
Clark felt that there should be some continuity in the way states regulate cryptocurrency. He also points out to the lack of enforcement with respect to the already existing regulation, which renders the whole regulatory mechanism useless.
Clark added, for those who are turning to cryptocurrency out of necessity, it can be difficult for them to be dealing only with the speculative aspect of the service. They need to be able to use it for their real-time needs.
To those of the investors, who are working with the idealistic view that Bitcoin was created as an unregulated currency, are fooling themselves, as the companies behind Bitcoin are actually being regulated by the banks on which they depend to grow their business.
In a scenario, where there is no regulation put forth by the government, these banks will impose their restrictions in whatever way they want on the companies. These regulations are going to be stricter and hard on the companies than the regulations that might be imposed regularly by the government.
Since bitcoins and cryptocurrencies are competitors to the traditional financial instruments Bank imposed regulations are going to be for the advantage of the banks itself. Banks are still in favor of the traditional fiat currencies.