Current Stance on Crypto
Japan, followed by Singapore and the Philippines, decided to recognize cryptocurrency as a means of payment. In China, Venezuela, Iran, Norway, Switzerland, the issue of creating national cryptocurrencies and using them for international transactions between countries is just being developed.
Most countries of the European Union do not recognize cryptocurrency as a means of payment, although disputes on this issue continue. In this case, transactions with cryptocurrencies are considered legitimate. In Russia, cryptocurrencies have been assigned to digital assets, it is prohibited to use them as a payment instrument. At the same time, most experts agree that in the current version, the law on the regulation of cryptocurrency in Russia is adopted in a very raw way and does not cover all issues related to the circulation of cryptocurrency in the country.
What the Professionals Think
Discussions about the status of cryptocurrencies are also conducted outside the context of regulatory laws. This has long been debated by economists and crypto experts around the world. The most controversial issue, of course, is the status of Bitcoin (BTC) as the most expensive and popular cryptocurrency in the world. Analysts believe that Bitcoin (BTC), most likely, will not become a means of payment in the foreseeable future, and it is unreasonable to use it for making small purchases due to the relatively high commission and low transaction speed.
Professor of Economics at the University of Georgia, Jeffrey Dorfman, believes that bitcoin will never be used to make everyday purchases. He stated, “the only reason to own bitcoin is not to use it as a currency but to speculate on its value as an asset and use it to protect its transactions from others. Without a stable cost, bitcoin cannot be a currency. It is rather an asset that is traded, like gold or silver, in the hope that in the future its value will grow and bring a profit. … Bitcoin has no other purpose than to allow people to hide their wealth, carry out hidden deals (often illegal) and earn and lose money by trading them. ”
Head of the Center for Advanced Studies of the Russian Institute for Strategic Studies (RISS), Vladimir Milovidov, believes that Bitcoin (BTC) at the moment cannot be regarded as an asset. There are only two characteristics that make Bitcoin (BTC) an asset, the fact that it is constantly growing in price and the high concentration (a large part of the currency is concentrated in the hands of several large miners).
The cost of Bitcoin (BTC) is currently provided not by any real product, but rather by the expectations that in the future, cryptocurrencies will take a more or less certain position. The uncertainty of the legal status of the cryptocurrency, the underdevelopment of the financial infrastructure, the imperfections of the blockage, in the end, do not give an opportunity to formally recognize the cryptocurrencies as assets.
It turns out that at the present time, cryptocurrencies cannot be considered a cash payment, nor assets in the traditional sense. But is this really important if the idea of the blockade itself is initially transnational and thousands of investors around the world are ready to invest in the purchase and the cryptocurrency in the expectation of the future growth of their prices?