Bitcoin: Who owns it, mines it & breaks laws
Bitcoin has always been a predominant topic that never went out of fashion and continues to claim its dominance in the digital financial scenario. Bitcoin Era takes a closer look at different aspects of Bitcoin as it continues to diversify its reach all around the world.
Consider the below-mentioned points for a better understanding:
#1 More than just the hub of illegal activities
Bitcoin operates on the concept of distributed public ledger which means that the transactions that are conducted online are easily observable. However, the fact that users can split the payments & use long chains through multiple addresses helps them to escape traceability. But it is to be noted that illegal transactions are quite less in number as compared to the increasing volume of transactions in the entire active network.
#2 Ownership
According to the latest conducted study, it has been found out that the majority of the Bitcoin is owned by the elite section of society. The study was conducted back in the year 2020 which revealed that more than 4 million Bitcoins were held by only 1,000 clusters.
Any individual who has the ability to spend 100 million dollars (Talking about Bitcoin here) in order to either buy or sell possesses a massive potential to influence the market prices significantly.
#3 Mine at your convenience
Anyone who is active on the crypto industry network has the ability to successfully mine cryptocurrencies. It means that you dont need to have a big amount of funds to be able to conduct mining. This is yet another underlying advantage of the decentralized network that you dont have to be accountable to anyone.
It provides you enough room to operate in the financial ecosystem without being subjected to unwanted rules & protocols that traditional systems used to be designed with. China is one of the few countries that recently cracked down on the miners (anonymous individuals who try to successfully process & then verify the bitcoin-related transactions to add them into the blockchain ledger).
#4 Increase in transparency
Government authorities have been contemplating on Bitcoin prominence quite proactively. Furthermore, the idea to bring specific tax regimes is already being speculated on. The tax implications on the bitcoin transactions will increase the transparency of the transactions, some analysts believe. Today, bitcoin cannot be seen through as it is entirely opaque which enables the users to conceal their capital gains successfully. It works as a great opportunity for them to evade the capital gain tax.
The possibility of hiding the fact that you own & hold a cryptocurrency is significantly higher. It can only be revealed once you actually conduct a transaction to transfer the funds from your account to some other account. Hence, it enables you to hide your cryptocurrency as long as you please.
#5 Compromised Law
Bitcoin ushered in an entirely new ecosystem for criminals to conduct their shady deals without ever being traced or caught. The last decade witnessed the greatest surge in the cybercriminal activities being perpetrated online. It is also an age of proliferating ransomware attacks that have crippled the ability of prominent companies to conduct their business without being a little suspicious of a potential cyberattack.
Millions of dollars have already been paid by big companies to get their sensitive data back from the clutches of unscrupulous hackers who breach & infiltrate the security system of such companies. Law has heavily compromised as the child molestation cases have also surged adversely in the last decade. The culprits & assailants walk in the daylight without ever being caught or nabbed by the authorities. This is because blockchain & cryptocurrency provide such criminals with impenetrable security for law enforcement to ever break through.
Conclusion
The entire concept of Bitcoin is designed on blockchain technology that will keep all of your transactions almost impenetrable. Anyone can own such bitcoins and the concept of decentralization makes it all seamless for the users to leverage it forevermore. Businesses all around the world are mobilizing their area of work with such blockchain technology that not only improves their performance significantly but also helps them to stay ahead of the curve.