Understanding a new concept like Bitcoin represents a key factor for businesses from all around the world to help the coin thrive. However, the absences of any regulation over the coin and the mass payments that are being made with the cryptocurrency have brought it to the attention of the European Banking Authority, also known as the EBA.
One of the main tasks of the EBA is to monitor all of the existing financial activities and adopt guidelines in an effort to create a form of deontology that will be respected by all who are involved. With this in mind, after a couple of months of tough analysis, the European Banking Authority has found Bitcoin to be an emerging market with a lot of potential. The analysis that has been carried out also stated that virtual currencies such as Bitcoin aren’t regulated, thus the risks are unmitigated.
As more and more people begin to be aware of the coin, many find themselves questioning whether Bitcoin represents a system worth trusting or not. This is where the Bitcoin Foundation intervenes, as they have carried out a tough risk management study wherein a couple of interesting factors essential for the success of the cryptocurrency are outlined. After an assessment of all documents, it was discovered that, in the current state of the market, reputation is a whole lot more important when compared to regulation, which basically doesn’t really exist.
The lack of Bitcoin regulation can be considered the birthplace of a new concept that companies dealing with Bitcoin should keep a close eye on. Not only will those with a quality reputation thrive in the long run, but by assessing the current market state, economists have also indicated that these are the companies that will be able to charge higher prices. In turn, businesses that do not have a clean track record and a solid reputation to base facts on will find themselves falling down the ladder of popularity. Those that are found to be defrauding people will most likely experience the same outcome.
As far as the regulation is concerned, it is important for the Bitcoin market not to think of it as essential, as recent reports indicate that having an established set of rules for the currency will make it more prone to entering politics, in which case no one really knows what could happen. With this in mind, it is believed that people will lose money when dealing with shady online businesses, but the overall sum will be much greater in the case that Bitcoin loses the autonomic status that has granted it so much popularity.
While some believe that allowing the government to meddle with the coin will mark the end of the coin, others aren’t against regulations, so opinions are really divided in this case. What do you personally think about the analysis carried out by the EBA? Would governments be trustworthy if it ever came down for them being in charge of Bitcoin regulation? Let us know your thoughts in the comment section below.
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