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Bitcoin: The Future of Money? by Dominic Frisby

Now when the digital gold turned into an investment asset, the very use case of using it as a currency left somewhere behind. To fill the gap many cryptocurrencies evolved following Bitcoin and many of them leveraged far better advantages. Yet the dominance of the first cryptocurrency hardly got challenged by any. Bitcoin is primarily an amalgam of two cutting edge technologies—cryptography and blockchain.

The CBDC Engagement Forumlooks at all aspects of a central bank digital currency apart from the technology it might use. The digital pound would be a new type of money issued by the Bank of England for everyone to use for day-to-day spending. Some bitcoin exchanges are proactively looking to legitimise cryptocurrencies, but criminal activity is still a major risk for organisations as the commodity goes mainstream.

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I don’t have huge confidence that the UK Government would be able to do that in an effective way, whereas an incentivised private sector could create programmable money. Hopefully we will see proof of concept soon and the authorities may see the value and begin to embrace it. Replacing anonymity with digital identity verification for crypto-to-crypto transfers increases the workload for crypto exchanges and encroaches on the individual privacy of crypto customers. But this is just the most recent addition to anti-money laundering and combatting the financing of terrorism requirements and it won’t be the last. The current rally in Bitcoin’s price is primarily driven by recent macro events, such as lower inflation data from the US and Europe, which suggest monetary policy is likely to be much softer in the coming year. As Bitcoin and other Cryptocurrencies are seen as a monetary policy inflation hedge, investors see opportunities in crypto assets following a year of very aggressive monetary policy action.

Angelo Morgan-Somers is a young Bitcoin analyst and consultant from west Wales. When he was 12, he sustained life-threatening injuries and was forced to confront his own mortality. This led him to write a 22-page argument about why he should be home-schooled. He left school and began to educate himself online in a faster and more efficient way. A year later, he discovered Bitcoin and so began his journey down the rabbit hole of learning about the world of cryptocurrency. He has given talks at events around the UK and advised companies on their blockchain strategy.

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Those that https://www.tokenexus.com/ will need to switch on a tried and tested solution of digital identity verification for their crypto service. Plans to extend the EU’s financial-surveillance regime over the cryptocurrency industry form part of the EU’s latest anti-money laundering package and are running in parallel with MiCA. Existing travel rules – where payer and payee identity data must ‘travel’ with the transaction and be stored by both sides – will also cover crypto-to-crypto transfers. The views and opinions stated by the author, or any people named in this article, are for informational ideas only, and they do not establish the financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.

With new legislation coming soon in the USA and other jurisdictions, CASPs taking positive compliance action today will be ready to take advantage of a global, regulated crypto market. Many supporters of and analysts believe that the Bitcoin price could reach between 100,000 USD to 1 million USD. However, the market slowdown born of the current crypto winter is not under anyone’s control and the market is also not prone to these instances. How long the flagship cryptocurrency will have to suffer along with other cryptocurrencies could not be said clearly, but the optimism is still high and it might reflect into the actual value in upcoming times.

The Future for Bitcoin

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If necessary, an additional legislative proposal will be drafted then to set up a regulatory regime specifically for NFTs. The United Kingdom considers cryptocurrency as property but not legal tender. Cryptocurrency exchanges must register with the UK Financial Conduct Authority and are banned from offering crypto derivatives trading. If you are a firm based in the UK, we welcome your response to this survey. Together with HM Treasury we set up a Central Bank Digital Currency Taskforceto oversee our work. This taskforce has been involved in the Consultation Paperpublished on 7 February 2023.

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As I say, you don’t have the fraud risk, although you do have other risks such as smart contract risk and currency volatility. Then there are the miners and they’re incentivised with these cryptocurrencies to secure the blockchain’s resilience against fraud or other attack. Lots of people demand to use the blockchain and that demand drives the price, which increases security.