Bitcoin has been around for years now, and it is still to reach its full potential. For some, this might be the future of finance, but it means another internet bubble about to explode for others. Many are curious how this will impact banking and the financial system in general, while others are curious how this will affect their countries’ economies.
The Euro Crisis has affected everyone. But, unfortunately, the citizens of Europe are still paying the consequences for it with different austerity measures put in place by governments to pay back debts.
Banks do not want to lend money anymore, and there is a credit crunch. Businesses are not looking for funds to expand or modernize their businesses. Individuals cannot afford to pay back loans they took years ago; the situation has only worsened with time.
Bitcoin can help solve this problem by giving individuals, and businesses access to funds without asking for permission from banks, which would make the banks’ role in finance redundant.
Banks will not be able to influence governments by lending them money either. This gives individuals and businesses a level of freedom they have never experienced before, potentially leading to a better world for everyone.
Problems still exist, though, when using bitcoin as a currency. At the beginning of its adoption, it was mainly used online and embraced by the tech community.
It slowly but surely started to get more attention from people who knew very little about technology and how it works, which led to negative press and misconceptions such as: “Bitcoin is only used for illegal activities” or “Bitcoins are not regulated”.
Public awareness about Bitcoin is critical because it can help solve many problems in today’s society and be the driving force behind its full potential. Besides, people who know nothing about computers are not likely to change their minds anytime soon. Learn more at the Brexit Millionaire Trading App
Moving to Europe
European countries have taken different approaches towards Bitcoin. Germany’s government has adopted a very open-minded approach and has welcomed Bitcoin. According to the German Federal Ministry of Finances,
“Regardless of whether or not Bitcoins are considered e-money within the meaning of the Directive on Payment Services (2007/64 / EC), they can be subject to value-added tax under specific circumstances”.
As for Spain, they have been a bit stricter. For example, in 2013, the Spanish Central Bank warned citizens of the risks of buying virtual currencies such as Bitcoin and tried to ban banks from using them.
Spain is not alone in taking those harsh measures against Bitcoin as Iceland has also taken similar steps. However, the latter only affects financial institutions and companies that deal with cryptocurrencies.
On the other hand, Greece has taken a more relaxed approach towards Bitcoin by allowing citizens to set up their businesses dealing with virtual currencies but not allowing individuals to use them yet. They have an open mind, though, which can be seen in this statement made by Stelios Kouloglou, Greek MEP: “bitcoin is something more than just a currency”.
How the European Central Bank will act towards Bitcoin remains to be seen. Many people are still calling for it to step in and take measures, while others think that cryptocurrencies should not become part of the central bank’s responsibility. Some also see bitcoin as an opportunity rather than a threat. Only time can tell which of those scenarios will come true.
For India, it seems to be a case of love and hate. The Reserve Bank Of India favoured a ban, but the government has yet to take an official position on this issue so far.
The Indian Bitcoin community observes what will happen in Italy, which is not making things easier for new businesses; India’s central bank has warned against virtual currencies, and the Indian Supreme Court is still deciding about it.
Bitcoin is still in its infancy, but it’s growing every day. The Euro Crisis has affected everyone. Its decentralized nature can help solve problems such as access to funds or lack of trust in banks, but misconceptions must be overcome first. Knowledge is the key to helping Bitcoin grow into a mainstream currency that can significantly influence today’s society.