Compendium: Cryptocurrency regulations by country
Crypto advantage
One of the biggest advantages of bitcoin investing is that the currency can never be inflated and there will only be a finite number of bitcoins accessible. Purchasing the currency also doesn’t require much effort. You get your cryptocurrency wallet, buy bitcoin, and start mining. How does Bitcoin make money? Seeing the long-term potential in crypto is one thing but trying to put a value on them is another. Crypto prices can move suddenly with no warning – often more so than conventional assets like shares and bonds that are more widely held by investors - on the back of high-profile social media posts, or company or government-level announcements on crypto policies. Influencers may have been paid to promote a certain crypto on social media, whether the value is high or low. The price of many cryptos is primarily driven by whether other people are buying it, and therefore a post from an influencer can have a huge impact upon the price.
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Bitcoin benefits
There is also the fact that cryptocurrency can be used by criminals to funnel funds. In 2011 Bitcoin was a currency of choice for drug peddlers, according to the US Justice Department, which seized almost $48 million worth of illegal contrabands that year, and discovered that the criminals involved had made transactions totaling 150,000 Bitcoins (approximately $130 million. Real-world solutions Centralized exchanges are operated by companies that are responsible for the holdings of their customers. Large exchanges usually hold billions of dollars worth of bitcoin, making them a target for hackers and theft.
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