Cryptocurrency has been the most controversial topic in every country since the time it has begun. In the year 2009, when it was invented, several cryptocurrencies that rose more by following it. At the same time, it is being criticized worldwide because of its volatility. Cryptocurrency is mainly used in criminal transactions, and the excess use of electricity for mining is usually seen in many developing countries. However, it has been used as a safe harbourage during the economic war.
But the usage of crypto for many people either as an investment or for a lifetime; for that reason, the global chain of currency has made a huge distinction between crisis and advantage. So now, for many countries, it has a manifest rule of strictly restricting on the usage of crypto.
Why Is It Illegal In Many Countries?
Some countries have made limitations on the use of crypto. While others have banned the use of cryptocurrency transactions, and also if anyone is caught for the crypto transaction, then the on-place heavy penalty will be made anytime, anywhere.
- Unable To Identify The Record Of The Transaction:
The increases the cryptocurrency last 10 years have increased rapidly. It has a record of vast transactions of bitcoins and altcoins via online business and overseas throughout the last year (2021). Many countries’ citizens have been repeatedly issued alert signs to stay clear about digital assets. Also, people get supervision from the authority to secure the mining process in the country to exchange currency.
In a country like China, August 27 directed cryptos as hypothetical assets and warned individuals to “protect their pockets”. A decentralized currency that is beyond the control of the government is seen to sail their e currency by the Chinese authority. After that, PBoC took a major step by launching the central banks where digital currency or the transaction of the digital capital has been monitored closely. And on September 24, the transactions of cryptocurrency were banned totally, which is outright from the country totally.
- It Causes Power Shortages:
Bitcoin or cryptocurrency has a relationship with mining that is complex and intricate. Many countries don’t have permission to transact their currency with other nations freely. Instead of that, they have to choose the path of mining to order the finance imports. While the more central bank of countries prohibits the trading of cryptocurrencies, the rise of mining overseas has increased with inducements. Around 4.5 % of bitcoin or cryptocurrency have taken place in Iran. In order, the flourishment of cryptocurrency industries has increased, and many countries like Iran have offered licenses to cheap miners. Remember the fact that all mined cryptos have to be traded to the central bank.
However, the unlicensed mining draining 2GW power every day causes power shortages. At the end of this decentralized digital asset, it is been four months that many countries have banned cryptocurrency for that reason.
- It Spoils Youths:
With the increase of cryptocurrency, many countries’ government has warned the citizens to control their investment lifelong. For example, in India, on November 23rd government announced its purpose.
To pass a new bill where a central bank will scrutinize the digital currency and ban almost all types of crypto capital.
Behind the intention of banning, India has estimated the result that 70 to 75% of youths have been spoiled by using bitcoin and altcoin cryptocurrencies. The possessions of cryptocurrency, mining, terrorism and the business of black assets have increased in early 2021. The current prime minister wants to ensure that it doesn’t conclude up in the wrong hands, which can be the reason for spoiling our nation’s youth.
- Lack Of Cybersecurity:
Nowadays, in the digital world, everything is done digitally, from connecting to class to transacting money. And side by side, the increase of cyber security has also increased, and the rise of cyberbullying has detected the future of the technology. By continuing the process of cryptocurrency, you may fall under the breaches of the cyber-criminal. We have already witnessed many investors have lost their hundreds and millions of capitals by the attack of the cyber offender.
Mitigating the requirement of continuous security of this digital asset, we have already seen that many directly play and deal, and the enhancement of cybersecurity goes beyond those traditional marketing.
- Required Tech Improvement:
Though we are perfect in technology and get all the solutions to current problems, until this decentralized is authorized under the government and central authority, it is risky to invest in this technology. Cryptocurrency or decentralized digital asset needs more security and upgraded technology.
The technologies are mainly logistical and moderate in nature. For transactions, the digital asset which is beyond the control of authority needs more protocols and improved tech to not fall on any interruption while the smooth flow of money transactions is going on.
Many countries like India, China, Bolivia, Iran, etc., have been issued it as illegal for those reasons.
The potential investors in cryptocurrencies are actually experienced. They know the way of investing and dealing with those rules. The investor Warren Buffet chose the safe side like crypto arbitrage VIP, while trading and investing in cryptocurrencies. Cryptocurrency not only has bad sides, but the advantages of cryptocurrency also work for many beneficiaries. Decentralized, transparency, or flexibility are the being head, among others.
If the companies or customers move to the new digital asset or stop using the entire digital currency, they may be losing the value and worthiness of the asset. It is very dangerous for our new generation to use a cryptocurrency that if they face any vulnerable attack, then it will be an irreparable loss of the investment and can be scams to those cyberbullying.