Should Cryptocurrencies be Banned for Good or a Stricter Regulation has to be Implemented?

Blockchain is simply a public record of past valid transactions. Bitcoin and all other digital coins are validating financial transactions using a process referred to as “mining”. This is then distributed among computers to solve mathematical problems. Computers that were able to solve it then receives an award and can use the solution in verifying transactions by means of adding blocks that contain multiple transactions to blockchain.

When you make use of crypto trading bot from, it will be using the same principle but only different. It applies a different format by means of analyzing the market and make trades on bitcoins to generate profits.

A Fair Chance for Everyone

Protocols are intentionally designed in ensuring that the computer that solved the problem is not aware of which transaction it is working on. This at the same time will help in preventing predictions about the computer that’ll likely work on specific transactions. Furthermore, it will ensure that just one person has possession of single currency unit in a given time. This makes it hard to tamper or fake transactions.

For this reason, there are numerous questions in relation to the opportunities and risks associated with the use of cryptocurrency for funding political campaign and having transparency as well as oversight of said transactions.

Another thing to be taken into account is whether they must be included in the circulation or real currencies or if it should be treated like an asset or something else.

Expanding Knowledge in its Use and Applications

In political finance, it is critical to identify its purpose for there’s a totally different regulation between in-kind and in-cash donations. What’s more, digital currencies may violate political finance regulations like by channeling anonymous or foreign donations to banned countries.

Above everything else, it is uncertain whether it merits special regulations since they’ve yet to be in mainstream and most remain skeptical regarding what its future holds in legal economy. As a matter of fact, even experts in political finance only have mere understanding of how cryptocurrencies work and applications as well as its implications in relation to financing politics.

In Bad Light

One notable aspect that cryptocurrencies have is its decentralized nature. This enables people and certain entities to circumvent banking system which can cause big issues for AML or Anti-Money Laundering efforts and opportunities to reduce the cost of transaction. When cryptocurrencies are made focus more on privacy instead of transparency, oversight agencies are facing serious challenges in monitoring financial and transactional flows that raises concerns regarding their possible effects on how many is used in politics, corruption, money laundering and funding of illicit activities.