There are a lot of controversies regarding cryptocurrencies in Australia. Many people have a strong opinion about Bitcoin that it could be an alternative currency for national currencies. In addition, many argue that this may be an alarming situation for banking systems over the next few years. Because they believe that cryptocurrencies are far better than national currencies and can disrupt 30% by 2030.
With the rapid adoption and popularity of Bitcoin, there have been so many arguments and claims. Some central banks are strongly opposed to these claims. Now, what’s the reality, and how could you decide what to do with these claims? However, let us focus on different views of cryptocurrency and its impact on the current currency system.
1Reason Behind the Claims
There are several reasons that cryptocurrencies have become so popular and can be a viable alternative for national currencies. The primary reason is being its authority and control over the money. As you know, cryptocurrencies operate through an unregulated peer-to-peer public network run by the users, it provides complete authority to the owner. A user has the sole authority on his/her money that what he/she will do with it. This is possible due to blockchain technology, which is constantly verified by the users in the network.
Whereas there are many controversies regarding the authority of the currency in Australia. In 2017, the government legalized the usage of cryptocurrencies, especially Bitcoin. So if you want to earn money from Bitcoin, read why bitcoin is called digital gold.
2Opinions of the Supporters About Cryptocurrency
Supporters say that cryptocurrencies would not be like conventional currencies. As, Bitcoin is not tied to any government or economic activities so there will not be much regulation on it. There is a very less chance that it can be tampered by the government due to inflation.
The supporters of Bitcoin and those who actually invest in any cryptocurrency say that it will remain volatile. Like stocks and bonds, the price will fall and rise with time. Recently, due to the coronavirus pandemic there is a panic among the traders of bitcoin. But many supporters still believe that bitcoin will sustain this downturn and will have a better future soon.
Some people also say that digital currencies can be a viable option for the e-commerce business. People would love to buy and sell goods and services using bitcoin or any other digital currencies.
3The opinion of the Government on Cryptocurrencies
After a long controversial discussion about the cryptocurrencies the government has a positive view towards the digital currency market. The government has also considered it as a viable investment option and stated that cryptocurrencies (especially Bitcoin) should be considered as property.
However, it acknowledged the risk of scams, and illegal money laundering due to its unregulated operation. The government also pointed out some illegal activities from the historical data of the cryptocurrency market.
4Advantages and Disadvantages of Cryptocurrencies
Advantages: One of the main advantages of using cryptocurrencies is that it cannot be easily manipulated unlike traditional currencies. As the government has little to no control over the operation of the digital currency, it cannot dilute the money supply. Another advantage is that it allows cross-border money transfer, faster transactions and fewer transaction fees. In this, the account is secure.
Disadvantages: The main concern is once the cryptocurrency replaces the conventional currency, people having the paper currencies will be in trouble. On top of that, there is no sustainable and widespread infrastructure for the complete adoption of cryptocurrencies.
Finally, the government and banking system have recognized the potential and importance of digital currency. They are trying to build a sustainable infrastructure in order to adopt and monitor the digital currency.