Legalization of Bitcoin in many countries has proven to be a very hot topic since there are countries which viewed Bitcoin as a threat since the currency is decentralized, not backed by anything and is gaining a strong following and use in such a short period of time. Bitcoin has become a phenomenon which caught many by surprise.
Perceived as threat, there are some government authorities who are proposing to regulate the cryptocurrency but as a compromise make it legal. It is as if they want a give and take kind of game.
Should we allow to get into the compromise as long as Bitcoin can be legal or should we make a strong stand against this scenario?
Most of the forward thinking governments around the world aren't actually as against digital assets as you'd think.
An asset class doesn't have to be heavily regulated for governments to have positive feeling towards it.
The gold bullion market has a somewhat loose regulatory structure - far more loose than the securities markets for example.
But, despite this, we all are aware of the obsession that governments have for gold.
The fact that most of the relevant powers in the world are taking a 'light touch' approach toward creating regulation in the bitcoin market is actually a showing of support and or backing from government.
Overall, they are holding back on creating legislation that could potentially limit the growth and expansion of digital assets. This can be perceived as a sign of silent support.
I may be drastically wrong but, I personally do not view digital assets as a threat to government authority - but rather as a tool that may serve to enhance and boost the efficiency of government: much like the internet.
Ultimately, digital assets, will do a lot to boost the strength of the global economy.
For some reason I sincerely believe that the economy will be expanded, by epic proportion, due to the possibility of machine to machine and human to machine commerce - made possible by the blockchain.
For every one human being, there are two internet enabled devices.
Artificial intelligence is here today! And this world of AI is converging with the world of the Internet of Things. In short, 'smart' devices are becoming 'intelligent' devices.
What happens when these devices begin to transact with each other?
Once iOT converges with the world of digital assets, innovation will take a certain course that will cause the world economy to triple in size and value - due to machines becoming active participants in the global economy.
This will only be possible if the blockchain is given the regulatory room to breathe. I could be wrong but, most of the governments seem to be aware of this.