Bitcoin as a Legal Tender

[Josemendez]

Bitcoin has attracted the interest of many Financial Institutions, countries, and Financial analysts. To some, there is a belief that bitcoin and cryptocurrency, in general, can be a tool that can help in the present financial meltdown in the world caused by the covid-19 pandemic, and to others, Bitcoin is not good to be used as a store of value due to its volatility.

El Salvador became the first country to adopt Bitcoin as a legal tender and this decision has attracted criticism from both the local regulators and the International Monetary fund ( IMF). Amidst the criticism, there are still people both citizens and non-citizens who are happy with the decision, the question then is this, can Bitcoin fit in as a legal tender?

To answer this question we need to understand what legal tender is; Legal tender is anything recognized by law as a means to settle a public or private debt or meet a financial obligation.

Bitcoin may fit in as a legal tender judging by the fact that it has a monetary value but its volatility is a great disadvantage. To explain this further, consider two friends that went to a mall to buy stuff with each of them leaving their house with $200; customer A has his money in Fiat while customer B has his money in crypto. Customer B might at the end of his orders discover that his money has been reduced to $190 due to a dip in the crypto market, he will then have to adjust his orders to accommodate his available fund. Although the reverse can be the case and his money may increase by $20, but it shows that having Bitcoin as a store of value is not a good financial decision.

Below are some of the challenges with Bitcoin as a legal tender ;

1. Delay in processing transactions and additional expenses paid in form of gas fees.
Cryptocurrency transactions are confirmed on the blockchain and when there are huge transactions, there will be a delay in transaction processing and an increase in gas fees. The buyer can only pay $200 for the product if he is buying with fiat currency, but with Bitcoin, he may end up paying $230 because of the gas fee for processing the transaction.

2. Technical know-how: Bitcoin is volatile, for a successful application of Bitcoin as a legal tender, the citizen needs to be educated on the volatility therein and how to solve it. Aged people may not be able to process transactions on their own and getting help from people can put their accounts in danger.

Finally, the International monetary fund is going to be a great obstacle towards the adoption of Bitcoin as a legal tender as such goes against the laid down policy.

In your opinion, what do you think about Bitcoin as a legal tender ?

 

[Nurudeen]

For Bitcoin to become a legal tender, it's going to require some huge international debate for marketplace to accept it. I think countries are just avoiding it just because it can't be regulated

 

[Yusuf]

Bitcoin is really a good thing to invest to but I really don't see it becoming a legal tender all over the world and time soon. Some government won't even accept it because they can think it can be used to fund terrorism

 

[Josemendez]

Bitcoin is really a good thing to invest to but I really don't see it becoming a legal tender all over the world and time soon. Some government won't even accept it because they can think it can be used to fund terrorism

Funding terrorist group is not even the case here as presently bitcoin transaction is traceable. The main issue here is the fact that bitcoin is not a store of value.

 

[Alexandoy]

Bitcoin and other crypto coins are not currency but just a commodity. Bitcoin is like gold or silver that is a precious commodity that is appropriate for investment. If we can make a commodity to be the legal tender or legit currency then it would be gold.

 

[Josemendez]

Bitcoin and other crypto coins are not currency but just a commodity. Bitcoin is like gold or silver that is a precious commodity that is appropriate for investment. If we can make a commodity to be the legal tender or legit currency then it would be gold.

I don't quite see the logic here. Now if I may ask you , is gold a currency ? No . So I think gold is not far from bitcoin when it comes to having the features of a Currency.

 

[Bousine123]

Bitcoin has attracted the interest of many Financial Institutions, countries, and Financial analysts. To some, there is a belief that bitcoin and cryptocurrency, in general, can be a tool that can help in the present financial meltdown in the world caused by the covid-19 pandemic, and to others, Bitcoin is not good to be used as a store of value due to its volatility.

El Salvador became the first country to adopt Bitcoin as a legal tender and this decision has attracted criticism from both the local regulators and the International Monetary fund ( IMF). Amidst the criticism, there are still people both citizens and non-citizens who are happy with the decision, the question then is this, can Bitcoin fit in as a legal tender?

To answer this question we need to understand what legal tender is; Legal tender is anything recognized by law as a means to settle a public or private debt or meet a financial obligation.

Bitcoin may fit in as a legal tender judging by the fact that it has a monetary value but its volatility is a great disadvantage. To explain this further, consider two friends that went to a mall to buy stuff with each of them leaving their house with $200; customer A has his money in Fiat while customer B has his money in crypto. Customer B might at the end of his orders discover that his money has been reduced to $190 due to a dip in the crypto market, he will then have to adjust his orders to accommodate his available fund. Although the reverse can be the case and his money may increase by $20, but it shows that having Bitcoin as a store of value is not a good financial decision.

Below are some of the challenges with Bitcoin as a legal tender ;

1. Delay in processing transactions and additional expenses paid in form of gas fees.
Cryptocurrency transactions are confirmed on the blockchain and when there are huge transactions, there will be a delay in transaction processing and an increase in gas fees. The buyer can only pay $200 for the product if he is buying with fiat currency, but with Bitcoin, he may end up paying $230 because of the gas fee for processing the transaction.

2. Technical know-how: Bitcoin is volatile, for a successful application of Bitcoin as a legal tender, the citizen needs to be educated on the volatility therein and how to solve it. Aged people may not be able to process transactions on their own and getting help from people can put their accounts in danger.

Finally, the International monetary fund is going to be a great obstacle towards the adoption of Bitcoin as a legal tender as such goes against the laid down policy.

In your opinion, what do you think about Bitcoin as a legal tender ?

I won't say it's not ok to use Bitcoin as a legal tender for businesses. But at the stage the cryptocurrency is now, I will advice against it.

 

[Tolumi]

The main problem with bitcoin as a legal tender are:
1. price volatility, the value of your crypto can become less than half in 24 hours
2. the ever-increasing gas fee will also pose a problem and giving rise to one of the problems bitcoin seeks to solve initially.

 

[Dowenship]

Bitcoin has attracted the interest of many Financial Institutions, countries, and Financial analysts. To some, there is a belief that bitcoin and cryptocurrency, in general, can be a tool that can help in the present financial meltdown in the world caused by the covid-19 pandemic, and to others, Bitcoin is not good to be used as a store of value due to its volatility.

El Salvador became the first country to adopt Bitcoin as a legal tender and this decision has attracted criticism from both the local regulators and the International Monetary fund ( IMF). Amidst the criticism, there are still people both citizens and non-citizens who are happy with the decision, the question then is this, can Bitcoin fit in as a legal tender?

To answer this question we need to understand what legal tender is; Legal tender is anything recognized by law as a means to settle a public or private debt or meet a financial obligation.

Bitcoin may fit in as a legal tender judging by the fact that it has a monetary value but its volatility is a great disadvantage. To explain this further, consider two friends that went to a mall to buy stuff with each of them leaving their house with $200; customer A has his money in Fiat while customer B has his money in crypto. Customer B might at the end of his orders discover that his money has been reduced to $190 due to a dip in the crypto market, he will then have to adjust his orders to accommodate his available fund. Although the reverse can be the case and his money may increase by $20, but it shows that having Bitcoin as a store of value is not a good financial decision.

Below are some of the challenges with Bitcoin as a legal tender ;

1. Delay in processing transactions and additional expenses paid in form of gas fees.
Cryptocurrency transactions are confirmed on the blockchain and when there are huge transactions, there will be a delay in transaction processing and an increase in gas fees. The buyer can only pay $200 for the product if he is buying with fiat currency, but with Bitcoin, he may end up paying $230 because of the gas fee for processing the transaction.

2. Technical know-how: Bitcoin is volatile, for a successful application of Bitcoin as a legal tender, the citizen needs to be educated on the volatility therein and how to solve it. Aged people may not be able to process transactions on their own and getting help from people can put their accounts in danger.

Finally, the International monetary fund is going to be a great obstacle towards the adoption of Bitcoin as a legal tender as such goes against the laid down policy.

In your opinion, what do you think about Bitcoin as a legal tender ?

But there as been some inception of crypto currency from CBDC or something like that, about using crypto currency as country currency for transaction all over the world. Three international monetary will eventually adopt it at e long run.

 

[Mayox25]

I believe that it can evolve to that level overtime, because even the fiat money did evolve to the stage of widespread acceptability.
So if bitcoin will become a legal tender it will be in stages to be able to address all the disadvantages enumerated in this post.

 

[tyrim88]

The points you just highlited has made it pratically to some extent impossible for bitcoin or any other cryptocurency to be used as a legal tender,the disadvantage are just too many.Reason most persons prefer it to be kept as a store of value.And most government would not like to buy into this type of project,because it is decentralise.

 

[Nomad]

You can correct me if I am wrong but I cannot see it is viable for bitcoin to be a legal tender because transaction costs are high and transaction speed is low. Furthermore, it is also very volatile.

 

[Jsoliu004]

The legislation passed swiftly, and Bitcoin will be considered legal form of currency in the country, alongside its primary currency, the U.S. dollar after Sept

 

[Elfinito]

Bitcoin would be a very good means of transaction and would be a nice project as a legal tender but we have to also consider the lower class individuals who do not have access to internet and mobile devices.
What about the old people who do not have the knowledge of the digital age.
Things like this would make it difficult to make Bitcoin a legal tender

 

[Justin]

I think there is only one country that has made bitcoin a legal tender. According to the popular poll, the common people in the country are not happy with ths forced decision from the government

 

[Thinker009]

I hope Bitcoin becomes a legal tender in many countries b, because I think for now the only country that have already accepted it for legal tender is elsavador at the moment

 

[Toyoabasi]

Bitcoin has attracted the interest of many Financial Institutions, countries, and Financial analysts. To some, there is a belief that bitcoin and cryptocurrency, in general, can be a tool that can help in the present financial meltdown in the world caused by the covid-19 pandemic, and to others, Bitcoin is not good to be used as a store of value due to its volatility.

El Salvador became the first country to adopt Bitcoin as a legal tender and this decision has attracted criticism from both the local regulators and the International Monetary fund ( IMF). Amidst the criticism, there are still people both citizens and non-citizens who are happy with the decision, the question then is this, can Bitcoin fit in as a legal tender?

To answer this question we need to understand what legal tender is; Legal tender is anything recognized by law as a means to settle a public or private debt or meet a financial obligation.

Bitcoin may fit in as a legal tender judging by the fact that it has a monetary value but its volatility is a great disadvantage. To explain this further, consider two friends that went to a mall to buy stuff with each of them leaving their house with $200; customer A has his money in Fiat while customer B has his money in crypto. Customer B might at the end of his orders discover that his money has been reduced to $190 due to a dip in the crypto market, he will then have to adjust his orders to accommodate his available fund. Although the reverse can be the case and his money may increase by $20, but it shows that having Bitcoin as a store of value is not a good financial decision.

Below are some of the challenges with Bitcoin as a legal tender ;

1. Delay in processing transactions and additional expenses paid in form of gas fees.
Cryptocurrency transactions are confirmed on the blockchain and when there are huge transactions, there will be a delay in transaction processing and an increase in gas fees. The buyer can only pay $200 for the product if he is buying with fiat currency, but with Bitcoin, he may end up paying $230 because of the gas fee for processing the transaction.

2. Technical know-how: Bitcoin is volatile, for a successful application of Bitcoin as a legal tender, the citizen needs to be educated on the volatility therein and how to solve it. Aged people may not be able to process transactions on their own and getting help from people can put their accounts in danger.

Finally, the International monetary fund is going to be a great obstacle towards the adoption of Bitcoin as a legal tender as such goes against the laid down policy.

In your opinion, what do you think about Bitcoin as a legal tender ?

It would be a welcome development. We would only have to battle with the disadvantage of its volatility. I can imagine enough money being in circulation, transactions done swiftly and the issue of economic recession curbed.

 

[HayKay]

You just voiced my opinion about why Bitcoin cannot overtake Fiat currency as being legal tender across nations and businesses. The volatility isn't just enough to allow it achieve that aim.
Bitcoin would open up a means of wealth for people just like the interest has done.

 

[tyrim88]

The main problem with bitcoin as a legal tender are:
1. price volatility, the value of your crypto can become less than half in 24 hours
2. the ever-increasing gas fee will also pose a problem and giving rise to one of the problems bitcoin seeks to solve initially.

Though the advent of crytpcurency has really brought much relieve to doing online transaction and confirmation of payment,but to be used as a legal tender would not be that ok,unless there is a version that would be very stable.

 

[Chibson]

Any country that wants to make bitcoin a legal tender should make the teaching and learning of how to operate the blockchain compulsory. it requires a lot of technical know-how because it is very volatile.