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When Satoshi Nakamoto introduced the term Bitcoin in 2009, no one had ever thought it could grow as a major digital currency and challenge the fiat currency around the world. At present, Bitcoin and other cryptocurrencies are breaking the barriers of higher highs and challenging traditional currencies.
In fact, countries such as El Salvador have already adopted bitcoin as a legal tender, while other South American countries are exploring the options and the legalities related to crypto adoption.
Today with Bitcoin, you can buy a pizza, or a Tesla, or even buy a coffee. Leading names in the industry are either directly or indirectly supporting it as a mode of payment or paying salaries to their employees. Bitcoin, the world's leading cryptocurrency, broke the US$60,000 barrier on 15 October and is currently trading at US 60,610.82. So, is it the right time to come to legalise Bitcoins?
Also read: How UK is becoming a leading force in crypto adoption
Let's look at the top 4 reasons why it is the right time to legalise Bitcoins.
Growing adoption
Bitcoin has seen an increased adoption lately. Especially during the Covid-19 pandemic, Bitcoin usage surged in especially in the developing countries with citizens seeking shelter from currency debasement. According to the Chainalysis data, the global adoption of Bitcoin and cryptocurrency skyrocketed in one year, up by over 880%. The data, which was taken from July 2020 to June 2021, showed that investors from developing countries such as Vietnam, Kenya, Nigeria, and other South American counties are betting big on bitcoin.
Bitcoin as legal tender
With El Salvador adopting Bitcoin as a legal tender, voices have grown to adopt cryptocurrencies as a legal tender. However, one can say that El Salvador hurried up the process. They didn't have a backup plan or proper infrastructure in case something was to go awry. However, it set the template for other countries who are planning to consider adopting Bitcoin as a legal tender on how to go about it and the challenges one could face during its adoption.
Also read: Why Ripple joining the Digital Pound bandwagon could be a gamechanger
SEC's nod to Bitcoin ETFs
The US Securities and Exchange Commission gave a green signal to Bitcoin Futures ETF, and there is a growing buzz in the market that it could well be a new beginning for the industry. After months of negotiations and efforts to get the move going, many industry experts believe that it is a watershed moment for Bitcoin.
Bitcoin ETFs have raised hopes of recognising it as a major player in the financial market, and this move could well be a final step in accepting that cryptocurrencies can be a future mode of payment. ProShares, which filed for its Bitcoin Strategy ETF, could well be one of the first to be launched, and soon others can join the bandwagon.
Corporates and Bitcoins
Some of the biggest names in the industry: Tesla, Twitter, Ark Invest, have already been working on using Bitcoins. Tesla accepts Bitcoin as a mode of payment for the purchase of cars. Others have explored the idea of making payments to employees in Bitcoin. Several NFL & NBA sportspersons have demanded that their salaries be paid in Bitcoins in future.
Conclusion
Bitcoin has increased the value of cryptocurrencies, and it has become a force to reckon with. Experts feel that the world's leading cryptocurrency cannot be ignored or considered too volatile to invest. The prices do fluctuate, but it has established itself as a substantial force going in the future for a long time. It's the best form of cryptocurrency that can either replace or coexist with the traditional payment system.
