UberTechBlog

WHY DOES CRYPTOCURRENCY THREATEN NATIONAL CURRENCIES?

Cryptocurrencies are built on a decentralized technology called blockchain. The blockchain is a permanent secure ledger of records, transactions, and other data. In the traditional use case, the blockchain’s credibility is constantly maintained and verified by the network of users on the blockchain. This peer-to-peer network allows the system to function and thrive outside of a central point of control.

WHAT DO PROPONENTS SAY ABOUT CRYPTOCURRENCY?

Proponents of cryptocurrencies note that they won’t be like traditional currencies. Where the US Dollar is tied to the economic activities of the United States, Bitcoin is independent of any government or jurisdiction (and thus, there is little cryptocurrency regulation). The cryptocurrency price is not tied to traditional economic activity.

HOW DO GOVERNMENTS DEFINE CRYPTOCURRENCY?

One key issue with cryptocurrencies at the moment is that government agencies, especially in the U.S., can’t come to a consensus and agree on what cryptocurrency is and how to define it. Each agency is defining cryptocurrencies to fit under their jurisdiction so they have the authority to regulate it. The U.S.