During its short existence, Bitcoin has successfully overcome several challenges, such as technical problems and internal wars. BTC has also withstood relentless persecution by governments and powerful financiers. Although Bitcoin is not illegal, it has an unjust reputation.
Admittedly, the image of Bitcoin needs to be improved. Many still associate the crypto currency with cybercrime, drug trafficking, fraud and other illegal activities. Scandals, accusations and assertions that have been widely published in the mainstream media have helped to damage Bitcoin’s reputation. There are striking reports of stock market hacks, manipulations or illegal activities. But Bitcoin itself is not illegal. Dr. David Cowan describes BTC as follows:
Nothing is illegal about Bitcoin Code
With the controversy and confusion surrounding the crypto currencies, it is easy to forget that there is nothing inherently illegal in them. Bitcoin Code in fact, the data show that the use of bitcoin in illegal activities is almost negligible. In January 2018, Yaya Fanusie, Director of Analysis for the Foundation for Defense of Democracies’ Center on Sanctions and Illicit Finance (CSIF), published a study entitled “Bitcoin Laundering: An Analysis of Illegal Flows in Digital Currency Services. The study concludes that
Less than one percent of bitcoin transactions are used for illegal activities.
Nevertheless, Bitcoin’s unjustified, questionable reputation has hampered its adoption rate and chased away large investors.
Protective measures and controls will create confidence
The restoration of Bitcoin’s reputation is becoming increasingly urgent. More and more key players in the crypto space are discussing how to restore the reputation of Bitcoin and other crypto currencies. In his article entitled “Cryptocurrency: Restoring reputation for the future“, Dr. Cowan claims that the spread of crypto currencies is the key to eliminating illegal uses. Matt Bisanz, Financial Services Regulatory and Enforcement Associate at Mayer Brown, says:
We need to do more to build trust where crime is rare or has little impact on the consumer. If your credit card gets stolen, you won’t stop using it. It has almost no effect…
What they say about Bitcoin Profit?
Tom Robinson, co-founder and chief data officer at Bitcoin Profit claims that regulations and controls on crypto currencies will help restore the reputation of crypto currencies. Bitcoin has proven its robustness and resistance time and again. As Christian Ferri, President and CEO of BlockStar, put it:
As with any technology, hacking will be painful for some in the short term, but it will be an important driver for strengthening the cryptoecosystem to make it safer, which is crucial for mass adoption.