was the first and the largest cryptocurrency
, and was set up with the aim of replacing conventional currency. This has not completely happened, and although it has been accepted in more and more places now, becoming a viable payment option, you might be surprised to hear that it is actually still illegal in some countries. These are largely third-world nations, which are known to have struggling economics.
Bitcoin nodes have been distributed throughout the whole world, which has formed a huge decentralised network without a central point of failure. This means that no government can close the whole Bitcoin network on a global scale.
Data, that was collected and compiled by coin.dance states that Bitcoin is unrestricted in 107 of 251 countries, which means that using Bitcoin is deemed legal, or that the government have not put any restrictions in place. Almost have of these countries are Muslim, with theocratic political systems. Some of these nations have made Bitcoin illegal to use on religious grounds, but whether these policies can actually be enforced in another question altogether.
Letâs take a closer look at Bangladesh. They are the only known country, where the police have actually tried to locate Bitcoin users. It should be noted though that Bitcoinâs illegal status in most of the countries is actually just a formality, and has not been done as an attempt to dissuade their citizens. Despite it being officially illegal though, traders have not stopped trading it in countries, such as Morocco and Vietnam. Another one on the list is Ecuador, who was the first country back in 2014 to launch their on cryptocurrency, and decided to ban any competition that they might face.
The reason for these bans though is much the same in all of the countries and that is simply that the central banks do not want the competition to their traditional money. The fact of the matter is though that this is unlikely to happen, and it will also be near impossible to completely shut off Bitcoin, showing that technological innovation will actually always be one step ahead of the governments.
Bitcoin is very different to fiat currency because it is constantly evolving, bringing in new innovate e ways of removing barriers and improving the existing cryptocurrency.
Like we have previously mentioned, countries that have a struggling economy are often the ones to issue bans, like Afghanistan and Bangladesh. They are some of the poorest nations, but instead of embracing Bitcoin which could actually boost the economy are completely shooting themselves in the foot, as they will just continue to go down the same path.
In contrast, wealthy nations like Switzerland, Singapore and Japan are embracing cryptocurrencies
and welcoming new crypto businesses. This is because they will bring innovation, an influx of capital, which will in turn result in more tax revenue, jobs and a better standard of living.