If you are wondering whether Bitcoin is legal or not, you are not alone. In fact, since the creation of Bitcoin, one of the most frequently asked questions has been centered around Bitcoin legality and legitimacy. The incidents that have led to these questions are widely known and understood in the cryptocurrency community.
Not only has there been hundreds of documented scams over the years, but Bitcoin and other digital currencies have also faced strict regulatory policies from most countries. In some of these countries, buying, selling, owning, or even investing in Bitcoin means accepting to abide by many unfavorable rules and regulations in order to enable the countrys government to keep watch and monitor national usage.
On the other hand, some countries simply do not permit the ownership of digital currencies. All these are reasons why it is important to fully understand the legal status of Bitcoin. So, is Bitcoin legal? Well, we can say that Bitcoin is legal depending on your country of residence. Since the rules and regulations surrounding the possession and usage of digital currencies vary from country to country, there is no one size fits all answer to the Bitcoins overall status.
What is Bitcoin?
Before we dive into analyzing Bitcoins legal status, it is important that we reiterate the objective definition of Bitcoin and its inherent qualities, as these are the major determinants of whether or not Bitcoin is accepted in any country.
Bitcoin, the first digital currency to be created, was founded in 2009 by an anonymous developer who goes by the name Satoshi Nakamoto. The virtual currency has since risen in price value to become the most popular digital currency in the world.
Bitcoin is a decentralized form of electronic money that can be sent or received on a peer-to-peer bitcoin blockchain network without the need for third parties to validate these transactions. As such, Bitcoin is one of the forms of digital money that cannot be controlled by the government. While every transaction is recorded on the Bitcoin Blockchain, much of the users identity is kept anonym ...