Countries use cryptocurrency instead of cash

09 Feb

Countries use cryptocurrency instead of cash

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Cryptocurrency especially Bitcoin is no longer alien to many people in the world. This currency was born in 2008 and had a great development in 2017, although the fact that it is not widely recognized around the world. However, there are no rules prohibiting Bitcoin transactions and many countries have now recognized or used cryptocurrency instead of cash.

History of Bitcoin

Bitcoin was invented in 2008. This is the very first cryptocurrency in the world. Right from the beginning, Bitcoin had received a lot of attention especially from investors.

bitcoin

Bitcoin – the “eldest” cryptocurrency in the world

Bitcoin was invented in 2008 as the result of the financial crisis. The United States Federal Reserve System had to continuously pump money during the downturn period of global economy. So people started to lose their belief in the money that the government issued. And in August 2008, the method of trading as well as Bitcoin payment was announced under the name of BITCOIN.ORG, which was founded by Satoshi Nakamoto.

With a strong growth, Bitcoin was launched publicly in early 2010 (the conversion rate was 1,000 BTC = 3 USD). Bitcoin is used instead of cash starting with the case of exchanging 10,000 Bitcoins for two pizza boxes by Laszlo Hanyecz – a programmer. This transaction marked a turning point in the development of Bitcoin in May 2010.

On that momentum, in July 2010, MT.GOX exchange was opened. This was the most well-known exchange at that time. And after 5 months of operations, by the end of 2010, the market cap of Bitcoin had reached $1 million. By 2013, a Bitcoin could be exchanged for $92, and the amount of Bitcoins traded in the market was about 11 million Bitcoins

On August 13, 1973, the value of Bitcoin reached the record ($4,225 / Bitcoin), which made the Bitcoin market more vibrant than ever. Although this price was only maintained for a short time, it was a milestone for Bitcoin’s rapid growth.

What is Altcoin? Is it similar to Bitcoin?

By the definition of experts: Altcoin is the common name for all cryptocurrencies that are different from Bitcoin. Or, to be more simple, Altcoin is the improved version of Bitcoin. Altcoin was formed after Bitcoin’s sucess in 2009.

Some of the famous Altcoin on the crypto market today

Altcoin is the alternative of Bitcoin  because it has potential to improve and  overcome Bitcoin’s existing weaknesses. Its name implies all the meanings: Alt means replacing, coin is translated as a coin. Altcoin is a alternative coin.

Countries use crypto instead of cash

With the development of cryptocurrency, many countries had considered using Bitcoin instead of  cash.

  • The first country to recognize Bitcoin was Beralus. In December 2017, Berlus President Alexander Lukashenko signed the decree allowing the legalization of ICO transactions. Beralus also announced that all financial activities related to Bitcoin transaction would be exempted from tax for five years.
  • Vanuatu is also one of the countries that recognizes Bitcoin nowadays. This country is always at the forefront of adopting new technologies. Therefore, in this country, Bitcoin can be used to exchange for their nationality.
bitcoin ngay cang duoc su dung rong rai

Bitcoin is recognized in many countries

  • Japan is also one of the countries that has recognized Bitcoin. Since April 1, 1977, using Bitcoin as a method of payment had been accepted. Moreover, some organizations in Japan also see Bitcoin as a currency. However, the national  banking system has not yet applied Bitcoin.

Besides the mentioned above ones, many countries in the world gradually have intention of recognizing Bitcoin as a legal currency. In Europe and almost all of the Americas, there are separate rules for Bitcoin. In Asia and Oceania, there are new rules that help reduce the financial crimes. For example, in the United States, there have been many Bitcoin classification organizations and the Ministry of Finance in the United States have viewed Bitcoin trading organizations as a corporation providing monetary service

In the near future, people will not only use Bitcoin to invest and make profit, but also use Bitcoin to purchase of valuable commodities in daily life such as automobiles, houses, televisions, …

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