1. PixelPlaygroundHome
  2. Blockchain Briefs

Why Crush Bitcoin (Why Crush Bitcoin),

• Blockchain Briefs • 119 views

Why Crush Bitcoin Why Crush Bitcoin?From the investigation results of the US Dep

Why Crush Bitcoin (Why Crush Bitcoin),

Why Crush Bitcoin Why Crush Bitcoin?

From the investigation results of the US Department of the Treasury, we see increasing evidence that the government’s regulation of cryptocurrencies is changing. These signs indicate that US federal agencies have taken a stricter stance and more aggressive actions towards digital assets in the past few years. Cases of “illegal” financial activities, money laundering, and crimes related to terrorist financing are all on the rise. But if these new risk factors are not supported, they will continue.

In order for more people to understand this industry, it needs to be made clear that “legality” is a matter of law. However, this does not mean that you cannot use “illegal” or any other technology to engage in certain businesses (such as purchasing drugs). In fact, “illegal” refers to a way in which certain actors profit by selling their goods to the outside world as a medium of exchange for what they hold. Therefore, they may be considered “inappropriate.”

So what is illegal? Due to the various encryption functions in the Bitcoin network, it makes it easy to become anonymous, so people cannot access it directly and track it. This classification can be traced back to January 3, 2014. Although many exchanges have adopted this approach, most people have been affected.

According to the University of Cambridge, it is a risky investment choice when over 10 million dollars are used for cryptocurrency mining. This is because the Bitcoin blockchain has multiple validators to protect network security. In addition, due to the low cost of attacks, it is almost impossible for the system to recover to its original design state.

Although the cryptocurrency market is still very fragile and vulnerable to hackers, there has been significant growth since the beginning of 2020 – similar situations have occurred twice since early February this year: the collapse of 2011; the bull market of 2013; the crash of 2016. As time goes on, the price volatility has risen to a new level; the prosperity period at the end of 2017. Now, due to the lack of identifiability, the cryptocurrency field has also experienced some worrying events, including fraud and theft.

In addition to Bitcoin, there are many different types of tokens, such as altcoins, decentralized applications, and new projects with different values. The most notable among them is “DeFi”.

DeFidapps are doing just that. Its code is designed by some protocols and then used as part of the DeFi ecosystem. These projects rely on smart contracts to achieve automation, without the need for third-party involvement to complete the creation of smart contracts, and also rely on smart contracts to perform other complex functions. In this case, the smart contract automatically executes all operations involving cryptocurrencies.

The emergence of DeFi has changed the structure of a world economic system, which is created by many emerging DeFi protocols – such as Aave, Compound, Uniswap, and Dydx, etc.

Why Crush Bitcoin

According to Bitcoinist, the US Department of the Treasury recently announced a ban on the use of Bitcoin as a means of payment. This has led the government to start cracking down on illegal cryptocurrency transactions and money laundering activities, and regulatory agencies are trying to curb this situation by incorporating digital assets into their anti-money laundering sanction frameworks. Although many people still look down on this and even consider Bitcoin a Ponzi scheme, a drug, or other dangerous goods. But as more and more banks enter this field, they have to take action to stop the use of Bitcoin.

This article and pictures are from the Internet and do not represent Fpips's position. If you infringe, please contact us to delete:https://www.fpips.com/23659/

It is strongly recommended that you study, review, analyze and verify the content independently, use the relevant data and content carefully, and bear all risks arising therefrom.

Like (0)
Previous 08/13/2023 12:22
Next 08/13/2023 12:45

Recommended articles