Some say Bitcoin is not money. Some say that Bitcoin is money. Some say that it must be regulated. Some say it must not be regulated. But the real question is, whatever it is, it is a very reliable network, and can Bitcoin ever be regulated? Many debaters have explored this question many times, and it usually boils down to the fact that the entire legislation, or the constitution of America, will have to change so as to accommodate Bitcoin completely. Is this really possible? Is this even feasible? To dismantle the whole First Amendment, for a single concept, disturbing the base of many other rules that govern the state! I am not very positive about it, but let's still try to explore this further.
Can Bitcoin Ever Be Regulated
Bitcoin operates over the cryptographic ledger, when messages are sent as texts over the nodes, and these are then verified and transformed by the network to their destination. The rules on how and when operations are performed are more or less standard. So in a way Bitcoin is regulated. But if we talk of regulation in the sense of the law of the land, and tax regulations governing geography, it is well quite unregulated. First off, all these elements do not apply to Bitcoin, and wherever they do, there are many many loopholes and vulnerabilities that can be twisted and turned by the investors to function towards their own motives.
The Present Situation
When the American constitution was formulated, and it had a clause that mentioned “Freedom of Press”. Most of the democracies followed this constitution as fatherly figures, a reference de facto when they formed their own constitutions. So this gave “Freedom of Press” to be a kind of omnipresent element in constitutions around the world. Bitcoin can be printed on paper. The output can take varied forms, like it can be alphanumeric, it can be QR codes or it can be anything printable for that matter. But it can be printed. And as such, no democracy can be banning it or imposing regulations to swipe it off. Still we see that the only regulation that is in place for Bitcoin at the moment is that, some countries allow it while some give it the status of “illegal” or “banned”.
Economists and analysts usually feel puzzled by the way Bitcoin has managed to skyrocket the financial market not only in growth but in popularity too! In this light, they feel that there is a strong need for some government bodies to regulate Bitcoin. This will of course lead to another price splurge, but that is not the question. The question is, when so many people are doing something on such a large scale, it has to have rules in place! Government acceptance and government involvement would be required at a sooner or later stage!
It is a unanimous idea from most crypto enthusiasts and crypto investors that there must be some rules at least to govern the mechanism. At the same time, these stakeholders are not yet ready to allow the government to take full-fledged control of the situation. Control with flexibility is what is the need of the hour to answer the question of, can Bitcoin ever be regulated?’