There has been a hype on cryptocurrencies. When the bitcoin was introduced and hit the market, the entire world reacted. Why? Because the creation of the bitcoin and the coming into existence of the blockchain technology has been a disruptive innovation. The governance system was shaken, the economic ecosystem evolved and the social sphere got a big bang. The innovators and early adopters embraced the new technology. The blockchain, to my estimate, is still in the early adoption stage, like any other product. In this scenario, we bring in the issue of scepticism against cryptocurrencies and the blockchain revolution. If you have missed the fact before, the cryptocurrency/blockchain revolution is the fourth industrial revolution. But what is the basis of scepticism in cryptocurrency/blockchain?
The first point is that whenever there is a great change there exists doubts and phobias. The creation of the cryptocurrency has brought fear in businesses, consumers and the government. However, the slow pace of adoption of the cryptocurrency is caused by doubting governments. Let us look at the few of these fears. The cryptocurrency has not been an international approved medium of exchange. After all who has to approve it? No one should, because it is a decentralised currency – it has no ownership. So it belongs to us all. Those who have adopted it have approved it. However, in relation to individual economies, a few countries have adopted cryptocurrencies as a medium of exchange.
Many governments around the world are not yet clear on their stance on cryptocurrencies. A number of these are trying to put in regulatory frameworks for the adoption and use of these digital currencies (e-money). The reason why many governments so far have failed to adopt the e-money is the difficulty associated with its regulation. The government can easily regulate its currency not the currencies of other countries. Central banks do not have control over cryptocurrencies, so countries resist their adoption. If countries cannot properly regulate the currency, they will find it difficult to raise revenue through taxation. As we all know government revenue is essential for the existence of any state.
Another reason why some of the various stakeholders may remain sceptical is the volatility of major cryptocurrencies. The value of each individual can easily fluctuate steeply over a short period of time. That is why crypto investors should spread their investment in cryptocurrencies among a number of alternatives, which acts as a shock absorber, should the value of some crypto coins nose-dive. This fluctuation can easily shake some financial markets. Apart from this, there is the danger of scams and hacking.
A number of governments are sceptical of cryptocurrency due to security issues. Cryptocurrencies are seen as a potential medium of exchange used in illegal transactions such as the sale of banned drugs like cannabis. Other countries fear that cryptocurrencies can easily fund terrorism and other anti-government activities. Thus, some third world countries have banned the adoption of cryptocurrencies as an alternative medium of exchange. The last part of this discussion looks at how people in countries that have banned cryptocurrencies circumvent this obstacle.
How to transact in cryptocurrencies in countries where they are banned?
In view of the restrictions imposed by some governments on the use of cryptocurrency, some innovative crypto players have come up with solutions. The solution is in the form of peer-to-peer crypto exchanges. Thus, people anywhere in the world have a way out of any ban by the government. All what such people need to do is to go for the best peer-to-peer exchanges. One example of a reputable peer-to-peer exchange is CryptoGem These exchanges allow for the transfer of fiat currency to account holders through various means including wire transfer, Western Union, PayPal and many more.
Should you need a list of other peer-to-peer exchanges then visit: Secure Peer-to-Peer Crypto Exchanges.