What Are the Ramifications of Regulation of Bitcoin?

It is possible that Bitcoin will be able to continue as it has been since it first was created about a decade ago, as a kind of outpost for those who want their financial lives to be under their own control and not beholden to big banks and financial entities. At some point, however, maybe not soon but certainly on the horizon, the Bitcoin phenomenon will come to a head. It will either surge past all opposition to become the line way that people do business, it will fade out of existence, or it will come to some sort of alliance with the traditional financial institutions already in place. It is that third possibility that might be the most realistic, even as there are a lot of unknowns surrounding how all of that might work.

Investors looking down the road a bit certainly want to know Bitcoin will stand up as an asset should that eventuality finally occur. Bitcoin is already a difficult enough investment to grasp, which is why many people rely on artificially-enhanced trading programs such as Bitcoin Loophole to do their work for them in that asset class. Let’s play the hypothetical game and imagine that Bitcoin and the banks somehow work in accordance with each other. How will that look and what will the ramifications be for the investment value of Bitcoin.

1. An Uneasy Alliance

It is a fascinating possibility to try and wrap your head around because the two entities seem to be diametrically opposed. Bitcoin is all about a lack of regulation and the freedom of average people to conduct their financial transactions as they see fit. The banks and credit card companies’ whole point of existence is to attempt to facilitate (some would say butt into) this process. But there are banks that are slowly incorporating blockchain-like features into their business, so they seem to understand that the public’s taste for Bitcoin-like financial freedom will not soon disappear.

2. Would Bitcoin Still Be Bitcoin?

The major fear for investors, if the banks were able to come to terms with Bitcoin and perhaps even incorporate the coins into their own operations somehow, is that Bitcoin would lose its essence. A mass exodus from the coins by true believers of the revolution that Bitcoin was supposed to instill would be possible. And a precipitous drop in value might occur.

3. The Stamp of Approval

The flip side of this scenario relates to the people who have been hesitant to even consider Bitcoin as a part of their financial lives. These are the kind of people who might be scared off by the outlaw status of Bitcoin. If the banks allowed Bitcoin into their operations, it might give it, in the eyes of these late-comers, an air of legitimacy and could herald in a whole new age of investors in the coins.

Conclusion

It seems as if there will be positives and negatives to the value of Bitcoin if it is subsumed into the larger financial picture. If nothing else, some of the volatility would conceivably disappear, and it would be a somewhat safer bet to be an investment property well into the future.