Bitcoin has been volatile; just how crazy has it been? You can see that Bitcoin has set a historical high, exceeding $100,000, and then dipped to $94,000. Trump also made a statement, saying that Bitcoin represents the right direction, meaning he believes the development of virtual currencies is a normal trend.
At the same time, Putin has expressed his views on virtual currency. He stated that the development of new payment tools is evolving naturally, and no one can prohibit Bitcoin. From Putin's words, it is clear that he recognizes Bitcoin as a new payment tool. So, what does Bitcoin bring as a payment tool? Let’s discuss the characteristics of Bitcoin in detail.
Bitcoin is built on the foundation of blockchain, supported by a credit mechanism, which greatly ensures its security and reliability. At the same time, the convertibility of Bitcoin is not an issue; as long as you have the willingness, you can purchase Bitcoin through specific means. Additionally, the value of Bitcoin is derivative and is a form of storable currency.
Of course, it must be mentioned that Bitcoin also carries risks. If someone wants to purchase Bitcoin, it is essential to guard against risks, as many have gone bankrupt due to their involvement with Bitcoin. Another unique aspect of Bitcoin is that it is not subject to sanctions like the US dollar or the euro; there won't be situations where it is prohibited from use or settlement. The core characteristic of Bitcoin is its depoliticization. Regardless of your political party or which country or region you come from, as long as you wish to use it, you can do so under certain rules through specific means. This is the manifestation of Bitcoin's depoliticization.
For Russia, the reason Putin appreciates Bitcoin is that it is not affected by Western countries' sanctions against Russia. However, Bitcoin also has two relatively thorny issues, which is why many countries are reluctant to use Bitcoin.
First, Bitcoin transactions need regulation; for instance, transaction amounts need to be monitored; otherwise, it would be difficult for the government to levy taxes. Some view Bitcoin as too secretive and difficult to regulate, which can lead to significant tax revenue loss for the government, and currently, Bitcoin is indeed difficult to effectively regulate.
Secondly, many governments do not support the transfer of Bitcoin, especially transfers abroad, which also need to be regulated. However, as a cryptocurrency, Bitcoin does not require customs declaration when transferring abroad, nor does it need to be reported to currency management authorities, making regulation impossible.
This is why some countries are worried about the proliferation of Bitcoin; they believe that if Bitcoin becomes widespread, it will lead to significant problems in foreign exchange, as foreign exchange trading and transfers cannot be regulated, which will undoubtedly cause various troubles. However, both Putin and Trump deeply understand one point: Bitcoin represents the future direction of currency development and is an inevitable trend in the development of virtual currencies and digital currencies. Even if some people do not want to use it, they will ultimately have to face this reality, as technology continues to develop, and Bitcoin is an important product of technological advancement.
