Pros and cons of a mature Bitcoin economy

Bitcoin effect on economy

Bitcoin Exchanges / December 19, 2021

As of now the effects of Bitcoin on the economy is minimal. But the increasing or supposedly increasing trends are

1) If you had read about BitCoin you may know that the major advantage of the currency is its de-coupling from any Fed-controlled real (fiat) currencies. Hence the normal regulations that apply to currencies are not applicable atleast as of now in many nations.

2) While the ecosystem is still evolving, one another major trend will be the trap of wealth within the system. As many and many start using BitCoin the amount of wealth stocked in the system will increase to a significant proportion

3) Tax Evasion - Imagine you are receiving money from a foreign source, Ideally you should be reporting (even if you don't your bank account will do) this income and pay tax to your government. But with BitCoin you can directly convert the foreign currency to Bitcoins and spend the coins online only, thus no need to report the income - I guess once the ecosystem evolves Govts will be working on it as Indian RBI did the same for PayPal. ( You cannot keep your money within Paypal account more than a day, at the end of each day all the money in your paypal account has to be transferred to your bank account)