Does Crypto Actually Need Legalization

So the news about Ukraine and bitcoin came in few hours about the country’s legalization of bitcoin. For a moment, I thought this was an old news because late 2021, there was a news circulating about bitcoin being legalized in Ukraine. Is there something am not understanding or getting? Why is the news resurfacing like it’s a new information ? This got me thinking, what does it mean to get bitcoin legalized or what does it mean to get crypto legalized. Does crypto need legalization? Crypto is supposed to be free to use by all, why does it need to be legalized, it’s like legalizing breathing.

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The government and the people in power will claim that legalizing crypto is to help regulate to make sure that it is not used by the wrong people. It’s just a tactic and a way of making sure they get control over crypto. Bitcoin is decentralized and can still be used no matter what the governments say. They can be used even when considered legal or illegal , I guess instead of calling it “legalizing bitcoin” they can say endorsing bitcoin. This way they give bitcoin more utilities, like making it a widely acceptable means of payment.

But using crypto is a matter of choice, it’s a trade by barter kind of transaction, just like Gold and Diamond are used as a store of value, store of wealth and some times used as a means for transactional payment. For instance, if you wanted to pay for something and you don’t have a legal tender like dollars, euros or pounds, you can exchange the same value with a physical gold or Diamond. But do you see people fighting for Diamond and gold to get legalized or used as a legal tender. Imagine using it to make payment, we all know that life will be more harder for us in terms of logistics and mobilization of these golds and Diamonds.

You can trade gold on stock exchanges, but gold is allowed to be used freely without scare or considered to be a threat to national security or whatever the government calls it. Making gold a legal tender is an extremely bad idea because it can not be traced and will have no digital footprint. But no one ever called gold or Diamond illegal. But bitcoin and cryptocurrency in general is like digital gold, but better in the sense that it can be traced, it is digital and can be moved from one place to another. The cost of moving it from one address to another is extremely minimal and small. Even bitcoin and Ethereum that have high transaction fees is still not close to the amount used in sending billions of dollars worth the same amount in gold.

Everything is neither legal or illegal in a country, it all depends on what the government says. When the government decides to legalize an asset, you know what they want to do, they want to regulate it so they can have access to tax it.

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