US to turn Bitcoin operators into "banks" - what you should know


According to the Coin Telegraph, the US government is ready to integrate crypto-currency exchanges and trading platforms into the banking industry.


What is the positive side?

Institutionalizing Bitcoin

Giving Bitcoins operators the status of banks will provide Bitcoin the necessary legal footstool to further establish it into society and economy.

Doubling our investments

Such a move will surely set Bitcoin prices to over $10,000 in just about a year. The US is the most innovation and capitalist nation in the world and if Bitcoins is "legalized" there, then we can only expert a boom in Bitcoin products and developments.


What could be the negative side?

Stripping Bitcoin's values

Features of Bitcoin such as anonymity, autonomy and decentralization will be under threat as legal complaince policies will undo most of them.


What will be the overall effect?

Overall, it will be good for Bitcoins. Yes, Bitcoin may lose its autonomy and anonymity, but such a move will also legitimize Bitcoin in the government sector.

Investors and mainstream businesses will now be free to adopt Bitcoins and this will lead to a huge growth of Bitcoins.

This will move will however not cause alt coins to increase in value - once governments put up a framework for crypto-currencies they will all be made to comply with it.

ZCash and Dash will either have to comply or find themselves on the watchlist of the CIA. The result is that no crypto-currency will be able to retain the advantage of being anonymous or autonomous.

With all crypto-currencies being forced to become complaint or face legal suits, the playing field will be equal for Bitcoin and all holders.


Overall it would be bad for the crypto industry, but there is no other way. Atleast we still get to work with Bitcoins and cryptos, unlike China where you cannot.


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