Bitcoin Rules: Are There Any?

Bitcoin RulesCenturies of international relations passively taught everyone that money needs rules, and economies became the product of international power struggles. Deciding who would gain the upper hand in these financial exchanges back in the old days was easy enough. Simply apply the principles of bigger army diplomacy and everything else falls into place.

Things aren’t as clear-cut anymore (thank goodness), and modern companies are starting to see the struggles that relative peace can bring. As more start-ups and incumbent businesses are starting to adopt the use and technology of bitcoin, the need for consistent trade laws become more apparent and urgent.

For now, companies such as Bitbroker are the only ways people can get their hands on bitcoins, but their activities are mostly limited to within the UK. This is a bit of a tragedy as it undermines two of the most attractive aspects of using bitcoins. Mainly, being the vehicles for cheap international transfers – undercutting the get paid-for-nothing system that banks have in place now – and a financial system outside of state control or limitations.

Neither of those two things are possible, however, if no one wants to price goods and commodities in bitcoin because of the currency’s volatility. But, the ideology behind digital currency as more than a financial disruptor is too good for companies to abandon. Fortunately, enough people agreed on this idea, and are now launching the global blockchain forum.

This is an international effort that is focused on developing industry best practices that will help form regulatory interoperability across the globe when it comes to digital assets and currency. It’s unclear how the forum intends to accomplish its goals through any specific terms.

The first step involves making multiple states agree on several basic points on how to look at digital currency. ‘Look’ not ‘use’; associations within the same country can’t even agree on how to classify a bitcoin – imagine making entire countries look at the technology through the same lens.

The bitcoin is a few years old, but it still has an uphill battle to achieve the status it deserves.