Global responses: a look past the bubble

A phenomenon this good doesn’t come without cons, and Bitcoin has plenty. Proponents would be remiss not to mention the dark side of using Bitcoins — or for that matter any other currency in the crypto world. Still in its nascency, the digital asset is notorious for its value fluctuations, rather experimental, and lacks long-term credibility. Its nature renders it attractive for possible tax evasion and money laundering.

For these reasons and more, its legality currently varies from state to state — some governments have entirely banned it, others tolerate its use while clarifying that it isn’t legal tender, and a handful completely accept it. While decentralisation makes blockchain hacks extremely difficult, the Bitcoin market has already fallen prey to security issues and hacks.

Also, no investor wants to ever find themselves in a similar situation to UK computer engineer, James Howells, who accidentally threw out the only hard drive storing his Bitcoin wallet and lost an estimated $32.5 million!

For prospective traders in the UAE, it’s most important to remember that Bitcoin is not yet regulated here, making it a much higher risk than traditional investments. Although there is a general sense of encouragement in the region when it comes to its use, there are multiple limitations and the options available to active buyers are constantly changing. For example, many banks around the country have recently put a ban on the purchase of cryptocurrencies through credit cards and prohibited their use for remittances. This measure was implemented to protect customers who may be unable to repay debts — if the BTC value severely plummets or in case they get caught up in fraud.