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Bitcoin faces an intriguing precedent as it was recognized by the New South Wales court as collateral.
According to Judge Judith Gibson of the District CourtNew South Wales, BTC can be used to implement savings functions. He acknowledged that collateral can be paid at BTC with monthly reports to prevent volatility.
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As a result, the judge accepted the proposal forproviding a $ 20,000 collateral for securitization using BTC. Despite the defense's argument that BTC is an unsustainable asset, the judge presented a monthly report as opposed to. In addition, Judge Gibson stated that BTC is a recognized form of investment that can be of significant value.
However, formal and widespread acceptance does notis an advantage that provides superiority over other digital assets. It is believed that one of the main competitors of BTC and altcoins will be the Central Bank's Digital Currencies (CBDC). Most leading central banks are at different stages of studying this concept, but so far no government-sponsored digital coin has been created.
Meanwhile, bitcoin has existed for more than ten years andIt is a hedging instrument for risks arising from the national currency. In recent years, BTC has been a means of compensating for hyperinflation during the economic crisis in Argentina, Venezuela and Iran, as well as during a weakening currency in Turkey.
Central Bank Digital Currency (CBDC),Despite state control and related benefits, they do not guarantee property rights. Bitcoin, by contrast, cannot be seized without providing private keys, and transactions cannot be censored.
The only drawback of BTC is thatthat it is not recognized as “money” or “currency” in the sense in which this term defines the central bank. Legally, Bitcoin was framed as a digital asset or product with a value.
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