Bitcoin Enemies Banking
Bitcoin Enemies Banking
Apparently, virtual money, Bitcoins, became the enemy with the banking. Since the beginning of December 2013, several banks have intensively warned of risks when buying, holding and trading bitcoins. The electronic money that applies in this virtual world network, was first made by Satoshi Nakamoto approximately in 2009. Bitcoins can not be cashed, but can be used to buy many goods and the necessities of life sold through the internet. Bitcoin trend began to spread around the world in early 2011 worth US $ 1 per bitcoin. Now, the price reaches US $ 1,000 per bitcoins.
The last warning came from the European Central Bank (ECB) on Friday (13/12). European banking authorities are following the warnings that have been done otoriatas French and Dutch banking and China. The reason, consumers are not getting protection with the rules device. When holding the virtual money, risk losing their money. "There is no guarantee that the value of the bitcoins will remain stable," the ECB said in a statement quoting ncbc.com.
Not only that, the ECB plans to review the bitcoins and the like to see the opportunity to do supervision and arrangement. Thus it can protect consumers from financial losses due to the failure of the virtual currency platform. Another thing that concerns the ECB is when storing bitcoins in digital purses like on computers and smartphone devices and so forth. The ECB warned consumers against getting legal protection from fraud cases.
However, the warning is not no excuse. In the last month, in Denmark there was a pretty scary case. The bitcoin payment processor with a free online purse-based service lost $ 1 million more bitcoins. The cause, a security attack on the server or hit by hacking action. Moreover, China has become the biggest bitcoin fraud place so far. The case occurred fraud after successfully collecting bitcoins reached US $ 4.1 million.
Earlier, Norwegian Director General of Taxation, Hans Christian Holte, asserted, bitcoins are not a valid currency. "Bitcoins does not fit the definition of money or currency," he said as quoted from marketwatch.com, Tuesday (17/12).
Nevertheless, the Norwegian government treats Bitcoins as an asset and imposes a tax burden on capital gains. This attitude adds to the list of countries that avoid bitcoins. The German government has declared, this year will not recognize bitcoins as foreign eyes and tax the transaction. The condition is different from that in the US which has approved it in November 2013. Whereas most countries in Europe warned of the risk of having bitcoins. The former Dutch central bank governor rated bitcoins as a tulip flower boom in the 17th century.
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