July 01 2023

What Is the Cryptocurrency?

Information Technology

Cryptocurrency transactions began after the creation of Bitcoin and have only gained momentum since 2010.

And what are cryptocurrency, bitcoin, ethereum?

Currently, cryptocurrencies are widely popular in various international markets. Especially recently, due to the geopolitical situation and the sanctions imposed on each other by Russia and the USA, Russian residents use cryptocurrencies when making transactions, as they are outside the scope of the sanctions.

There are very different approaches to cryptocurrency in Europe, the USA, and Russia. In one case, it is considered electronic currency, dram, monetary derivative, payment instrument, in the other case, property or property right.

Cryptocurrency is a unique means of payment, the creation of which is not mediated, is based on a decentralized blockchain system, and it is almost impossible to change data in it.

It is not issued by a central bank, state or any government body, is not related to banknotes, but is accepted as a means of payment by individuals or legal entities and can be transferred, stored or sold electronically.
It is true that cryptocurrency is issued by people or organizations, but even its creators are not responsible for it.
There is no body that controls their sale and circulation.

The most popular cryptocurrency in the world is considered to be Bitcoin, and its creator(s) went by the pseudonym Satoshi Nakamoto, but to this day it is not known who or who are hiding under that name.

Today, the total value of bitcoins in existence in the world exceeds $593 billion….

Cryptocurrency cannot be considered a security or a currency, because according to the legislation of the Republic of Armenia, a security is a document certifying the property rights, which has an issuer, and the currency is the banknotes and coins of the Republic of Armenia and other states. The lack of legal regulations increases the degree of riskiness of acquiring bitcoins. In this sense, our legislation lags behind the changes taking place in the world, and now there is a need to align it with the new realities.

Thus, crypto-currencies, as a new phenomenon in our reality, should be regulated with the right legal tools, considered as property or property rights, which can be forcibly confiscated for the repayment of obligations.

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