Bitcoin is becoming one of the most popular digital currencies on the internet, and millions of people now own Bitcoin. These cryptocoins can be used for quite a large variety of transactions. You can pay for services or products at certain stores, you can use Bitcoin to trade or as an investment opportunity, and you can get paid for services rendered or products produced in Bitcoin. Many local businesses in various countries are also now starting to implement Bitcoin payment gateways to increase the number of payment options they are able to offer their clients. All of this means that Bitcoin will simply continue to grow in the coming years. More and more businesses will start to implement Bitcoin into their business models, and we will soon accept Bitcoin as an alternative to walking around with cash or a card.
With the increased interest in Bitcoin, a lot of people are very concerned about the legality surrounding Bitcoin. There have been many reports of Bitcoin being used for illegal transactions, which sparks the question – is Bitcoin legal and can you get in trouble for sending and receiving Bitcoin. The truth is, the legality of Bitcoin really lies with you, as you are able to decide whether Bitcoin is legal or illegal in your particular situation. Let’s take a closer look at what we mean, and what legality statements have been made regarding the use of Bitcoin by authorities.
Bitcoin’s Legality Issue
The more popular Bitcoin becomes, the more legal authorities are taking a note of this cryptocurrency. Quite a lot of issues have been discussed by various publications, and some reports have even been made regarding the illegal use of Bitcoin. Even the FBI has published some documentation on Bitcoin and the particular issues that revolve around the legality of this cryptocurrency.
Millions of people are now wondering if it is legal for them to use Bitcoin – either to receive or to send these coins, or to use it as an investment piece. A lot of questions regarding the legality surrounding Bitcoin mining has also been asked, especially since some authorities have warned people against mining these coins.
The real answer to the question whether Bitcoin is legal or not cannot be answered as a general question, but rather to specific situations. Ultimately, it depends on how you are going to use your Bitcoins. If you are planning to use Bitcoins as a way of tax evasion, then you may consider your case as potentially illegal. If you are planning to use Bitcoins to purchase illegal items, such as narcotics or other controlled substances (yes, Bitcoin has been used for this purpose in the past), then you are also making Bitcoin illegal. When you are simply planning to use Bitcoin for general purposes that do not include tax evasion or any other illegal activity, and you are following the guidelines set out for digital currencies by your local state, then the use of this cryptocurrency is legal.
Conclusion
Millions of people, as well as businesses, are starting to adopt Bitcoin into their daily lives. It is now possible to pay with Bitcoin for quite a large variety of products and services – there are even a significant number of local businesses that are starting to accept Bitcoin as a payment option when a customer buys from them. The big question remains whether or not Bitcoin is really illegal, but there isn’t really a straight answer to this question. In the end, it really depends on why you want to use Bitcoin and whether you would like to follow the official guidelines that have been implemented by your country and state.
About Kevin Lee
Kevin Lee is a former tech advisor who cut his teeth in Silicon Valley. He now spends his time sharing his passion for investing in diamonds and jewelry. You can reach Kevin for any comments by using the contact form on this site. Don't forget to sign up for his free "Investing 101 Guide" by clicking on the button at the top right of this website.