As the most popular cryptocurrency currently out there, the interest in Bitcoin has only grown over time, reaching nearly every point across the globe. The questions surrounding cryptocurrency and blockchain tech are still unclear though. While some places like Malta have fully embraced cryptocurrency and are already seeing the benefits of its implementation into the mainstream, others are against it, seeing it as a risk too big to take. Before we take a look at how the situation is progressing in Malawi, here’s what you should know about Bitcoin and what it offers.
Why Bitcoin Is so Popular?
Bitcoin is a virtual currency created to facilitate an instant transaction between parties. When you look at it like this, you might be wondering what all the fuss is about. What makes Bitcoin so popular is its variation in price. The price of Bitcoin is constantly in motion, meaning that if you get some Bitcoin for a certain price now, it might end up being worth a lot more in time. This makes Bitcoin exchange a hot topic. On that track, if this has caught your attention, you can try this bitcoin app.
Pros and Cons of Bitcoin
The pros of Bitcoin are plenty, but there are a few that stand out, making it a favorite amongst users. The questions of anonymity and transparency are both big ones when it comes to making transactions, and Bitcoin manages to do great on both fronts. Covering these two major concerns isn’t everything though. The instant transaction processing time and lack of transaction fees make it a true powerhouse.
When it comes to cons, things get a bit tricky. What a lot of people love about Bitcoin, is what many others fear. Bitcoin is a very volatile currency, which is why the price of it can rise a lot in record time. On the other side of the coin though, the price of Bitcoin can also drop astronomically without warning. This kind of uncertainty is why many choose to stay away from it.
The Legality of Bitcoin in Malawi
As of right now, Bitcoin is not considered a legal tender in Malawi. This was stated by the Central Bank of Malawi, who also followed up with statements against crypto-related activities. The government seems to have no plans whatsoever to recognize investments in cryptocurrency because of the potential risks that may come with them. While there are no registered crypto exchanges in Malawi, locals can still invest in cryptocurrency exchanges elsewhere at their own risk.
Not all is lost though. A representative of the Reserve National Bank of Malawi did acknowledge the potential of blockchain technology, the same technology that powers most cryptocurrencies out there, and the positives it can bring. By tracking the worldwide developments regarding the situation, stances may change depending on a lot of different factors. So, while Bitcoin might not be a legal tender in Malawi now, it’s uncertain whether it will stay that way in the future.