Issues of Crypto-currency

As we have seen, it is a cryptocurrency with various advantages, but it is by no means perfect. Here, we will divide the issues of cryptocurrency into three parts.

Is Security Really Perfect?

The experiment proved the robustness of the blockchain itself, but it is premature to think that the safety of the cryptocurrency is perfect with this. In the news there was a massive report on the incident that a huge bitcoin held by a company dealing with cryptocurrency called “Mount Gocks” disappeared and the business collapsed. It is thought that this was caused by fraudulent withdrawal by not being abusing the system of the cryptocurrency, but being broken by the defect of the exchange trading system.

In this way, even if there is no problem with the system of the cryptocurrency itself, if the company dealing with it and the system on the service side are incomplete, there is a possibility that it will be broken from the part where security is incomplete.

Development of Law

With the emergence of cryptocurrency in Japan, we have been developing and revising various laws to deal with cryptocurrencies. Part of that is the registration of the cryptocurrency exchange industry and the inclusion of a description of the cryptocurrency in the law on funds settlement. However, it is still hard to say that the development of the law is perfect against the cryptocurrency that created a concept that can be said to be quite new in the economy. For example, according to the current law, there is a possibility that the classification as income differs between cases of selling goods in cash and selling in cryptocurrency, so that taxes on incomes are totally changed between cash and cryptocurrency It has been pointed out. Not only in the cryptocurrency but also in technology advancement, the government is now required to understand technology and flexibly cope with innovation created by new technology.

Speculative Property

The price of cryptocurrency is now rising. One of the reasons is that the demand for cryptocurrency is increasing, but even considering that, it can not be said that the value of the cryptocurrency is stable. There are people called "billion people" who make money by repeating currency exchange between cryptocurrencies or cash while watching the rate of the cryptocurrency. It is not a desirable situation as a currency that this value changes frequently. Even though the cryptocurrency is becoming popular, it is still more user friendly than cash.
As a result, currency exchange occurs frequently, resulting in increased fluctuations in value.

The way to solve this is simple and it is thought that "changing the cryptocurrency more" makes it harder for money exchange and less fluctuation in value. Changing the point of view, this phenomenon can be said to indicate the transitional nature of the cryptocurrency.

Risk of money laundering

Using the anonymity of the cryptocurrency, there is a danger that money laundering (an act of making money by illegal act through multiple banks etc. unknown) is done. In fact, because you only need accounts to remit cryptocurrencies, you can send currencies to the world without entering personal information, so bitcoins etc are used for money laundering and drug sales etc. There is also a voice that thinks that it is. However, in the past, there were events such as a Russian man arresting about 4 billion yen in money yen using the bitcoin to arrest, and as the principle of cryptocurrency, money laundering I know that I can reveal it. This is due to the transparency of the cryptocurrency that anyone can see the records of all transactions. Therefore, it is thought that this problem can be solved by establishing a mechanism to monitor transaction data of cryptocurrency.