It is too early to regulate Bitcoin, and blockchain applications are increasing

Deloitte, one of the world's four largest accounting firms, has expressed doubts about whether it is too early to try to regulate Bitcoin.

In a publication titled "Bitcoin at a Crossroads," Deloitte mentioned the advantages of Bitcoin and blockchain technology and explored whether regulating digital currencies could have a negative impact on their future development and large-scale adoption.

The article adds:

“In many ways, policymakers and regulators are acting in accordance with their mission statement to protect the public and the integrity of financial markets, which raises an important question: Is it too early to try to regulate Bitcoin?”

The article also mentions some historical evidence, trying to illustrate that not interfering with the development of new technologies is the best action.

'A drop in the ocean'

The publication points out three reasons why global policymakers should avoid regulating Bitcoin in its infancy.

First of all, Bitcoin’s market penetration is still relatively small compared to traditional fiat currency systems and trading platforms.

“Bitcoin has received a great deal of attention and scrutiny from policymakers and regulators around the world, far beyond its current size and market influence. In fact, by any relevant metric, Bitcoin’s current value risk is just a drop in the ocean of the financial industry.”

Impact on mass adoption

Additionally, the authors note that other transformative technologies often have more time to develop before becoming regulated.

The author cites the telephone (invented in 1876 and regulated only in 1913); the airplane (invented in 1093 and regulated in 1938); and the Internet (invented in 1969 and only recently regulated), and adds:

“Bitcoin, as an open source platform, was first released in 2009. Bitcoin has only been around for six years, and based on previous examples of new technologies, it still has a long way to go before it can achieve mass adoption.”

Explore its potential

Finally, the author also pointed out that Bitcoin has not yet found its most valuable application.

“The list of potential applications for Bitcoin and blockchain technology is expanding every day, and we are still in the early stages, but some of the emerging applications are already very exciting.”

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Original article: http://www.coindesk.com/deloitte-its-too-soon-for-bitcoin-to-be-regulated/
By Yessi Bello Perez
Compiled by: Satuoxi
Editor: Satuoxi
Source (translation): Babbitt Information