In today's digital age, Bitcoin, as an encrypted digital currency, has always attracted much attention. Recently, the United States defined Bitcoin as a currency. This move not only caused an uproar in the financial market, but also had a profound impact on the global economic system. Let us explore in depth what kind of changes this definition will bring to the financial world.

As an encrypted digital currency, Bitcoin's position in the financial field has always been controversial. The United States' definition of Bitcoin as a currency will undoubtedly bring unprecedented impact to the financial market. From a technical point of view, Bitcoin's decentralized nature gives it unique advantages in cross-border transactions and asset transfers, and the United States' recognition will further promote the application and development of Bitcoin worldwide. This move will bring new opportunities and challenges to the financial technology industry and accelerate the arrival of the digital currency era.

In the financial market, the definition of Bitcoin as a currency will affect investors' psychological expectations and behavioral decisions. With the establishment of Bitcoin's legal status, more funds will flow into the Bitcoin market, driving its price to continue to rise. Investors will be more inclined to allocate funds to encrypted digital currencies such as Bitcoin in order to seek higher returns. This will also bring impacts to traditional financial markets, prompting regulators to re-examine regulatory policies and strengthen the supervision and regulation of digital currency transactions.

On the other hand, the definition of Bitcoin as a currency will also have a profound impact on the global economic landscape. As part of the global economic system, this move by the United States will affect the stability and development of the global monetary system. As a global digital currency, the establishment of the legal status of Bitcoin will promote the integration and interconnection of the global financial market, and promote the convenience and efficiency of global trade and investment.

In addition, the definition of Bitcoin as a currency will also play an important role in promoting financial innovation and technological development. As the legal status of Bitcoin in the financial field is gradually confirmed, more financial technology companies will devote themselves to the research and development and innovation in the field of digital currency. This will promote the rapid development of the financial technology industry, provide more convenient and efficient solutions for financial services, and promote the financial industry to move towards digitalization and intelligence.

On July 25, the U.S. Federal Court stated that the virtual currency Bitcoin is a "currency" covered by the Washington DC "Money Transmitter Act". Although there is no legislation yet, the relevant judgments in the future will be based on Bitcoin-related cases, which will also prompt the emergence of relevant legislation. So, what impact does the United States define Bitcoin as a currency have? Next, the editor of the currency circle will give you an in-depth analysis of the impact of the United States defining Bitcoin as a currency.

 What impact does the United States define Bitcoin as a currency have?

If Bitcoin is regarded as a legal asset as a currency, it will be included in the regulatory scope like the current mainstream assets.

1. Anti-money laundering

Anti-money laundering is the focus of financial supervision. Now cryptocurrency can use its own decentralized attributes and the gray area of supervision to carry out some money laundering activities, or conduct some illegal transactions on the dark web, but once it is considered a legal asset, it will inevitably accept legal supervision.

2. Taxation

Currently, securities transactions have to pay stamps and securities management fees. At present, the main fees in the currency market are commissions, and there are no other taxes and fees.

3. Being tracked

Because it is recognized as legal, digital currency will be required to regulate its funds, so currency market transactions can be reasonably and legally tracked. Although the current transaction data is not completely traceless
, it takes some effort to track it.

4. Institutional entry

Of course, if Bitcoin is defined as a currency, the ETF that has been rejected for a long time will be easily passed, and the ETF will be passed. For institutions, they can legitimately enter the market for investment, which will inevitably bring in a wave of traditional funds.

 What does it mean for the United States to define Bitcoin as a currency

Although Bitcoin has many benefits if it is defined as a currency, the biggest benefit is that ETFs are easier to pass and traditional funds are more convenient to enter the market, but it also means that the bonus period is over.

As the popularity of Bitcoin becomes more and more widespread, the volatility of Bitcoin will become smaller and smaller, and there will no longer be such high profits as in the previous two cycles. Huge profits often exist when they are not recognized by the market. Once they are recognized and a consensus is reached, the profit margin of investors will become lower and lower. Therefore, Jiang Zhuoer said that this round of bull market is the last round of bonus period. If you miss this round, the future of Bitcoin will be closer to the volatility of mainstream assets. Although the trend will not plummet, it will not soar. The market is also safer than in the early stage.

Through the above introduction, I believe that everyone has some understanding of the impact of the United States defining Bitcoin as a currency. This time, Bitcoin was recognized as a currency by the U.S. Federal Court. From the fundamentals of Bitcoin, it is good. However, when a new investment category is recognized, especially by government departments, its volatility will become smaller and smaller. In other words, Bitcoin volatility may become smaller and smaller in the future. For investors, it may mean that the era of Bitcoin's huge profits is disappearing. If you want to know more about related issues, you can pay attention to the currency circle. The editor of the currency circle will continue to update related reports in the future!

In general, the United States' definition of Bitcoin as a currency will have a huge impact on the financial world. From the perspective of technology, market, global economy and financial technology, this move will promote the financial industry to move towards digitalization and innovation, and inject new vitality and momentum into the development of the global economic system. The definition of Bitcoin will change the face of the financial world and open a new chapter in the era of digital currency. Let us wait and see and witness the arrival of this historic moment.

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