Bitcoins have become a trend among investors. Cryptocurrencies like these, as well as ripple or ether, are the result of calculations and complex encryption algorithms created by the users themselves.
But the virtual currencies are not appealing to everyone. In many cases, the question arises as to whether Bitcoins & Co. are legally risk-free at all – or might cryptocurrency be illegal? Not every gambler on www.bestbitcoinbetting.com is sure about the law in this field, but they are all hoping that betting and gambling with Bitcoin & co might be anonymous enough to keep them away from any trouble.
We are dedicated to this question for you and take a legal look at the virtual currencies.
What are Cryptocurrencies?
Behind cryptocurrencies is above all one thing: independence from the classic banking system. Until the generation of Bitcoins & Co., only the means of payment was regarded as “genuine”, which was circulated and duplicated by mostly state-owned entities. Virtual currencies such as bitcoin.org are generated decentrally and are not under the control of a state bank. The influence of individuals is eliminated here by the generation and control of an entity. A worldwide community of users ensures that the currency exchange and every transaction is archived and publicized.
To create a new unit of bitcoins and others a multiple encrypted code must be decrypted. By keeping the currency, as it were, “password-protected” artificially tight and preventing inflation, a more complex code is generated when a certain number of currency units are reached.
Specially designed mining farms are constantly creating new codes, adding transactions to the user network, and checking for correctness are farms with a variety of computers used for mining purposes only.
The Purchase of Cryptocurrencies
Also Bitcoins & Co. as cryptocurrency are subject to the free market. This means there are also virtual money platforms that trade with a variety of means of payment. The purchase of the cryptocurrency allows the corresponding payment point, the so-called “wallet”. This will entitle you to have funds available within the network. In general, Bitcoins, Ethereum (short: Ether) and other digital money by changing to buy. The payment is made here by means of SEPA, Giropay or Sofortüberweisung a certain amount to obtain the equivalent value of cryptocurrency.
Bitcoins, Ether, Dash or Pivx: Safe investment or legally questionable?
First of all, the cryptocurrency itself, whether Bitcoin, Dash or Ether, is not a civil matter and furthermore not a right, but a forgery-proof, electronically transferable data set with coding. Through various participation networks they are assigned different values. Under civil law, categorization is already difficult.
It is currently unclear which legal rules govern the currency units and transfer them. Even in the case of a hacker attack or identity theft, for example, it is legally undefined how this could take place a reversal. If coins and units are exchanged for services, however, there are contract rights as well as offline.
Although it is not clear what Bitcoins & Co. are, we know what they are not: cryptocurrencies are neither legal tender nor securities (despite electronic transmission). They are also no “e-money”, because they have no official publisher, but by the mining of computers arise. Read more about the concept of Bitcoin and cryptocurrencies.
Virtal Currency as a safe Investment?
Basically, you can exclude Bitcoins & Co. as a secure investment. Especially by – as with any other currency – fluctuating exchange rates. Furthermore, users have no legal security or claims, there are serious security holes or a complete collapse of the market. With regard to the legal uncertainty about the categorization and punishability of cryptocurrencies, the investment in Bitcoins, Dash or Pivx remains very uncertain.
Conclusion on legality: Bitcoins not illegal
In summary, it can now be said that cryptocurrencies such as bitcoins are basically allowed, but for gamblers they can get dangerous. The issue of a virtual currency is not prohibited. Also, the ownership, private purchase or sale for investment purposes is legal. Production by mining is not prohibited.
Cryptocurrencies are not completely uncontrolled by the financial regulators, although the complete legal classification is currently difficult. To be safe in any case cryptocurrency online casinos mostly settle in the caribbean or on islands like Malta which are independent from other states’ gambling laws.