How the Absence of Bitcoin Regulation is Promoting the Principle of Reputation Assessment on the Market

By Daniel Zo Bitcoin, Reputation, Scams, EBA

An important issue which is present on the Bitcoin market at this moment is the lack of regulation which in turn promotes reputation assessment. In order to get a better grip on this concept, it is worth pointing out that because there are no laws surrounding the cryptocurrency, many people from all around have decided to use it as a way to scam people and promote illegal activities.

Bitcoin

This issue has brought the coin to the attention of the European Banking Authority, or the EBA. The main activity of this central authority is to monitor the world’s financial activities, watch out for developing trends and create a deontology that will be respected by all of those who are involved in a current trend. One of these is Bitcoin, as after a tough analysis, the authority has found the coin to be an emerging currency with a lot of potential in the future. Because virtual currencies just like Bitcoin are not regulated, the risks are also unmitigated, which can in turn, create quite a lot of trouble on the market.

This represents the main reason why a clear system of reputation assessment should be created on the Bitcoin market, as doing so will be the first step in the right direction towards a decentralized market, where scams and illegal activities are nowhere to be found.

As the Bitcoin community is currently growing with thousands of new followers every day, many have begun asking themselves whether sites which advertise as businesses that can offer services in exchange for Bitcoin are legit or not. At the moment, in the unfortunate case that a business decides to scam their users and the payment was made via Bitcoin, there’s practically no way for a user to get his/her money back. This is why; an interesting idea referring to reputation assessment was developed.

By putting it in application, not only will users quickly be able to check whether a business or website is offering real services, but those who have experienced fraud and scams will be able to report the sites in question, thus helping the market thrive in the long run. With this in mind, businesses that do not have a clean history, will quickly find themselves falling down the ladder of popularity, which may definitely be a factor of discouragement for those who are considering to scam people in the future.

In the case of the regulation, reports indicate that it isn’t really essential, mainly due to the fact that the coin has survived so far without encountering any issues whatsoever. Together with this, chances are that allowing the government to meddle with the cryptocurrency will also put it on the verge of collapse, which is definitely something that no one wants at this moment in time.

Based on everything that has been outlined so far, what do you think about the concept of a reputation assessment service that could be used in order to expose illegal companies? Do you agree that the absence of regulation is promoting the said ideas? Let us know your thoughts in the comment section below.