cryptocurrency
How can Bitcoin related complaints be accepted?
<p>Why are Bitcoin related complaints accepted in some countries?</p>
<p>It's basically just few letters and numbers used in a autonomous non-regulated system. It has value only because random people give them a monetary value.</p>
<p>Why do governments care about that kind of fully virtual transactions controlled by nobody? What will happen when bitcoin won't be able to accept any new transaction in it's blockchain? Who will buy back their bitcoins? Governments?</p>

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<p>How can Bitcoin related complaints be accepted?</p>
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<p>The relevance is two-fold (at least): Consider contract law and money laundering.</p>
<p>A contract is an exchange of considerations or exchange of enforceable promises. How or by whom the items/considerations are priced is usually irrelevant to the lawfulness or enforceability of contracts. That is because what matters in a contract is what the parties agreed upon. Paying something with bitcoin constitutes a contract just like any other purchase, barter, or exchange, whence there is nothing unique about cryptocurrencies in this regard.</p>
<p>Being &quot;<em>just few letters and numbers</em>&quot; is a way of phrasing that cryptocurrencies have no intrinsic value. But the lack of intrinsic value is not an impediment for cryptocurrencies to be an underlying item or good in a contract. Cryptocurrencies are similar to <em>fiat</em> currencies in that they don't have intrinsic value, they are priced by a multitude of random people (at least in a market economy), and yet crypto- as well as fiat currencies are the underlying item in many contracts. Forex transactions are a clear [and two-way] example: one <em>fiat</em> currency is traded for another.</p>
<p>Governments are increasingly interested in regulation of cryptocurrencies because their conversion to &amp; from fiat currency, and/or goods &amp; services makes money laundering, illegal activities, and tax evasion harder to detect. Hence the development of regulations and licensing of what is known as <em>money service businesses</em>.</p>
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<p>What will happen when bitcoin won't be able to accept any new transaction in it's blockchain? Who will buy back their bitcoins? Governments?</p>
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<p>The premise that a blockchain has a limitation on the number of transactions is inaccurate, especially given the ever-growing capacity for data storage. Thus the question of who will buy back the bitcoins will keep being a market issue, not something that warrants law making.</p>
<p>Your question could become an issue of law only artificially; namely, by forcing an &quot;insurmountable&quot; limit to the size of --or number of transactions in-- a blockchain. However, that type of constraint seems very unlikely and pointless.</p>
