Why Ireland is well-placed to innovate when it comes to Bitcoin

Ireland is one of the world’s most innovative economies, according to a report from July 2018. Among Switzerland, the Netherlands and Sweden, the Republic of Ireland ranks as the 10th most innovative – well-known for its tech exports and foreign direct investment (FDI) net flows.

Bitcoin, the consensus network that enables a new payment system with entirely digital money, is a cryptocurrency developing at an intense rate. The capitalisation of Bitcoin alone is worth an estimated $100 billion, which is equivalent to almost 30% of Ireland’s own GDP in 2016.

This huge Bitcoin market could help to improve the development of the economy of any country. However, countries are often hesitant to actively take part in the promotion of cryptocurrency. Ireland has been particularly cautious, yet it is also in a good position to innovate by using Bitcoin.

Here are a few reasons why Ireland is well-placed to get involved with Bitcoin:

Shifting attitudes to Bitcoin
A survey carried out in May 2018 suggests that the sentiment of the Irish public towards cryptocurrencies is shifting “from suspicion to curiosity”. The growing media interest in cryptocurrencies has meant that Irish people are becoming increasingly intrigued by the potential of Bitcoin.

The survey by Amárach Research and Red Flag suggests that men and women have pretty similar attitudes to cryptocurrency, but it is millennials who regard Bitcoin most favourably. While about 40% of those that have heard of Bitcoin said they “knew very little” about it, they are becoming more and more willing to learn.

Ireland’s position
In March 2018, the Irish Department of Finance published a document analysing the impact of blockchain technology and cryptocurrencies. These statistics show that many Irish residents are already aware of Bitcoin. 7% of respondents over 18 years old had even performed transactions using Bitcoin.

Amárach Research and Red Flag’s study on cryptocurrency usage found that over 120,000 people in Ireland currently own cryptocurrency. This marks a 300% increase in usage compared to four years ago.

Bitcoin’s growing popularity in Ireland can be attributed to recent cryptocurrency developments, which have helped to build a stronger presence. Some Irish companies have admitted to being funded entirely by cryptocurrency. In 2017, Lottoland held the world’s first licensed Bitcoin lottery in Ireland, which allows players to potentially win jackpots that are paid entirely in Bitcoin.

Irish developers are even in the process of making digital coins easier to use than traditional payment methods.

Cryptocurrency regulation
Although cryptocurrency in Ireland is becoming more and more popular, these currencies are yet to be regulated by the Central Bank of Ireland or the European Central Bank. However, cryptocurrency assets are still subject to tax. The Revenue Commissioners treat Bitcoin investments like any other currency, so owners are still obligated to declare them for capital gains tax.

With more Irish people investing in Bitcoin, it is hoped that the Irish government may begin to develop cryptocurrency policies. Furthermore, amid the growing public interest in cryptocurrency, it is hoped that the public is given more access to information about currencies like Bitcoin so that their overall level of understanding increases.

Certainly, one very useful first step that many prospective and current Irish investors in cryptocurrency could make, is keeping up to date with the latest Bitcoin price news at BTCNN and other key news portals.