Since the launch of Bitcoin in the year 2009, the economic impact of cryptocurrency has been both evident and elusive. As it is its eleventh year of inception, this digital currency has recognized itself as a feasible and practical currency and a type of investment using BitAlphaAI platform. Moreover, the economic impact of cryptocurrency is quite overt in multiple areas in both national and international communities.
This all initiated with the foundation of Bitcoin. It was introduced as a peer-to-peer electronic network system. Since then, thousands of digital currencies have been launched with the market capitalization reaching around 2.65 trillion dollars.
For many investors and traders, the 2008 financial crisis is a worthy demonstration of what happens when the world puts a lot of trust in centralized establishments. While the cryptographers and engineers already brought forward ideas for digital money, the happenings of 2008 helped as catalysts for the launch of digital currencies. Satoshi Nakamoto’s most famous Bitcoin White Paper was also launched in the same year as the financial crisis.
However, it is impossible to go back in time, but some supporters of cryptocurrency believe that if this new technology of digital currencies had been in existence earlier in the world, it might have saved the world from the financial crisis that happened in 2008. According to the latest report of CoinTelegraph highlights, some members of the cryptocurrency community believe that distributed ledger technology can help us to avoid subsequent global financial chaos as well.
Table of Contents
How Digital Currencies Can Help the Worldwide Economy to Build a Better Future?
Cryptocurrencies or you can say digital currencies have long been discussed and debated but now they are only seen as a light for financial problems and are accessible to everyone. Crypto has the potential to facilitate the world with social and economic growth. Even in developing countries, through crypto, easy access to capital and financial services can be provided.
Cryptocurrencies like Bitcoin and Ethereum have a significantly utilitarian yet disrupting nature that over time but smoothly has started to interfere with the way the traditional financial network works.
Let’s discuss how digital currencies are bringing a hope for a better economy.
Obvious Rise in Economic Activities
Cryptocurrencies have built an entirely new industry. Some establishments are supervising the digital coin exchange taking place all around the world.
The speed at which cryptocurrency is escalating is earth-shattering and this can be confirmed by users that became wealthier overnight and found breakthroughs to grow financially.
Bitcoin, the most popular among all, made its place in the world. Now, multinational companies and firms are using this currency to trade and even as their source of income. The economy of the world is now starting to switch to these needs and cryptocurrencies have shown great potential in satisfying their supporters and users.
Opportunities for below-par Banked Countries
If we talk about stats, more than a third of the entire world population does not have proper access to basic/usual banking services that can assist them in case of personal financial crisis such as loans, checking accounts, easy transactions, and whatnot.
Such areas and people living in these areas are already financially disadvantaged. This leads to unfair and dangerous lending practices, yet the rate of these activities is anything but fair. This all leads to more instability among people who took loans.
Today, several applications and programs allow the use of cryptocurrencies and bring them closer to a bigger audience. What’s more is, cryptocurrencies are completely decentralized and so it allows cross-border trading and transactions. The use of digital currencies has brought a financial revolution by making everyone around the world more financially connected, empowered, and enabled.
Less Transaction Charges
As cryptocurrencies are entirely digital and do not require actual brick-and-mortar buildings, the cost of their transaction is minimal and affordable. There are no requirements of employee salary, utility bills or rent to be paid, so all these benefits are in the shape of low transaction charges. Fewer charges attract more people to indulge in crypto and trust these new financial tools.
Better Transparency of Transactions
All cryptocurrency transactions are automated and digitized and are recorded in a distributed public ledger. What’s best is that this ledger cannot be manipulated by anyone, be it people or companies, which eradicates the chances of frauds and scams.