We are currently living in an unprecedented time in human history. As we all witness events that will permanently redefine our perception of life and reality within, we are also in the process of developing a profound sense of changes in the world. It is only necessary that now is the time to open ourselves to new instruments that will help shape our customary lives in the forthcoming future.
The epidemics & pandemics, among all the social issues we are familiar with (inequality of wealth, prominent corruption and exploitation of the masses) have theretofore taken a big bite out of the world economy. All of which constitutes a bigger problem – a broken financial system that results in a massively increasing rate of unemployment, inflation and poverty in nearly every region in the world. While it takes a multidisciplinary approach to determine what is needed to solve and mitigate the effects of these global challenges, the only certain point is that, most of these issues could be traced back to their simplest origin: the problem of money.
Why is the monetary system broken?
Our existing financial system is centralized. It is heavily regulated by the intermediaries – banks, government, and all the companies that “provides” for other financial necessities and resources. However, for poverty-stricken countries, it is almost impossible for everyone to access these type of banking services. The burden of costs needed to sustain the stability of the financial flow is the reason why many from these places are still unbanked and underbanked. Therefore, the prospect of financial inclusion and global commerce in these countries are left bleak and unattainable. Lending an authority to a third-party has been proven to take an excessively insignificant chunk out of people’s hard-earned money.
With this economic infrastructure consigned to only a single authority, the correlation between corruption and inequality would pervasively thrive upon the political, social and economic sectors globally. The resources are plentiful, but under the governments who actively exploit their people, misappropriation of funds has become the norm. In result, the masses are deprived of their overall necessities and are left with no choice but to apply an alternative solution to their problems. While insurance companies have a fair share of double-dealing the capability of giving solidarity to their participants, taxpayers also have to face the reality of their corroding tax morality due to the impact of corruption in the government fiscal policy.
This year has also revealed a more serious problem in the current system. The COVID-19 pandemic has caused an alarming rate of declination in the traditional financial markets, as well as in the world economic state. The central banks’ response to this unforeseen occurrence is to print unlimited money in attempt to alleviate the crisis in the businesses concerned. Consequently, hyperinflation would be the reason to cause widespread unemployment and leaving most people in the poverty line. This outdated financial strategy only favors the wealthy and to those in power, giving no opportunities to the marginalized.
How Banks Keep Your Money Secure - Currencycloud
To curb the damaging effects of a centralized system, we must embrace decentralization strategy and transparency.
Technology has provided innumerable benefits to the mankind throughout the years. Our society developed overtime when technology was introduced to our means of living. Some underlying grounds of the current centralized system will become obsolete and will likely be inefficient in the foreseeable future of finance. Blockchain and cryptocurrency will then introduce an effective, viable financial option for the people while obviating the need of a third-party access over their money and personal information. It can reduce the middlemen that has the potential to overtake an ineffectual and inutile form of operation, rather, the blockchain technology utilizes the efficacy of direct peer-to-peer transfers that are made accessible across the globe. Costs of remittance services are much affordable and the hassle of receiving money across borders are drastically reduced. Consumers can at last get access to banking and financial instruments using cryptocurrency, giving them complete control of their own money.
Blockchain decentralizes control and enables more economic freedom to the society. Given that the distributed ledger is visible to the public, transactions made cannot be altered nor manipulated by anyone. What’s more, users will be able to keep track of where their money is oriented. Cryptocurrency & blockchain help us hold all power to account for the common good.
Inflation has a destructive effect on money that makes it loses its value over time. Cryptocurrency, on the other hand, works otherwise. It is predicated on deflationary currency; thus its value may increase substantially as time goes by.
Decentralized Finance vs. Traditional Finance: What You Need To Know - Stably
Cryptocurrency & Blockchain - revolutionary instruments for improving financial inclusion in poorly banked countries, and an instrument to hedge towards inflation during crisis.
The integrated use of technology has emerged a dramatic development in the prospect of human society. This wide-scale technological advancement was a progress towards decentralization of authority. The power combination of blockchain & cryptocurrency will have an enormous effect on the operation in the securities and commodities of financial markets. In addition, it will also present an issue of security protocols and privacy matter of the consumers. While it cannot entirely change the capitalistic nature of corporations, it can help reshape the structure of the policies as we are accustomed to. It will introduce a new way of control to society, shedding light to transparency and flexibility.
The golden opportunity of banking and remittance are made possible for developing countries with the help of cryptocurrency mobile wallets. The ease of access to payment systems will help these countries participate in international commerce, enabling them to drive outsized economic growth in their community as well as allowing them to be financially intertwined with the global economy. With no intermediaries involve, transaction fees are affordable and people can transact cheaply across regions.
As the dollar-based system is currently generating a rapid rise in the monetary cycle in response to the pandemic crisis, it will soon result a turmoil in the economic and political matter of the world. This means that citizens all over the world can face a dysfunctional economy and a decrease in purchasing power in the near future. However, the deflationary philosophy of cryptocurrencies (ex. bitcoin) can hedge against the inflationary consensus of fiat. It can help stabilize the global economic condition while adapting to the fast-paced nature of growth and advancement of technology.
Photo from Kyle Torpey's Forbes Blog
What can be done to make the world a crypto-friendly space?
It’s just a matter of time until the use of cryptocurrency gets regulated worldwide. Even though some governments oppose the idea of cryptocurrency as a mode of payment, the demand of using it increases every year. With that being said, it’s never too early to prepare for a secured financial future.
Cryptocurrency is indeed a transformative technology. There are numerous of ways it can empower consumers in the whole world. It can be useful to anyone, even those who live in poverty. It can also transform lives of those who are experiencing a denial of choices and opportunities to participate effectively in society. In order to spur success for the cryptocurrency and blockchain initiative, mass adoption must be implemented worldwide, including the hard-to-access regions. GiveCrypto is a charity program that has an initiative to improve the lives of the needy. Its mission is to open a new type of foreign aid by donating and distributing cryptocurrency to people living in poverty. It allows a fast and direct monetary dispersal to those in immediate need.
Many early investors agree that cryptocurrency can be also profitable and be used to make an income, that’s why amidst this stay-at-home season, it’s just wise to take action and look for an alternative medium of investments that you can trust. For new cryptocurrency investors, you might look for a service that has an ease-of-access and simple to use. With the use of blockchain technology, staking cryptocurrencies are proven to provide an additional income to the participants for a period of time. MyCointainer is a staking provider that requires no technical expertise to use its services. It is designed especially to the people who are new to the crypto space – simple and easy to use. By holding your cryptocurrencies in MyCointainer, you are earning a piece of your profit that you can withdraw anytime as well. Staking plans are also available to maximize your profits by investing in it.
It is also important to discover the in depth world of cryptocurrencies and blockchain, starting from the fundamentals to the issues it is trying to address. By thoroughly researching about these innovative technologies, you are one step ahead of influencing the world to a hopeful, brighter future. One day, the financial system will no longer be what it has been originally. With the help of cryptocurrency and the technology of blockchain, all world currencies will flourish and society again, will prosper.
Photo from Crypto Affiliate Programs
Sources: The Age of Cryptocurrency: How Bitcoin and Digital Money are Challenging the Global Economic Order, Cointelegraph, MyCointainer Insights, GiveCrypto.org, Currencycloud, Forbes, Medium, Crypto Affiliate Programs