The economic changes that the world has undergone in recent years have consolidated the economic system worldwide. Have cryptocurrencies contributed to the economic crisis? Or on the contrary, are they presenting situations that disturb the global financial tranquility? Let's analyze the following to arrive at some possible answers:
Why have cryptocurrencies become so popular?
Cryptocurrencies are, in short, a form of virtual payment parallel to traditional, authorized and worldwide recognized forms. They can be used to exchange services or the payment of goods, each transaction counts in a virtual accounting record. Cryptocurrencies have become extremely famous because they represent an alternative to the usual economic system.
On the other hand, since it is a decentralized currency it has universal validity. This is one of the factors that has contributed to its promotion. No entity or government existing today controls and monopolizes the sale or transactions of cryptocurrencies. The value of cryptocurrencies depends on their market price, unlike the traditional currency.
How did cryptocurrencies affect the world economy?
The world economy was shaken with the arrival of cryptocurrencies. No matter how strong or valued the currency of any country is. There will never be full assurance that it will be maintained. Economies can simply suffer recession and plunge a nation into crisis.
Existing job offers, as well as many other factors begin to be affected. Suddenly people's money is devalued in a 2x3 based on the economy of a country. Taxes rise to the sky, and the fees imposed by banks become unpayable. This gave the need to have a currency that was not subject to all these variants.
When Bitcoin and other cryptocurrencies appeared, the world economy slowly began to take steps of progress. Since then, they have contributed to business progress in many areas of the planet. The key is in the facility for the commercial exchange it offers.
What are the benefits of cryptocurrencies?
The characteristics that cryptocurrencies possess have brought countless benefits to the world economy. Why are they so efficient?
- They are not subject to any type of taxes or financial fees. This is one of the most appreciated advantages. Although it is hard to regulate it with taxes.
- It has been a breakthrough in international transactions due to Blockchain technology, linked to cryptocurrencies.
- Transactions cannot be reversed, nor can they be hacked in any way.
- They have offered a transparent accounting book where you can verify business transactions infallibly.
- They are not linked to any bank or organization that manages them, which saves on administrative fees.
- The identity of the users is completely confidential.
What is the impact that bitcoin has had on the economy?
The Bitcoin has been created for 9 years, since then it has gone through a period of maturation and growth. But it was this coin that triggered the entire cryptocurrency revolution.
The global financial economy, for 2009, was weakened by a crisis. Before Bitcoin, transactions were basically in dollars to euros, or vice versa. But 2009 was the right moment for the emergence of this giant that came to change everything.
So far, it is the cryptocurrency with the highest market price. In addition, the number of companies and people who use it for their business transactions is increasing. The scope covered is from real estate to tourism, any commercial activity can be paid with bitcoins.
Do cryptocurrencies represent the future?
Probably, the technology with which Bitcoin and the rest of cryptocurrencies go hand in hand is very advanced. Blockchain technology promises to take not only commercial transactions to a new level, but also has many applications to optimize processes in areas that have no end. So probably the future belongs to Blockchain technology. Of course, being objective, cryptocurrencies also have some negative aspects. Therefore, only time will tell whether cryptocurrencies will lead our future or not.