The World Bank describes that "the number of poor worldwide remains unacceptably high, and it is increasingly clear that the benefits of economic growth have been shared unevenly across regions and countries” (World Bank Group, 2018, p. 23). Along with these incidents of economic chaos, civil war and governmental collapse plague developing regions (Prahalad & Hammond, 2002). Besides, poverty is mainly driven by economic factors, which include limited access to financial services (Beck & Demirguc-Kunt, 2006) and high inflation rates (Aisen & Veiga, 2006). Moreover, studies have argued that a low level of trust (Barham, Boadway, Marchand, & Pestieau, 1995) and corrupt government institutions harm the economic development (Olken, 2006).
Cryptocurrencies could provide a significant benefit by overcoming the lack of social trust and by increasing the access to financial services (Nakamoto, 2008) as they can be considered as a medium to support the growth process in developing countries by increasing financial inclusion, providing a better traceability of funds and to help people to escape poverty (Ammous, 2015). That is probably why www.publish0x.com/MarkHelman is saying that : « The cryptocurrency market demands you suspend your disbelief !!» to comment this exclamation, we are firstly going to say what people believe in and secondly we will help people believing in cryptocurrency by defining and giving some advantages of cryptocurrencies.
In the beginning, people belive in FIAT currency (traditional money like EURO, DOLLAR or FCFA). In fact, In a historical retrospective, markets in general and financial markets in particular, have experienced a huge development. In this regard the instruments used as exchange instruments have also experienced change and have evolved in accordance to the markets needs aiming to make trade transactions as easy as possible. Those instruments used to intermediate the exchange of goods are known as money. Most of the economists define money as something that serves as a medium of exchange, a unit of accounting, and a store of value. Money is a medium of exchange in the sense that we all agree to accept it in making transactions. Merchants agree to accept money in exchange for their goods; employees agree to accept money in exchange for their labor. As a unit of accounting, money provides a simple device for identifying and communicating value.
Money serves as a store of value in that it allows us to store the rewards of our labor or business in a convenient tool. In other words, money lets us store the value of a long, hard week of work in a tidy little stack of cash. Without money, how would we set aside the compensation we receive for later use? From the era of barter to commodity money, metal and coins, to gold and silver, continuing by modern monetary systems and checks and ending with the latest global currency developments, such as introduction of cryptocurrencies known as bitcoin and ethereum and alike, have passed centuries.
Each type of the money has played it indispensable role in transaction activities for the respective time period. However, as the human society in general and markets in particular evolved, there was a need for more sophisticated goods exchange instruments. In this regard the introduction of cryptocurrencies has revolutionized the international payment system in a scale that just few years ago were unimaginable.
We should believe in cryptocurrency. In fact, Recently, cryptocurrencies and bitcoin have become the main topics in the financial industry. A cryptocurrency is a digital or virtual currency that uses cryptography for security. A cryptocurrency is difficult to counterfeit because of this security feature. A defining feature of a cryptocurrency, and arguably its most endearing allure, is its organic nature; it is not issued by any central authority, rendering it theoretically immune to government interference or manipulation. Cryptocurrencies have their benefits. . There are approximately 856 cryptocurrencies (see the following link https://coinmarketcap.com/all/views/all/.
According to Gandal and Halaburda the market of competing cryptocurrencies is an interesting market to analyze for several reasons. First, it was a brand new market, with many players entering and competing. It is also an excellent laboratory with well defined and high quality data on prices and volumes over time. Therefore, people should start by believing in cryptocurrency.
Here are some advantages of cryptocurreencies
1) Peer-to-peer cryptocurrency network : in such networks there is no master server, which is responsible for all operations. Exchange of information (in this case — money) is between 2-3 or more software clients. All installed by users program-wallets are part of a bitcoin network. Each client stores a record of all committed transactions and the number of bitcoins in each wallet. Transactions are made by hundreds of distributed servers. Neither banks or taxes, nor governments can control the exchange of money between.
2) Unlimited possibilities of transaction : each of the wallet holders can pay to anyone, anywhere and any amount. The transaction can not be controlled or prevented, so you can make transfers anywhere in the world wherever another user with a Bitcoin wallet is located.
3) The possibility of investing funds in the transparent and profitable resource.
To conclude, according to me, the exclamation : «The cryptocurrency market demands you suspend your disbelief !! » is telling us the best thing do. We should believe in cryptocurrencies.
References
CRYPTOCURRENCIES – ADVANTAGES AND DISADVANTAGES
(Flamur Bunjaku, Olivera Gjorgieva-Trajkovska, Emilija MitevaKacarski)
FSBC Working Paper : The impact of cryptocurrencies on developing countries
