The emergence of technical gadgets such as smartphones and the internet has evidently caused a disruption in the lives of people. This matter can be taken positively as they have contributed to causing convenience to many. Nowadays, people prefer doing transactions online or over the internet. This can be made possible with just one click; no need to line up in banks or fill out forms. These features are possible with cryptocurrency, plus the lower to zero fees with every transaction.
Since Bitcoin was introduced in the market, the financial world has been stirred. Cryptocurrency has opened new ways and opportunities to the public in terms of its convenient nature and autonomy. Over the years, it has established itself as a viable form of currency that can be used worldwide. Since then, other cryptocurrencies have been invented to make their way towards the mainstream. These alternative coins offer convenience as well as present features that Bitcoin does not have. Ethereum, for instance, offers smart contracts – claims to render faster transactions without the need for a third party or intermediary. Bitcoin Loophole is one of the most reliable platforms for such transactions.
Cryptocurrency is decentralised in nature. Unlike the fiat currency, it is not issued by the government nor regulated. It does not have a central server, so unlike regular digital money, it is quite impossible to attack the whole system itself since blockchain technology works in protecting every data and transaction by distributing them in a peer-to-peer network.
There are more than 2,000 cryptocurrencies in the market as of January 2020, and there are approximately 36.5 million individuals who own cryptocurrency or have invested in the US alone. Cryptocurrencies show some dominance since most people enjoy the luxury of having digital-based currencies that offer lower transaction fees and faster processing. As a result, over a hundred billion dollars worth of cryptocurrency is circulating in the digital market today. Blockchain technology has finally entered the mainstream.
Entrepreneurs across the globe are the ones who experience the benefit of this form of digital currency. Utilising the blockchain and cryptocurrency allows them to reach out to the international market. It can also be beneficial in fostering trust and creating relationships in terms of the economy in developing countries.
However, there are some disadvantages of cryptocurrency which hinder it from taking the next step. One of the major problems is its inability in protecting the buyers. Some buyers are scammed due to its lack of third parties and regulations.
Other economic impacts of blockchain technology:
Improving job markets: The popularity of cryptocurrency has led to the establishments of digital currency exchanges all over the world. It has helped uplift the condition of a country, especially the developing ones by providing jobs in the blockchain industry. Research shows an increase of blockchain related jobs from 1,000 in 2016, then went over 4,000 in 2017. Software engineers are the most sought after positions in the crypto industry.
With the continuous legalisation of cryptocurrency in the western world, expect more job opportunities in the field as well as global investments.
Help stabilise domestic currencies: Over the years, there has been an apparent decrease in US banks’ confidence which has led to constantly fluctuating domestic currency, which resulted in the plummeting cost of living. Cryptocurrency’s utility as a form of payment without the aid or oversight of the government may be beneficial to users worldwide.
Over a million people around the world don’t have bank accounts or even access to financial services. These are financially disadvantaged individuals who resort to lending services. Luckily, the majority of people own mobile phones and cryptocurrency can be a viable option which saves time and fees with every financial transaction.
In addition, cryptocurrency creates a level of economic equality through its decentralised system. Countries with currency instability can trade freely across countries and borders.
To conclude, cryptocurrency may not be well recognized as a form of payment network, yet it has proved its utility that can be of help with the economy in its own little ways.