• Mashum Mollah, CEO at Blogmanagement.io


• 28.11.2022 05:15 pm
#crypto

Cryptocurrency is touching great heights with time. Due to their innate characteristics, more and more people are trading with them. Presently, more than 46 million people in the USA use Cryptocurrency. This is 15% of the total population. Not only this, experts and enthusiasts say that Cryptocurrency has the capacity to transform the global economy. The following article discusses the things in detail so that a stronger explanation creates a better idea. 

Cryptocurrency For A Better World 

Cryptocurrency is touted to bring in a change in the global economy. So it's quite natural that thoughts like this could rise in the global world hit by the shockwaves of economic recession. 

The Covid 19 displayed the vulnerability of the global economy. We observed how the bigger economic powers of the world plunged into the sea of economic recession. In the face of utter helplessness, the talks of Cryptocurrency becoming the ultimate savior find relevance. 

1. Rise Of Economic Activities

Cryptocurrencies follow decentralization; the Blockchain backs it. Now, this is one network of storing information. Once you store some information, it gets saved in the distributed ledge across a wide network of computers. 

This makes the entire system foolproof against any kind of corruption and irregularity. Moreover, where there is a lesser chance of economic pilferage, a country with poor economies can enter into the system of financial transactions. 

2. Opportunities For Countries With Poor Banking Systems

Many countries in the world have poor banking systems. Here the transactions are controlled with centrally regulated systems. Now due to poor banking systems, businesses don’t generate trust in the existing system.

Cryptocurrency can prove to be an aphrodisiac for economies with crumbled banking systems. Transacting with the bitcoin method provides safer options for these economies. Remember, Cryptocurrency only follows the network and protocols of the developers. They cannot be regulated in any other way. This transparency can help the business bank on Cryptocurrency. 

3. Low Transaction Cost

You might have noticed that there are low transaction costs associated with Cryptocurrency. With traditional currency, the transactions generally take days or even a week to complete. But it is not for Cryptocurrency. For example, suppose you are transacting $1000 with the traditional currency transfer methods. They deduct around 3% to 5% on the transactions. 

But with Cryptocurrency, you don’t need to spend that much. However, you might need to spend a fraction of the payments as payment fees. Hence, being the owner of a small business can save some dollars. This makes things easier and business-friendly. 

4. Help Countries Depending Heavily On Remittances 

Some countries heavily rely on remittances. A sizable percentage of the income depends on the remittances sent by the workers living abroad. Therefore, cryptocurrency can indeed be a boon for these economies. However, it happens that due to a poor network and poor banking system in place, the transfer of money gets stopped. 

In case when two countries are at war, transactions of money or even reciprocation of goods stop. But this you won't get with Cryptocurrency. It follows its own rules and protocols, and hence you can safely send your hard-earned money back home. 

5. Facilitate Green Economy

There is an allegation that mining Cryptocurrency is energy-consuming. And hence it can be put into the scanner. Looking at this, the stakeholders are using green energy to facilitate the mining of Cryptocurrency. This is how Crypto turns out to be green!

6. Safety And Security Of Transactions 

According to a premonition, Cybercrime will cost the world $10.5 Trillion annually by 2025. Now, this turns out to be a great threat to the economies from around the world. 

When you are engaged in transactions online, you definitely want the safety and security of your transactions. With Cryptocurrency, you can get it. They are backed by Blockchain technology. When information gets recorded in the Blockchain, it denotes that they are recorded and updated on the distributed ledger. 

Closing The Discussion

It can therefore be said that Cryptocurrencies can help global economies flourish. 

Cryptocurrencies come with some benefits, and they can work to bring transformation. Therefore, the world can benefit from Cryptocurrency and bring in a transformation in its economy. Virtual currencies are indeed a hope for an economy facing recession.