What is Cryptocurrency? Impact of cryptocurrency

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Cryptocurrency is one of the most important as well as most highlighted topics in the present time and therefore, there are so much of discussions that are running around regarding crypto currency. There are various studies that are conducted on analyzing what Cryptocurrency is and how it is beneficial for the economy of a country. These studies also covers about the details like which areas are positively affected by the use of Cryptocurrency and what are the areas that are developing because of them. By looking at the increasing ratios of the use of Cryptocurrency in the different countries, there are various other countries also who have been motivated towards the use of Cryptocurrency in their country so that they can boost their country towards the development and also help them to raise their economy. However, there are some of the countries who are against the use of Cryptocurrency or the implementation of them and it has been also found that there are several limitations that are imposed over the exchanges of cryptocurrency in these countries. In this article, we are going to discuss about the impact of cryptocurrency on global economy and how it helps the global economy to be improved.

Positive impact of crypto currency on global economy

Cryptocurrency and majorly Bitcoin are one of those concepts that are growing on a higher pace and creating a major space in financial systems. There are various countries who have been considering cryptocurrency as one of the useful tool for them and they are even seemed to be very positive towards the implementation of cryptocurrency in their system. If we look at some of the benefits that the country’s economy has to face after the inclusion of cryptocurrency in the financial system of the country then it has been found that it has raised to some other level.

  • Positive impact in the economical activities of the country: There are various platforms that are being developed and made available for the people to promote the concept of digital currency and majorly cryptocurrency. These platforms are majorly supervising the digital coins, therefore leading to the enhancement of the rate of cryptocurrency, which provides major benefits to the investors. There are various early investors who have became millionaires overnight and this is something that promotes the opportunities for an investor to become a millionaire by entering in the field of cryptocurrency investment. Whenever we talk about cryptocurrency then Bitcoin is one of the major cryptocurrency that we always talk about as it has changed the lives of many early adopters who don’t even know about this field and also about the extreme growth of Bitcoin.
  • Open opportunities for the countries with poor banking system: There are some of the countries where banking services are not even accessible by the people of the country and this is something which takes the people into several crisis including loans and checkup of accounts. Many people consider these things as the financial disadvantages and move towards the dangerous lending and unauthorized practices. The major loss that an individual needs to face with these unauthorized lending services is that they have to pay high interest rate which creates instability to a person’s life. This is where cryptocurrency opens a new opportunity as it is highly volatile and can easily be used. There are different type of programs that takes place for increasing the range of customers in the field of cryptocurrency, which is completely decentralized. The trading for these decentralized currencies are performed openly in different countries. According to a study, it has been found that the use of cryptocurrency makes the people more financially stable and empower them to get financial stability.
  • Reduction in transaction cost: This is one of the major benefits that are faced by the users as there is no middle person who will be included for performing a task, which takes the transactional cost to very minimal. There are different factors that impacts the reduction in transaction cost as there is no middleman in the overall transaction and also there is no specific organization which used to perform these transactions, therefore these things play a major role in reducing the transaction cost and make it affordable for a person to make several transactions. This is something that also promotes the technology of blockchain as it also play a major role in performing and promoting cryptocurrency, due to the benefits that it provides to the financial institutions by reducing down the costings.

Conclusion

By reading the above article, we came to a conclusion that cryptocurrency holds major impact over the economy of a country and helps them to reach to their objectives by using it for trading purposes. In addition to this, it is something that opens various opportunities for the individuals of a country such as they can perform trading and get more financial stability with the help of cryptocurrency. In this article, we have also discussed such points that are important for understanding the importance of cryptocurrency over global economy and what could be the impacts that are left by cryptocurrency over the global economy.

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