Impacts of Cryptocurrency on Global Economy
It is hard to find a person who has not heard of Bitcoin. Bitcoin is a type of cryptocurrency. Cryptocurrency means a virtual currency or token currency that has no physical form. It exists only in the internet world. An unidentified Japanese citizen named Satoshi Nakamoto invented this Cryptocurrency at the end of 2008. It is usually part of a blockchain technology. Blockchain is a type of public ledger that lists the addresses of inputs and outputs of all transactions at a particular node. The entire operation of the cryptocurrency process is done in a secure process called Cryptography. The use of this cryptography for the security of virtual Transactions. That's why it's called cryptocurrency.
The first cryptocurrency to be used as a virtual currency is Bitcoin, which was introduced in 2009. Around 2017, this coin started to become popular after its price exceeded $10,000. Currently, there are more than a thousand such virtual currencies around the world. Like Bitcoin, Ethereum, BNB, Litecoin, Dogecoin, etc.
With the advancement of science and technology, the economy has undergone many evolutions of currency. From gold, silver or metallic coins it became paper currency. Then came credit cards, debit cards, these can be called Digital Currencies which made our transactions easier. But the most incredible change has been brought about by cryptocurrencies. According to Economists, Alongside the Dollar and the Euro, Cryptocurrency Will add immense potential to transactions and radically change our Global economic system.
Today I will discuss 5 changes that can happen in our Global Economy for Cryptocurrency.
Read More: 10 Easiest Ways to Earn Bitcoin
At first,
The impact of cryptocurrency on banks will be very bad. We all Need a third party For money transactions in our daily lives. For example: Banking, Courier service and Post office etc. These service providers have to pay a certain amount of service charge but there is no additional charge as there is no need for a third party in cryptocurrency. It is Exchanged directly between 2 users using the Internet without revealing their identity. Because Cryptocurrency is a totally decentralized finance system.
So when the world and people will start using this currency For our money transactions then we don't need any third party Finance organization. That's why the economic institution called The bank can be completely wiped out in the near future. That's why banks are always against cryptocurrency.
Secondly,
Cryptocurrency transactions cannot be forged because the transaction information is secured through the blockchain network, but there is no central authority like a bank to oversee the transactions of these currencies. So once these currencies are transferred it cannot be brought back or changed in any way. It is recorded on thousands of machines in different countries of the world. As a result, this transaction becomes irreversible.
Thirdly,
There will be no inflation in cryptocurrencies because the number of these coins is predetermined, so they cannot be overprinted like money. For example, The maximum number of Bitcoins is set at 21 million.
Fourthly,
This currency can be sent from any country to another country instantly at a nominal fee. Bitcoin takes a maximum of 10 minutes per transaction and the fee does not depend on the amount of money you sent. That means, Sending 1000 bitcoins costs the same fee as sending one bitcoin. But current Money transfer systems are relatively time-consuming and expensive. Besides, there is less fear of online hacking in cryptocurrency transactions.
Fifthly,
Products can be purchased from anywhere in the world without any hassle. There is no currency exchange rate issue here. Bitcoin is considered by many to be the currency of the future. Many businesses are currently accepting Bitcoin as a currency. It is believed that in the near future, credit cards will be replaced by Bitcoin or any other cryptocurrency for online purchases.
Finally, If you consider the internet as a country, then the currency of that country would be Bitcoin or Cryptocurrency. It is believed that in the near future everyone around the world will be using cryptocurrency. So Bitcoin is considered by many to be the currency of the future and many are termed as Digital Gold. But the number of bitcoins is limited. So in the near future the price of each Bitcoin or Cryptocurrency will skyrocket which may be beyond the purchasing power of the common man. Because, we have to buy all the resources of the world with that limited Coins.
What is Cryptocurrency?
Cryptocurrency means a virtual currency or token currency that has no physical form. It exists only in the internet world.
Who Created Bitcoin?
An unidentified Japanese citizen named Satoshi Nakamoto invented this Cryptocurrency at the end of 2008. It is usually part of a blockchain technology.
What is Blockchain Technology?
Blockchain is a type of public ledger that lists the addresses of inputs and outputs of all transactions at a particular node. The entire operation of the cryptocurrency process is done in a secure process called Cryptography. The use of this cryptography for the security of virtual Transactions. That's why it's called cryptocurrency.
When did Bitcoin become so popular?
The first cryptocurrency to be used as a virtual currency is Bitcoin, which was introduced in 2009. Around 2017, this coin started to become popular after its price exceeded $10,000. Currently, there are more than a thousand such virtual currencies around the world. Like Bitcoin, Ethereum, BNB, Litecoin, Dogecoin, etc
Why are banks against cryptocurrency?
The impact of cryptocurrency on banks will be very bad. We all Need a third party For money transactions in our daily lives. So when the world and people will start using this currency For our money transactions then we don't need any third party Finance organization Like Bank. That's why banks are always against cryptocurrency.
How much is the Bitcoin transaction fee ?
Bitcoin can be sent from any country to another country instantly at a nominal fee. Bitcoin takes a maximum of 10 minutes per transaction and the fee does not depend on the amount of money you sent. That means, Sending 1000 bitcoins costs the same fee as sending one bitcoin.
Is Everyone Accepting Bitcoin ?
Bitcoin is considered by many to be the currency of the future. Many businesses are currently accepting Bitcoin as a currency. Like, Microsoft, Tesla, Pizza Hut, twitch, Virgin Airlines And many more Companies.
Why is Cryptocurrency growing day by day ?
If you consider the internet as a country, then the currency of that country would be Bitcoin or Cryptocurrency. It is believed that in the near future everyone around the world will be using cryptocurrency But the quantity of coins will be limited. So in the near future the price of each Bitcoin or Cryptocurrency will skyrocket Because, we have to buy all the resources of the world with those limited Coins.
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