It wasn’t long ago that cryptocurrencies did not exist in any viable form. Of course there have been many attempts to issue some form of cryptocurrency, but all have failed for one reason: double spending. This is largely a flaw in the cryptocurrency system that makes the currency get double-spent.
Then in 2009, the game changed utterly when Bitcoin announced its arrival. While it wasn’t an arrival that was met with universal acclaim, it was one that solved the double-spend problem. This is achieved as a result of the application of mining and blockchain.
Since then, the global view of money has begun to change gradually. Due to the quick success of Bitcoin, it opens the gateway to many other different cryptocurrencies. As of today, there are more than 7,000 crypto variants available.
This may once have been a spectacle for the real economy and financial markets, but make no mistake: cryptocurrencies have a significant influence on the current and future prospects of the global economy. This article will explore the reasons behind this change.
Cryptocurrencies concept
To understand the popularity of cryptocurrencies, it is vital to analyze their overall concept. In general, it supplies properties that traditional money and currency cannot match. Below are some of the unique traits of cryptocurrencies, highlighting why a ‘digital currency’ will change the financial game and drive economic growth:
- Security: There aren’t any third parties or intermediaries involved, which means you have complete control over your assets. In addition, cryptocurrency is a decentralized digital currency, which means fraud is eliminated because the transaction process is carried out in real-time.
- Storage: Crypto only exists in digital form. This means not taking physical form such as cash or commodities. As a result, cryptocurrencies can be transferred easily through digital wallets. This wallet can be connected to multiple devices, which makes it very portable.
- anonymity: Since your cryptocurrency is stored in a digital wallet, you do not need to link it to any special data. The result: it functions in contrast to traditional banks, which know everything from your financial records to personal data.
These are only a few reasons why the top cryptocurrencies are normally projected to grow significantly over the next few years.
How it shifts global investment
As already mentioned in the previous section, ie the biggest cryptocurrencies are growing at breakneck speed – and investors are paying close attention to this upward shift. You only must look at Bitcoin’s success over the last decade to realize how fast the market can explode in value.
Want some accurate insight into how they might turn out, but hate investing your own money? Well, you can use Traders of Crypto, a free-to-play crypto trading game, to get a real-time view of how Bitcoins and other cryptocurrencies often receive important boosts to their grades each day.
Say goodbye to middlemen
As already mentioned, cryptocurrency transactions don’t involve any intermediaries. Instead, transactions are settled in a decentralized manner.
This easy aspect alone makes banking establishments sweat. This removes the requirement for their service from the equation. Not only that, because it does not must go through multiple hands, crypto transactions are usually much faster than traditional banking.
Dollars aren’t needed
…Or any traditional national or continental currency for that matter.
When a cryptocurrency transaction is completed, it doesn’t require any type of link to US Dollars. That is, it is feasible to be involved in the global economy but avoid US economic policies at the same time.
When looking at it from a narrow perspective, you might believe this is a threat to the way government works. After all, the US dollar is the reserve currency that covers the global economy. However, this is countered by cryptocurrencies, allowing more international transactions.
Promote more abroad transactions
There are countries located all over the world that, because of their poor economy, don’t have bank accounts of any kind. However, with cryptocurrencies, people in these countries unexpectedly had the opportunity to connect to the online economy. With the power of digital wallets, transactions can be made anywhere on the planet – so long as crypto is accepted, obviously.
Besides, there isn’t any need to worry about fluctuating currency. If everybody uses Bitcoin, for example, the rate is the same for everybody. Plus, there aren’t any processing fees involved.
