Cryptocurrencies have a huge influence over the world economy, no matter if people love or hate them. Their existence is already a revolutionary step in the global markets, knowing that just two decades ago we couldn’t even think that one day it will be possible to own virtual money savings that can make us rich if we know how to trade them. Today, there are thousands of digital currencies available, but not every one of them is commercial and popular. Some of them are locally based, in one country, or even town, and they are developed for some particular purpose.
One of the most recent interesting examples comes from the Balkan country Macedonia (today known as North Macedonia). In the village of Vevchani, in August 2020 was promoted the local cryptocurrency named Crypto Lichnik, developed by the computer scientist Jordan Stojanovski, who is getting ready for his Ph.D. on the University of Michigan. This is just one example of how crypto money works. It’s not only the Bitcoin that “owns” the market. There are also these smaller currencies that work great in some areas, but anyway, they are affecting the global economy in so many ways, including:
1. People from poor countries can also earn bigger
According to some researches, a lot of people don’t have an access to the most basic banking services, and they are not able to earn enough to survive. But, if they have an access to a good computer that can be used to trade and exchange crypto coins, and the banks don’t control their behavior, they can sign in to websites like cryptosfuture.com and start trading. Sadly, some local economies don’t provide enough money for the citizens, and they need to find alternative ways to earn more. Cryptocurrencies are a chance for everyone, especially for those who are ready to risk a little money, that will help them earn bigger.
2. They motivate people to learn more about the blockchain
Since the first day of their existence, cryptocurrencies motivate people to get interested in blockchain and the way the whole network and market work. For some persons, it can be risky and they won’t take a part in it, but also there are those who always want to improve their general knowledge, and who will gladly be a part of this huge community. That can be beneficial for the economic rise in the future because most of the crypto owners and developers hope that these currencies will become a part of the market and the global finance sector, and they will be almost equally treated as the fiat money. Crypto money has great potential, and it’s on you to accept or deny it.
3. The transparent transaction with low fees
Every crypto transaction is transparent, but at the same time, the users’ data is encrypted. The banks can learn a lot of the blockchain technology and trading websites, because as we know, in recent years there was at least one data breach in the banks, which is not good. People who maintain the blockchain and other sources of crypto coins, always take care to ensure safe and secure transactions, without any hidden costs and features. After the trader gets some coins, they are able to continue with the actions or withdraw them by putting in a digital wallet. Once they access the wallet, they stay there until the user decides to trade again, or even cash them out. The risk of fraud always exists, but by these transparent actions, the scammer can be easily tracked down, which is good for those who suffered some unpleasant situation.
4. Finance independence, transparent transactions, and powerful entrepreneurs
Let’s be real. The world was boring with only two globally accepted currencies that run the whole finance sector. The technology rise was expected, and cryptocurrencies are already changing and improving the global economy, even though most of the population is not aware of that. But, the fact is that many entrepreneurs and business owners are open to embracing the Bitcoins, and pay the salaries if the worker requires to be paid in crypto money. The whole world is changing and at some point, every country will accept these currencies, and implement it in their local economy. The financial needs of the people are growing and everyone wants to “grab” the more they can. It’s only a matter of time when the cryptocurrencies will enter everyone’s life.
5. Challenges for the fiat money
Some cryptos depend on the existing currencies, but most of them are independent. We always compare their worth with dollars and euros, but as the Bitcoins and altcoins rise, the banks will have a huge problem control the money worth. The fact is that we live in a dollar-world, because the American dollar (USD) is the main currency of the world, and in the past, many banks tried to take over that “control”, and no one ever successes to do that, as the Bitcoin did. Crypto money is attractive and more acceptable for some people. For example, a money transfer may take up to 24 hours until the transaction is completed, and sometimes every minute more of waiting can be damaging for some economic sectors. But, with the crypto transactions, everything can be done in seconds. The finance department has a lot of things to learn from the blockchain and digital money.
Bitcoins and their relatives are challenging, interesting, attractive, and influential. When you get to know them better, you will realize how great is their potential. Most of the experts in this field are sure they will take a huge part in saving the global economy, especially after the coronavirus crisis ruined it. We can only hope that the banks will be ready to implement this technology in their system, but also that they won’t try to centralize the whole thing, because the crypto money will lose their worth and point. The crypto market has great potential for us and the finances, and it’s on us if we will embrace or deny it.