From a white paper on peer-to-peer Electronic Cash Systems to the market cap of $ 2.65 trillion, the journey from 2009 is still fascinating and promising for the world. Blockchain is the masterpiece of technology to invent Cryptocurrencies, and Bitcoin is the most popular among them.
When anything new comes to us at first, we tend to fear the process and do not show much intent to follow the thing, but gradually we understand the essence and potential of the thing. For example, think about the Internet or mobile phones!
The Internet came to us to solve many problems, like sharing knowledge through a common platform, and mobile phones also came to us to mitigate the gap in communication and distance. Cryptocurrency, and especially Blockchain, has the potential to stay in the market and has the ability to disrupt our economy as well.
Bitcoin works on a public distributed ledger and thus is very attractive for trading and transaction purposes. If you want to try it on your own, you can simply go for the bitcoin loophole.
Why Is Cryptocurrency Becoming Popular?
Cryptocurrency is becoming popular because it has the ability to remove intermediate processes from transactions. In a traditional process, you have to depend on an intermediator from your country that will also consider your identity and information and other details and then send it to the recipients.
On the other hand, there is no border with the distributed ledger of Cryptocurrency. You can simply send the money to any other country easily with minimal transaction fees.
Moreover, Cryptocurrency is beyond inflation, and that is also considering the fact of unstable fiat currency in pre-pandemic situations. On the other hand, Blockchain technology does not consider the manipulation of currencies, and thus the investors do not directly lose their investments.
How Are Countries Responding To The Crypto Process?
El Salvador is the first country in the world to accept and adopt Bitcoin, which is the largest Cryptocurrency. The central bank digital currency (CBDC) was created by the FED to evaluate digital currencies more accurately.
CBDC is a station that many countries are trying to believe in for accommodating Cryptocurrency. The modernized financial system and the fast process of transactions through Cryptocurrency are very much supported by many countries. There are also some other countries that are concerned about the extreme volatility of Cryptocurrency.
The CBDC is also a task force for several countries to understand the distributed ledger and to make it regulated enough for the countries. So, the response of the countries is very much admitting, and all are hopeful about it.
How Can Crypto Benefit The Economic World?
The disruptive nature of Cryptocurrency can impact the global economy. Many think that global investments will be affected by Cryptocurrency. The overall economic market was affected globally by MBS (Mortgage-Backed Securities) in 2008. Similarly, the Cryptocurrency crisis might also have a broader effect on the economic market.
Currently, over 14000 Cryptos are being traded in the global market, and they will be sky high in the future. The dominance of Bitcoin is there with almost 42.2 percent to place first before Ethereum with 19.6 percent.
Blockchain technology helps it to eliminate intermediates. With the absence of intermediates, it becomes possible to handle any transaction with low fees. Low fees allow people to transact more and with high volume. This whole process increases the efficiency of economic exchange.
On the other hand, there is no geographical barrier to this process and no centralized process as well. This makes the transactions fast and quick for trading purposes. Moreover, the sender’s and the recipient’s details are kept undisclosed, and thus the security becomes strong.
Accept The Change
Many people are in fear of the extreme volatility of Cryptocurrency, which is real and justified. But many of us are not eager to accept any change in the traditional process, and that becomes hectic for our future developments.
Change is the ultimate constant and is also the law of the future. We have to consider various processes to scrutinize the matter with Cryptocurrency and make it useful enough for your future. The economy is already involved with this process, and thus we have to stand and deliver the best we can by accepting the legitimate process.