It goes without saying that cryptocurrencies have very much taken the world by storm. Not only are they so much easier to use, but their growth in the last few years proves that it is one of the best investment opportunities as well. However, the more serious question that people are asking is how cryptocurrencies will be affecting the global economy.
Some believe that it is obvious that cryptocurrencies will improve the global economy by a significant degree. However, others believe that cryptocurrencies are detrimental to the global economy. While they certainly make a fair argument against crypto, that is not the case.
People who believe that cryptocurrencies can be detrimental make the argument that it is bad for smaller, developing countries. Since it removes the need for intermediaries like banks, these financial institutions will stop prospering. And when that happens, people will not be able to take out loans or engage in other services that are exclusive to this financial institution.
On the other hand, real-life examples have shown that banks have decided to move forward. Instead of pushing against the tide, they have decided to move with it. Therefore, some banks throughout the world are even allowing their customers to invest in cryptocurrencies. This alone shows that cryptocurrency has the capability to change the economy for the better.
Furthermore, even countries have started to understand the importance of cryptocurrencies. Countries around the world are either looking into creating effective crypto legislation or have crafted it. Various countries have even started developing e-currencies for their citizens to use instead of third-party cryptocurrencies.
There are also some countries that have completely accepted cryptocurrencies as a secondary currency. A prominent example that comes to mind is El Salvador, which made history by becoming the first country in the world to accept a cryptocurrency as a secondary tender. As of now, Bitcoin is a viable form of payment in the country alongside the US dollar. El Salvador even offered its citizens various facilities like crypto ATMs, where citizens will be able to exchange their crypto into fiat currency on the fly.
Even corporations have taken a liking to cryptocurrency, as it is one of the most convenient ways for them to receive money for their products. It also helps that developers have a wide range of blockchains to choose from, allowing them to make the crypto program that they want.
Overall, it is quite obvious that cryptocurrency is good for the global economy. Not only has it proven to be very profitable, but it has also proven to be versatile in its approach. Therefore, the question shouldn’t be if cryptocurrencies will benefit the global economy. Rather, you should be asking when it will start properly benefiting the global economy.