Topic: Benefits of Bitcoin and other cryptocurrencies to the global Economic Structure (Read 173 times)

From what I can see, there is not yet any significant benefit that bitcoin and cryptocurrencies bring to the global economy. To put it bluntly, bitcoin has not had any positive impact on the world economy yet, what bitcoin is achieving is only on an individual level. It has brought opportunities and helped many people change their lives, but to talk about the macro impact, there is no. Look at El Salvador, what have they achieved since they accepted bitcoin as a legal tender?

The only benefit is the fact that it's not fiat. That tells all you need to know about it and there is really no need for it. I know that it's going to take some time and we are going to end up with something major in the end but that's just how it is at the time being. I know that people may not like it so much for that reason alone, but I am fine with it and find it good enough. I feel like the best thing I can do right now would be to let it be and there will not be any problems at all.

I just hope that people figure out that fiat is terrible, you should not have too much money in anything that is fiat related and you could always keep it in bitcoin which would be enough. That's the only reason you need, anything extra would be lovely but you don't need them.

1. Maybe
2. Nope, if the bank is operated poorly, how it's possible you can get a loan through Bitcoin or crypto? Bitcoin or crypto aren't an institutions who will give you money.
3. Not really, Bitcoin transaction is still expensive if you want to pay something cheap, while cash or mobile banking will cost you nothing.
4. and 6. You're contradicts yourself, if Bitcoin give you anonymity, how it's possible you can track the fraudulent activity?
5. Correct as long as you hold it on cold storage.

I'm sure the global economic impact is still not very significant, considering that some win, some lose, some keep hodling without ever cashing out, there are many good companies but also lots of scammers etc.
Many of the points by the op seem a bit dubious to me, to be honest. For example, is there any evidence that countries that have low percentage of banked populations actually use Bitcoin as an alternative? As for the low transaction cost, let's be fair and acknowledge that the fee is often higher than one would pay via a bank transaction, especially if we're talking about small transaction amounts.

If government will look for another source of income then cryptocurrency is perfect way for them knowing that this is a billion industry and people always use it for their daily transaction. And if they can regulate all the crypto platforms residing or doing transaction on their jurisdiction then they can accumulate some tax with them and that can really help their economy to boost since multiple income streams will come in to their country.

The presence of Bitcoin and Cryptocurrency certainly has a very diverse impact on the global economy and also on the economy personally. Especially when talking about Decentralization that Bitcoin has. This can even protect the assets of people in several countries affected by high inflation. So that many are flocking to divert their assets into bitcoin. Because their country's fiat really continues to decline in value due to high inflation. And yeah in general Bitcoin has helped a lot. Such as facilitating cross-border transfers without limits and with transparent transactions. Maybe at this time the impact on the global economy has not been felt too much, but when there are more adoptions and every country starts imposing taxes on digital transactions including bitcoin and other crypto, this will help each country's tax revenue. In essence the future of Bitcoin does look very bright from my perspective. And I hope that by holding Bitcoin in the long term I also want to get benefits and profits that can bring me financial improvements in the future.

I got some reactions from your highlights which are more speculations than a fact. The global market cap of crypto went to an all-time high of 3T+ and today, it's sitting around 1.22T which means we have lost about 68% of the market cap as loss, if you try to explain that to an economist, he will say that its a failure and not a good investment for any economic structure, but if you are specific about it the introduction as bitcoin only, then I will agree with you in some aspects.

The total market cap is equivalent to about 46% of the entire market, so if you look deeply at where that loss all went, all went down into the rabbit hole of altcoins. The majority of the losses we have today as a result of altcoin hacks, team exit and rugs, scams attempt, and many more, it has been years since we heard about bitcoin heist and hacks. Most of the people that had the loss will hardly want to have anything to do with altcoins again because they have been literally cripple, now does that help the economic structure.

All the above you mentioned and explained can be directly linked to bitcoin and bitcoin alone, like the anonymity just like the way you have good privacy, impossible penetration of hack attempts, more transparency in transactions, low transaction cost if you compare it to fiat payments, banking the unbanked areas of the world, an increase in the inflow of money to the economy especially when there is are barrier of inter payment in the country.

Despite all of the features you have talked about, i would like to emphasize that China which hates cryptocurrency so much and tried many times to manipulate the market. Ha chose an alternative way to Leverage the Blockchain technology means the features of BTC and Blockchain. Point being made here is, Countries are looking for alternative ways to adopt it. Why? Because they know the benefits it will bring to them, and another thing is US is already getting so much profit from crypto so why other countries would leave behind.

They are also trying very hard to adopt BTC for example, Japan and Hong Kong are the main hubs right now of NFTs and Web3 and Metaverse platforms.

I am agree with with points but those points are not convincing because most of the people might not value anonymity so, how would we convince them. With lower fee transactions? But a thing worth 3$ has 5$ as transaction fee so merchants are ignoring this as payment method

Bitcoin has assisted businesses to overcome some financial restrictions in some countries. Some countries lack foreign exchange such as the dollar which makes it difficult for many businesses to engage in international trade. But bitcoin removes such barriers and give business unhindered access to the needed funds to run transactions.

My reservation about this point is that most people that are unbanked are either too poor to save or uneducated to open and operate bank accounts. Banks are not limited to physical structures anymore because there are many online banks. Another factor that has made people unbanked might be the lack of internet facilities. And this factor will also affect the use of bitcoin and other coins.

Transaction cost is competitive and not generally lower than fiat transactions. Using the Lightning Network will be an ideal option to cut transaction costs.

This is a major advantage of bitcoin transactions. All transactions in the blockchain are public. You don't need to apply to any federal agency using the freedom of information law to access this information in the blockchain. Anybody can access them at any time to check any transactions.

I don't think there is any system that cannot be hacked. Most hacks are done by insiders that know the loopholes or weaknesses of the system. But the bitcoin network has one of the best security systems making hacks difficult.

Bitcoin is not totally anonymous because transactions can be traced to wallets. The movement of coins can be tracked from wallet to exchange until the identity of the people involved is unveiled if any party has used exchanges that require KYC. Even mixers don't make transactions anonymous, they can only slow down an investigation and make it complicated.

The fact that New guys joining the cryptospace will always go for convenience over complexity, means issues of account hacks or comprises aren't the thing of the past yet! Week in week out we always read about how users lose funds because some of these wallets on the market's don't have airtight security and these are the same popular wallets we have today that users lose funds from, so hacks aren't yet a thing of the past!

Tbh, I think the coming of crypto has actually put users data out there as most of the crypto platforms we interact with are making KYC a mandatory thing as regulation has crawled to our doors!

1.I wouldn't say that cryptocurrencies have any impact over the level of economic activity worldwide. The crypto world is still relatively small, compared to the global economy.

2.This is partially true, but most of the population in the poorly banked countries don't have computers and internet.

3.Transaction costs are sometimes low and sometimes high. It depends of which cryptocurrency you are talking about.

4.There's no transparency if you are using Bitcoin mixers or privacy coins like Monero.

5.Nobody can hack the blockchain, but hacking a cryptocurrency wallet is completely possible, so you are wrong about this.

6.You are contradicting yourself. You can't have more transparency AND more anonymity at the same time. It's either the first or the second. You can't have both.

In conclusion, OP's forum post seems like a bunch of generic bullet points, written by some AI. However, I might be wrong about this.

cryptocurrency is accepted by everyone due to its beneficial aspects but government of all country does not allow its transactions as well as investment so we cannot say that cryptocurrency is rolling the world. Although now the crypto has gained the interest of many individuals who get profit from it but we don't know that what will be situations in future.

Bitcoin is safe and everyone who utilize their money in Bitcoin investment have altered their lifestyle in many ways but not immediately it took some years to get the reward of their patience. Other thing is that cryptocurrency can also not rolling the world because in many villages there is no connection of Internet and without Internet one cannot understand and utilize bitcoin as investment or payment.

Less than 10% of the world's population knows about bitcoin or cryptocurrency, how can it be said that it is ruling the world? I still have the old opinion, bitcoin and cryptocurrencies are mainly used for speculation, so they have not had a positive impact on the world economy. It only offers some benefit at the individual and institutional level when it comes to capitalizing on its volatility to invest. In addition, they have no practical application in practice, so they will have no significant effect on the economy, let alone improve the world economy.

Points number 1 & 2 are the most widely covered benefits I see in Cryptocurrencies, others are also good but can't in any way measure up with the two as far as I'm concerned because fiats have the rest too.

Honestly, cryptocurrency removed the disparities among countries' payment and cross-border settlements which the rich and more advanced countries artificially put on the developing and poor countries. Cryptocurrency proves itself to be neutral, and once you have what it takes, you are free to enjoy the service and benefits without one country proving superiority.

This has also removed the exploitation by many fiat arrangements with high fees, loss speed (wire) and fraudulent acts. And cryptocurrency has proven that all people are equal before it, and thanks to its decentralized nature of the true ones with no central controlling entities.

I don't understand you point here,are you trying to say that if banks can't offer loans to their customers but cryptocurrency e.g bitcoin can help one get a loan or something. Pls I don't understand the financial help that you are talking about because what I know in cryptocurrency is that you can invest and take profit at your own convenient time.

Yes,you are right the dev of bitcoin blockchain are working tirelessly to make sure that the software is very secured and wouldn't be able to hack into but this applies to only bitcoin. Other cryptocurrency are centralized and can easily be manipulated. As for securing your bitcoin,this lies on the investor to know the right way to keep his noncustodial wallet safe from hackers by using a hardware wallet.

This is not true,it is only DEx that gives this privacy. If you are using CEx,you must pass through the KYC process which makes users not safe because their information can be given to the government and transactions can be tracked. Also if you are a suspect the government can freeze your funds when you use CEx. There is no privacy with CEx.

It must be a questionable investment scheme.

Low fees are a relative opinion, it is true that depending on the situation of the blockchain (it fluctuates) but sometimes it reaches unreasonable levels of fees where conventional payments are actually more recommended.

Blockchain does not require user data by default. You may be able to track transactions, but there is another job to identify the details of the user.

Taking into account that although cryptocurrencies have had a significant impact on the financial and technological world, it is not correct to say that they "rule" the current world. Since we are not yet in that future that I would like to live in, however, it is true that have transformed the way people interact with money and have changed the global economy in certain ways. Starting from the fact that cryptocurrency trading has attracted many investors due to the possibility of obtaining large profits in a short time, thanks to the volatility of crypto this is possible and in turn the fact that more and more companies are adopting Bitcoin as a form of payment, offering customers more choice and flexibility in their transactions, brings with it what an improvement to the global economy... But unfortunately widespread adoption is still in the works and remains a challenge in some areas due to lack of regulation and safety concerns..

Do you know how cryptocurrencies are ruling today’s world? .
Since the arrival of cryptocurrencies, people’s lives have transformed in many ways. Nowadays, it has become more convenient for people to invest in various digital currencies. Also, many businesses are adopting cryptocurrencies as a mode of payment. When it comes to investing in digital currencies, one has to gain some knowledge. You can now take help from many websites and platforms to get started with them. Cryptocurrency trading has helped many investors earn high profits. That is why investors are interested in the same. If you also want to make enormous profits, digital currencies are the best for investments.

How do cryptocurrencies help improve the global economy?

1. An increase in economic activities:
The best part about digital currencies is that they are spread worldwide. Various companies around the globe are considering it as a good source of investment. Therefore, its usage is also increasing at a faster rate than before. It is one of the primary reasons why the cryptocurrency industry is expanding.

2. Better for poorly banked countries:
You might already know that not all the nations have convenient banking services. In other words, these poorly banked countries aren’t economically well off. That is why they couldn’t offer loans and other services to the people. But the times have changed drastically with the arrival of digital currencies. People can now make investments in them and also get financial help in times of need. Not only can people benefit from them, but these developing countries can also enhance their economies if they start using cryptocurrencies.

3. Transaction cost is low:
As you know, cryptocurrency transactions are dependent on the blockchain network. The transaction fee is pretty low as compared to other modes of payment. Every crypto is a decentralized form of currency. So, the transactions are different from bank ones. The technology is impressive because one can send digital coins to another person from anywhere to any part of the world. Fortunately, the cost will be minimal compared to other bank transactions.

4. More transparency of transactions:
One of the best things about using cryptocurrencies is that you can easily access all the transactions. There is less chance of fraudulent activities. All the transactions are stored in the system. So, you can track everything without having any issues or problems.

5. Hacking is almost impossible
Technology is indeed improving with time. That is why most businesses and companies are now running online. Due to this, the risk of getting hacked has become common these days. The cryptocurrency industry is doing great at providing excellent security options to investors. Nobody can get hacked if they are using blockchain technology. The only thing they need to take care of is how to use these security options.

6. Anonymity is beneficial:
Another thing that makes people use this type of currency is that their identity remains anonymous. They don’t have to put a lot of information about them to get started with trading, transactions and investments. Every cryptocurrency exchange respects the anonymity of the users. So, there is no way one can misuse your confidential information. With fewer details, you will feel at ease that nobody will know your identity. Banks don’t offer this type of benefit to people, no matter what. It is only possible with cryptocurrencies.

The Bottom Line
In conclusion, we can say that the future of cryptocurrencies is pretty good. I hope now that we understand how they are benefiting the global economy in different ways.

feel free to add yours so we all learn together.

https://pmcaonline.org/benefits-of-cryptocurrency-to-global-economic-structure/#:~:text=6%20Benefits%20of%20Cryptocurrency%20to%20the%20Global%20Economic,impossible%20...%206%206.%20Anonymity%20is%20beneficial%20