Topic: How do cryptocurrencies affect Global Economy? - page 4. (Read 1172 times)

Crypto currencies have the potential to impact the global economy. They can provide an alternative means of exchange and store of value outside of traditional financial systems, which can be particularly beneficial for individuals and businesses in countries with unstable currencies or limited access to banking services. The decentralized and unregulated nature of crypto currencies can also create risks, such as market volatility, fraud and money laundering. The increasing adoption of crypto currencies by mainstream financial institutions and investors has the potential to disrupt traditional financial systems and impact on global markets. The rise of bitcoin has been linked to fluctuations  in gold prices and some experts predict that crypto currencies could eventually replace fiat currencies as a medium of exchange. The impact of crypto currencies on the global economy is complex and evolving and will likely to continue.

None of what you've mentioned are points that describe how Bitcoin or cryptocurrencies affect the global economy. These are just the advantages of Bitcoin or cryptocurrencies that an individual will get for using Bitcoin or any other cryptocurrency. What do you actually mean when you say cryptocurrencies have the power to change how we engage with the global economy?

It's the countries and their trade and other activities that contribute to the global economy, a country having a very good economy will positively affect the global economy while a country with a bad one does the opposite of that.

That's a means countries use for introducing something that is similar to cryptocurrency while they rejected the adoption of cryptocurrency for the first time, i believe that they known what's centralized currency all about and what decentralized is also all about, so whatever approache they are using to Link it with decentralized format I think it will not come to reality.

Of course this has happened in previous years where the digital era has made it easier for banks to attract their customers using fiat currency in digital form. Well, basically everything the government does is follow the development of digital currency or cryptocurrency which is growing rapidly at this time. Cryptocurenccy has changed the era of world economic growth and has become a strong enough runway for countries that want to adopt it. like el salvador which has legalized bitcoin so this will become the awareness of other countries to adopt bitcoin.

Besides that, the main thing about cryptocurrency influencing the global economy is in the form of transactions that are fast enough and easy enough to do anywhere, which makes cryptocurrency easier and slowly cryptocurrency will grow more rapidly than what we have seen so far.

But there is an important point that in the current era, the full benefits of Bitcoin cannot be enjoyed in isolation from the global system based on centralized currencies controlled by the influential parties. Bitcoin represents a solution to liberation and complete financial independence if it is possible to deal with Bitcoin directly without the need to evaluate it according to the price of any of the fiat currencies, and without the authorities being able to monitor my financial activities.
Also, do not forget that Bitcoin in particular is still awaiting a number of updates in order to be able to compete with other currencies, especially at the level of privacy.

Fiat currency is now also available in digital form, meaning that fiat money can now also be used without having to hold it in real or cash now. And this is based on the presence of cryptocurrency which has been able to provide a good basic example for all countries even though not all countries want to use cryptocurrency.

But for now there are already many countries that want to develop a system for using fiat currency in a better and more advanced way because the countries see the convenience behind this, as exemplified by cryptocurrency. So the presence of cryptocurrency has provided a little convenience for many people who frequently transact every day using fiat money, and even more so for those who really like cryptocurrencies. I really feel the impact of this personally in my life.

Crypto currencies can affect global economy in example they can provide alternative to traditional banking systems that can lead to increased financial inclusions and it can reduced transaction fees. Crypto currencies can reduce the need for the intermediaries. However crypto currencies can be subject to speculation and volatility, which can result to financial instability. The anonymity and lack of regulation can make them more attractive to hackers and criminals for money laundering and other illegal activities. The impact of crypto currencies on the global economy is continuously evolving.

Positively, Hasn't Cryptocurrency been a better and sound money since it's creation ?!
To get things right, the Venezuela digital currencies won't thrive as they think it would. The Financial system hasn't been of any good benefits to the poor, low class and average.

Are you saying you love it when they're in control and has power over your wealth? Both the fiat currency and central bank digital currencies are all backed by the government still, so the same process continues.
Honestly, the system has been in favor of the rich , so it's better you switch to Bitcoin or any better doing Crypto Currency other than Bitcoin.

Using Bitcoin gives you control, only if you're interested in self custody and not on centralized exchnages. CDBCs would thrive to an extent. But Crypto Currency has done more good than harm to the informed than ill-informed. Negatively, I'll say it's Volatility, as as for those who can't keep up, kindly sell all of your Bitcoin and Run from the stress and for good. Smiles.

I think this shows that the effects of the cryptocurrency is still on a personal level that those who engaged ion it for now get the benefits of engaging to it. So, we can say that global impact of it is still uncertain in the way that it does not have a direct impact on most of the countries that it could have a combined global effect. But, the way the crypto works which offers a decentralized way of transactions have its impact on the world making it realize that these method is possible. It has its own fair share of pros and cons, so let's see if the global economy would really be affected by cryptocurrencies.

Central banks produce fiat money within controls, while cryptocurrencies are not subject to any controls and are produced through mining. Some countries have exploited digital currencies to their advantage within controls, but the entry of cryptocurrencies could weaken dominant countries' control over the global financial system. This could have an impact on the global economy and the use of traditional currencies linked to gold and precious metals in commercial transactions.

I agree that it allows us to see an alternative path that will allow us to make as much profit as possible and that is a good deal, but that doesn't change the fact that we are dealing with a profit that is only depending on the market volatility as well here.

However, when we are talking about using it instead of just investing into it? That makes even bigger changes. Like think about all the people who can do a lot more money thanks to bitcoin right now, paypal used to be considered the best method of payment, but now bitcoin has passed that already, and by a million times more as well. Why? Because paypal is a company and you would have to deal with so much company BS when you are dealing with it, whereas when we are talking about crypto, it makes things a lot better.

No, Crypto can not weaken the global financial system instead AFAIK it back it up, because the global financial system was already weak and it has proved in the 2008-2009 bank crisis which you might hear of. From where the origin of the crypto industry started. So i don't think so, it's true to say such things about crypto.

Why?

1. Governments always want to control every sector of life through money flow and they are doing it from the origin of banks, but due to crypto, they are facing difficulties and their supporters are making such accusations or at least putting such ideas in people's minds. They even tried to start a CBDC system so that they could meet the need of those who are demanding digital assets instead of fiat ones. But do you know why are they also failing?

2. Answer to the aforementioned question will be dealt here. Most of people say crypto is decentralized and it has given more increment in the money laundering and etc. activities. I have a question for those, if that's true then admit that there was no such illegal activity in the fiat system. Even we have seen many events in the past of money laundering. Even the governments involved in bribes and such illegal activities don't like digital systems based on Blockchain because they know every transaction will be detected so that's why they are against CBDC too.

The point is, every new technology that eliminates the evil of society will be targeted by evils. Even illegal activities are also triggered by such evils which should be captured. So, that crypto could show it true impact on global financial systems.

If we try to cover it in one line then, "there will be no banks if crypto's adoption becomes mass". And they can't afford to lose banks.

In my point of view cryptocurrencies have effect the world positively because cryptocurrencies have the power to completely change how we engage with the world economy. The first advantage is that anybody, wherever in the world, anybody can use the cryptocurrency. Blockchain technology  makes cryptocurrency transaction instant and very secure. Cryptocurrency can provide several benefits to small business, another positive impact of cryptocurrency on society. The low transaction fees that come with cryptocurrency one of the biggest reasons many establishments have opted to accept the digital currency.

Broadly speaking, crypto has not had any impact on the global economy because so far crypto circulation is still within the scope of the digital currency market itself. Indeed, several countries are starting to become aware of the increasing circulation of cryptocurrencies that provide their local exchangers. But what the government is worried about is crypto trading and investment which is very volatile and risky, so several countries have decided to ban crypto.

This makes it very difficult for the general public to access and use Bitcoin as a financial asset or means of payment. Although many people believe that blockchain technology and cryptocurrency have the potential to change the world and strengthen the global financial system, there are still many obstacles and challenges that must be overcome before this can happen.

Price instability, security issues, and lack of regulation are some of the other factors that prevent the spread of Bitcoin. The need to ensure that the use of Bitcoin does not facilitate criminal activities such as money laundering or financing terrorism is also a factor that must be considered.

To expand its spread, cooperation between stakeholders and clear and effective regulation is needed. This can help ensure that the public can access and use Bitcoin safely and easily, and strengthen its position as a financial asset and means of payment

The hope that there will be actors who will play an important role in promoting and implementing the use of Bitcoin in the political and economic arena.  This includes governments, companies, and organizations with interests in finance and technology.

With more countries and companies starting to recognize the potential of Bitcoin, it is likely that there will be increased support for the use of Bitcoin in various fields, including politics and economics.  However, more discussion and research is needed on how Bitcoin can be used effectively and safely in this context before further action is taken.

Unfortunately, despite all this, Bitcoin still faces many difficulties that prevent it from further spreading. If the legislation of a country does not support digital assets, then the use of crypto in that country will remain limited, and it is not in the interest of anyone for the authorities to discover it.
In a few months, the World Bitcoin Congress will be held in Miami Beach, USA. There are expectations that there will be actors in the political and economic arena, including the President of the State of El Salvador, who was the first country in the American continent to announce the adoption of Bitcoin as an official currency.

the impact to the global population of crypto market may not be big at the moment, but i do believe, there are many people who changed their life owed to crypto market. this forum alone is a witness for all the lives it changed throughout the years.
take a small step at a time, we should not aim for crypto to be the major influencer in the financial market because that's a long way to go. but at least, this market is already getting heard from the financial big boys.

Not only unemployment rate, Bitcoin also open the portal for the unbanked and underbanked to join online transactions.  Bitcoin also give chance to those people who are rejected by banks due to some reasons, to transact online since some merchants are accepting Bitcoin as mode of payment.  Bitcoin also enable a person to send funds anywhere in the world.  Bitcoin disrupts the centralized financial system by giving chance to people who are rejected by centralized finance system of transacting globally.

We must not forget that Bitcoin (digital currencies) opened the door for a large number of people to find work via the Internet and get their wages, regardless of their geographical location or the policies of the countries to which they belong. This has contributed to reducing unemployment rates and helping the largest number of people (especially those living in conflict areas). Countries with limited resources can now activate new resources using Bitcoin only.

The circulation of crypto does not yet exist in all countries as global economic progress has been and continues to be, it is very difficult to bring economic prosperity to countries with large populations and limited natural resources. Boundless corruption makes this whole thing more difficult all countries are competing to keep their standards down. Many countries in the world are now thinking that they can stimulate their economies by keeping standards low.