People were unknown of the concept of cryptocurrency when it was launched in 2009 as they were accustomed to fiat transactions. Fast forward to 2022, cryptocurrency has shown the potential of changing the financial market in the past few years.
Already showing revolutionary changes such as easy and quick cross-border transactions and freedom from financial intermediaries, cryptocurrency has come a long way. Bitcoin (BTC) has become the world’s largest cryptocurrency by market capitalization, thanks to its profitability and positive adoption.
You might be wondering about investing in cryptocurrency or not.
Regardless of considering its challenges, cryptocurrency has the potential for higher returns for its users. In addition, cryptocurrencies are remarkably secure and are available at any time.
Let us find out how cryptocurrency is changing the future of the economy.
Cryptocurrencies are digital currencies based on blockchain technology that is secured by cryptography. The advanced cryptography technique is backed by complex mathematical problems which are hard to break for hackers, thus making cryptocurrency secure.
The security of cryptocurrency is determined by the hash rate – the higher the hash rate, the more secure is blockchain. BTC is the most secure cryptocurrency as its network has a higher hash rate as compared to other networks.
Carl Runefelt, alias, The Moon, is a global crypto leader who is pushing for the mass adoption of cryptocurrency.
He says, “I know that for the fact that you cannot hack Bitcoin. You can hack exchanges which is something different but not Bitcoin. It is important to understand that you can hack YouTube, you can hack banks, or literally any internet company out there, but you cannot hack Bitcoin. This is because the blockchain is very robust.”
Another way through which cryptocurrency is changing the future of the global economy is by making transactions easy.
Cryptocurrency offers quick and easy transactions, generally at a low cost, and by ensuring the privacy of customers. You can make a crypto transaction using a hardware wallet, a smartphone app, and an exchange wallet.
You might have faced challenges with bank transactions such as delays or higher fees, but cryptocurrency is available 24/7 and you can send it to anyone anywhere around the world.
Another advantage that you can enjoy with cryptocurrency is buying digital currencies using cash through an ATM which is lacking in a traditional financial system.
As an investor, when you are investing in an asset, you would want to make a lot of money stably.
Cryptocurrencies are not only currencies that you can use for exchanging goods and services but also online assets which offer amazing returns. For example, BTC was valued at mere dollars in the beginning, but it reached $70,000 per Bitcoin in November 2021.
Likewise, altcoins, cryptocurrencies beyond Bitcoin, have shown exceptional returns. Ethereum (ETH) has become the world’s second-largest cryptocurrency by market value and has increased the wealth of its many users across the globe.
Inflation has been a devastating factor behind declining purchasing power among communities. People have been fighting inflation for centuries and cryptocurrency offers an alternative path.
Mostly, cryptocurrencies have a limited supply cap that offers an inflation hedge. For example, the protocols of Bitcoin are designed in a way that only a limited number of BTC can be traded.
Carl, on his YouTube channel, The Moon, says, “Bitcoin is the best hedge against inflation that we have in the world right now, and Bitcoin is also the best form of money that we have and have maybe ever seen in the history of humans.”
Inflation can occur when banks print more money to overcome other challenges faced by the economy. On the other hand, cryptocurrency with a limited supply has a greater chance of going up in value and controlling inflation.
Cryptocurrency is changing the concept of money through its transactional freedom. Since cryptocurrencies are decentralized currencies, they operate free from the influence of a bank or government.
This provides transactional freedom to the users who can make a transaction without any hurdles.
You can face bank delays or government regulations when it comes to making a fiat transaction. But with cryptocurrency, sending or receiving money has become exceptionally easy.
Security, transactional freedom, and outsized returns are some of the ways through which cryptocurrency is changing the financial global system.
Many cryptocurrencies are designed to have unique advantages over fiat or traditional currencies, even if they have not been adopted yet. It is in your hands whether you want to be part of a transforming global economic system or still face the challenges of the traditional system.