Cryptocurrency as a source for economy growth

[Mhizlove]

Well Well Well!!
It's a good thing how the benefits of cryptocurrency have been discovered lately.

Sergey Nazarov, the co-founder of Chainlink, has stated that he sees a major change in how regulators and other traditional financial institutions see cryptocurrencies. Instead of seeing them as a threat, he believes they are beginning to see the crypto industry as a potential engine and a source for economic growth. This is a great significant change in perception and highlights the maturing of the crypto space.

Now according to him, the reason why cryptocurrency is now seen as a source of economic growth is due to certain factors and all these involve contributing to the economic growth in diverse ways like;

1. Financial inclusion: One of the most important contributions is that cryptocurrency provides financial services to the unbanked and even underbanked global population. In most developing countries, people may not have access to traditional bank accounts but do have access to the internet and smartphones. Cryptocurrency gives these people the space to access and participate in the digital economy, help them send, receive and even save money.

2. International or global trade made easy: Cryptocurrency can make international trades and cross-boarder transactions a lot easier, faster and more cheaper. Originally, traditional money transfers can involve a high fee and even a long time wait but Crypto allows a fast and even cheaper or low cost transaction. This act is beneficial for people sending money to family in other countries and even small businesses involved in international trades.

3. Tokenization: This was the most important reason Sergey talked about crypto helping the global economy. Tokenization is the process of representing a real world asset like an art or stocks on a blockchain as a digital token. Now this can make these assets easier to sell and even accessible to a wider range of investors which can potentially increase the value of the asset.

4. It helps protect against inflation: In countries where there's an unstable economy and high rate or level of inflation, citizens can use cryptocurrencies like Bitcoin to store their money to protect their savings from rapid devaluation of their local currency.

Now technically, Chainlink acts as a bridge which connects the blockchain world to the real world, thus making it possible for traditional finance and real-world economies to safely and securely integrate with blockchain technology, and this is why Nazarov's perspective is particularly important to the discussion of crypto's role in economic growth.

It's a good thing the positive side, influence and impact of cryptocurrency on the global economy is beginning to be seen by prominent members of the global trade system which makes it easier to say cryptocurrency sooner than expected will become a legal tendency globally.

[Joeboy]

You raised some important points OP, but then don't you think it would have been better for you to have added a link for us to read further, anyways here is a link  that we can read up on-

SEC sees crypto as an economic growth engine says Chainliink cofounder

In addition, cryptocurrency  is also creating new ways for people to engage in business without the need of middlemen orr third party through things like smart contracts. This makes transactions more faster, cheaper, and somewhat easier, which is another reason regulators are begiinning to see it as an opportunity for growth...... However everything that has an advantage will definitely have a disadvantagee

[Doan9269]

Until we see how important and where applicable bitocin has become in today's use, if we look on the several ways we can use bitcoin and apply it for the benefits of our financial economy, it is going to be seen a as good instrumentation for the development we want on several aspects of the financial economy, that is why everything about bitcoin begins with learning about the network and taking advantage of every opportunities that we see from it as our own benefits in areas we ha e found it applicable to us in our day to day economic activities.

[Kelward]

I agree with the other points wey you raise but I no agree with this your number 1 point. People wey de for developing countries get more access to traditional banking system because e de very easy to open bank account. Almost everybody get bank account but na very few people get crypto wallet and people wey get cryptocurrency prefer to spend dem traditional currencies pass cryptocurrency. Furthermore na how many businesses wey you don see wey de accept cryptocurrency

But I can agree with you say cryptocurrency integration into the financial systems na innovation added to di regular traditional financial systems wey we don de used to. I need to emphasize say cryptocurrency for economic growth na on personal levels, meaning say e only de profitable to who hold am, some de trade dem while others de invest in dem. Cryptocurrency on it's own no go fit to improve any economy. And when we de talk about cryptocurrency na Bitcoin be di one wey be dem oga because na store of value wey de give profit on di long term

[Frankolala]

I agree with the other points wey you raise but I no agree with this your number 1 point. People wey de for developing countries get more access to traditional banking system because e de very easy to open bank account. Almost everybody get bank account but na very few people get crypto wallet and people wey get cryptocurrency prefer to spend dem traditional currencies pass cryptocurrency. Furthermore na how many businesses wey you don see wey de accept cryptocurrency

I no fit understand how person wey no get bank account to take convert him crypto to fiat if he want take small profit. Crypto and fiat dey work hand in hand which makes it impossible for anyone wey dey use crypto make  no get bank account. Abi no be recently crypto pop up. Banks don dey exist since wey fiat start to dey exist so anybody wey dey in business or get job must get bank account. Infact, some people get bank account and them no get money inside while for the cryptospace some people get crypto but no get wallet because them use exchange do their wallet.

[Umulala-alala]

Tokenization is one major way cryptocurrency has helped improve lives across the globe, practically being able to trade with your assets instead of fiat with their limitations across country boundaries, this is basically a modernized form of trade by barter, it has improved financial stability to the point where people can even tokenize lands now and trade with it across the globe and even companies owning tokens of their own which they use on chain for all sorts of crypto transactions, tokenization is one of crypto's major innovation and improvement on how the world's financial sectors operated and it also proves that more cryptocurrency related innovations are still to come in the near future.

[MainIbem]

Until we see how important and where applicable bitocin has become in today's use, if we look on the several ways we can use bitcoin and apply it for the benefits of our financial economy, it is going to be seen a as good instrumentation for the development we want on several aspects of the financial economy, that is why everything about bitcoin begins with learning about the network and taking advantage of every opportunities that we see from it as our own benefits in areas we ha e found it applicable to us in our day to day economic activities.

It is true that Bitcoin was created as an Alternative to the fiat currency and a form of privacy against the third party system the banks operates with, but Bitcoin has become more beneficial than that since everyone including business men, organisations, governments and individuals now use it as a store of value, it has now become an instrument for development and economic growth cause of the ability to generate good returns overtime, Bitcoin has become very beneficial to financial growth, so the best thing anyone would do to themselves is embracing it.

[Promocodeudo]

It is true that Bitcoin was created as an Alternative to the fiat currency and a form of privacy against the third party system the banks operates with, but Bitcoin has become more beneficial than that since everyone including business men, organisations, governments and individuals now use it as a store of value, it has now become an instrument for development and economic growth cause of the ability to generate good returns overtime, Bitcoin has become very beneficial to financial growth, so the best thing anyone would do to themselves is embracing it.

The early major reasons for the creation of Bitcoin is still there but Bitcoin has moved beyond those things, presently individual rather borrow from banks to finance their businesses but will not want to invest in banks for reasons we are aware of, people now see Bitcoin worthy of their investment, when we look at what has being happening at the recent times, i think there are people who now rely in short term aspect of Bitcoin investment and they are gaining from it although am not an advocate of that but we can't dispute the fact that some people are benefiting very well from that, dude you have listed many importance of Bitcoin which is the driving force of this particular digital asset.

[ZeroVinsonN]

Until we see how important and where applicable bitocin has become in today's use, if we look on the several ways we can use bitcoin and apply it for the benefits of our financial economy, it is going to be seen a as good instrumentation for the development we want on several aspects of the financial economy, that is why everything about bitcoin begins with learning about the network and taking advantage of every opportunities that we see from it as our own benefits in areas we ha e found it applicable to us in our day to day economic activities.

It is true that Bitcoin was created as an Alternative to the fiat currency and a form of privacy against the third party system the banks operates with, but Bitcoin has become more beneficial than that since everyone including business men, organisations, governments and individuals now use it as a store of value, it has now become an instrument for development and economic growth cause of the ability to generate good returns overtime, Bitcoin has become very beneficial to financial growth, so the best thing anyone would do to themselves is embracing it.

Bitcoin's advantage on the global scale can not be understated , it has shown to have a high diversity of reach, some companies are even willing to accept payment in bitcoin as an alternative to fiat, soon companies in Nigeria will also adopt this strategy which I believe will really help in growing and developing our economy even more, as a country we just need to open ourselves up to the possibilities that can be found in the crypto space especially from bitcoin being a decentralised asset.

[Mhizlove]

I need to emphasize say cryptocurrency for economic growth na on personal levels, meaning say e only de profitable to who hold am, some de trade dem while others de invest in dem.

Thank goodness you say e dey favour person wey hold am. Imagine a business (private entity) accepts Bitcoin as a form of payment, and in a nation like Nigeria where we operate a mixed economy system, the capitalists or private owners of production also contribute to the economy massively and we all know this. So if a company dey hold Bitcoin, as e dey benefit the company, in diverse ways e dey also benefit the nation economy.
Now even with that been said, some other ways Bitcoin can favour the economy of Nigeria is when it comes to currency devaluation. Imagine a currency like naira that it's price or value changes and depends on the dollar rate. If private businesses start operating with Bitcoin, you'll see that even if the price of the naira devalues, the coin remains intact, helping to maintain the profit structure of the company or business.

[Yorubek]

In the beginning, when people did not have specific knowledge about Bitcoin, people did not have much confidence or trust in investing in Bitcoin. Gradually, when the general people started to know about Bitcoin, how Bitcoin works, what are the benefits of holding it in the long term, etc., the general people and small and big businessmen are buying large amounts of Bitcoin and holding it for the future because its supply is limited. It is a digital asset of the future. There is individual freedom in holding or using it. No specific country or government can ever control it because it is decentralized. By holding it for a long time, a person can protect himself from inflation and expect big profits. Over time, its price is increasing and will increase by double in the future. Thinking about the future, Various countries of the world are making Bitcoin Strategic Reserve.

[Jubilee58]

Investing in cryptocurrency can help in boosting an economy, more especially in a country like Nigeria, where our fiat currency has lost value, as it will serve as a means of sustaining our falling naira.

There are other ways that cryptocurrency investment can help in boosting the economy of a country and they are as follows:

Asset Diversification: Concerning investment, it is always good for a country to diversify in their investment, because diversification helps in spreading the risk of investment, and not solely depending on a particular investment.
For example in Nigeria where we so much depend on oil production, our government can decide to invest in cryptocurrency like bitcoin, and not depending alone on our traditional assets.

Creation of Job: Investing in the Blockchain can actually create job opportunities, because of a country can build a blockchain industries, more people will be employed there, and thereby reducing the rate of unemployment in the country.

Cryptocurrency like bitcoin is a store of value, despite it's volatility, the long term investment is highly profitable, and the longer you reserve it , the more value it adds, so is recommended a country should invest in such asset in other to maximize profit and preserve the value of the fiat currency.