How do cryptocurrencies affect Global Economy?

[Cryptodebjoe]

For one to say that crypto doesn't have any impact whatsoever on the global economy is untrue because if it doesn't why is it that they try to impose regulations and ban it in most countries... An example is this; in my country the dollar was constantly increasing against our currency so I went into the crypto black market and traded it for cheaper rate than buying it from on ground vendors.... If 30% of our population where to be aware of this imagine the impact this would have on my country and also on a global scale?

[coupable]

Cryptocurrency is just a pump and dump market and we are gamblers, it has not been widely adopted, the market capitalization is smaller than a US company like microsoft or apply, how can it be said to have an impact on the world economy? Maybe in the future when it grows more, there could be an economic impact but not for now.

'coz it definitely won't. The fact that cryptocurrencies are decentralized, means they have nothing to do with anything affiliated with government such as a country's economy, and this applies to all countries. On the other hand, cryptocurrency industry is being affected by the economic situation, indirectly, because investors are the ones being affected, which would affect their investment routines such as not being able to invest that much or sometimes even forcing them to sell their asset to cope up with daily expenses. This is how I view the relationship between economy and this technology in general wherein there is only a one way interaction. The market prices have reached their ATHs but poor economies remained poor, that's how proven this is.

What I regret most is that whales only benefit from price fluctuations and the huge investments they make generate profits from which the economy does not really benefit. At the same time, the sectors benefiting from the use of crypto do not represent a large percentage capable of truly influencing the global economy.
This is likely to change for the better over time because crypto usage is spreading rapidly. But no one knows when this might happen due to the high volatility in the crypto market and the turmoil of the global economy affected by many other factors.

[serjent05]

For one to say that crypto doesn't have any impact whatsoever on the global economy is untrue because if it doesn't why is it that they try to impose regulations and ban it in most countries... An example is this; in my country the dollar was constantly increasing against our currency so I went into the crypto black market and traded it for cheaper rate than buying it from on ground vendors.... If 30% of our population where to be aware of this imagine the impact this would have on my country and also on a global scale?

I agree, Bitcoin making government react and impose regulation is proof that Bitcoin has an impact on the global economy.  Bitcoin can help countries through start-ups by creating more jobs for people.  It can also enable the unbanked to participate in the country's economy since they can do transactions that they are not able to do without Bitcoin.  Aside from that Bitcoin also helps with the energy grid through Bitcoin mining activity which can help lowers the energy cost of a community where there is a surplus of power supply.

[19Nov16]

Cryptocurrencies have been trending for the past few years, but unfortunately what is often conveyed is bad things, for example transaction crimes such as money laundering, illegal weapons transactions, fraud, drug transactions and so on, if we are honest, the positives of the presence of cryptocurrencies certainly outweigh the negative effects. and it has been proven that many people are successful and open new jobs so that reducing unemployment is the positive impact of the presence of cryptocurrencies.

[Negotiation]

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.

[coupable]

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.

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.

[BitDane]

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.

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.

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.

[AmoreJaz]

Cryptocurrencies have been trending for the past few years, but unfortunately what is often conveyed is bad things, for example transaction crimes such as money laundering, illegal weapons transactions, fraud, drug transactions and so on, if we are honest, the positives of the presence of cryptocurrencies certainly outweigh the negative effects. and it has been proven that many people are successful and open new jobs so that reducing unemployment is the positive impact of the presence of cryptocurrencies.

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.

[coupable]

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.

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.

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.

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.

[taufik123]

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.

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

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 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.

[fuer44]

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.

[Vishnu.Reang]

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.

[Faisal2202]

Is it true that cryptocurrencies will weaken the global financial system? That system which is managed by countries with the strongest economies with their currencies that has gained wide acceptance to be traded in financial markets all over the world.

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.

[bitgolden]

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.

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.

[Iadegbola34]

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.

[Twentyonepaylots]

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.

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.

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.

[Oluwa-btc]

Central banks are based on producing fiat money within controls and according to a corresponding stock of metals such as gold, or a reserve of major currencies such as the US dollar.

As for encrypted currencies, they are not subject to any controls of any kind and are produced by individuals (mining). However, some countries that are subject to economic crisis's or international sanctions have exploited these digital currencies and used them in their favor within controls ; The Venezuelan government issued a central digital currency called "Petro" and linked its price to the price of a barrel of local oil which means linked it to oil and precious metals. Also, China has also issued the Chinese yuan, which is a digital currency different from the decentralized blockchain.

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.

[axxo]

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.

[G_Besar]

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.

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.

[coupable]

Central banks are based on producing fiat money within controls and according to a corresponding stock of metals such as gold, or a reserve of major currencies such as the US dollar.

As for encrypted currencies, they are not subject to any controls of any kind and are produced by individuals (mining). However, some countries that are subject to economic crisis's or international sanctions have exploited these digital currencies and used them in their favor within controls ; The Venezuelan government issued a central digital currency called "Petro" and linked its price to the price of a barrel of local oil which means linked it to oil and precious metals. Also, China has also issued the Chinese yuan, which is a digital currency different from the decentralized blockchain.

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.

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.