How do cryptocurrencies affect Global Economy?

[ginsan]

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.

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.

[GeorgeJohn]

CBCD is been created by government of a country to minimize fiat currency which is depreciating gradually. It does not have any effect on the global economy and it is not also a decentralized currency. No matter the way it is presented to the citizens it still remains centralized. So if a country creates its own digital currency and link it to gold or oil barrel price it still will not change anything.

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.

[doomloop]

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.

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.

[smile1218]

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.

[Alpha Marine]

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, they know what a centralized and decentralized format is. In no world will the government of any country create what it cannot control. They can never create what will be completely decentralized. If Bitcoin were a centralized network, it won't have most of the issues it's having today. The contact scrutiny from governments of the world won't be there. This is evident in their creation of CBCD.
From my understanding of CBCD, it's just crypto, but in a centralized way. Meaning this is crypto they can control. The difference is people don't trust it.

[ultrloa]

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.

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.

Its simple to think how bitcoin could give effect to the global economy since if taxation will fully implemented on country for sure many can get benefit on it since they can get money on crypto since globally many people using it. Crypto is a billion or even a trillion industry if they could just see this one as positive aspect of adopting it for sure their country can get benefits to gain more revenue from this industry. Although there's huge risk on crypto but if they properly regulate it for sure to many great things will happen on it.

[someone703]

From what I can see, cryptocurrency has a positive impact on the economy because we are gradually changing the way we think and how we operate this economy. First of all, cryptocurrencies have the potential to provide alternative means of exchange and storage of value, especially in regions with volatile currencies or limited access to traditional banking services provide alternative means of exchange and storage of value, especially in regions with volatile currencies or limited access to traditional banking services. So as financial institutions and mainstream investors increasingly adopt cryptocurrencies, it has had an impact on traditional financial systems and global markets. The integration of cryptocurrencies into portfolios and the introduction of crypto-related financial products demonstrate the growing recognition of this asset class.

[Bushdark]

CBCD is been created by government of a country to minimize fiat currency which is depreciating gradually. It does not have any effect on the global economy and it is not also a decentralized currency. No matter the way it is presented to the citizens it still remains centralized. So if a country creates its own digital currency and link it to gold or oil barrel price it still will not change anything.

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.

I think the government really knows the capability of Bitcoin and the entire cryptocurrency that is why they are now creating there own digital currency to boast there economy because they know that many people prefer to use digital currency to run transactions because it is very easy and stress free. There are many countries that have there own CBCDwith the hope that there citizens can make use of it to run online transaction sonit can replace cryptocurrency.

There had been long interest in investing in cryptocurrency by many people and to halt that, the government are still looking for a way to lure us to use there digital currency so there would be no need to consider cryptocurrency as an opportunity.

[kaseygriffin]

Thinking in a positive light, cryptocurrency is an industry that can bring money to a country if they take optimal advantage of it. For example, economic promotion and job creation are based on fundamental blockchain technologies, which show significant potential for innovation, entrepreneurship, and the development of blockchain-based applications. If they remove cumbersome regulations and instead create new regulations with a favorable regulatory environment, that can attract crypto businesses, investment, and talent, which can contribute to the business development economy while at the same time protecting against illegal activities and protecting the interests of consumers.

[indo1]

I think the biggest fear of banks about the growth of crypto is that fiat money will really disappear if everyone uses crypto as a means of daily transactions. efforts to prevent that several regulations set to regulate crypto will fiat not disappear. unfortunately some financial people use crypto to take their blockchain but not adopt their crypto.

[collinscoinz]

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.

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.so i realy think that the government knows the capability of the bitcoin and the cryptocurrency.

[KaizenJujustsu]

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.

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.

This would have an impact on the global economy and the entry of digital currencies would weaken these countries from their control over the economy if other countries start to follow the same approach as the Venezuelan government, as the currency of these dominant countries used in commercial transactions and which has been linked to the prices of gold and precious metals will face Digital currencies whose printing and issuance are not controlled by any official entity.

If we looked at the positive sides of things, cryptocurrencies can be a great help to a country's economy. It can provide financial services to individuals in countries that are in economical crisis. With the massive inflations in Venezuela, people can use it as an alternative. By joining the cryptocurrency ecosystem, it enables them to store, send, and receive money without relying on traditional banking systems.

Take El Salvador for example, they are the first country to make bitcoin legal tender— requiring businesses to accept cryptocurrencies. They made it like that because according to world bank, only 30% of their people had a bank account in 2017. Thus, hoping that by using bitcoin, it will raise and promote financial inclusion which will help their economy. Still for now, there are many cons like the volatility of bitcoin that is always changing.

Now cryptocurrencies can also do faster and cheaper cross-border transactions compared to traditional ones like wire transfer. By removing intermediaries and transaction costs, it can streamline global commerce and enhance economic efficiency. The things those countries are doing are still new, there might be a big problem now but after a few years, I think many solutions are to be made. 

[Inwestour]

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.

I'm not sure that the cryptocurrency currently has any significant impact on the global economy, for this we still have a long way to go. Even the example of El Salvador is an example of local adoption and it is difficult to talk about some kind of influence of cryptocurrency outside this country. Of course, the example of El Salvador is very bold and in the future can serve as a good example for other countries, but this will only happen if El Salvador still manages to achieve significant positive results due to the adoption of bitcoin as a means of payment.

[irhact]

I think the biggest fear of banks about the growth of crypto is that fiat money will really disappear if everyone uses crypto as a means of daily transactions. efforts to prevent that several regulations set to regulate crypto will fiat not disappear. unfortunately some financial people use crypto to take their blockchain but not adopt their crypto.

Fiat money will disappear soon and it has nothing to do with cryptocurency which is because the world is getting digitalized and every transaction is now been done through digital banking as we have cashless policy getting introduced in all part of the world. With or without cryptocurrency, we'll have credit cards been accepted in stores and there won't be need for cash.

Cryptocurency is only making it faster and since they government can't control cryptocurency, it's becoming a threat which is why the government are fighting against it. Blockchain and cryptocurency works together and soon the government will realized they can't stop it.

[bestcoins1]

Financial Inclusion,Cryptocurrencies can provide financial services to individuals who are unbanked or underbanked, especially in regions with limited access to traditional banking infrastructure. By leveraging cryptocurrencies and blockchain technology, individuals can participate in the global economy and engage in financial transactions without relying on traditional financial institutions.

What you say is not wrong, but it is also important to note that not all places that do not have traditional banking can have a good internet signal, so individuals who want to use Cryptocurrency services still need to ensure this. Because there are indeed places with good internet signal but very lack of infrastructure such as banking which may be due to the very small population.

However, there are also places where the internet signal is bad, so all the infrastructure cannot be built because it cannot run. So it really doesn't matter if there is no banking, but if the place is remote, every individual who wants to use Cryptocurrency must really have sufficient internet signal so that its use can be operated.

[Marvell1]

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.

I'm not sure that the cryptocurrency currently has any significant impact on the global economy, for this we still have a long way to go. Even the example of El Salvador is an example of local adoption and it is difficult to talk about some kind of influence of cryptocurrency outside this country. Of course, the example of El Salvador is very bold and in the future can serve as a good example for other countries, but this will only happen if El Salvador still manages to achieve significant positive results due to the adoption of bitcoin as a means of payment.

To be fair, cryptocurrencies haven't had any impact on the world economy yet, which is a fact that I think many people still don't want to believe. Nothing compares if we look at the world's over $100 trillion economy while capping the entire cryptocurrency to just over $1 trillion. It must even be said that the entire crypto industry is worth less than an American tech corporation. So how can it be said what effect it causes?
Although there are already some countries that accept bitcoin as a legal tender like the El Salvador you mentioned. But most of them are just small countries that many people don't even know exist, it is difficult to generate real attention even if they succeed.

[Blowon]

usually it scares the bank. but if it fulfills the global economic scale crypto enters through many industries, almost all industries can be entered by cryptocurrencies. as we can see now all crypto has its own industry and some of them have been successful and have survived until now. I think the problem now is regulation because some projects find it difficult to develop in their countries which are too strict in terms of financial regulations.

[Iadegbola34]

Cryptocurrencies may or may not impact the global financial system. Decentralized digital currencies such as Bitcoin function outside conventional regulations, in contrast to centralized digital currencies such as Petro and the Chinese Yuan. Their presence in the market might put pressure on the dominating economies and currencies associated with precious metals. However, its overall effect on the world economy remains unclear and requires further research.

[Texac]

~snip~


We agree that crypto is beneficial for individual users, but we cannot be certain of its benefits on the economy without examples that can be followed.

I don't think El Salvador has failed, their bitcoin acceptance hasn't even been 2 years, so it's hard to say anything.  I mean, we need more time to get the final answer.  but to be fair, I personally don't see any impact of cryptocurrencies on the national macroeconomy, let alone the global economy.  crypto is still a small market for small individuals and institutions, but this will soon change as things evolve over time.  i am pretty confident that if cryptocurrency can maintain its current momentum, it will definitely be an important player in the world economy.

[savetheFORUM]

usually it scares the bank. but if it fulfills the global economic scale crypto enters through many industries, almost all industries can be entered by cryptocurrencies. as we can see now all crypto has its own industry and some of them have been successful and have survived until now. I think the problem now is regulation because some projects find it difficult to develop in their countries which are too strict in terms of financial regulations.

Well, by terrifying banks or traditional financial institutions, it doesn't affect the global economy. This thing only might affect the user base of banks and other financial authorities since their users or customers might grow an interest in decentralized cryptocurrencies like Bitcoin more than the traditional modes of holding or using their money.

This is basically the reason why governments are always eager to regulate cryptocurrencies and don't openly allow them to operate within their countries and let their citizens use them normally like they use banks and other financial applications.