The influence of cryptocurrencies in economy

[AmoreJaz]

It would take another decade or so and another el Salvador situation to be access the impact cryptocurrencies on the economy of any country however it must be under strict criteria. Until then, crypto and the economy will be two parallels.

It may have little impact in the economy of other countries, with very small dealings with crypto, but for sure it os already influencing some of the lives of their people.
For now, why not be grateful that this market is making waves in the financial sector? It has influence over a lot of crypto users around the globe and for sure has alleviate the living of some of these people. A perfect example are some users in this forum who are part of good-paying campaign, I am assuming their weekly payout is augmenting some of their living expenses. And that is because we have this crypto-related forum which is open to all people from across the globe.

Say about the entire crypto market is what the government of each country is looking at. We've seen people that are jobless that have made their own dedication and allotted time into full time airdropping and bounty hunting.

Some may be successful in it and those that earns real money from it contributes to a country's economy. They have to see that part where someone who doesn't have a source of income but because of the crypto market itself and the opportunities that are in it, gives someone an opportunity to earn although they're temporal.

That actually is very true. In this forum alone, we have seen users who are dedicating themselves in bounty and airdrop hunting. Some may be successful from their quest but I guess if they are offering their skills or services in exchange of crypto payment, they can really get good money. Just like joining in art contest run by some casinos here. The rewards are quite good if you are an artist.

[JariKriting]

only affects individuals who are involved in the crypto world looking for money from crypto. but will not have an impact on the world's global economy. and crypto players who make money from crypto are still small in number compared to the total population of the whole world so the effect on the economy is only limited to people who are looking for money and their passion in crypto.

[ndutndut]

only affects individuals who are involved in the crypto world looking for money from crypto. but will not have an impact on the world's global economy. and crypto players who make money from crypto are still small in number compared to the total population of the whole world so the effect on the economy is only limited to people who are looking for money and their passion in crypto.

Only affects individuals involved in the crypto world who are looking to make money from crypto. but it will not have an impact on the global economy. and crypto players who make money from crypto are still small compared to the total population of the world so their influence on the economy is only limited to people who make money and their passion for crypto.

Of course, for those who already understand the world of crypto, they can benefit from crypto so they can improve their economy. But in my opinion Cryptocurrency also has a significant impact on the global economy.

Because the emergence of cryptocurrencies has accelerated the transformation of the global economy, especially in the context of digital payments and other transactions which have the potential to become international payment methods and be integrated into the market. At the same time, demand for cryptocurrencies has increased every year with many investors eager to invest in crypto, resulting in an increase in the number of startups and fintech platforms, of course this will have an impact on the global economy. Cryptocurrencies have also changed social and economic processes around the world.

[boty]

only affects individuals who are involved in the crypto world looking for money from crypto. but will not have an impact on the world's global economy. and crypto players who make money from crypto are still small in number compared to the total population of the whole world so the effect on the economy is only limited to people who are looking for money and their passion in crypto.

That's right, when someone enters the world of crypto, of course they will look for additional income for themselves through crypto and this will really help their economy to be able to meet their needs and also they can make crypto as an investment for their future and currently many people have who want to learn about crypto of course this is very good for those who are going to invest and also trade with crypto.

[|MINER|]

Bitcoin is a very popular currency.  Its demand is so high that it alone dominates the entire market. It is a very trusted currency.  It's price goes up often. And people like to hold this currency. So its price is always high. During bull run its price goes up several times. BTC is directly used in almost every country in the world. So it's pretty good for the economy.  influences

[moneystery]

bitcoin's journey to get to where it is today was not easy, there was a steep road that bitcoin traversed until it was finally adopted by many people, such as rejection from the government, exchange scandals, etc. but even so bitcoin continues to grow into one of the most active trading markets in the world, even though its valuation is still less than the stock market, commodities, etc., over time bitcoin will probably become a large market with a high valuation and perhaps at that time bitcoin will be more accepted globally.

[davis196]

OP, I don't get the point of your forum thread. Are you trying to ask a question? Are you trying to explain the growth of Bitcoin in the past 10 years with a few sentences? To answer your question(if this really is a question), the influence of cryptocurrencies over the global economy is somewhere in the range between small and non-existent. Yes, several million people around the world use crypto, but this number is still relatively small. Nobody knows how many people are actively using crypto. Maybe 10 million. Maybe 30 million. This is the population of a medium-sized country. This shows that there's plenty of room for growth.

[oktana]

Cryptocurrency does not affect economies of countries. It's correct that there are people who see it as an investment but to is not yet as popular to hugely impact the economy of a nation.

If Bitcoin adoption keeps growing and attracting more people it can have enough of a impact to influence economies, but not yet.

I think it has impacted the economy of the world in general. Because Bitcoin is money, it matters and every transaction made counts as an effect to economy. If we check the amount of money invested in cryptocurrencies at a global scale, then it is obvious. For its impact on each independent countries, it has the potential and is beginning to happen already which I think is why countries are restricting it.

[AVE5]

There are several unique features in Bitcoin and other cryptocurrencies comparing to fiats which is regulated by the government.
These features are
✓ The decentralization which non authorized by any regulatory authorities.
✓ The digital formula which the currencies is used for alternative form of payments on a P2P transactions method.
✓ Also with the potentials of its volatilities with the pros & the cons giving it the feature of digital investment trades where the investors have to buy and hodles their Bitcoins on a self decision if to run a short term or a long term goal investment.

[kryptqnick]

I find the op's post pretty weird because it combines different things, but not in a coherent way. The name of the topic is the influence of cryptos on the economy, but the post isn't about that.
Bitcoin has significant trust of people, okay, but that doesn't apply to "most of the cryptocurrency" at all because most cryptos are actually useless worthless altcoins, probably ICO scams.
Then there's a part where Bitcoin has survived for a decade (1.5, at least, at this point), and that this is the biggest change in economy. How is Bitcoin's survival the biggest change in economy?
Also, "bitcoin and cryptocurrency" are being used either for investment or for hodling assets, according to the op, but viewing Bitcoin as an asset and hodling it IS using it as an investment!

[bitLeap]

The micro economic impact may already be visible because based on what has happened, every individual who is involved in Bitcoin and cryptocurrency is now getting benefits, especially economic improvements. Individually, it clearly has an influence, but in terms of broad matters relating it to the country's economic growth, I think it is still far away. Not because they don't understand or are interested in adopting it, but because it is decentralized so it cannot guarantee that the state is able to control the entry and exit of money.

[Kelward]

Except for a few countries like El Salvador, that have adoption Bitcoin, on a macro level, the influence of Bitcoin on the economy is mainly on the micro levels, being in the personal economy of individuals, because it's a source of income in terms of using it for investment and trading purposes. Bitcoin was created to carter for decentralized p2p transaction, where two individuals can perform transaction without the intereferance of a third party and centralized authorities like governments, but because of it's slow adoption worldwide and governments trying to regulate it, makes it to be used more as investment and trading by individuals mainly.

[Cryptomultiplier]

One big influence is that of forcing the hand of many governments to instead digitize the local fiat by creating something similar to crypto which is the CBDC.
 The welcoming of cryptocurrency by many citizens was soon thought to be checked by the CBDC innovation but it only made the interest of cryptocurrency spread more because people got to understand that the government wants to be in control of the economy in total and thus keep peoples wallets and income and investment controlled by using banks and financial institutions that have their customers identity.

Another influence is that of ease of which payments for  purchase of items and trade both online and across border has been. The P2p innovation sure made things easier and the fees come small compared to using banks for international trade which could cost much more and with a lot of eyes and noses poking holes as to why such a transaction was made.

[reagansimms]

The increasing trust of people around the world in Bitcoin is because there are very profitable opportunities by involving Bitcoin into the economy. One of the things that most attracts investors' interest in Bitcoin is because it has a positive impact on the functioning of the monetary system due to ease of access, security and stability of the financial system which can influence economic growth. Governments in various countries consider Bitcoin to be very influential in driving economic growth. The strong influence in economic growth makes governments facilitate investors with strictly regulated regulations involving Bitcoin into the system through policies to strengthen the financial ecosystem.

[umbara ardian]

Hedging is cool for managing risk, but it's not quite the same as investing in Bitcoin for long-term gains. Think of it like wearing a raincoat to avoid getting soaked – good for protection, not necessarily for catching a tan. Investing in Bitcoin is more like hoping for a sunny future and a sweet beach bod.

Bitcoin's whole "no central bank, everyone's in charge" thing is pretty unique. It's helped it survive the wild west of crypto, but it's not the only reason. Bitcoin was there first, has a bunch of users, and does its thing differently than others – that all plays a role too.

Using Bitcoin to buy stuff is still tricky. Think legal hurdles, crazy price swings, and not being able to buy your morning coffee as easily as with cash. It might be the future, but for now, it's more like a collector's item than your everyday wallet.

[KingsDen]

Except for a few countries like El Salvador, that have adoption Bitcoin, on a macro level, the influence of Bitcoin on the economy is mainly on the micro levels, being in the personal economy of individuals, because it's a source of income in terms of using it for investment and trading purposes. Bitcoin was created to carter for decentralized p2p transaction, where two individuals can perform transaction without the intereferance of a third party and centralized authorities like governments, but because of it's slow adoption worldwide and governments trying to regulate it, makes it to be used more as investment and trading by individuals mainly.

I don't think the adoption of Bitcoin (and other cryptocurrencies) has influence on only individuals and households. In every country where the citizens use Bitcoin (crypto) either for p2p transactions or as an investment,  the economy of the country suffers a slight reduction in national revenue. This is because some cryptocurrency (especially Bitcoin) transactions and investments are unintentionally excluded from tax because of the decentralized and privacy status of most of this cryptocurrencies.

Why do you think the governments of most countries are against the adoption of Bitcoin and some other cryptocurrencies? It is because the goverments of these countries see Cryto as a threat to their economy and maybe national security as they may portray it. You can now see that cryptocurrency is also a thing of national concern which means, its influence can be felt in both the micro and macro economies.

[Assface16678]

Maybe in the past, bitcoin wasn't well known and only a few with the mindset of investment knew it, and they were the ones that believed and invested in it. But right now, because bitcoin or crypto currencies are becoming more hyped, many people are taking an interest in bitcoin. That's why the number of investors in it is increasing. But the thing is, what is the effect of bitcoin being known to so many? Well, if they can utilise or do great investments in bitcoin, then I'm sure many people will prosper, wherein they can earn a considerable amount through investing in it, and it will be more beneficial if this concept is introduced at a younger age so they can be aware and open about how they can earn despite being young or students. In that way, the economy will be good because more and more people have an investment mindset.

[tygeade]

Only affects individuals involved in the crypto world who are looking to make money from crypto. but it will not have an impact on the global economy. and crypto players who make money from crypto are still small compared to the total population of the world so their influence on the economy is only limited to people who make money and their passion for crypto.

Of course, for those who already understand the world of crypto, they can benefit from crypto so they can improve their economy. But in my opinion Cryptocurrency also has a significant impact on the global economy.

Because the emergence of cryptocurrencies has accelerated the transformation of the global economy, especially in the context of digital payments and other transactions which have the potential to become international payment methods and be integrated into the market. At the same time, demand for cryptocurrencies has increased every year with many investors eager to invest in crypto, resulting in an increase in the number of startups and fintech platforms, of course this will have an impact on the global economy. Cryptocurrencies have also changed social and economic processes around the world.

Not totally right, global economy is based on groups, and amount of money that is involved with those groups. By logic, in 2008 mortgage should have only impacted the people who took out mortgages, but not only it did impacted them, and hurt the banks but also hurt the people who had nothing to do with it, the whole nation got hurt because of it and even some other nations as well.

So all in all, we could consider the fact that we may end up with the same thing about crypto as well. If there is a big group, when they get rich or get poor that impacts more people and it's like a wave. One group gets hurt and the rest gets hurt and that's just how it works eventually. We should not really consider it just based on one group at all.

[sekalitas]

The crypto currency doesn’t have a red carpet welcome when it enter the market.The bitcoin itself doesn’t have huge investors at the beginning,after the survival for certain period of time.The bitcoin had build their own trust among the users,the biggest reason is the Bitcoin was the decentralised cryptocurrency.So no one had control over the price of bitcoin,only the market demands define the price of bitcoin.When the bitcoin had huge demand we can able to get into the bull run,as we recently get into the 51k mark on the Bitcoin price.

Now the bitcoin and most of the cryptocurrency had huge trust by the people around the world.This was the biggest reason for bitcoin demand was increasing with the period of time.The bitcoin already crossed the decade of survival,So this was the biggest change in the current economy.Many people from the various countries use the bitcoin and cryptocurrency in some way either for the investment or for holding their assets in the digital form.This was the reason behind the government of various countries try to regulate to control the money flow in the market.

Bitcoin has indeed gained more trust than before, and I, like many others, have benefited from cryptocurrencies like it. However, the inherent volatility of cryptocurrency can lead to significant profits for some, while also causing others to lose everything. Those who experience sudden windfalls are naturally inclined to spend them, ultimately contributing to the economy. Nevertheless, the use of cryptocurrency for everyday transactions remains limited, and its high price volatility discourages widespread trust.

[Darker45]

The bitcoin had build their own trust among the users,the biggest reason is the Bitcoin was the decentralised cryptocurrency.So no one had control over the price of bitcoin...

Bitcoin's decentralization has nothing to do with control over its price. Bitcoin is decentralized not because nobody is dictating its price but because nobody is in sole control of Bitcoin itself. No single person or group decides on behalf of the network and its operation. It doesn't have a central server, a president, a CEO, or a headquarter. Bitcoin doesn't have a single point of failure.

If we talk of the price, on the contrary, then we can discuss of centralization to a certain extent. There are significant amounts of Bitcoin that are in the hands of certain individuals and institutions, and their decision is enough to influence the price of Bitcoin.