How Cryptocurrencies Affect the Global Market
How does cryptocurrency affect the real economy?
Cryptocurrencies entered the global economy very fast. Nobody expected them, did not plan, but we see a big cryptocurrency market today.
It is already clear that cryptocurrencies claim to be the world currency. But even 10 years ago, only the dollar and the euro were candidates. Now they are already worried.
That is, the influence of cryptocurrencies on the global economy and the economy of individual countries has already become quite obvious.
Impact on the global economy
Naturally, it cannot yet be called radical. Cryptocurrencies in a number of countries are simply not recognized, they are not included in the budgets, the giants of the world economy hardly transfer money to them.
Few people know about them in some countries. So far, the influence has only been more often indicated, but the growth of their influence is more obvious every year.
What’s going on in the cryptocurrency market? Cryptocurrencies are gradually taking their place in various areas of the economy, but so far their influence clearly cannot be called decisive in any of them. However, there are forecasts that in 20-30 years almost all calculations will be in them. But this is just a version.
It is already clear that bitcoin or ethereum will not be able to become world currencies. But they are believed to be able to create an unusual new monetary system, where there is little that states can do.
Even a complete ban on the circulation of cryptocurrencies is unlikely to stop their development and movement – after all, this is completely unusual, invisible money.
By the way, the Chinese authorities, using the example of an unsuccessful ban on cryptocurrencies, have seen how painful it can be.
However, hardly anyone in the world wants to completely ban them. Rather, the policy of almost all countries in this regard can be considered favorable: cryptocurrencies are opening up new opportunities, albeit not everywhere.
Many people are already investing in global cryptocurrency market today
Cryptocurrencies are already a bit of a threat to the global financial system, because almost all of them are not seriously connected with any currency. But for now, this threat is only speculative.
These currencies stimulate international transfers, because in the form of cryptocurrencies they are greatly facilitated.
It is already clear that their role in the world economy can grow very quickly and strongly.
Impact on the economy of individual countries
Cryptocurrencies have a strong impact on the economies of developed countries, where they circulate the most. This influence is also manifested in the concern of conventional financial institutions (banks and others) and their increasing desire to include cryptocurrencies in the list of their instruments.
Interestingly, cryptocurrencies often have a serious impact on the economies of developing countries. So, many miners settled in China, Kyrgyzstan and Abkhazia, other countries of Asia and Africa, Latin America.
Transfers from abroad in cryptocurrency are extremely popular in Nigeria, Venezuela and other countries. The work of miners is already even provoking energy crises. This has never happened.
But everything stimulates the economy of these countries, and even affects the development of the cryptocurrency market industry, primarily mining and energy. And often this impact grows very quickly. 5 years ago no one would have believed this.
Operations in cryptocurrency, albeit actually unofficial, are no longer so rare to seriously affect the exchange rate of the national currency, the finances of the country as a whole, and the well-being of the population. There is no doubt that the growth of this influence will continue, albeit not everywhere.
There are national cryptocurrencies in Venezuela, Dubai, Sweden, Japan, Estonia and Russia, this option is of interest to the central banks of Canada and Ecuador, the ideas of national cryptocurrencies captivate almost the whole world.
So far, the impact of cryptocurrencies on the economy is relatively small. It can be called fast-growing and promising. But it is not often that the role of the monetary unit grows so quickly. It is unlikely that even the emergence and adoption of the euro had a greater impact.
That is, the impact of cryptocurrencies on the economy is likely to grow rapidly, perhaps in this century, they will become both the world currency and the national money of many countries. They will not radically rebuild the world, but they will make it a little better.
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