Impacts of Cryptocurrency
Cryptocurrency is increasingly gaining the attention of the world. This is contrary to its previous years of incorporation into the global economy, where the majority of people were skeptical about cryptocurrency.
Cryptocurrency is a digital unit of transaction that operates virtually on decentralized control. The cryptographic functions that execute the transaction processes use a blockchain technology that provides security and transparency to the users.
Impact on the banking industry
- Cryptocurrency is eliminating the centralization of the currency, which holds the basis under which banks circulate the money and make profits. Using cryptocurrency presents an opportunity with no intermediaries like banks. It means financial liberty to the consumers, which gives them full control of their finances.
- Contrary to the banks, cryptocurrency holds your soft cash in bitcoins, litecoins, and peercoin at a significantly lower cost compared to banks.
- A larger percentage of the world’s population is unable to access banking services hence limiting their chances of secure transactions and loans. However, cryptocurrency is making life easier for such individuals. Through cryptocurrency, they can now conduct bulk transactions from their homes.
Impact on economy
- There is already an influx in economic activities bordering cryptocurrency. Many investors are coming up with companies that monitor the exchange of bitcoins globally. Such companies are creating platforms for bitcoin traders to make a profit as they conduct the trade.
- Some institutions are also coming up to provide education services to people willing to learn about cryptocurrency. Some of these institutions offer a free platform for their students to conduct trade, which equips them with practical skills and real-life experience of bitcoin trade.
Impact on remittance
- Countries impose a large amount of taxes on inter-country money transfer, which makes it difficult for people to send money to their families from overseas. Cryptocurrency allows the exchange of bitcoins to any currency at a lower cost compared to government taxes. Therefore using cryptocurrency provides a cheaper method of money transfer.