Koda Cryptocurrency – How Has Cryptocurrency Impacted On The Global Economy?
For those that have been active in the crypto market from an early stage, cryptocurrencies have been the most valuable assets. However, it is still a very active market, More and more people have been entering the crypto world during and since the pandemic and learning about the different applications of cryptocurrencies and how this works for international payments and the economy.
In this blog post we look at how cryptocurrency has impacted on the global economy. Below we share some of the more notable ways that cryptocurrencies have affected the global economies across the world.
• Investors Turn To Crypto
While there was some initial scepticism towards cryptocurrencies, confidence has been built among investors in the crypto world. Some of the more popular cryptocurrencies have performed extremely well for investors. In turn, this has helped to give even more confidence to cryptocurrency as an investment. Some investors are adding more than 3% or 4% of cryptocurrencies to their investment portfolio.
• Cryptocurrency Eliminates The Middleman
There is no central authority that approves crypto coin transactions. This is not the same as traditional fiat currencies. When it comes to fiat currencies, central banks and financial institutions take charge of the fiat currency transactions. They make it a monetary policy, acting as an intermediary when any transactions are made with fiat currencies.
This is not the case with cryptocurrency transactions. Cryptocurrencies work on a peer-to-peer distributed network. This eliminates the middleman. With cryptocurrency you gain more control over your wealth as you can directly send or receive money from a user, over the network.
• Low Cost, Fast Transactions
Due to the fact there are no intermediaries, the cost and time of transactions of crypto coins are very low. When you are trading traditional currencies, you will be charged by the bank or financial institutions. This charge covers the cost of approving and maintaining the payment network.
These transactions for traditional currencies go through different stages, which means more time is required. Cryptocurrency trading does not involve a bank or central body to verify any transactions. This means that both the time and cost is lower for crypto transactions.
• New Approach To Crowd Funding
In financial market a company will offer their stocks through initial public offerings as a way of collecting funds. A start-up cryptocurrency business will often offer their crypto coins for crowdfunding. Since there are no intermediaries, ICOs are great for crowdfunding. However, it is important to be careful when investing in an ICO as there are risks. As with all investments, always do your research.
• Great For Remittance Industry
We have all seen the rise in immigrant workers, and this has led to a boost in cryptocurrency popularity. Immigrants face many problems when they want to transfer their money to family in other countries. Some existing financial systems are very expensive and time-consuming. This means that immigrants are looking for more transparent, faster and low-cost ways of transferring money to their family abroad. This is what cryptocurrency provides them with. Many immigrant workers prefer crypto over foreign exchanges for sending money to their families.
Cryptocurrencies are being more popular. They are growing in both value and size. If you would like to know more about how cryptocurrency has impacted on the global economy or how you can get involved in the crypto space, get in touch at [email protected]