Cryptocurrencies have long been discussed and debated, but they’re only now coming to light as financial tools that can be accessible and useful to more than only die-hard connoisseurs. Cryptocurrencies have the potential to enable social and economic growth throughout the world, including in developing countries, by offering easier access to capital and financial services.
Cryptocurrencies and Bitcoin in particular have a highly utilitarian, yet also disrupting quality that has slowly, but steadily started to interfere with the way the traditional financial system works.
1.A Beneficial Rise in Economic Activities
There is already an entire industry built around cryptocurrencies and it’s held by institutions dedicated to supervising all the digital coin exchanges taking place throughout the world. The rate at which the cryptocurrency industry is growing is earth-shattering and this can be confirmed by early adopters that became rich overnight and found opportunities to grow financially. Bitcoin, the most famous of these cryptocurrencies, has already permitted many people and companies to develop and flourish, while many also rely on trading as their source of income. The economy is slowly shifting to adapt to these needs and cryptocurrencies have a great potential in satisfying them.
2.Great Opportunities for Poorly Banked Countries
More than a third of the world population does not have access to basic banking services that can help them out in case of a personal financial crisis - loans, checking accounts and the list can go on. These people that in most cases are already financially disadvantaged typically resort to doubtful and dangerous lending practices. The interest rate of these practices is anything but fair, which consequently leads to more instability among the people who requested the loan. This is where cryptocurrencies come in with their high volatility and ease-of-use.
There are now many apps and programs that facilitate the use of cryptocurrencies and bring them closer to the wider audience. An added benefit of cryptocurrency use is that it’s completely decentralized, so trading can be done freely across borders. The use of technology will facilitate a financial revolution that will leave everyone more financially connected, empowered and enabled.
3.Low Transaction Costs
Because cryptocurrencies and blockchain don’t need an actual brick-and-mortar building to exist, the costs associated with their transactioning are minimal. There is no need for employee wages, utility bills or rent to be paid, so these savings naturally morph into low transaction fees. This in turn encourages more and more people to trust these new financial tools and start transactioning, allowing for the global economy to be more closely intertwined. And depending on the broker you choose, you can even trade with no minimum deposit requirements - as offered by CryptoRocket, for example.
4.Increased Transparency of Transactions
Since all blockchain and cryptocurrencies transactions are automated and digitized, they are all tracked in a distributed ledger. The best part about it is that it cannot be manipulated by either people or companies, which greatly diminishes the risk offraud and corruption. This means that underdeveloped countries also have a greater chance of entering the financial transactions game and boost their own economy and social prospects. What’s more, citizens will be able to keep track of where state funds will be oriented and will thus have a say within their own political climate.
5.More Power to Entrepreneurs
There’s never been a more prosperous time to do business than it is now, in the sense that blockchain technology and cryptocurrencies can help entrepreneurs receive payments in more currencies. BitPesa is one such company that helps business owners in Africa make financial transactions with European, American and Asian companies. The aim is to help small and medium business everywhere get better financial coverage and a liberated financial connection with the rest of the world. By using BitPesa and TenX’s digital wallet, entrepreneurs are able to quickly convert altcoins into fiat currencies that they can later redirect to business investments, purchases and payments.
The world is changing and it’s changing quickly. The speed at which cryptocurrencies are taking over is a clear indicator that traditional financial institutions can no longer hold the fort so well and that other financial needs are arising and need to be addressed. Similarly, the world is facing a growing need to tear down borders, in search of a complete social and financial inclusion - this blockchain technology has everything it needs to address such issues.
It will only be a matter of time until these cryptocurrencies definitively find a way into our lives, shaping them for the better, with economic growth and inclusion in mind. Millions of people will now have the opportunity to invest, send money across borders, save money and start a business thanks to the amazing possibilities that cryptocurrencies bring to the table.
