Impact of the Rapid Development of Cryptocurrency on the Global Society

By  //  July 20, 2021

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The history of cryptocurrency is due to the lack of a fast way to make anonymous payments with a high level of security. Since 1990, cryptography has been used to ensure the confidentiality of payments. After the cryptocurrency appeared, the problem of anonymity was solved.

The actual and real year of birth of cryptocurrency is 2009. It was then that they began to use the first and most famous cryptocurrency – Bitcoin. As of now, there are more than a thousand cryptocurrencies in the world and their number is growing. The increase in the number of cryptocurrencies is due to the fact that it can certainly compete and be an alternative to ordinary money.

Based on the analysis, the following key features of cryptocurrency were identified:

1) exchange for goods or services;

2) exchange for classic currency;

3) payment for goods and services;

4) the minimum level of impossibility of abduction;

5) payments, fast and direct transactions;

6) investment asset;

7) business development in cryptocurrency.

As for transactions and cash transactions, they are also currently widely used in betting platforms. For example, using 4rabet promo code you can register on this sportsbook, and then get bonuses, make deposits and withdraw funds in cryptocurrency, which is very fast and convenient.

Startups in the IT industry

The peculiarity of blockchain and cryptocurrencies is versatility. Two emerging technologies can be distinguished – financial instruments and data processing.

Huge amounts of data. Nevertheless, 80% of startups in this industry “split” the integrity of the first cryptocurrency and base their ideas on one of the many possibilities of this technology. As a result, investors are presented with an abundance of projects that are associated either with the stock economy or with data processing.

Also, there are two nuances that are stopping the entire industry. First: creating a decentralized data distribution network without the practical application of technology (meaning without trade) is a very time-consuming task. Second: who can benefit from absolute transparency in a world where information is the second oil?

Nevertheless, in addition to the pioneer – Bitcoin and its corporate cousin – Ethereum, there are also successful projects in the field of healthcare, logistics, real estate and IT.

Special cases of usefulness for cryptocurrency

Some businesses accept cryptocurrencies as payments, but their number in the world is very limited. It was decided in Dubai that it was time to change the situation. One of the first steps was the launch of the DMCC crypto center.

Ahmad Hamza, CEO of DMCC Freezone, says: “We truly believe in blockchain, believe in cryptocurrencies and provide strong regulation by partnering with the Securities and Commodities Authorities. We provide a wide range of services for companies and platforms, helping to get started but also flourish, develop further. “

Industry heavyweights believe the Middle East has a chance to become a hub for blockchain technology and crypto assets. “I really like some aspects of the Islamic financial tradition, the way it “softens” capitalism, makes it more socially responsible, – said Scott Stornetta. money so as to give them moral and ethical characteristics.”

While the society is getting used to the new product, investors are summing up the first results, arguing: the future is in digital currencies.

What can the development of blockchain technologies lead to?

States cannot ignore the promise and scale of the ambitions of blockchain technologies and what are they doing? Launching the development of CBDC – Central Bank Digital Currency. Its purpose is to become an analogue of paper money. What will happen if government cryptocurrencies are launched?

I dare to suggest the following. Imagine that all your transactions, purchases and transfers within one currency are served by one bank. Private banks will disappear, and with them any transaction fees. Each person or company will have their own “financial passport”, which will fully give an overall picture of your financial condition.

And such information will be available to every state whose cryptocurrency you use. Since each country will have its own “digital coin”, which is backed by everything the same as the regular currency, including the country’s resources, its trade will replace trading in bonds, and due to the peculiarities of the blockchain, any speculation in terms of “printing money for yourself “Will become impossible for states.

As a result, the international financial system will become transparent like a tear, and a real carnage will begin, where every transaction and agreement between countries will directly affect the value of its cryptocurrency, and hence the currency as a whole.

In this situation, bitcoin will fulfill its function and there will be no more need for it, but nothing will change. Unless the intermediaries who shape the market will disappear.

Instead, narrow-industry tokens will begin to influence the economy, as in the examples above. Taking into account their global, but narrow direction, the value of state cryptocurrencies will largely depend on the number of their presence in the capitalization of “narrow-industry coins”. As a result, countries will have the opportunity to compete for control of entire industries at the global level.

Conclusions and prospects of cryptocurrency

Therefore, taking into account all of the above, we can conclude that cryptocurrency is an attractive object for investment. Its popularity is growing. Many economic processes occur with digital funds, and their percentage increases significantly with each passing year. All investments in cryptocurrency are often accompanied by both the risk of loss and the opportunity to earn well.

So far, there is no consensus in the world on the further strategy for the development of cryptocurrency in the world, its legalization and legality of use. However, most people remain interested in buying and using cryptocurrency. As long as the demand for e-currency exists, countries will continue to look for ways to regulate its circulation and use.

As for the predictions of its disappearance, in our opinion, this is impossible, because in its emergence and popularization much effort, time and money. This is due to the fact that the main difference between e-currency is its decentralization and anonymity of use. Research and generalization of theoretical and practical developments on the development of the cryptocurrency market has identified the following trends in its development:

1) slow introduction of electronic money in all spheres of society;

2) the ability to purchase more goods and services for cryptocurrency;

3) addition of the financial services market as a new payment instrument and type of investment assets, not replacing in the coming years, the classic banking operations;

4) reducing the level of anonymity when using cryptocurrency, which will be due to its greater popularization;

5) the spread of the legitimacy of cryptocurrency in most countries;

6) stabilization of the cryptocurrency rate in 5-10 years;

7) consolidation of Bitcoin’s position as the main cryptocurrency and the emergence of new ones that will reach the scale of Bitcoin.

E-currency, like any technological innovations, needs time to win the favor of consumers, to form the necessary economic and legal prerequisites for its development. places of acceptance in the world.