Nowadays, the Internet is ablaze with information and talk on cryptocurrency and blockchain technology. Since the cryptocurrency space is relatively new, people have varied takes about it. For instance, while some consider it as nothing more than a passing fad, others see its potential to disrupt the global economy.
Blockchain technology which is the main technology behind cryptocurrency is considered by some as a disruptor of the whole global business process. Many entrepreneurs nowadays have acknowledged cryptocurrency’s potential and have jumped on the bandwagon—creating ICO campaigns, getting help with their ICO strategy, selling tokens, and raising millions of dollars.
Less than a decade since Bitcoin was introduced to the world by Satoshi Nakamoto, a lot has occurred in the cryptocurrency space. In this article, we’ll examine some of the ways cryptocurrency is affecting the global economy.
Cryptocurrency and the Global Economy
The global economy is interconnected in more ways than we can possibly imagine. At its core is the US dollar with the US essentially deemed a de facto global central bank. This centralization is being disrupted by cryptocurrency on a massive scale.
The introduction of Bitcoin and over 1,000 cryptocoins has decentralized financial transaction on a vast level. Understandably, the changes has dramatically altered the dynamics of diplomacy, foreign relations, international trade, diplomacy, and even the impact of economic sanctions.
Case in point: countries like Venezuela and Russia have considered the creation of state-owned cryptocurrencies. To help the country move out of the crippling inflation resulting from the US-led economic sanctions, the Venezuela president launched the oil-backed cryptocurrency.
Another enticing element of cryptocurrency is it eliminates the need for middlemen to authorize and authenticate transactions. As if not enough, the fees are minimal. And that’s not even including the allure of privacy and anonymity when doing transactions. In addition, transactions can occur in a matter of minutes and sometimes seconds.
By cutting out the middleman, cryptocurrencies are also disrupting the global payment system. In September of 2017, the head of the International Monetary Fund, Christine Lagarde acknowledged that cryptocurrencies have a huge potential to revolutionize the entire concept of money and disrupt the Central Banking system.
The Crowdfunding Process Simplified
One of the most evident impacts of cryptocurrencies is the whole idea of Initial Coin Offerings (ICOs). ICOs become the leading method of crowdfunding for technology-based start-ups since 2017.
In other words, entrepreneurs and developers no longer have to spend time convincing banks, angel investors, and venture capitalists to invest in their start-ups. Nowadays, it has become common for a tangible concept to be presented, tokenized, and sold to the public directly.
Taking all the above examples into account, there’s no denying cryptocurrency and blockchain technology has dramatically altered the global economy. If you want to jump into the cryptocurrency bandwagon, consider it wise to invest in all the expert help and guidance you can get.
The experts at Kryptoia can help you with all the key elements of the business—from the right ICO strategy to fundraising and marketing so you’ll be able to get ahead of the pack and maximize ROI.