Money might make the world go round but cryptocurrency has turned it on its head.
Since the first cryptocurrency, bitcoin, was created in 2009, the industry has exploded.
In this article, we take a look at just some of the ways that cryptocurrency has changed the world today and how it will continue to do so in the future.
Inflation is a huge problem across the world. National currencies are controlled by the government. As a result, they can print as much money as they want which in time can reduce the value considerably.
On the other hand, cryptocurrency has a fixed number meaning that no more will be produced. Therefore it is protected from inflation.
For example the amount of Venezuelan bolivars being spent to purchase bitcoin has risen to record levels this week as the South American country experiences unprecedented hyperinflation.
Despite the implementation of various security measures over the last number of years. fraud is still a major concern for bank users. If you’ve ever had your card skimmed or been a victim of a dodgy website then you will know just how annoying it can be.
Because cryptocurrency is not associated with your bank account and all funds are transferred securely with blockchain there is a much smaller risk of fraud.
Making the financial world more inclusive
According to the World Bank, there are more than 2 billion unbanked people worldwide. This is a huge issue for low-income countries as they are often excluded from global commerce.
Cryptocurrencies are starting to change that. They can be bought, sold and transferred through mobile apps. This means that anyone with access to the internet can get involved. This has had a huge knock-on effect in less developed countries around the world. For example, Nigeria is now the third-highest bitcoin holder per capita in the world.
A welcome boost to crowdfunding
Crowdfunding is used for a variety of different purposes from charitable fundraising to startup capital. Cryptocurrencies are making the whole process easier which benefits the recipients involved.
Through ICOs or other types of token sales, startups and other projects have access to a bigger pool of potential funders than ever before.