The idea that a country can disrupt or inhibit capable and established supply chains is not just a concern in today’s geopolitical and economic environment. But something that is at the forefront of the minds of those who have worked in these industries for decades. If you are a beginner, you want to know How do you get bitcoins?
Blockchain and cryptocurrencies have been in the news lately as these sectors are adopting them more widely to provide benefits such as cheaper transactions, reduced risk of fraud and other misconduct, etc. Moreover, these technologies are changing financial transactions, so it is not crazy to think that they can also change currency battles around the world. But is this a possibility?
The blockchain protocol is a distributed ledger based on public and private keys stored on various computers across the global network. This ledger stores every transaction in an auditable manner, with no user information that people can easily modify. The technology behind this has been around for a while, but it’s only been a few years since we’ve seen more widespread use.
Due to low cost, security and other factors, more and more companies are looking to adopt this technology in their operations as soon as possible. With currency being so integral to international trade, it stands to reason that a blockchain-based cryptocurrency would be an inevitable next step.
Possibility of cryptocurrencies becoming a global currency:
Yes, there is a huge possibility that cryptocurrencies like bitcoin could be adopted as a global currency. The benefits of an open and transparent decentralized system are fascinating. A few other cryptocurrencies exist beyond bitcoin but represent only a tiny percentage of the overall market capitalization.
Bitcoin is generally considered the “gold standard” of cryptocurrency markets due to market capitalization and the fact that it has been around much longer than others. The value behind this technology is so overwhelmingly positive for everyone involved that nothing will stop cryptocurrencies from becoming a single global currency.
Benefits of cryptocurrencies becoming a single global currency:
There are far too many reasons why cryptocurrencies could be adopted as the single global currency to list in a single article, but there are some solid arguments to be made. First, with an open and decentralized system, there would be no threat of another country or the finance government manipulating the system. Moreover, there would be little or no need for banks or other financial institutions to exist in certain regions of the world.
This will accelerate the development of new technologies and products rather than taking years to develop them and prove their effectiveness. Moreover, the transparency behind cryptocurrency transactions is unlike any other service on the market.
There is no possibility of fraud or other forms of misconduct using this technology, which means taxes will also be significantly reduced. Thus, it will not just be the citizens of any country who will benefit from a cryptocurrency as a global currency, but everyone on the planet.
Crypto-currencies are border-free:
Decentralization is the true prospect of accounting for cryptocurrency as one global currency. However, for this to happen first, the value of the cryptocurrency would need to remain strong and stable. Bitcoin’s volatility has made it difficult for many people to use it as a currency, but that could change as governments begin to regulate and support it.
It is entirely possible that the value of the crypto will stabilize in the future due to more widespread adoption. Yet nothing about cryptocurrencies makes them inherently unstable for use as a global currency. Another factor is the speed of global transactions, as it should only take a few seconds for transactions to occur on any blockchain-based system.
Cryptocurrencies support deflation:
The fact that cryptocurrencies are decentralized and borderless leads to the ideal outcome of deflation. The more money that enters these systems, the higher the value, but the more money is accessible through that currency. Since cryptocurrency is such a liberating technology, it makes sense that it is also widely used. Unfortunately, with too much money in the market, demand will soon exceed supply, which means inflation will set in.
Smart contracts will revolutionize the means of exchange:
Smart contracts are an inspiring innovation that will likely be the driving force for cryptocurrencies to become a global currency. The means of exchange are far different than they are today and in many cases will revolutionize the way we conduct business and transact.
Smart contracts will be able to adjust individually with highly sophisticated software, allowing business processes to be automated on the blockchain. Additionally, there will be large-scale implementations of innovative contract technologies for governments, making their transactions virtually automatic.