Technology has always found its way to seep into our decades-old systems, ameliorating their efficacy one way or another. When the idea of robots replacing humans at workplace seemed inevitable, digital currency in place of dollar for that matter did not sound alien.
Changing The Standard?
The current standard of the global economy is US dollar. The rest of the currencies’ value primarily depends on the fluctuating rates of a dollar in the stock market. It would not be wrong to call the United States Treasury as the de facto Central Global Bank. Imagine another form of currency introduced in the market and its impact on the dollar!
The currency we are talking about is no usual paper money but the next level of currencies; digital currency widely termed as a cryptocurrency. As predicted, the impact has been profound.
It only took over 1,000 crypto coins to decentralize the financial transactions on a massive level. The people are now thinking if a decentralized and automated financial system could work. Would not hurt having an advanced system of currency, right?
Different countries are already going for it. For instance, Venezuelan president in the end of last year announced the launch of an oil-backed cryptocurrency. The context behind his move was to take the country out of the drastic inflation brought by US-led economic sanctions. Learn more about Binary Options.
Is It Doing Any Good For The CrowdFunding Process?
Last year, Initial Coin Offerings became a leading crowdfunding method for technology startups. For those who don’t know about the crowdfunding, it is a concept of collecting money for a project from numerous groups of people usually done through the internet. Various people contribute to the projects they feel strongly about.
The project managers, if the cryptocurrency is revolutionized to a higher level, will no longer have to spend time convincing investors to put up equity in their start-ups. This has made possible for multiple start-ups to have their chance at trying out how they do in the market. The crypto crowdfunding has provided them adequate funding to come out which otherwise would not have been possible.
Cryptocurrency has now become one of the core focus of government agencies throughout the globe. Such was its effect that China, one of the leading economies, banned ICOs in late 2017 and the SEC issued a ruling some ICOs were in fact securities. Many countries are placing tighter restrictions on ICO. If it wasn’t disrupting the market, it wouldn’t cause this much of an outrage. Learn the ultimate Binary options strategy.
Today the global economy is faced with a dilemma. Some say it is another form of the catastrophic housing bubble of United States back in 2007. While there are people who understand its potential of changing the global economy for good. It took ten years for cryptocurrency to be recognized at the very least.
For better or for worse, we need more time to let the digital currency work. Only then will void of the intricacies that the analysts have been missing out can be filled.