3 Ways Crypto Currency Has Contributed Towards Growth of World Economy
It's surprising to discover that most people and businesses that are unable to have ready access to a credit line, credit card or even a debit card and a hole in the wall, have access to Bitcoin. It's getting more and more difficult to buy or obtain digital currencies without a form of bank account, passport or card but for systems where there are gaps in technology or service, Africa and Latin America for example, crypto currency options are plugging the gap.
Many people wouldn't have engaged with Bitcoin, Ethereum or Ripple, despite knowing about them for several years. For it does take an element of faith for that first step and a little technological know how to actually mine them yourself. A far more difficult and lengthy process than years ago. Yet despite these burdens, there are new crypto currencies launching monthly by both amateurs getting on the digital gravy train and serious businesses with behemoth servers mining 24/7.
Are these processes and digital transactions changing the world? Is a digital wallet safer than hoarding rented Gold in the Federal Reserve? Is the world economy actually growing because of this or is the risk element pursued by greedy profiteers actually just moving money from one investment to another? Is it drugs and illegal arms sales motivating investment or is there a more transient business orientation occurring?
If I want to send money from the UK to Russia there are several ways I can enact this process. I could use Paypal, I can call my bank and proffer IBAN details, I can walk into an office on the street and do a Western Union transfer. But these all involve people, actual humans doing a job and that's bad for money transfer. As these people want a commission, they need paying for their time.
Even if I chose to use an upstanding bank, not only will they claim the transaction is fee-less or have a standard charge, they will manipulate the world bank exchange rate and offer me less to make a profit. With a digital wallet, these costs are rounded down or completely eradicated albeit in some cases a monthly fee for usage on an 'Exchange.' Because there are no manual checks, the balances and onus is on the encryption keys themselves which are an automated process.
The most a human has to do is reconcile their accounts and Identifications just in case any of the authorities come knocking - and they will as digital currencies require permits to operate in some cities. With less fees or next to no cost the speed with which a transaction occurs, these are elements that provide ease of use, enable more money to be earned by respective workers and increasing spend of those individuals and or growth of their own supply lines, a direct driver of basic economics and self wealth. Banks have even bought into block chain Ripple software for their own currency moves and transactions.
Behind the internet you are currently using is a bundle of worldwide anonymous chatter and IP less addresses that are seemingly untraceable by governments, though not entirely. It's a dark world of drug dealers, fraudsters, hackers and other criminal minds and this is the basic foundation of the popularity growth in dark crypto digital currencies today.
"How is this a good thing?" I hear you ask. Well not all of us are reliant on drug dealers for a fix and we regularly hear of these dark web fraudsters being taken down. This is normalising the use of Bitcoin and other digital currency, from that very first Pizza purchase to what is now a payment to a Plumber, sending money to Nan in Ethiopia or paying for a service online from porn to hosting.
A digital currency is helping to drive economic growth because money that was being used on the black market is finding its way back into society in real terms. That money is no longer being hidden but being used by financiers, business owners and by people to enact normal every day transactions. The legitimacy is even taking Governments by storm who are contemplating accepting taxes via such a crypto format which in turn means such systems will be properly regulated.
If I was someone involved in global finance and had NGOs in every country my main aim today would be to drive down the cost of a currency, bet against it, make moves and make a profit for myself. I may even destabilize governments, create a story or movement and make gains this way. A crypto currency is actually my enemy.
The only way as a global financier that I can disrupt a digital currency is by either mining or talking up its value so more invest causing a leap in price. But I can't manipulate government or people, I'd just be a con artist and seen for what I actually am and have been doing. Digital currencies actually separate Governments and would be technocrats and Corporatocracy fashionistas from taking control.
This is now a system devoid of political entrenchment, unaffected by global rates or man power, union stewardship or whether it's cloudy or sunny. These are mathematically defined transactions from start to finish and rich people can buy an house via crypto currency escrow for £2 million and not fall foul of a deal. Poorer people can rely on being paid with many more and much smaller amounts being tallied and even complicated multiple authentications (multisig) for smart digital contracts can be carried out, with no funds released until for instance, all five people agree.
In essence, there are tangible benefits of a crypt currency even if there are still hurdles to be overcome and scenarios managed for legitimacy. A world economy where less money is taken out by human 'middle men' as commission and more earned money is spent by an individual worker is a wealth driver for all concerned and more noticeable in the poorer regions of the world.
A global economy where a business or worldwide conglomerate can enact transactions without risk of theft or loss and saving fees, also ensures faster more stable growth in the short to long term. Reliance on systems ensuring speed of use and honest practices. Which is why even Governments are considering a move into this crypt digital space. The simplicities and complexities of a boon to global economics is only now just being realised.