Cryptocurrencies have transformed the world since they first became publicly available in 2009. Today, you’ll be hard-pressed to find an industry that blockchain technology hasn’t affected in some manner. Since their inception, cryptocurrencies have seemed like a technology of the future. They’ve promised things like anonymous digital payments, decentralization, etc. As a result, people have flocked to them in droves. They’ve disrupted various financial services sectors like banking, online payments, and more.
However, that’s not where their influence ends. Although cryptocurrencies are game-changers themselves, the technology powering them is arguably even more important. Blockchain technologies form the foundation for powering cryptocurrencies. They’re not as well-known or understood as cryptocurrencies, but that’s because blockchain technology is more complex to understand.
Blockchain technologies are speeding up the way cryptocurrencies are transforming the world. Statistics show that global spending on blockchain technologies was $6.6 billion in 2021. Experts believe the industry will be worth almost $19 billion by 2024.
Naturally, if you’ve kept up with cryptocurrencies, you’ll be interested to learn more about how they’re revolutionizing the world. Cryptocurrencies and blockchain technologies have profoundly impacted numerous sectors. Let’s delve into their impact.
How Cryptocurrencies Are Transforming the World
Here’s a deeper look into how cryptocurrencies and blockchain technologies are revolutionizing the world. They include:
Whether making an online payment or performing a money transfer, you always have to be wary of fraud. Online payments have been particularly unsafe for people to use because bad actors often target people. They try to exploit them by getting access to sensitive information like credit card details, bank account information, etc.
Fortunately, that’s where cryptocurrencies and blockchain technologies come into the mix. Cryptocurrencies have nothing to do with your bank account or cash funds. Instead, if you use cryptocurrencies, you’re transferring money electronically from one wallet to another. All crypto transactions are recorded on the blockchain for everyone to see. As a result, blockchains and cryptocurrency can deter fraud.
Crowdfunding has become popular over the past decade. The internet has allowed entrepreneurs and social activists to raise money for their ventures and causes. Entrepreneurs and social activists can rely on the community for assistance. More importantly, it has given rise to new concepts and ideas because of community support. Without crowdfunding, these ideas might not have seen the light of the day.
Cryptocurrencies are positively affecting crowdfunding. Many startups have used Initial Coin Offerings (ICOs) revolving around cryptocurrency to fund their ideas.
Altering Money Transfer
The money transfer process still has many inefficiencies. Bank-to-bank transfers have been around for decades. However, they have numerous problems. For starters, you’ll need the bank’s authorization to transfer funds. Otherwise, you cannot send money into another bank account. Moreover, you’ll need the bank to clear the funds for transfer. The process can often take time. If you’re transferring money internationally, you might have to wait for weeks. That’s without even mentioning the high transaction fees banks charge for transferring funds.
That’s where cryptocurrencies thrive. Cryptocurrencies might not have achieved their transactional purpose yet. However, you can use them to transfer money. Some cryptocurrencies like Bitcoin still don’t have acost effective system for money transfer. However, others like Ethereum have worked on making transfers fast and cost-effective. Although thereis still a long road ahead, early signs indicate that cryptocurrencies and blockchains developers will make money transfer quicker and more efficient in the future
The world has been actively embracing E-commerce. According to statistics, the global e-commerce industry sales were $4.28 trillion in 2020. In addition, experts believe the E-commerce share of global retail sales will increase to almost 22 percent by 2024. People prefer E-commerce because it’s convenient. However, E-commerce does put consumers at risk. Shoppers often face the risk of fraud when shopping online. Security and data breaches have also been widespread. As a result, many vendors and sellers are accepting cryptocurrency for transactions. Not only does cryptocurrency reduce fraud, but it also creates more opportunities for businesses worldwide.
Encouraging Scientific Advancements
Cryptocurrency and, more specifically, blockchain technology are also expediting scientific advancements. Blockchain technology removes barriers to information by providing everyone with access to real-time data. That means blockchain technology prevents information distortion and barriers. Scientists and researchers can use blockchain technology to collaborate and make advancements together.
Alternative to Unstable Currencies
Hyperinflation and economic instability can often make a country’s currency lose value. In such instances, these countries often look for other alternatives to use because their national currency’s value is rapidly eroding. Cryptocurrencies can serve as an alternative for these nations.
For starters, cryptocurrency has worldwide acceptance. However, more importantly, cryptocurrencies aren’t subject to the impact of interest and exchange rates changes. Monetary and fiscal policies have minimal impact on cryptocurrencies, meaning they’re a viable alternative to unstable fiat currencies.
Making Foreign Transfers and Transactions Safer
Cryptocurrencies are also a viable alternative for people looking to make foreign transfers. Foreign money transfers can be risky. Moreover, they expose people to fraud. However, cryptocurrency addresses these issues.
In addition, if you’re traveling abroad, you’ll have to be careful carrying cash and credit or debit cards with you. Swindlers and burglars often target tourists. Not only does cryptocurrency eliminate the need for carrying cash, but it also saves you exchange and transaction fees.
Get Started in Cryptocurrency with Crystal Ball Markets
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About The Author
Alexander Arnold is a computer scientist who has worked on numerous digital currencies. He started his career in 1998, working on digital payment services. Since then, Alexander has delved into digital currencies and even worked on some altcoins. Today, he’s in affiliation with Crystal Ball Markets. Alexander doesn’t work as an active computer scientist anymore. Instead, he contributes his wealth of knowledge and experience to magazines and online websites. Alexander enjoys playing the guitar and video games in his spare time.