How Does Cryptocurrency Affect the Global Economy?

Since the dawn of cryptocurrencies, our view of money has changed. Only computer scientists could imagine the digital money that would need no intermediary to be controlled. Only digital rebels tried to create such currency. In 2009, Bitcoin was born, and it resulted in the birth of many other cryptocurrencies that are now a big part of the global economy.

Before the Bitcoin, there were many other attempts to create a cryptocurrency. All of them failed. The reason for the failure was the double spending problem. Bitcoin is a truly sensational currency because it solves the double spending problem with the concept of mining and the blockchain.

Practically everyone knows what mining is. Mining is the process of transaction confirmation. Mining is also the process that makes more bitcoin. And the miners are the network users. So, what is blockchain? The blockchain is a decentralized ledger. For bitcoin, it’s a safe book where miners keep the information about the transactions. It’s that simple. But the blockchain itself is a very complex phenomenon and can be used in many different fields.

Think about it. 10 years ago, we didn’t know what Bitcoin or a cryptocurrency was. We didn’t have a concept of mining and miners, and we definitely couldn’t imagine that we’d be implementing the blockchain in numerous fields. Of course, the cryptocurrencies are affecting the global economy, in many different ways.

• Challenging the USD As we all know, the global economy depends on the USD. It’s a reserve currency of the global economy. With Bitcoin on the road, USD is up to a big challenge. Cryptocurrencies hold the high ground with most of the transactions, and the US dollar is losing in this battle. Through the years, there have been several attempts to de-dollarize the global economy. Countries and governments wanted to end the reign of the USD. Every attempt ended in failure until the Bitcoin was born. Cryptocurrencies seem to manage the de-dollarization process, thus, changing the global economy.
• No use for the middlemen Why is the Bitcoin so attractive? It doesn’t need a middleman to control the flow of the currency. Middlemen are, for example, banks, small financial companies and so on.   To transfer a USD from one place to another, you will need a middleman. It takes a lot of time to go through all steps of the transaction. With Bitcoin, there’s no need for a middleman and even international transactions can be made within seconds.