As unbelievable as it may sound, cryptocurrencies have now been adopted by the world. The untapped property of a currency always attracts a big chunk of population. Although, it’s not only about being decentralized, people also seek for a better technology when it comes to security and privacy. Not every bit of Bitcoin is used for illegal purposes, you can also buy a software from Microsoft with it. The change in thought of the population is changing from bad to good as soon as they’re understanding the process of cryptocurrencies.
Cryptocurrencies shocked the entire world, when millions of people became millionaires. Well, this is the glamour of a digital currency that government cannot control. The year 2016 was a bless for a lot of people who were aware of cryptocurrencies before those who ended up following the rat race. To get simple, cryptocurrencies have become a talk of the town and the time is near when the entire world would follow it. However, the impact of cryptocurrencies over the world is something we can’t judge but we can predict a few of them.
- Threat to Economy:
With everyone running after cryptocurrencies to make profit, a large sum is being invested towards the asset that is not even recognized. This process has been cutting down an accountable chunk out of the world economy, which is a matter that you don’t want to ignore. With Bitcoin standing at a current marcap of $192,135,283,699 USD and having a value of $11,419.30 per BTC right now, imagine the total money invested in all the cryptocurrencies.
According to market experts, this money has been diverted from the Govt. Issues and world capital. The worse part they consider is that they do not know where this money goes, thanks to the Blockchain.If a country has $100 floating in its own market and suddenly you see $70 getting disappeared, it is a threat.
- Evolution of new marketplaces:
If you look at the good factors, you’d know that cryptocurrencies would be able to help evolve new marketplaces with better services. Although, Bitcoins haven’t been allowed as a recognized payment from much stores, there’s still a good list of businesses to get their heads around it. The growth in cryptocurrencies would help the world welcome new places where you can pay with digital coins.
- Money laundering:
There’s no doubt that Bitcoins may be the best way to launder the money across the world. Due to their property of unregulated and untraceable, Govt can never find where the money goes. The blockchain doesn’t allow the tracking of your currency. However, if Govt. takes proper course of action and links the SSN to every wallet exists (which is near to impossible), money laundering can be minimized to a significant level.
Overall, cryptocurrency becoming a currency of future is a harsh truth. Govt can not rule it completely but it is possible for them to embrace the change and lead it professionally. Though there are threats of bubble bursts, which, according to some experts, can be managed of by any good and capable Govt.
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