How Digital Currencies are Changing the World of Finance? – 2023 Guide
We use money every day and most of us rarely appreciate all of the power and flaws of it. Believe it or not, money has been a tool that has been in a center of our progress for so long that we need to use the best tools possible as we are going to build more and progress further.
There is one thing we already have and it is the global economy, but what we need to sum everything up is a global currency, and as things stand now it is very likely to be a digital one. Why a digital currency? Well, it will level the playing field for everyone and it will allow anyone with a cellphone to have access to financial services.
With the coming of digital currencies, there are a lot of things that started changing. Some state it for the worst while others swear it is the next best thing for humankind if we want real monetary democracy and if we want anything close to equality in it. The current financial system does not enable that, and on top of things, you can’t move currency freely around the globe. Digital currencies are about to change all of that and today we will tell you a bit more on that topic. If you want more info on digital currency, and if you want to hop on the crypto train you can find out a lot more right at www.advfn.com.
As you all know the current financial system is very centralized meaning you have big banks and governments and in them, there is a bunch of middlemen. Thanks to this being so complicated the entire system is rather inefficient. There are a lot of problems with the existing financial system and probably the best example would be Venezuela where money is printed constantly while people’s savings are being destroyed. The value of the wealth of people over there has been eroded to nothing and the inflation that is hitting them could very easily move elsewhere under certain circumstances.
That is why people in other places around the world take those things for granted and they believe that this is very unlikely to happen. They are sure that the money they put aside in the bank or savings will stay there and probably increase a bit over time. The devastating thing about this system is that more than 1.8 billion people have access to a cell phone but can’t or don’t have access to any financial service. With cryptocurrencies, if you have a phone and internet access you can easily participate in a new form of the global economy.
The new system
What if you could take a dollar bill and hand it directly to someone else no waiting, no astronomical fees, no two or three middlemen with a set of rules for each, just plain and simple like giving it from one hand to another. With digital currency and blockchain, you can have that simply because they are more similar to cash where you can send something directly to someone without middlemen like banks or credit card companies. The digital currency reset us to the time we normally did transactions meaning directly with each other and without all of the giant central authorities telling us what can and can’t be done.
Decentralization is a word you probably heard a million times whenever somebody speaks about cryptocurrencies and if you think you still don’t understand it let’s make it a bit simpler. Decentralization is working to remove a single choke point or a single point of failure like we have with the institutions in our current monetary system. Imagine the situation where you have a single bank and that bank is responsible for everyone’s money, well if that bank is robbed, blown up, hacked or fails in any other way, well you can surely kiss your money goodbye.
Decentralization in cryptocurrencies works to avoid those exact situations. There you have a lot of different little individual nodes, hard drives, phones, etc., well it is highly unlikely that they will all fail at the same time.
There will always be a device that has some money and some records of prior transactions. This way you don’t need a middleman to keep track of the internal ledger, all of these computers and phones are doing all of the work for you. New technologies make us all safe and the technology behind the cryptocurrencies is pretty much unbreakable and as safe as it gets. It also allows us a lot less time, money and effort to get something done, which are the things that are valued more and more as time passes.
Is it worth it?
As things look right now the cryptocurrencies are looked like a sort of investment. There are a lot of speculations regarding prices and how much money has been raised so far. What we don’t do is try to see past all of that and to see that everything will shift toward people using crypto to buy and sell goods and transact in the economy. It will stop being just sending money back and forth it will transition into terms like employ each other or fund each other. It will create a more global economy which is important because there are talents everywhere but we don’t have equal opportunity in the same way.
We live in a world where the technology is fully adapted and it will not matter where in the world you are born in it will only come down to the fact if you have a mobile phone and an internet connection. You will need some skill and knowledge to learn and if you can do that then you can easily contribute to the global economy. It will come down to the fact that you as an individual can benefit the world and the world will surely benefit from you.
Having an economy with a global currency that everyone on the planet earth is responsible for and invested in would mean that we would all have an opportunity to invest in each other success, and we will invest in our success on a broader level that is hard to imagine right now.