In this post, I want to be generic and discuss why I believe crypto is good for the economy. Not only the economy of the US, Asia, or the EU, but for the entire world economy. Some of this may be far fetched, but stick with me on this, and I will try to make sense of it as much as possible. Lets go ahead and dive on in to it then!
Nothing should be considered investment or financial advice. Enjoy the ride.
Crypto and the World Economy
I want to reiterate, these are my personal opinions and ideas. These obviously have been influenced by research and the things I personally believe, but I will try to be objective in my points.
Obviously, the world sees something in crypto beyond just being a fictitious money system. There is more to digital assets like Bitcoin, Ethereum, and Ripple then only being able to send people money for pizza. I think this is the most misunderstood part about cryptos in general – what lies behind the digital assets, not just what they can currently do.
It is easy for people to look at something and say, that’s not useful. Think about the internet back in the day. All it was back then was message boards and awkward websites, but no one knew what it really could do. No one knew that it one day we would use it for just about everything. I view crypto in the very same way.
Global Payments With Crypto
I know I said there is more to digital assets then just the money part, but my first reason why crypto is good for the world economy is actually because it is a simplified payment system.
Lets elaborate on this a little bit.
The simplicity part comes from the ability for it to operate without a third party bank, government, or institution sniffing around in your business or trying to dictate what happens to your money. In addition, it does this with much lower fees, and with a provable system – the public ledger.
Without considering any of the second or third generation currencies, Bitcoin alone does this and it can do this today. The only thing Bitcoin really needs at this point to be fully operational in this aspect is reasonable entry and exit paths through either vendors or local banks. Ironic, that it needs a bank to transmit to a fiat currency, but what if it didn’t?
Another clear solution would be that countries establish their own digital currencies that transact directly with Bitcoin. This is actually already happening as central banks all around the world are researching launching their own stable coins.
This point on how crypto is good for the world economy really ties into the global payments but with a different focus.
You see, as the world progresses we will have exponentially more micro payments for things like self driving cars, toll booths, drones to bring you your food, app services, and things that just require smaller payments with extremely higher frequency. This will become heavily prevalent in over populated areas like the coasts of China and certain parts of India.
There just has to be a way to make all of these charges with a reduced amount of friction. There are some options on the market right now for this. For example, IOTA is looking to pave a way for fee-less transactions in the machine to machine world. There are other currencies on the market similarly looking to accomplish this, but all we really need is one to do the job effectively.
Transmitting More Then Money
The cool part is crypto does not store only the ledger on the blockchain.
Even in Bitcoin transactions, data is sent along with transactions and confirmed in blocks. While this is not the most useful tactic for storing data – other projects have built upon this idea and revolutionized data storage. You can bridge into second and third generation currencies and see how they have progressed to host full coding languages, decentralized applications, and secure databases with their ecosystm.
As these projects continue to build their infrastructure and decentralized blockchains, there are a bunch of new methods being developed to not only host data, but secure it like never before. We have all seen the projections on how much data will soon be available and how technologies like quantum computers could use this data to solve countless things that were never before possible.
The first example could be healthcare data and cancer research. All of this data could be hosted securely. Then is could be accessed with proper keys in order to solve some of the worst problems in healthcare today with the help of quantum computing. This is just one example of the countless things achievable with secure data hosting and global access to it.
A popular ideology made real by the cypherpunks – decentralization does wonders for the economy. Just as the U.S. likes to push a free market or capital market society, it is still limited by big business, regulatory bodies, and obviously the flow of wealth.
This free market is largely dictated by a few companies and ultimately pushed around by the governments agenda. Just use the federal reserve for example as it prints trillions of dollars whenever it wants. Clearly, this is not a traditional free market, but rather a manipulated one. The same can be said about bailouts and the banks being bolstered with cash daily.
In a decentralized society, there is no control. There is no one to dictate who wins or loses. Now, the community and the market finally gets to decide without intervention. The decentralized economy will make the world a fair playing ground. Crypto pushes that world a little closer to existence.
Bring New People to Market
The last point I want to touch on is crypto’s ability to bring the unbanked to market.
Previously, before the internet and before crypto, there was almost no way for certain people to get a bank account. That means a lack of security for their wealth, and a lack of funding for development. Not to mention women in some Middle Eastern countries were not even allowed to own bank accounts. This was due to their religion. Likewise, people in Africa were denied bank accounts because of the lack of trust or verification methods.
Now with the use of cell phones and crypto accounts, people all over the world can hold their wealth in a secured manner. Specifically countries in Africa and regions in the Middle East, there is an entire group of people finally able to enter into the market. This has been true since the inception of Bitcoin, and will continue to progress as more venues for use open up for crypto. These people will help to bolster the world economy by increasing spending and increasing the free market society.
Reasons Crypto Is Good for the World
Those are my 5 reasons why crypto is good for the world! There are a lot of other reasons to add. These are just a few I tend to lean on when talking about the world impact crypto could have. Thanks for reading and make sure to share if you agree!