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Thursday, March 3, 2022

Bitcoin And How It Affects People


A new type of currency is emerging, which makes use of blockchain technology and could be considered an alternative financial system such as cryptocurrency (“cryptocurrency”). In addition to allowing for more transparency to be achieved, it could also boost trust and create opportunities as well as other benefits to society. Although the concept of cryptocurrency has been around since the 1980s and early 2000s, its actual existence is much more recent. There are no physical coins or any major form of transactions involving them. All of the money in circulation needs to be transferred via one medium, which is usually the internet. This provides anonymity and lowers costs, so all that is required from you is your wallet. The world has already seen the emergence of cryptocurrencies such as bitcoin, and many other types of currencies have been proposed over time.

(1) They allow for anonymity:-

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Not only does it provide anonymity, but it could also allow for more transparency, providing people with information to help them make decisions and improve their lives. When all of this is combined, then there would be far less corruption and even the possibility for better accountability as well as higher levels of democracy and human rights due to mass media coverage. Finally, because of the nature of the technology, it should greatly increase the confidence and security of transactions globally, making everyone feel safer.

(2) They can lower transaction fees:-

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The value of the global economy is growing at exponentially faster rates than ever before, and so too can the number of transactions using cryptocurrency. Transactions would be made without having to rely on banks, something that has become possible with current bank account systems in places like India and China, where you need a minimum amount of cash to operate anywhere in the country, not just for essential services. Furthermore, because of their anonymity, blockchain-based cryptocurrencies would become increasingly popular and cheaper, ultimately reducing the cost per transaction. It is projected that the international crypto market will generate $3 trillion by 2022. If we convert into Indian rupees and assume that roughly 20% of our GDP comes from the region, then the average annual savings will balloon to about Rs. 2 lakh in 2024.
 

(3) They eliminate tax evasion:-

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The fact that there is no central authority controlling the currency used at this point in time means that the law will never apply to any aspect of these products and also makes them untaxable, unlike fiat currencies. This is perhaps the most important advantage for these products. Since the creation of Bitcoin, some countries are still concerned about getting their borders opened to all the bitcoins flowing out of the world’s most powerful company. However, the governments themselves believe cryptocurrencies will not affect their economies because they will be able to control everything but the very ownership of those assets. The absence of a government in charge means the freedom of choice available to consumers within their own state, no matter what price tags they choose.
 

(4)They allow us to experiment and learn:-

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The lack of government interference means that anyone has the ability to try new ideas and innovations. Anyone and anything — big or small — can come to fruition and is free to play to its full potential and discover new ways and methods. What is currently being done by traditional banking institutions is merely keeping track of information, but the real benefit here is not controlling this data, but instead enabling access to it and gaining insight into how to best serve it, regardless of whether it happens online or not. Because these types of solutions are decentralized, they must be developed quickly with a focus on user experience and accessibility. They must be designed that anyone can access and is open or accessible too, meaning you don’t have to go to another website in order to get the same answers that these individuals have. Because there aren’t centralized governments or corporations responsible for regulating these technologies and creating rules for their use, then there can be a level of public service provision that cannot be compared to what they typically offer.

(5) They reduce inflation:-

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The idea of the common man owning his wealth is something many see as a step away from capitalism, however, the reality around this is something different, because it allows for both the poor and the wealthy to coexist comfortably in a way that they may never have to as we have now. Instead of seeing this as either an opportunity for billionaires or the end of the world, it becomes something that can happen in any part of the world. Not long after Bitcoin came into existence, the majority of nations had implemented austerity measures in fiscal terms and removed taxes on their citizens in hopes of reducing the deficit, however, it just proved in practice that if you were born a billionaire there was no problem getting out of debt. With digital currency becoming mainstream we can expect to see economies flourish in areas outside of North America, Europe, Asia, and Africa while developing nations such as South Korea or even Egypt see growth rates rise from 9% to 10%. As the digital age progresses globally, countries are expected to adopt these currencies in the future. For example, Australia holds nearly 300 million dollars worth of crypto assets, making them almost twice the size of the World Bank. By 2015, approximately 6.4 billion bitcoins will have been created due to worldwide interest.
 

(6) They save money:-

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As mentioned previously, the United States alone spends more than 3 trillion dollars a year, however, this doesn’t have to be spent on things like military forces, roads, bridges, airports, railways, etc. Because cryptocurrency can be spent everywhere and save money. The U.S. will hold about 2 trillion dollars’ worth of dollars tied up in the federal funds this year, leaving millions of dollars left outside of the US treasury. Currently, Americans spend between $8,000 and $30,000 on goods and services on a yearly basis, however, once crypto is made legal, this is expected to climb to around $75,000. This implies that every single person who chooses the world currency — whether that’s a dollar bill, gift card, paper tokens, or whatever else – saves up to $1,000 a month or more. Now consider that the median wage is $23 a day in the United States, and just imagine what this money could do for someone struggling to pay their rent, buy food, and invest in stocks. Lastly, when people look for financial advice, there are simply not enough qualified professionals to answer every question. But that won’t change in the next decade. Crypto is going to be in everybody’s pocket by 2021, and it’s not really going to take anything from the government to change the trend.
  

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