When it comes to viral stories on the web, it is hard to match cryptocurrencies. This type of digital money, after all, has been behind some of the most widely read online stories of recent times¾such as Bitcoin’s record price of more than $68,000 in November 2021.
While headlines like this show why people pay more attention to crypto these days, you may want to dig a bit deeper into this asset and its overall impact globally.
When you start to look into this and cryptocurrency prices, it is obvious that crypto has made real waves around the planet and is something that has made inroads in many countries now. Crypto for example is something that people from all around the world know all about¾from the US the UK, Japan, Australia, Nigeria, and Germany.
This shows the reach that digital currencies have in modern times¾but what has been their impact on a wider scale?
Transformed how people invest money
In days gone by, people who had some spare money to invest had the same old options to choose from. This would usually include things like stocks, bonds, and the FX market. Since crypto has arrived and become established as a viable asset though, it has brought new life to how people invest money globally.
This has mainly been down to crypto offering a new kind of asset to invest in, and one which seems to be different from other, more traditional, options. Coins like SLP, for example, are not only exotic sounding and exciting to invest in but are also based on cutting-edge technology. This is very attractive to many investors (especially younger ones) and makes cryptocurrencies something they like putting money into.
When you also add in the latest crypto exchanges to trade on and crypt wallets for storing key details, it is clear how this asset has brought something new to investors.
Changed how we think about money
Whether it is keeping an eye on the Luna price or looking for opportunities in other coins, crypto is a very popular financial market now. It is also one that has impacted how people think about money on a global scale.
Before cryptocurrencies, for example, we all thought of money in the traditional sense and in terms of FIAT currencies. This was basically paper money, which existed in the real world and was governed centrally by governments. Since the launch of Bitcoin in 2008 though, the steady trickle of crypto into the mainstream has changed this.
People are now much more familiar with digital money and with crypto coins that do not exist in the real world. This has even led to people paying for goods or playing online games with cryptocurrencies¾something which would have been unheard of in the past. Crypto has also seen people across the world get more used to dealing with money digitally in general¾such as trusting money to an online bank.
The lack of central control that crypto involves has also made people reconsider how the traditional global banking system works. As a result, the idea of decentralized financial systems has become something that more people not only know about globally but also support.
Positive impact on the global economy and financial inclusion
When you look at crypto on a global scale, you have to mention the positive impact it has had on financial inclusion. This is basically people from around the world being able to make financial transactions online, without first having a bank account.
By using crypto (which doesn’t need third parties like banks to work), people can send or receive money without needing their involvement. While this might not seem like a big deal in places like the US, it is a major bonus for the 1.7 billion people in countries around the world who don’t have a bank account. By promoting this kind of financial inclusion, digital cash is superb for enabling everyone around the planet to manage their money.
The net result of this, of course, is that cryptocurrencies have had a positive impact on the global economy. As it enables more people to gain financial inclusivity, crypto facilitates the increased movement of money globally and therefore gives more people around the world, cash to spend. This can only be a good thing for global business.
Global impact of cryptocurrencies
It is fair to say that cryptocurrencies have had a major impact on a global scale since first launching. Although the first few years might have seen this type of cash gaining traction, more recent years have really seen it take off across the planet. This has seen it have a major impact in many areas, as we have looked at above.