Cryptocurrency and blockchain technology have already had a big impact on the global economy and financial system. A few of the ways that the cryptocurrency has had an impact include reducing barriers to entry, mitigating the need for a middle man, promoting crowdfunding, cash replication, and providing users with an alternative to traditional money. Here is an overview of these capabilities and how bitcoin is having an impact.
No More Middleman?
A middleman in business can be a tough – and expensive -tissue to deal with. One particular area that currently uses a middleman but where it may no longer be necessary is money transfers. At this point, money transfer is an expensive and time-consuming process with high transaction fees, regardless of the mode of transfer. Such conditions can also lead to delays and dissatisfaction with the transfer process. The good news is that cryptocurrency may be able to get rid of the middle man and facilitate the transfer process on its own. As a result, transactions become faster, cheaper, and they can also be easily tracked via the blockchain.
Even though cryptocurrency has developed a reputation for being a method to facilitate money laundering and other crimes, blockchain technology may be able to reduce corruption. Particularly, blockchain technology may be able to help companies and businesses stay accountable for their transactions by tracking exactly what takes place. This way, business, at least, can present a better image to their potential customers.
Cryptocurrency may also be able to provide more capabilities when it comes to technology. For instance, cryptocurrency has introduced an up growth of artificial intelligence, and together, the two technologies provide the financial sector with more safety, security, and transparency. One particular system that has gained a great deal of popularity is Libratus. The system is recognized as being able to perform better than some of the world’s most apt poker players, and it is also capable of perhaps bettering the global system.
Cryptocurrency may also be able to provide users with control over their money. The technology is recognized as being a decentralized system, which means that there is no overarching financial system controlling the details of the cryptocurrency. Meaning, users may not need to rely on banks and other financial institutions in relation to their funds.
Finally, cryptocurrency may be a prime way for crowdfunding. Initial Coin Offerings are the main method for crowdfunding and they have been widely used by technology startups that are looking to launch their products. As a result, technology projects may be able to get started much sooner.
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