Ness Shantel

The Way Economists are Seeing the Impact of Cryptocurrency in a Nation

Cryptocurrency is getting its fair share of popularity and market interests. Today, there are increasing number of businesses and companies that are accepting cryptocurrencies as another method of payment. With trial and error as well as deeper knowledge in such, it gives investors confidence like WOT Asia and several other private institutions to use and navigate through cryptocurrency market.

A Start of New Era

Both blockchain empowered solutions and blockchain technology itself are now revolutionizing value exchange mechanism. In traditional methods of performing financial operations and government issued currencies that are backed by financial institutions similar to banks, this is literally a big hurdle they have to overtake. It isn’t longer possible to minimize or disregard the existence of cryptocurrency. This is true now that it is quite popular in people around the world.

But the question is…

What are the possible impacts of cryptocurrencies on global economy?

Let me give you a couple of points to ponder

Challenging the Dollar

US Dollar is the leading and dominant currency for quite some time. Also, it is the reserve currency of world’s economy. This is integral in centralization of global market. With this in mind, the world is sure to experience its wrath when a negative development transpires in US financial market.

Crypcurrencies like Bitcoin, Ethereum, Ripple and the likes are decentralizing financial transactions. It’s not reliant on US Dollar or any other currency for that matter. With the continuous growth in adopting cryptocurrencies, global market might no longer have to depend heavily on US dollar. This is going to change the landscape of foreign relations, most specifically, how we do financial trade. Furthermore, if other governments jumped into cryptocurrency market, it may potentially weaken the influence of US in the world.

Risk to National Currencies

Monetary policy of a given state is given thorough consideration. It’s not really a surprise for this has big impact on currency exchanges, rates of interests as well as money supplies. This additionally has an effect on several other things similar to the unemployment and inflation rate.

Values for cryptocurrencies aren’t tied to national currencies. At the same time, there’s no body of government that is overseeing it. Therefore, it’s safe to say that cryptocurrency is free from monopoly or control. If people begin to rely on cryptocurrencies than on national currencies, then this will cripple various countries as well as their economy. Arguably, this may put the economic independence of countries in question.

A Possible Solution

With these potential threats, government-backed cryptocurrencies may become possible in near distant future. Countries might opt to create cryptocurrency of its own in developing autonomy from world’s financial system.

Posted by Ness Shantel

The Things One has to Know before Investing in Bitcoin

You might have not known much about blockchain technology or cryptocurrencies but you sure do heard about Bitcoins. Bitcoin is a cryptocurrency that was founded back in 2009 and served as the basis for all cryptocurrencies globally. This is the first and at the same time, biggest cryptocurrency with a value reaching over 3,000 dollars.

With so much buzz and hype revolving around Bitcoin, there are a lot of people who do whatever it takes to get their hands on it.

This is true even if it mean them to take a bad credit loan.

Given the fact that it’s the very first digital currency ever introduced, it brought drastic change in the interest of various organizations, investors and companies. It’s open to everyone and a decentralized digital currency to which can be utilized for various purposes be it trading, selling or buying goods and services. If you too are like everyone else who want to tap the power of Bitcoin and make a fortune out of it, then I suggest that you keep on reading.

Bitcoin Investment 101

First and foremost before being too excited to have Bitcoins, you must secure a digital wallet. This stores your Bitcoin or any cryptocurrency you want to have. It uses a secret number and private key to have access to your Bitcoin. It’s more like an encryption tool.

There are two kinds of digital wallets:

  • Software Wallets – these are applications that can be linked to your bank account.
  • Hardware Wallets – these wallets store private keys on a hardware device, hence the name. It can be anything like a hard drive or a USB device.

Now You are Ready

 

After buying Bitcoin, you also need to exchange a fiat currency. Thus, after setting up a digital wallet and the payment method as well, that’s the only time when you’ll be ready to buy and exchange Bitcoins.

Now to the real question, is Bitcoin a viable investment? Definitely! Everyone is aware of it and being a decentralized currency, it only means that there’s no central authority is controlling it. No banks or governments can stop your payment or close your account. It’s an assurance that Bitcoin will live long and this is going to change the landscape of how we are doing business.

Posted by Ness Shantel

What the Future Holds for Cryptocurrency as Investment?

Electronic currencies are stored in banks electronically. This is one of the basic explanations for digital currency or also known as cryptocurrency. Given the fact that 80 percent of world’s currency is still using paper money, most of it is stored in banks and has a digital counterpart. Right from the time it was introduced, it evolved from being used to conduct business, to the main channel of e-commerce. Well, it seems that nothing can stop its evolution and serve an all-new purpose of using digital currency.

Believe it or not, the very first cryptocurrency ever created was on the time when internet is revolutionizing back in the onset of New Millennium.

It’s coined as E-Gold which was founded by Gold & Silver Reserve Inc. in 1996.

This has enabled users to electronically transfer small value of gold. Then come the spring of 2000, it has become the very first electronic currency to provide exchange service among other countries.

Couple of years prior to the launching of PayPal, it was able to snatch over a million accounts. Then in 2006, Liberty Reserve lets it client to start converting their Dollars or Euros to Liberty Reserve money. Sad thing is, it wasn’t that long before goons and dishonest individuals discovered this method and take advantage of it to make shady transactions online. Thus, the US Government had to shut down websites that are offering these types of services.

Differences Between Cryptocurrencies, Digital and Virtual Currencies

While increasing number of banks are starting to realize the advantages of electronic banking, virtual currencies are operating as an independent money to which the value is made by original backer. On the other hand, you ought to know that virtual currencies have different forms and among the most famous is Bitcoin. It’s funny because it doesn’t fit any specification or category and instead, it encompasses aspects of all 3 forms of electronic currency.

Digital currency is different since this is a type of money backed up by assets with worth that’s equivalent to real world value. The fact that world’s money is stored in computers as digital money, it can be said that most of the world’s currency has gone digital.

Strengthening the Foundation of Knowledge in Cryptocurrency

Cryptocurrency is a form of electronic money to which every transaction are encrypted and decrypted to push through. It uses block chains in order to store data and link together effectively as it function as ledgers and promotes consistent data monitoring. Aside from transferring encrypted cryptocurrencies, there are many functions associated to it as well. For one, it can be used as a form of investment like trading in VIPsignals crypto as if you’re trading using real money in stocks.

Posted by Ness Shantel