Blockchain technology and cryptocurrency has definitely disrupted the world's economy in a number of ways. Some are excited about what is happening while others are paying attention to how it is going to disrupt the world.
A Major Challenger to the Monetary Standard
For quite sometime, the United States has been the standard monetary value the world relies on. Most countries base the value of their fiat money against the United States dollar, which is partly why the US has maintained its dominance over the world. This is the reason why most countries around the world suffered a financial setback when the US experienced its own financial crisis back in 2008.
Some could argue that the US Treasury is almost like an international Central Bank. The centralization of money gives power to America but also makes global currencies weak and susceptible. Cryptocurrencies remove the middleman, central banks, and countries, which completely rattles the status quo in more ways than one.
Part of the reason the world is excited and nervous about the changes cryptocurrency is presenting deals with politics. Money and politics have been intertwined for some time. International trade, foreign relations, and diplomacy are all tied to money.
The US had the power to place economic sanctions on countries that were doing something unsavory, which would normally get that country to comply. Sanctions will no longer have that power if cryptocurrencies are available. The idea of decentralizing money actually frees nations and gives them true independence from the United States.
A Change for the People
It is easy to see why so many countries are jumping on this new form of currency, but people all around the world are doing so as well. People know that cryptocurrency cuts out the middleman. There is no need for clearing houses, banks, or the Society for Worldwide Interbank Financial Telecommunication. All of these institutions would perform secured transactions and charge an incredibly high transaction fee. Furthermore, some of these transactions take a few days to clear, so people are stuck waiting for their currency.
Transactions within the cryptocurrency world take a matter of seconds, and the fee is incredibly low. Users are loving this because it means they get to keep more of their digital tokens per transaction. Investors are loving it, too, though they do have to deal with the growth of cryptocurrencies. The number of new digital tokens springing up may be overwhelming, but most experienced investors just look at a good list of cryptocurrencies by market cap to sift through their options.
The growth of investors is tied to cryptocurrencies as well. There was a time when new companies like blockchain companies would have to talk to venture capitalists, banks, and angel investors to purchase their ICOs or their Initial Coin Offerings.
This is no longer necessary because cryptocurrencies have made crowdfunding the leading option when investing, opening the door to anyone willing--not just the mega-rich. Yes, many countries around the world are tightening up the amount of ICOs accepted in the country, but that goes to show how disrupting cryptocurrencies are.
There is no doubt about it, digital tokens are changing the world in different ways. The change is being felt in the hearts of the biggest nations and in the hearts of regular folks wanting to make it big. It is okay to see some push-back, which is quite common when something new comes in to topple down what people have been used to. It just so happens that what is being toppled down is a currency the world had gotten used to.