What are we talking about today?
Cryptocurrencies have gained enormous popularity over the last decade, especially among citizens affected by high inflation rates, given that cryptocurrencies are one of the options to protect the value of money over time. How do cryptocurrencies affect the daily lives of people in different parts of the world? How they are used for shopping, saving, investing, sending money, humanitarian aid, social justice… How they are changing the economy, politics, culture and society are just some of the questions that we will try to answer in this blog. We hope you enjoy reading and learn something new about cryptocurrencies in everyday life.
Source: cointelegraph
Poor countries and cryptocurrencies
For many people in poor countries, cryptocurrencies represent an alternative to the volatile and unfair monetary systems run by their irresponsible states, thus limiting their economic potential and access to financial services. One example of a poor country that prospered after accepting bitcoin is El Salvador. El Salvador became the first country in the world to make bitcoin legal tender in September 2021. years. The aim of this decision was to improve the economy by facilitating banking and encouraging foreign investment for El Salvadorans, especially those receiving money from abroad. According to President Nayib Bukele, bitcoin has helped El Salvador save more than $400 million in fees, increase the number of new bank accounts, and attract more tourists and entrepreneurs. There are other examples of countries whose governments pursue irresponsible monetary policies, so their citizens have found salvation in cryptocurrencies, Argentina, Venezuela, Zimbabwe, Turkey and many others. These countries are faced with high inflation, currency devaluation, restrictions on foreign exchange transactions and a lack of trust in financial institutions. Many people in these countries have turned to cryptocurrencies as a way to preserve value, protect against loss of purchasing power, and access the global market. Cryptocurrencies have also allowed them to avoid censorship, corruption and repression by authoritarian regimes. So cryptocurrencies are more than just technology or speculation. They are a tool to empower people in poor states fighting for a better life. For the first time in history, these people have the opportunity to be part of the global community, and to participate in innovation regardless of the position of their country.
Source: cointelegraph
Developed countries and cryptocurrencies
Cryptocurrencies are also popular in some developed states, although they may not be as necessary as in underdeveloped ones. Developed countries usually have slightly more stable and reliable monetary systems, access to financial services and consumer protection. However, cryptocurrencies can still offer some advantages and opportunities that traditional systems cannot. Some of the most developed countries that have adopted cryptocurrencies in a large percentage are the US, Switzerland, the UK, Canada and Australia. These countries have shown a high level of use of cryptocurrencies for various purposes, such as:
- Investing and savings: a number of people in developed countries use cryptocurrencies as alternative assets that can provide higher yield and protection against inflation. Deutsche Bank has announced that it will offer cryptocurrency trading and storage services to its clients. This tells us that there is an interest in investing in cryptocurrencies among residents of highly developed countries.
- Payment and transfer: some people in developed countries use cryptocurrencies to pay for goods and services, either through card providers or peer-to-peer systems. Visa supports crypto cards that allow users to convert cryptocurrencies into fiat currencies and pay at any place that accepts Visa cards. PayPal also allowed its users to buy, sell and store cryptocurrencies through their platform, and to use them to buy with millions of merchants who accept PayPal.
- Innovation: in developed countries, people are involved in the development and use of new crypto networks and applications that offer new opportunities and solutions to various problems and needs. This includes creating different entertainment platforms, etc. The goal here is not necessarily financial, but cryptocurrencies are used outside the traditional financial point of view.
Cryptocurrencies are more than just a new way to pay or invest. They are also a way to encourage creativity, innovation and entrepreneurship in developed countries, where the problem of inflation, although present, is not so destructive for residents.
Source: cointelegraph
How do cryptocurrencies affect economics, politics and society?
Cryptocurrencies have made a major impact on economics, politics and society, as they change and revolutionize the way people create, exchange and preserve value. Here are some examples of how cryptocurrencies affect these branches:
- Economics: enabled faster, cheaper and safer transactions without the need for intermediaries like banks or governments. We also explained earlier how they offer new opportunities to invest, save, trade and innovate. In general, cryptocurrencies can improve financial inclusion, stability, transparency and competitiveness especially for individuals in less developed countries who were previously exempt from global trade.
- Politics: here, cryptocurrencies can empower individuals and communities to take more control of their economic and political affairs, allow people living in repressive regimes or under strict censorship laws to participate in the global economy, build trust and prevent fraud in financial transactions, and open up new opportunities for cooperation and solidarity. This was also not possible earlier given that states controlled the value of money and therefore the lives of people.
- Society: In recent years, cryptocurrencies have had a major impact on culture, education, media, science, sports and other aspects of social life. People have never learned more about the problems of central banks, because there was no incentive for this before the creation of Bitcoin. The media is increasingly paying attention to cryptocurrencies, i.e. they are slowly starting to recognize their impact.
These are just a few examples where cryptocurrencies are gaining increasing popularity and attention day by day, and we are almost certain that this trend will continue, as they show no signs of slowing down.
Source: cointelegraph
Conclusion
In this blog, we talked about cryptocurrencies in everyday life. We explained how they affect the economy, politics and society, we showed examples of how cryptocurrencies are changing people’s lives in poor and rich states, how they drive innovation and entrepreneurship, enable greater financial inclusion and transparency, and how they contribute to social justice and solidarity. We hope you enjoyed reading the blog and learned something new about cryptocurrencies in everyday life. We invite you to share your opinion, experience and questions with us on our social networks (Twitter, Instagram). Thank you for your attention and until the next blog!