- While many are already familiar with the concept of “cryptocurrency” – some in practice, others in theory, the term “digital economy” is still incomprehensible to most.
- It is unlikely that anyone would deny that cryptocurrency has had a significant impact on the financial sector.
- The prospects for the development of cryptocurrency cause a lot of controversy, not only among specialists in this field, but also among ordinary users.
While many are already familiar with the concept of “cryptocurrency” – some in practice, others in theory, the term “digital economy” is still incomprehensible to most.
In simple terms, the basis of the digital economy is transactions that take place on the Internet. Thanks to the fact that the traditional economy has moved to the online space, now most of the usual payments, from purchases of goods to transferring money, can now be done without leaving your home.
Ever since Bitcoin was presented by a developer (or group of developers) under the pseudonym Satoshi Nakamoto in 2009, cryptocurrency has become an integral part of the digital economy and the lives of many Internet users.
According to some data, in February 2021, more than 68 million people all over the world used electronic money , according to others – 190 million, but this figure is questioned by the expert community.
Cryptocurrency or Fiat?
With such inputs, it is not surprising that cryptocurrency has become an innovative tool for the digital economy: today, coin holders can not only profitably exchange them for other cryptocurrencies or fiat (ordinary) money, but also buy goods, pay for services, and much more. Moreover, today you can easily sell bitcoin for cash .
At the same time, there are many people who are intimidated by investing in cryptocurrency due to the fact that they do not fully understand how the purchase / sale of coins works. This situation is likely to change dramatically in the future, as the information base about digital money is growing every day.
The prospects for the development of cryptocurrency cause a lot of controversy, not only among specialists in this field, but also among ordinary users. There are a lot of assumptions about how digital money will evolve. For example, it has been rumored for several years that digital money is about to replace conventional money. At the moment, there are no prerequisites for this, since the same bitcoin is still not legalized everywhere.
By the way, until recently, government bodies were negatively disposed towards digital money, but now the situation is gradually changing. For example, according to official figures, as of 2021, at least 20 central banks are in the process of developing their own cryptocurrency. In this regard, experts do not exclude that over the next 10-15 years, billions of people will discover investing in cryptocurrency , and will also use it to pay and store assets.
It is unlikely that anyone would deny that cryptocurrency has had a significant impact on the financial sector. For example, Charlie Schrem, an entrepreneur and supporter of bitcoin, notes that the banking industry has been stagnating lately: slow transaction processing, a lot of transaction fees, etc.
Electronic money , in turn, has become a good alternative to the traditional banking system, offering users lower transaction fees and a much higher transaction speed. This is what prompted banks to look for new, more promising solutions to problems that have been causing customer dissatisfaction for years.
Experts believe that the changes brought about by the emergence of cryptocurrency today are just the beginning. In the future, digital assets will penetrate deeper into our lives. However, whether traditional banks will be abandoned and whether people will receive complete economic freedom without state control is an extremely difficult question, the answer to which will only be given time.