Cryptocurrency: Decentralization of the Global Economy

The Effects, Decentralization of Economy, Brings

• Scarcity: Partly influenced by the massive scarcity of bitcoins, the market value of bitcoin has surged drastically. The earliest ways in which you could gain access to bitcoin was a kind of lottery system called mining. The process could only be catered by specialized computer programs which subsequently meant the individuals with the fastest machines could afford it and bitcoins were hard to lay hands on. Today, the world stands different as you can buy bitcoins from online cryptocurrency exchanges.
• Influence: The scarcity and high market value of bitcoin can also be called as fallacies of bitcoin- the majority can’t buy it. It doesn’t translate into bitcoin being leveraged for commercial transactions. It is seen more as an investment opportunity where very selective individuals buy them ogling huge pay-offs in future.
• Future: Majority of governments around the world are warning against buying bitcoins. A few other are banning it as a safeguarding measurement. The risks are mammoth as no central repository keeps a tab on it. Cryptocurrency doesn’t warrant against power loss or computer crash, as balance is totally wiped out with no holdings backup copy. Not immune to thefts, almost 40 cases of thefts have been reported, a few exceeding $1 million. Moreover, prices fluctuate heavily depending on the supply and demand market dimensions.
  Antithetically, some governments are cottoning to the idea and contemplating venturing into cryptocurrencies by way of Centralized Digital Currencies (CDCs) although the boundaries remain to be demarcated of what constitutes the legality of it.
  In a race to liberate the world from the shackles of an authoritative power governing it, cryptocurrency gives a hope of an alternative financial system. More power to the individual in the next economy.