CRYPTOCURRENCY AND THE GLOBAL ECONOMY: A SNEAK PEEK INTO THE FUTURE

 As we advance into the future, technological advancements, change and development begins to unfold in various forms and this change is quite rapid as the world flows with it. One of those envisaged development is Cryptocurrency also known as 'Crypto'.

"Crypto here, Crypto there. If you are not trading you are wrong" are words on the street these days as we are bound to hear at some point in time. The Global economy is not based on the actual use of money anymore but the use of other alternatives that will help in progressing the future of the global economy.

A cryptocurrency (or “crypto”) is a digital currency that can be used to buy goods and services, but uses an online ledger with strong cryptography to secure online transactions. Much of the interest in these unregulated currencies is to trade for profit, with speculators at times driving prices skyward. It works using a technology called blockchain. Blockchain is a decentralized technology spread across many computers that manages and records transactions. Part of the appeal of this technology is its security.

Research according to CoinMarketCap.com, a market research website has shown that more than 10,000 different cryptocurrencies are traded publicly. And cryptocurrencies continue to proliferate, raising money through initial coin offerings, or ICOs. Ten largest trading cryptocurrencies by market capitalization as of Sep. 24, 2021.( Data current) is shown below:

CRYPTOCURRENCY

MARKET CAPITALIZATION

Bitcoin

$799.3 billion

Ethereum

$341.8 billion

Cardano

$71.5 billion

Tether

$68.7 billion

Binance Coin

$59.2 billion

XRP

$43.6 billion

Solana

$41.3 billion

USD Coin

$30.4 billion

Polkadot

$30.4 billion

Dogecoin

$27.5 billion

Using the above logistics, Cryptocurrency and the Global economy will progress more in the future as it offers the following benefits.

Cryptocurrencies such as Bitcoin is the currency of the future and racing to buy them now, will be an investment that is worthwhile presumably before they become more valuable.

In the nearest future cryptocurrency removes central banks from managing the money supply, since over time these banks tend to reduce the value of money via inflation.

Based on the technology behind cryptocurrencies, the blockchain, which is a decentralized processing and recording system can and will be more secure than traditional payment systems.

Also cryptocurrencies are going up in value and have no interest in the currencies’ long-term acceptance as a way to move money.

But just as the benefits stated above investors in the global economy needs to know that The Future of Cryptocurrency can speculate on what value cryptocurrency may have for investors in the coming months and years (and many will), but the reality is it’s still a new and speculative investment, without much history on which to base predictions. No matter what a given expert thinks or says, no one really knows. That’s why it’s important to only invest what you’re prepared to lose, and stick to more conventional investments for long-term wealth building. 

“If you were to wake one morning to find that crypto has been banned by the developed nations and it became worthless, would you be OK?” Frederick Stanield, a CFP with Lifewater Wealth Management in Atlanta, Georgia, told NextAdvisor recently. 

In conclusion, keep your investments small, and never put crypto investments above any other financial goals like saving for retirement and paying off high interest debt because as much as you can make money from it, you need to know that losses can also be made.

Name: Kolawole Oluwasetemi Esther.

Code No. : OS/21A/1745

Course : Accounting

Institution : Kwara State University, Malete.

State of Origin : Kwara State.