Cryptocurrency was visualized to be the future of tech, Get to know how Crypto is Transforming the Future of Technology in this blog.
It's been more than a decade since the introduction of cryptocurrency where Bitcoin was introduced first in 2008. Now, more than 22,000 cryptocurrencies exist (according to the coinmarketcap), providing many use cases to crypto users. Even in 2021, the market cap reached the value of $3 Trillion, but right now because of the bear market it is down to 0.7 Trillion.
In recent only so many brands and companies went to accept crypto as a form of payment and user adoption has increased a lot even in the bearish market.
How Crypto is Transforming the Future of Technology?
Why Cryptocurrency In Place Of Fiat Currency
- Cryptocurrency is decentralized, it is not controlled by authorities or third parties like banks.
- You cannot double-spend it because of its unique property and security with typography.
- The transaction is shared with all nodes, so the chances of altering the transaction details are not possible.
- The validators are responsible to verify the transactions, so it is accurate.
- It does not need third parties to produce and distribute the cryptocurrencies.
- Cryptocurrency does not require a physical structure for people to come and transact
- You can buy cryptocurrency fractions which amplify the volume and feasibility of transactions.
Cryptocurrencies Are So Popular
Well, the main reason for that is its decentralization property and the value that leads to a good investment opportunity. In normal currency transfer from one country to another, the process is a little tedious as it takes days to be transferred. And for this process, the third parties charge high fees or commissions to complete it.
But in the case of cryptocurrency, there are no intermediaries, you can directly make the transaction at a cheaper rate, fast transactions, etc. The fiat currency is easy to manipulate and in case it gets manipulated the investment won’t give any good return.
A fiat currency is mainly used for the purpose of buying and selling stuff and that’s the purpose it holds. Fiat has many limitations that are covered by the cryptocurrency as in international transactions which are fast and cheap, decentralization, privacy, anonymity, etc.
Cryptocurrencies have a low level of connection with traditional market instruments, they are treated as assets and used as a powerful tool for aggressive diversification. The portfolios are protected from potential hazards because of it. Also, the increase in cryptocurrency transactions across a range of exchange-traded products is mostly due to this.
It is certain that even though the connection is low but if the crypto market is affected because of any reason, it will also create an impact on the rest of the market.
How Countries Are Responding To The Cryptocurrency Hype?
Cryptocurrency has so many features, the government isn’t really accepting those but the technological aspect is appreciated by all. Recently Indian government released the CBDC “E-Rupee” which has a similar functioning to cryptocurrency. More than 15 countries are currently working on creating their own CBDC because of crypto+ blockchain technology.
Every nation has put different kind of taxes on crypto profits and some has put a tax on crypto transaction. In India, 1% TDS and 30% tax has been applied, and recently the government has presented the amount which was received only by the application of 1% TDS. According to the data around ₹60.64 Crore has been collected from crypto usage and now we will have to wait to see how much the Indian government has collected from the 30% tax reduction as well.
If we talk about other countries the USA considers cryptocurrency as property, and tax is implicated when it is transferred. Whereas Canada and UK have the tax implication as income tax and capital gain tax. Canada is considering crypto as a commodity whereas the UK considers its capital assets.
Impact Of Cryptocurrency On The Economic World?
Cryptocurrency is transforming the finance world with its use cases and unique features. It is making transactions easier, faster, cost-efficient, secure, and private. These features are helping to increase transaction volumes and decrease the need for the existence of a physical structure. Unlike fiat currency, there is no physical barrier in transacting across countries in the case of cryptocurrency.
The user gets complete control of their money which makes them more free and independent from the traditional rules and regulations. More currencies are available for payments to entrepreneurs. They benefit from stronger financial protection and a more open financial connection as a result. Distributed ledger technology supports the cryptocurrency network. It is also mechanized and digital. As a result, the primary threat to the conventional financial system—fraud and corruption—is removed.
Cryptocurrencies can help in curbing inflation Since most cryptocurrencies have a finite supply, their values do not fluctuate as much as those of conventional currencies. Long-term, this might result in more stable prices and less inflationary pressure. There are some developing countries that are still suffering in terms of financial entities and in those places cryptocurrency can help to buy resources and provide financial services.
The development of cryptocurrency and blockchain was already a technological advancement but now crypto is transforming the future of technology. With its use case and crypto adoption, cryptocurrency is playing the biggest role to do so. With time more countries are realizing the features of crypto and are working on crypto regulation rather than restricting it.
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