Will the Impact of Cryptocurrencies on Economy Be More than Interest Rate?

The U.S. is looking to implement some policies to decrease interest rates. This will inevitably increase inflation. Since 2008, about $12 billion have been injected into the U.S. economy. This amount during this time is very high. The inflation due to this liquidity can be a gradual death. But with the presence of cryptocurrencies, the status of the economy is changing. Cryptocurrencies can change the economy of the U.S. and the world in a different way.

Economy, Inflation, and Cryptocurrencies

The status of the U.S. and the world’s economy has changed a lot compared to 2008. The growth of all cryptocurrencies and the recent talks about the entering of Facebook’s stablecoin to the market and the 200 percent growth of Bitcoin alone show that new and important elements have entered the economic world. Cryptocurrencies can impact inflation, as well. The growth process of cryptocurrencies is in a way that it seems their lack of presence in different businesses in the coming years would be like a company not having a website.
Cryptocurrencies can have unavoidable impacts on inflation. For example, in 2017, as the prices of cryptocurrencies suddenly soared, some people who had bought Bitcoin when it was cheaper got rich quickly. The sudden increase in the price of cryptocurrencies in this way can also be one of the manifestations of inflation. Introducing any new cryptocurrency to the market can coincide with sudden inflation.

The Benefits of Cryptocurrencies in Economy

Although cryptocurrencies can cause inflation and problems like that, they also have some benefits to stabilize the economy. Cryptocurrencies are like gold, and their amount in the world are definite, and for this reason, their control ability will be much more than actual currencies. In addition, they are considered a type of investment that is available to all people in the world. It doesn’t matter in which continent you live. In any place of the world, it will be possible to buy, sell, and engage in different operations with cryptocurrencies 24/7. With the presence of cryptocurrencies all over the world, transparency will be back to the costs of states and the possibility of using actual currencies for criminal activities such as smuggling will decrease. Together, Blockchain and cryptocurrencies can be a factor in stabilizing the monetary policies in the world.

The Outlook of Economy with Cryptocurrencies

Cryptocurrencies can play an important role in the economy of countries and the world. The only thing is that they should continue their activities under some regulations so that order and discipline can be created in countries. What we mean by putting cryptocurrencies in the frame of law is not to distance them from their original nature and identity which is activity in a decentralized infrastructure, but in fact, we mean that in order for cryptocurrencies to find their place and application in the world and among the public they need to be defined. The correct introduction of their status will be possible with the help of law, and the public will trust them when they have legitimacy under law.
 

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