Note: This blog is written by an external blogger. The views and opinions expressed within this post belong solely to the author.
Many in the cryptocurrency sector believe that widespread adoption is necessary to increase the mainstream appeal of cryptocurrencies. However, on our trip to the moon, we should keep in mind the individuals who seek a better money management method. Let us not forget how our current economy has repeatedly failed, creating a demand for an alternative to traditional finance (and, for many, a passion for cryptocurrencies).
Banks and Fiat fails
Between 2008 and 2018, we witnessed Greece’s financial crisis, during which the nation came dangerously close to defaulting on its debt to the European Union. Iceland’s financial crisis began during the worldwide recession of 2008 when the country’s three major banks defaulted on loans to foreign investors totaling tens of billions of dollars. Venezuela is another example, where inflation was projected to reach 80,000 % between 2013 and 2018.
Our economy has always been unstable, and the centralized structure is to blame. All of these cases illustrate the traditional system’s fragility. As a result, the average person tends to suffer.
The way out
Cryptocurrencies have long been studied and argued, but they are now just emerging as financial instruments that may be accessible and helpful to anyone other than die-hard crypto fanatics. By facilitating access to capital and financial services, cryptocurrencies have the potential to allow social and economic progress around the world, particularly in underdeveloped nations.
Cryptocurrencies provide several benefits to their users, but arguably the most significant is an unparalleled amount of freedom. This freedom manifests itself in various ways: financial independence from current infrastructure, for example, and mental independence from having control over one’s own finances and technology.
How are Cryptocurrencies defining financial freedom?
Fuelling economic activities
The velocity at which the cryptocurrency industry is developing is astounding, as seen by early adopters who got wealthy overnight and discovered possibilities to grow financially. Bitcoin, the most popular cryptocurrency, has already allowed many people and businesses to thrive, and many rely on trading for income. The economy is progressively moving to meet these demands, and cryptocurrencies can help.
More than a third of the world’s population lacks access to fundamental banking services that may assist them in the event of a personal financial crisis – loans, account creation, and the list goes on. The situation is quite dire in India itself. These folks, who are usually already financially disadvantaged, frequently turn to dubious and risky loan schemes. The interest rates charged by these operations are far from reasonable, leading to increased insecurity among those who applied for the loan. This is where cryptocurrencies, with their high volatility and simplicity of usage, come in.
Several applications and tools make it easier to utilize cryptocurrencies and bring them to a broader audience. Another advantage of using cryptocurrencies is that it is fully decentralized, allowing for unrestricted cross-border transactions. Emerging technologies like crypto will create an economic revolution in which everyone will be more financially connected, empowered, and enabled.
Because cryptocurrencies and blockchain do not require a physical structure to exist, the expenses associated with their transactions are minimal. Because there are no staff wages, electricity costs, or rent to pay, these savings automatically translate into inexpensive transaction fees. This encourages more individuals to trust these new financial instruments and begin transacting, making the global economy increasingly interconnected.
All blockchain and cryptocurrency transactions are kept on a distributed ledger because they are automated and digital. The best feature is that it cannot be controlled by either individuals or companies, which substantially reduces fraud and corruption risks. This means that developing nations have a better chance of getting into the financial transactions game and developing their own economic and social prospects. Furthermore, individuals will be able to follow where public money will be directed, giving them a voice in their local political environment.
Benefitting Entrepreneurs and Startups
Blockchain technology and cryptocurrencies may help businesses get payments in multiple currencies. There has never been a more lucrative moment to start a business than now. Cryptocurrencies enable company owners to complete financial transactions from one end of the world to the other for negligible costs and time. The primary beneficiaries are – small and medium-sized businesses around the globe. They benefit from improved financial coverage and a more emancipated financial link with the rest of the world.
Banks and financial organizations have quietly woven a cocoon around their customers, binding them to their services with no alternatives. And for the majority of consumers, this is absolutely OK since they are content to stick to what they know. After all, if the system is not faulty, why would we attempt to fix it? Well, cryptocurrencies are a viable option. But genuine financial independence requires a critical mass* of cryptocurrency acceptance.
*The term “critical mass” refers to the point at which cryptocurrencies become a widely used form of technology and finance on a global stage. Consumers are still unaware of what cryptocurrencies are or how they might become a part of their daily lives. It is up to the user to choose if this is from a technological, economic, or ideological standpoint. To summarize, cryptocurrencies are still a relatively “niche” industry at the moment, and while the community is increasing every month, it still represents a small part of the world’s population.
A better future for the masses
On a mental level, being liberated from all of the impediments erected by traditional financial infrastructures is a moment of wonderful freedom. In fact, you have to experience it for yourself because you embrace it. And you have numerous alternatives for experiencing that independence, ranging from paying your bills in cryptocurrency to receiving (whole or part of) your income in cryptocurrency. All of the essential tools to cut out the middlemen are at our disposal and are constantly being improved to better the service being provided.
So as we move to celebrate the 75th Independence day, we must ask ourselves, are we truly free? Will we be able to survive another 2008? If not, then why wait for a better opportunity when the right tools are at our disposal at this very moment.Disclaimer: Cryptocurrency is not a legal tender and is currently unregulated. Kindly ensure that you undertake sufficient risk assessment when trading cryptocurrencies as they are often subject to high price volatility. The information provided in this section doesn't represent any investment advice or WazirX's official position. WazirX reserves the right in its sole discretion to amend or change this blog post at any time and for any reasons without prior notice.