Updated: Mar 5, 2020
By Wirba Brice Divine Ransinyuy. firstname.lastname@example.org
Cryptocurrency is a form of digital currency that uses cryptography for security and anti-counterfeiting measures. It can also be known in normal terms as a digital or virtual currency which aims as a medium of exchange. In the other hand, cryptography involves the use of codes to solve an equation. As it is simply known as writing or solving codes. In today’s world, cryptocurrency has taken a different dimension. This can be said to have had direct as indirect impact on the world’s economy. It has become an undeniable force which we cannot neglect in dealing with financial affairs. In a more deepen way, looking at it in dissected manner, crypto which is a prefix stands “hidden” and currency “money”. This applies same to cryptography which crypt is a prefix meaning “hidden” and graphy standing for writing. This has led to huge impact on man’s dealing with currency as there’s no fix or limited control over it. Thus affecting the world’s economy in a positive way as it leads to more in flow of capital.
Cryptocurrency has come along with its impact affecting some countries economy more than others, thereby destabilizing the world’s economy. This can be seen in that; it offers more than we can imagine especially in countries where there is a limited flow of money. Cryptocurrency comes as a way to bypass those measures put in place by governments who aimed on restricting capital flow in their country.
On the other hand, this can be seen as an advantage for companies and individuals who couldn’t have much capital in their hands due to the restriction imposed by their government. This advantage is a kind of disadvantage to any government who does everything to limit the flow of capital in their country. As it leads to destabilization of the government’s financial system. This is the case in many countries, as in particular cases, it thus lead to economic crisis in these countries due to an unrestricted flow of capital in their economy.
In a general view, all countries are linked to a bank called the world’s bank, when one country faces economic crisis, it affects the entire bank as this can be due to the restriction and bypassment through cryptocurrency as crptocurrency does not respect any country’s financial rules, since It does not have any globalized rules put in place in order to regulate it’s activities. Looking at this, it is easy to say, crptocurrency is the solution which all governments need in order to fight crisis such as inflation and deflation, which is affecting severing the world’s economy.