The rise of cryptocurrency, the world’s most widely used digital currency, is imminent amid an economic crisis that is devaluing conventional currencies issued by central banks of Asian, European, and American nations.
In only 2016, the cryptocurrency in question managed to increase its value by 125%, reaching $ 1,127 per unit, almost returning to a record high of $ 1,151 at the beginning of December 2013, according to the blockchain platform statistics. Info, a site recognized for handling the most important bag of bitcoins around the world.
Experts attributed Bitcoin’s success to a number of causes: the war against paper money, the fall of the Chinese currency (the yuan), and uncertainty over the value of the dollar in the triumph of tycoon Donald Trump as president of the U.S.
The yuan, for example, plunged last year by 7%; And that is why most transactions with bitcoins are made in China.
The Asian country’s concern about the devaluation of the yuan versus the rise of the BTC is such that Chinese authorities are considering restricting domestic exchanges of bitcoins.
Today, Chinese citizens can send out a maximum of $ 50,000 a year, but it is possible that some have already surpassed it, and you see precisely to avoid those massive exoduses of money that China wants to regulate bitcoins exchanges.
On the other hand, there are several examples of demonetization (to remove from legal circulation some coins and bills) that are raising the value of the cryptocurrency.
India is the most striking country in terms of this phenomenon, according to some sources: as a flag to combat corruption and money laundering, India has already banned the circulation of denomination notes of 500 rupees (about $ 7 ) And 1,000 rupees (about $ 14).
It seems that the measure has been underway for a month and the queues at the banks to exchange those bills are long, so many businesses in a country where the economy is based primarily on cash are looking for alternatives to economic transactions to protect their assets.
In Venezuela, the government has also announced legal withdrawals of 100 bolivars, which could also result in Venezuelan investors changing their cash for the virtual currency.
Does this famous virtual cryptocurrency have stability?
Given that Bitcoin’s stability depends on its popularity and not on changes in the economic policies of governments or regulatory financial institutions, any rise in demand for this virtual currency will directly affect its value.
According to the director of Civic, a US company specializing in digital tokens identity protection, Vinny Lingham, who was consulted says “Bitcoin has become a reliable value if you live in a market Foreigner and you are worried about your government.”
And not only bitcoin is a lifesaver for developing countries. The rise of other cryptocurrencies beyond Bitcoin is opening other business opportunities.
This is due to the ever-changing economy. The fear of another financial crisis and the use of the current economic model is making people turn to cryptocurrency alternatives. And this is expanding to other fields.
Besides Bitcoin and altcoins like Ethereum, the spread of cryptocurrencies for other purposes is having its own space. For instance.
The launch has been registered as the most popular and successful. No other cryptocurrency has begun with more than 40000 users. This digital cryptocurrency though is intended for the ad world so people can use it for transactions and as a payment option for ad space services, it can generate income since it will enter the market exchange.
In conclusion, cryptocurrencies loomed to be the future of money. But on the other hand, it means that a lot of change has to be done. And in economics, change means profits for some and losses for others.