The Effects of Cryptocurrency on the Economy and Why You Should Invest Now

Lea Green

How far are we ready to go digital? We all know at this point that our future is going digital. There is no escaping it, what we need to know now is what happens next, and how does that affect me?

Crypto; Short for cryptocurrency, is a digital currency that is exchanged for goods and services; maintained by a decentralized system.

This means bad news for the government, because it means that we (as citizens) can undermine the authority of government; in the next few years, it could uproot the current financial system.

According to The capital, “Cryptocurrencies have the ability to accelerate global social and economic development by facilitating access when it comes to purchasing resources and benefiting from financial services, especially in developing countries. This implies that less developed countries are more likely to engage in financial markets and improve their own economic and social status.

Medium adds, saying, “This will save people billions of dollars and accelerate the socio-economic development of countries like Guatemala which receive more than 10% of their GDP each year through remittances.” Most of this technology has already been used in other places. In the Bahamas, they have their own currency called “Sand Dollar”. Since its launch in October 2020 it was a great success. Small businesses incur less fees on bank fees, and that’s covid safe.

For business owners, now is the perfect time to start using crypto. A study by BusinessWire found, “There are four main conclusions based on interviews with four traders who accept bitcoin and other cryptos. First, up to 40% of customers who pay with crypto are new to the merchant. Second, the amount of purchases is double that of credit card purchases. Third, crypto is cheaper than credit cards, and finally, there is no chargeback associated with fraud.

These days, the big chains are using bitcoin, a type of crypto, to allow people to buy things in the United States, such as a homedepot. Starbucks, Wholefood, Expedia.com, and Twitch. These are all businesses that people use for daily events and needs. While being able to maintain confidentiality and security.

For consumers, investing in cryptocurrency is the best thing you can do for yourself and your future self. It allows for long-term assets and wealth.

The money you make trading on the stock market earns you interest, so you basically get paid as your stocks go up. With discipline, patience, intelligence, and a desire for financial security, anything is possible.

Roger Ma, certified financial planner at lifelaidout and author of “Work Your Money, Not Your Life says,“ What we’ve seen over the long term, for long holding periods, is that stock market returns have generally outperformed other asset classes.

CNBC experts say “Financial experts generally recommend Only put in cryptocurrencies an amount of money that you can safely lose – in other words, that shouldn’t be all your nest egg. As a general rule, having 5% of your portfolio in a high risk asset such as bitcoin or other coins is a safe rule of thumb.

Others, like The Times UK suggests ask yourself a series of questions before you even invest. “Do I understand what I am investing in? Am I satisfied with the level of risk? How much more expensive now compared to a few months ago? Is there any evidence to suggest that prices could go up even more? If I buy it now with a view to selling it even more expensive later, who do I think will buy it at this higher price and why? If an asset is so big, why wasn’t I interested when it was so much cheaper? If billionaires are investing in crypto, the question you need to ask yourself is why am I not?

Bitcoin changing overtime

Using crypto right now could be a big risk, as we don’t know much or where it could go; we know. This new age technology is on the rise not only for independent users, but for entire countries. The cryptocurrency is going to end up on a good upswing for the economy and you don’t want to be the last. Invest now and thank me later.


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