The global use of cryptocurrencies

Cryptocurrencies arrived andthey’re starting to escalate positions slowly but quite steadily in the financial worldwith their decentralization feature, becoming the best financial alternative

Crypto as the answer to economic crises around the world

Global economic crises have existed since the origins of society, caused by different aspects such as wars, seasons of the year, natural effects, etc., but when confronting them all, mankind has designed strategies to face them, overcoming them, and then lead the economy to evolution.

The most recent economic crisis that our society has gone through globally was in 2008, and it presented the same behavior, except that the strategy didn’t come from traditional financial and economic sectors, but a group of people interested in these cyclic crises to stop affecting those who have always been the most harmed: common citizens.

Here’s when the birth of cryptocurrencies is presented with the release of Bitcoin, which opened the doors of a world completely unknown to everyone until now.

It’s necessary to understand that what’s most affected during a season of economic crisis is the value of a currency, which loses transaction capacity and purchasing power, leading those who own those assets to lose large figures, and even more when these assets are linked to banks and central control entities.

Crypto and its positioning in the economy

Cryptocurrencies arrived and they’re starting to escalate positions slowly but quite steadily in the financial world with their decentralization feature, becoming the best financial alternative for those who suffered the worst side of the economic crisis for a long timeand the consequences of the unfair and centralized economy that has always ruled society.

They have slowly generated a deep impact on society and the economy. Currently, many people use cryptocurrencies to maintain their capital and avoid inconveniences that could emerge within the world’s financial system. 

There are many studies performed to know more precisely the scope of cryptocurrencies as an economic alternative regarding investments and transactions, most of them agree on that around 75% of the financial industry, including payment services, exchangesand wealth managers are part of the growing group that accepts crypto as a reality that seems more and more inevitable.

All of this happens because the use of cryptocurrencies brings greater implications for the markets because of the versatility and greater advantages that they offer compared to the use of traditional currencies such as instant payments, a minimum tax payment, more privacy for users, transaction security, etc. 

A valuable financial resource for common people 

Regarding the common citizen, it’s estimated that by the end of 2018, the number of Bitcoin wallets created was around 32 million all over the world, and there were approximately 7.1 active users of Bitcoin. Experts calculate that approximately 5% of Americans own bitcoin, and the percentage around the world grows at a considerable speed in numbers that are counted by millions, not only as Bitcoin users, the predominant cryptocurrency but of all cryptos in general.

But these percentages refer not only to users of cryptocurrencies but also to miners, a field in which there is a tendency for famous mining farms to settle in places where energy is less expensive and wherethere are natural resourcesto use energy alternatives with less environmental impact. However, China is still a place with a very high concentration of miners: 75% of the main mining groups are in China and the United States.

The crypto-growth in Latin America

Regions like Latin America are still somewhat behind in terms of crypto-trends, however, the diversification of the markets means that confidence grows day by day and, consequently, the number of people who use this type of currency for their daily transactions.

The areas of the greatest boom are in Mexico, Colombia, Venezuela, and Brazil, where there is growth in the use of cryptocurrencies as currency in various transactions. A fact to highlight in this region refers precisely to Venezuela as a country with a certain concentration of cryptocurrency miners, given the low cost of electricity service subsidized by the government of that nation, and where there’s also an increase in transactions performed with bitcoin through exchanges, because Venezuelans resort to thesealternatives in order tosomehow solvethe shortage of money thatcrisis of that countryhas generated the economic.

Cryptocurrencies have emerged as a perfect alternative for traditional currencies, and the main reason ofthis is becausethat they are inside a decentralized system whose activity isn’t regulated by any public entity. 

The increase in the crypto-transactions and their implementation, along with the arrival of more and more digital currencies leads us to understand that, ultimately, the transformation that this financial alternative has generated in the traditional economy worldwide isn’t temporary, and it’s insteada phenomenon that shows the digitalized future.

We want you to be in touch with us to stay updated with every event in the crypto-ecosystem. Leave your comments and subscribe to our Newsletter to receive more important information.

The areas of the greatest boom are in Mexico, Colombia, Venezuela, and Brazil, where there is growth in the use of cryptocurrencies as currency in various transactions. A fact to highlight in this region refers precisely to Venezuela as a country with a certain concentration of cryptocurrency miners, given the low cost of electricity service subsidized by the government of that nation, and where there’s also an increase in transactions performed with bitcoin through exchanges, because Venezuelans resort to thesealternatives in order tosomehow solvethe shortage of money thatcrisis of that countryhas generated the economic.

Cryptocurrencies have emerged as a perfect alternative for traditional currencies, and the main reason ofthis is becausethat they are inside a decentralized system whose activity isn’t regulated by any public entity. 

The increase in the crypto-transactions and their implementation, along with the arrival of more and more digital currencies leads us to understand that, ultimately, the transformation that this financial alternative has generated in the traditional economy worldwide isn’t temporary, and it’s insteada phenomenon that shows the digitalized future.

We want you to be in touch with us to stay updated with every event in the crypto-ecosystem. Leave your comments and subscribe to our Newsletter to receive more important information.

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