I believe that cryptocurrency will have significantly positive consequences for global society. Cryptocurrency has the ability to completely change the way global business is conducted. With a universal currency, there are no needs for intermediaries, such as banks or wire services, and goods and services can be traded and exchanged like never before. An article by Medium.com details the many benefits that cryptocurrency will have with respect to transferring payments. They write “cryptocurrencies are making international payments and transfers easy, secure, hassle-free and fast. Individuals and companies are finding the utilization of these digital currencies beneficial as the transactions are done almost immediately without any hefty documentation.” An article by National Geographic mentions how “Western Union’s profit margins are enormous for an intermediary, nearly 16 percent, and most of its costs are devoted to the technologies moving money from one place to another, guaranteeing the legitimacy of the transfer. In short, Western Union spends and earns billions to do what Bitcoin does for free.” This will change the lives of many individuals because, with the low fees to send payments, individuals can begin to trade goods and services with anyone around the world, opening up completely new markets.
Another reason that cryptocurrency is the currency of the future is because cryptocurrency coins like bitcoin are secure and impossible to get hacked. Because everyone has access to the current ledger, there is no way to fake transactions or manipulate the value of the currency. Also, because most cryptocurrencies are decentralized, a country’s current economy will not have an effect on the value of the cryptocurrency. This will give every country an opportunity to participate in globalization no matter their economic standing.
There are a number of challenges that could arise from switching to a universal currency and one of the biggest would be developing some sort of global regulation for the currency. Another challenge would be finding a way to manage the highly volatile prices of cryptocurrencies. If solutions to these challenges can be derived, cryptocurrency can tremendously encourage globalization.
– Tumie Hurd