The development of cryptocurrency has been a major change in the way we the world is moving as the disruption to the regular way of life of the people of the world as society moves in new directions. Bitcoin and other cryptocurrencies remain in their infancy with the markets seen as volatile but many financial experts believe this new use of technology will continue to develop and prove a success for the future. Although the main effects on the world are currently limited to the developments in the financial markets, the movement of the economy will continue over the next few years and offer disruption towards many different areas in both a positive and a negative way.
Bitcoin changes the way money is used
In 2009, a paper was published alongside the first ledger by Satoshi Nakamoto who many believe to be a pseudonym for a team of developers working on cryptocurrencies. The creation of cryptocurrencies was one of the most influential moments in the recent history of the financial markets and is still mistrusted by many conservative investment specialists.
For a number of investment experts, cryptocurrency is a new way of working through the financial sector and offers a new way of identifying new markets. In some areas of the world, Bitcoin ATM’s have already begun to pop up while other cryptocurrencies are being created targeted directly to certain sectors of industry. One of the main issues with Bitcoin is the fact the chain of ownership is often easy to follow with Blockchain technology but some issues have already been seen with theft and fraud leaving Bitcoin owners out of pocket.
Housing could soon become the norm
Disrupting the norm can work in two ways, in terms of housing the norm is something many cities across the planet want to change for the better. Across the U.S., cities, and states are provided with housing targets each year for various income levels with the majority never meeting these targets. In California, the aim of building low-income housing for residents to cities currently seeing an influx of tech workers such as the city of Berkeley.
The city council of Berkeley is currently showing how cryptocurrency and Blockchain technology can make a major difference to the lives of millions of people who will pass through the city in coming years. Teaming up with UC Berkeley’s Blockchain Lab is currently working on developing a new cryptocurrency which will be backed by council issued bonds designed to allow purchasers the chance to use them with companies across the city. The disruption caused by this form of cryptocurrency will have a positive effect on life for the residents of Berkeley as the funds raised will be used for the constriction of affordable housing.
Cryptocurrency has the power to disrupt the medical sector
The effects of the arrival of Cryptocurrencies and Blockchain are already being felt across the medical sector as the security abilities of the latter technology is seen as a perfect way of ensuring the safety of medical records and documents. Blockchain technologies are thought to be the most secure and can be viewed at various points along the chain with many different databases needed to allow a change to a document at any time. A positive for the medical sector is the fact it is easy to look back over the life of a patient and see every document regarding their health at any time. The security aspects of Blockchain also allow a lower level of fraud to be completed regarding identity theft when the software is used in the correct way.
Both a positive and negative aspect of the arrival of cryptocurrencies in the medical sector is the growth of various new currencies used for the marijuana markets. The fact the sale of marijuana is still illegal at federal level means the dispensaries of states where the drug has been declared legal means banks and credit unions cannot open bank accounts for such dispensaries. The marijuana altcoin has already been introduced and is allowing dealers of both the legal and illegal kind to legitimize their business endeavors.
Problems in the economy
The positive effects of cryptocurrencies are not in doubt but there also some negatives which could provide issues for the economy of any single nation and the world as a whole. One issue which is causing problems for lawmakers across the world who must make decisions about the regulation of Bitcoin and its sister currencies is the fact cryptocurrencies can be traded across borders without regulation. The fact billions of dollars can be removed from the economy because of fraud and various criminal activities.
Blockchain technologies can attach documentation to each and every coin being created but for the criminal gangs of the world, the lack of border controls for sales and transfers makes this a perfect way for payments to be made. Cryptocurrencies have already become a major form of payment for users of the dark web, a portion of the Internet hidden from the majority where nefarious deals and actions take place. Allowing these criminal factions of society to take control of a major part of the financial future of the world drains money from the global economy and disrupts the development of the global economy in the way it was originally designed to be used for.
So far, the cryptocurrency markets have remained marginalized from the main financial markets because of the fact many investors and politicians have yet to completely trust the Bitcoin and cryptocurrency markets. The future of the cryptocurrency markets will make it possible for business investment in any part of the world connected by an Internet connection to receive investment from major companies around the world. The anonymous nature of cryptocurrency allows both positive and negative effects to take place as the successful completion of various financial transactions can take many different forms. Instability could be an issue with money used in cryptocurrency markets not taxed at local level removing the possible funds for community projects which make a difference in the lives of people across the planet.
Guest Author Bio
Adrian Rubin is a technology expert who has recently become involved in the “Internet of things” and Bitcoin. Adrian Rubin is a leading writer and investor in technology-based options.