Two views have prevailed when discussing cryptocurrency usage. There are supporters of using virtual assets, and there are also those who question their dependability.
According to the report posted online by Indian news outlet NDTV.com, while these two perspectives dominate the cryptocurrency realm, they both guarantee that the existing global financial system will continue to change and advance in leaps and bounds.
We want to share this informative news article with our readers. We believe they will feel enlightened about how the world perceives cryptocurrency usage in general and where this financial phenomenon will lead.
The NDTV.com article affirmed that supporters of cryptocurrency usage maintain that the crypto-asset’s lack of regulation makes it a democratic financial instrument. Plus, they believe using virtual currencies promotes financial inclusion.
This argument applies to developing or poor nations at an unparalleled rate, per cryptocurrency usage proponents. They explained that cryptocurrencies facilitate financial inclusion because they increase transparency during transactions.
Most cryptocurrency usage supporters appreciate these digital assets’ ease of use when trading and transacting. They also favor these crypto-assets’ other advantages, such as the decentralized ledger system, low transaction cost, and inflation-beating capability once held as a store of value.
The NDTV.com article cited El Salvador as a nation whose leadership is a strong cryptocurrency usage supporter. The Central American country is the first-ever territory to adopt Bitcoin as legal tender alongside the US dollar in the second half of this year.
Additionally, the article mentioned territories contemplating the development of their own digital currency, which is a central bank-backed digital currency. As for the business world, the NDTV.com article cited corporate organizations supportive of cryptocurrency usage as favoring these virtual assets for facilitating smooth business transactions.
Additionally, these business organizations believe virtual currency usage diminishes regulatory oversight. Meanwhile, cryptocurrency usage skeptics maintain that cryptocurrencies will adversely affect the global economy, specifically the poor nations.
They argue the negative effects of cryptocurrency’s novelty, lack of regulating authority, and the crypto-assets’ extreme volatility that it demonstrates regularly. Cryptocurrency usage pessimists also point to the trust issues among virtual currency users and the removal of intermediaries like banking institutions as red flags.
Regarding cryptocurrency usage, we agree that the financial world, indeed, is torn between two perspectives at this point. Some people and entities question crypto-assets’ reliability as a financial instrument, and some believe in its feasibility.
Despite these contending views, which either make an individual, business, or nation adopt or reject cryptocurrency usage, we believe that this phenomenon clearly demonstrates that the international financial system will not be the same as before.
We will no longer be confined to physical, financial instruments such as fiat currency, credit and debit cards, cheques, and the likes. With the increasing phenomenon of cryptocurrency usage worldwide and regardless of the two prevailing views, we believe that crypto-assets are here to stay and will completely revolutionize the financial system.