The rise of Bitcoin (BTC), the most widely used digital currency in the world, is imminent in an economic crisis that devalues the conventional currencies of Asian, European and American central banks.
Only in 2016, cryptocurrency increased its value by 125% to reach 1,127 USD per coin. According to statistics from the Blockchain platform, it has almost reached a record of $ 1,151 at the beginning of December 2013.
Experts attribute Bitcoin’s success to a number of causes: the war on paper money, the fall of the Chinese currency (the yuan) and the uncertainty over the value of the dollar with the recent US political drama surrounding Donald Trump.
For example, the yuan fell by 7% last year; That’s why most bitcoin transactions occur in China.
The Asian concern about the devaluation of the yuan against the rise of the BTC is such that the Chinese authorities are planning to restrict the national exchange of bitcoins.
Today, Chinese citizens can spend up to $ 50,000 a year, but it is possible that some have already surpassed that, and you see this massive exodus of money which is why China wants to regulate the Bitcoin exchanges.
On the other hand, there are some examples of demonetisation (to remove some coins and notes from circulation) that increase the value of cryptocurrency.
According to some sources, India is the most prominent country of this phenomenon: as a flag to fight corruption and money laundering, India has already issued 500 rupees (about 7 dollars) and 1,000 rupees (about 14).
It seems that the measure has been running for a month and the queues of banks to exchange these bills are long, so that many companies are looking for alternatives to economic transactions in a country where the economy is mainly based on liquidity to protect their assets.
In Venezuela, the government has also announced a legal withdrawal of 100 bolivars, which could also lead Venezuelan investors to change their money for virtual currency.
Is this virtual currency stable?
Since the stability of bitcoins depends on its popularity and not on changes in the economic policies of governments or regulators, any increase in demand for this virtual currency will directly affect its value.
According to Vinny Lingham, director of Civic, an American firm specializing in digital identity protection, “Bitcoin has become a reliable asset when it lives in a foreign market and worries about its government.”
And not just Bitcoin is the lifeline for developing countries. The rise of other cryptographic currencies beyond Bitcoin opens up new business opportunities.
This is due to the ever-changing economy. The fear of a new financial crisis and the use of the current economic model are pushing people to turn to crypto-monetary alternatives. And this extends to other areas.
Besides Bitcoin and Altcoins like Ethereum, the distribution of cryptocurrencies for other purposes has its own space. For example, AdsCash is the leading cryptocurrency for the advertising industry.
The beginning was recorded as the most popular and successful. No other cryptocurrency has started with more than 40,000 users. However, this digital currency is aimed at the advertising world, so that people can use it for transactions and, as a payment option for advertising space services, it can generate revenue when enter the market. So, how to make money with AdsCash will allow another economy to enter the decentralized cryptocurrency.
In conclusion, cryptocurrencies turned out to be future money. But on the other hand, it means that many things need to be changed. And in economics, change means gain for some and loss for others.