Discussion Board

How does Cryptocurrency Affect the Global Economy?


This article goes very well with the group project my group chose to do for Econ 6644. I goes into the various ways cryptocurrency can help and hurt the global economy. For one it knocks out the middleman when it comes to money transfers and storage. When you transfer or hold money at an establishment such as a bank, fees are generally tacked on to these services. With cryptocurrency these fees are erased. This will help consumers because they will end up saving money that they would have lost to bank fees, but can also end up hurting banks if this gets too popular because they will start losing income they were getting through these services. Another issue that can arise from cryptocurrency is it will start to compete with the USD. The USD is part of the backbone of the global economy and many have tried and failed to bring it down. Right now cryptocurrency is starting to beat the USD and many are wondering what affects this will have on the global economy. Finally, cryptocurrency will help support the global economy by allowing new ways of payment. This will allow people to purchase goods and services worldwide much easier helping the global economy. Whether you think cryptocurrency is the way of the future or detrimental to society it is growing in popularity and it is good to have some background information on what it is.

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