The global economy was given a shock in 2008 when the Website Bitcoin.org was registered and a paper was released by a then-unknown technology expert, Satoshi Nakamoto detailing the launch of a new Web-based currency called Bitcoin. Whether Nakamoto is an individual or a pseudonym for a group of developers, the launch of Bitcoin made the name of the inventor and sent shockwaves through the financial markets, which seemed deficient in conceptualizing and even less capable of grasping the idea of a cryptocurrency.
Soon after its launch, the first Bitcoin trade took place with coins used to purchase two pizzas which now seems like a strange starting point for a currency rated as being worth more than $11,000 per coin at the close of 2017. On the global scale, the launch of Bitcoin and the more than 1,000 newly launched cryptocurrencies available across the Internet has made a major impact on financial markets despite many of the traditional financial institutions still refusing to deal with this new way of making money which has no physical value but survives in the digital domain, according to Quora.
The aim of Bitcoin and most other cryptocurrencies is to create a form of currency which is free from the problems of credit which have blighted developing economies throughout the 20th Century and restricted the growth of many nations. In the U.S., JP Morgan Chase CEO, Jamie Dimon has been a major critic of cryptocurrencies and is rumored to have stated he will terminate the employment of any trader accepting payment in cryptocurrency. This highlights the distrust many individuals with a background in traditional markets have over what they see as an interloper in their industry.
By removing credit from the financial markets of cryptocurrencies the developing nations of the world are given the opportunity to build a strong economic future based on the growth of cryptocurrency trading. In many areas of trading, developing nations lose the majority of their profit to paying back debts and loans to institutions in the developed world but can improve their own economies through trading in cryptocurrencies which are largely unregulated, Coin Stocks reports.
Traders from developed countries and government officials from smaller nations are now looking to seize the opportunities offered by the rise of cryptocurrencies to stake their claim as the home of these Internet-based trading opportunities. The vacuum which is developing in terms of government agencies regulating and officiating the trades of cryptocurrencies is offering opportunities for countries such as the island nation of Malta to seize the chance to become global leaders in the cryptocurrency markets.
Not only is the rise of cryptocurrency providing a boom for technology experts, but it is also looking to extend its reach into areas of the world where the need for a more environmentally aware approach to the markets is needed. A good example of this is many countries across Asia, particularly India, where the lack of power needed beyond creating the energy to power mining technology is seen as a major source of success for the future of the cryptocurrency markets. Developing nations who often struggle to build the infrastructure needed for the largest investments and deals taking place across the planet can embark in cryptocurrency mining with only an investment in the equipment needed to run the complex algorithms required to mine digital currency.
For smaller, developing nations to take a lead role in cryptocurrency development the need to act quickly is obvious as major nations are now looking to become more closely involved in the development of cryptocurrencies. The launch of the CryptoRuble and Belgium’s decision to recognize cryptocurrencies means regulation of the markets will soon follow unless members of the developing world work with developers to create markets which remain decentralized.
There have been some who have voiced concern about the rise of cryptocurrency including those who warned of the potential for hackers to steal funds such as the $400 million stolen from Japan’s crypto markets as reported by The Guardian. Other potential issues have been mentioned including money laundering opportunities but the use of Blockchain technology is hoped to eliminate these issues in a peer to peer network which should eliminate the potential for major money laundering operations taking place across the markets.
As the use of cryptocurrencies grows and the potential bubble of the market evaporates a higher level of success is achieved for those who believe in these markets as an area of growth for the future. Blockchain technology also has the ability to make major changes to the markets as a whole in the 21st Century and beyond.
Noelle Neff is an accomplished journalist, avid photographer and Yonkers Tribune Technology Editor. She has covered a panoply of disciplines and topics but has developed a particular interest in technology and how it affects our everyday lives. Noelle believes that while technology is intended to make our lives easier, it also presents unique challenges as to how we interact and impacts how we view the world around us.