{"id":4207,"date":"2020-11-22T14:02:42","date_gmt":"2020-11-22T14:02:42","guid":{"rendered":"https:\/\/atozcrypto.org\/?p=4207"},"modified":"2020-11-22T14:02:42","modified_gmt":"2020-11-22T14:02:42","slug":"3-problems-cryptocurrency-solves","status":"publish","type":"post","link":"https:\/\/atozcrypto.org\/3-problems-cryptocurrency-solves\/","title":{"rendered":"3 Problems Cryptocurrency Solves"},"content":{"rendered":"
<\/a><\/p>\n Many ask what are the real world issues that cryptocurrency solves? What does it provide which will alter the course of our currency path?<\/p>\n We also see the quest for the “killer DApp”, an innovation that will instantly bring crypto to the forefront of humanity.<\/p>\n At the moment, Bitcoin, along with Ethereum, are blasting off. Much of this is speculation, especially since neither chain is capable of handling anywhere near the number of transactions the present system does.<\/p>\n That said, there are some solutions that cryptocurrency provides which is fundamental to forward progress.<\/p>\n Markets require liquidity to operate. This is something that comes as no surprise to anyone. Those who traded know how difficult it is to be in a non-liquid market. It is hard to make any forward progress when liquidity is lacking. This can cause large drawdowns.<\/p>\n The same things happen to economies. This is especially true in those nations without thriving economies. Often, those populations are engaging in commerce with both hands tied behind their backs. They lack access to reliable banking services which puts them in a cash-only\/barter type system. At the same time, they usually have to deal with corrupt regimes which make things even more difficult due to thievery. This normally results in a lack of confidence causing the currency to collapse, making the situation unbearable.<\/p>\n Cryptocurrency has the opportunity to add the require liquidity. Since all monies are directly in the hands of the users, the population could have uninterrupted access to their funds. This will allow for the free flow of commerce, outside the hands of corruption. A population could see the equivalent of millions of dollars pumped into their economy daily if enough people were involved.<\/p>\n Poorer nations are not the only ones who require liquidity. With a growing global population along with the economic impact of technology, extreme downward pressure is confronting the monetary system. Thus, an injection the likes that were never seen before is required. It is unlikely that politicians and central banks have the stomach for it. Cryptocurrency is the ideal lubricant for an economy that is often locked up due to a lack of liquidity.<\/p>\n <\/a><\/p>\n The most resilient economies are those which are the most diverse. It is through this diversification of products and services that an economy can better weather the inevitable pitfalls that come about.<\/p>\n This is not true for those economies which are dependent upon a few products. Some rely upon bananas, oil, precious metals, or tourism. These economies are in trouble of there is a drop in global demand or prices crater.<\/p>\n Cryptocurrencies provide resiliency to those economies that are married to only a couple markets.<\/p>\n We see the industries that crypto is penetrating starting to expand. There are opportunities popping up on a weekly basis. Individuals are able to enter into a lot of different fields through the developments in cryptocurrency.<\/p>\n For example, SingularityNet is a blockchain based AI platform that allows anyone access to this technology. As the ecosystem grows, the AI projects that are developed start to work together. Countries that are lacking in AI development can simply join the network and make an offer for what is needed. All this is done through cryptocurrency.<\/p>\n Suddenly, some of the world’s greatest AI experts are available to those countries that are dependent upon a few products. This could offer the opportunity to reformat their economy as individual businesses start to implement these tools.<\/p>\n This process can help to make the economy more diverse. When one market is hit, there are others to keep offering economic benefits. This wider breadth provides more stability.<\/p>\nCryptocurrency Provides Liquidity<\/h1>\n
Cryptocurrency Provides Economic Resiliency<\/h1>\n