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Blockchain, a Digital Financial Revolution

Digital transactions are increasingly positioned; they have diversified, even allowing wealth to be obtained by people who have never invested in assets or the stock market in their lives. Cryptocurrencies based on the blockchain are considered the most relevant invention of the 21st century.

Vickie Sung

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Society is used to seeing money as a means of exchange for acquiring some good or service or the form of payment for a service or work activity against the provision.

From the moment paper money was created and introduced into society, no advances or changes have been observed that allow the system to be modified since it has not been modified since it was implemented.

This element makes the idea of venturing into a digital financial system attractive in which those who have the power to execute transactions are the users and not the financial entities or the governments as control and supervision entities of the operations.

Digital transactions are increasingly positioned; they have diversified, even allowing wealth to be obtained by people who have never invested in assets or the stock market in their lives.

Traditional money passes from one hand to another without any modification; only in some cases is the graphic modification of bills and coins usually observed, but, in general terms, they remain the same more than 100 years after their creation.

Cryptocurrencies based on the blockchain are considered the most relevant invention of the 21st century. For trading in cryptocurrencies, always choose software like bitsoftware360.com.

The possible forms of money in the future

We are facing a process of reconfiguring not only traditional currencies but financial systems and the economy in general. In addition, technological proposals are displacing traditional methods where digitization is the goal.

The blockchain is here to stay; it is not a project that was archived or a limited group only knows that of people; the new finances are decentralized, and as proof of this, the large number of companies that support their operations in a decentralized protocol utterly different from the that we are used to.

As for the forms that the figure of money possibly takes, it could be considered that there are two elements to consider. First, the blockchain is the basis of the entire financial ecosystem, allowing the future of payments to be digital.

Secondly, the visualization of money in three forms is established as follows:

  1. The digital currencies or currencies, which will be, as its name says, the digital version of the Fiat currencies, will be stored by the Central Banks of each country cryptographically.

  2. Stablecoins will allow market stability by reducing the volatility of cryptocurrencies since their price will be linked to some Fiat currency.

  3. Elementary cryptocurrencies such as Bitcoin, a purely digital currency, change their price due to the free action of supply and demand, which makes the market more vulnerable and volatile.

Dollar, Yuan, and Euro digital

After the excessive intentions of governments to control the cryptocurrency market, they have seen the prevailing need to create financial instruments from a digital perspective that contribute to improving their economies.

Due to the high inflation rates registered during this year, 2022, and under these circumstances, governments are forced to take extraordinary measures in favor of their finances that keep their economies stable.

China was the first to create the proposal for a digital currency; later, the United States joined, and possibly by the year 2025, Europe could be entering the digital currency market, all under the supervision of the Central Banks.

All this is because society is becoming much more familiar with technology and the use of banking and financial systems from their digital platforms.

Users of the traditional financial system demand simple payments and transactions with fewer actors involved, making the processes more centralized and complex.

Read also: Will 2023 Be The Year Of Recovery Or The End Of Cryptocurrencies?

Growth of the digital market

The evolution of the Internet and the new decentralized finance proposals in which DApps enter have made the digital become every day; that is to say, there are more and more transactions that are executed digitally compared to the traditional way of making transactions.

E-commerce gave way to the use of payment methods that make users' lives comfortable since they can purchase a product from home or anywhere in the world without having to be in a physical store.

Just as commercial and financial operations have been diversified with the use of technology, money could also be in an evolutionary phase where the users themselves will be the ones who determine its future.

Conclusion

New technologies such as blockchain are contributing to the evolution of cryptocurrencies and the global market in general because many sectors are making massive use of this technological contribution.

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