Hi crypto enthusiast! Hope you are staying safe!
Do you know that even before Bitcoin, there was cryptocurrency? Do you know that in the late 1980s (an attempt of) cryptocurrency happened in Netherlands, where petrol stations operators were reluctant to operate their stations in the more remote areas because these stations were being raided for cash, so they were no happy to have employees working as it would put them at risks, but trucks need refuelling and they need the business. So, smartcards were loaded with money, introducing electronic cash. Trucks’ drivers were given these smartcards to avoid cash being used, promising safer surroundings of the petrol stations. This eventually became known as Point of Sale or POS.
Just like that, the world has changed with cryptocurrency!
Let’s look at how cryptocurrency has impacted our society, economy and environment. I know, you must be surprised when you read that ‘environment’, but yes, cryptocurrencies do have environmental impacts, read to know more!
Cryptocurrencies biggest effect on society is definitely providing possibilities to decrease developmental barriers. Cryptocurrencies are overcoming the lack of social trust and increasing the access to financial services. Financial fraud, corruption and malpractice is easily avoidable allowing growth as it ensures financial inclusion by providing traceability, authenticity and tamper proof procedure.
In addition, since cryptocurrency eliminates the need for third parties like intermediaries, society has realised how transactions conducted should take lesser time and costs lesser. Intermediaries have significantly caused transactions to be delayed and costly. There are also issues of how small amounts are hard to be transferred with fiat especially areas with geographic challenges. Cryptocurrencies offer borderless independent transactions.
Do you still carry cash? With the pandemic, it is just safer to opt for cashless transactions. The biggest cryptocurrency has on the economy is definitely providing alternative (and easy) payment methods.
Also, cryptocurrencies allow businesses to receive payments in more currencies. Businesses everywhere get better financial coverage and a liberated financial connection with the rest of the world. Now, cryptocurrency platforms are also providing merchants with features where consumers or even business options to easily redirect their needs for purchases or payments for different currencies AND cryptocurrencies in the same platform. The processes are so seamless, you might not even opt for cash for your business anymore!
Are you familiar with cryptocurrency mining? Mining in the cryptocurrency industry is the process of verifying the blockchain, it involves hard math called hashing (commonly done by computers) and results in a slow accumulation of resources. Why do people mine cryptocurrency? If done correctly, with a lot of luck, you’ll receive rewards. Do you know that cryptocurrency mining consumes a lot of energy that causes increased carbon emissions and climate change. Bitcoin mining for example, due to the needed computations for mining, uses as much energy in one year as the country of Argentina! For context, Argentina’s estimated population in 2019 is 44,938,712 … GASPS!
Fortunately, more cryptocurrencies are now understanding the importance of environmental sustainability, like developing a cryptocurrency with proof-of-stake mechanism as it requires lesser computing power and energy.
As usual, with developments, there are always issues and not long after, these issues can be solved and if not, much better alternatives are created. That’s the beauty of technology, almost every time, a new technology is created to overcome issues at hand, providing solutions to the world. Is it not amazing that we are now economically better because someone in a petrol station in the Netherlands thinks of cryptocurrencies? How different would you think if cashless payments were never invented? Comment down below!