Cryptocurrencies have the potential to pull countries out of economic crisis, says Chicago Mayor
Cryptocurrencies were created primarily as a potent substitute for fiat currencies. However, exponential speculation led to the price of Bitcoin skyrocket. It reached its peak of $19,700+ in December 2017, which is absolutely insane.
Digital currencies have been criticized all across the globe, especially by conservative analysts and academics. However, their popularity has kept growing steadily till date, has forced governments, as well as giant business corporations to take a deep look at the new kid on the block, though it’s over ten years old now.
Confirming the potential of digital tokens, Chicago Mayor Rahm Emanuel stated that cryptocurrencies have a bright future, and they could save countries from the economic crisis. While speaking to journalists, Emanuel stated that thought the time frame cannot be predicted, cryptocurrencies will definitely rise to be used in the mainstream, especially in debt markets and third world countries.
Emanuel strongly believes that cryptocurrencies are the future, and they will be extremely at the time of economic crisis. He recently stated that five or ten years down the line, when countries figure out how to use cryptocurrencies most efficiently, it will help them stay alive at the time of crisis.
The Venezuelan crisis is an excellent example of what Immanuel is predicting. The South American country had been going through its worst economic downturn, with inflation rates rising to almost unreal numbers. Unemployment and higher prices killed all hopes. This was when some folks figured out that crypto mining can help the country, which it did to a great extent.
People started bitcoin mining and got paid in dollars, about $400-500 a month. The amount, when converted to local currency, turned out to be huge and helped citizens buy their daily essentials. Similar implementations where done if African nations like Kenya, which had inflation rate in hundreds.
Apart from this, since cryptocurrencies are decentralized, they have almost impact of sanctions in times of political distress. This is what Russia has realized, and is now working on launching its own digital token, on facilitating foreign trade without the standard fiat currency, which happens to be the US dollar. President Vladimir Putin has stated that the country’s own crypto coin will be ready as early as July this year.
However, Emanuel doesn’t hold any cryptocurrencies himself. When asked about this, he replied saying that he thinks digital currencies is not for his generation, but the next generation will definitely figure out how to use it.
Ever since it touched its peak in December 2017, the crypto market has witnessed bearish trends throughout last year. In fact, 2018 was one of the worst years for the cryptocurrencies, as many of them lost as much as 90% of their value. Bitcoin, kept falling for six consecutive months, until February this year. It is lost over $15,000 in price and is currently valued at around $4,000.
However, the market is recovering at a steady pace, as the bears have finally left the space. In spite of a nightmarish last year, several business stalwarts have entered the realm of digital assets. JPMorgan, for instance, became the first bank in the United States to launch its own cryptocurrency. Even the mammoth social networking company will soon be launching a stablecoin to facilitate cross-border payments and transfers.
Use of cryptocurrencies for traditional transactions has been a topic of debate for a very long time. Speculations prevent the coins to be used normally, as fluctuation in prices makes them an attractive investment opportunity. Nonetheless, digital tokens have now started to become accessible. With the advent of lower-priced coins, facilitating payments through them. Especially, in sectors like gaming, to pay for value-added services.