When Bitcoin tax emerged, their main objective was to function as an instrument that would help the economic and financial crisis that any country in the world could go through.
Bitcoin is the lifeline of economies.
As we know, inflation is one of the macroeconomic factors that causes the most damage to world economies; therefore, the citizens are the most affected.
Countries decide to take drastic measures in favor of the economy of their lands without considering that the most affected are always the inhabitants.
Faced with the crisis experienced in 2008, it was the right moment for Bitcoin to make its appearance to demonstrate that as a decentralized digital currency, it could contribute to the balance of the economy.
Unfortunately, at this time, the expected effect was not given since it represented a technological element of little reliability for its future users.
The initial value of Bitcoin did not reach 1 dollar per unit, which sponsored less profitability.
Over the years, the convertibility of Bitcoin and other cryptocurrencies as a means of payment and financial savings instrument has been strengthened, increasing its value and its possibility of growth in terms of positioning.
Digital currencies, although they are not tangible, represent a solution for the constant issuance of cash or Fiat money as a measure of pressure to reduce inflation.
We know that these crypto actives do not have any asset backing. Still, it is interesting how instruments have been created in countries where they legalize the use of cryptocurrencies leveraged on natural resources or tangible assets that give these virtual currencies more significant support.
Financial security and confidence
Thanks to the fact that they work with encryption methods through the blockchain, Cryptocurrencies allow their users to guarantee the security of transactions by validating the procedures without the need for a financial or government entity to intervene in this process.
Although the leading cryptocurrencies are Bitcoin, Ethereum, Dogecoin, and Tether, it does not mean that the others do not work or are not necessary.
Each cryptocurrency is born from the need in the market to cover the supply and demand of some good or service.
Cryptocurrencies offer many benefits; over the years, more users have joined the blockchain to invest or take advantage of the fact that digital currencies can work as payment methods through the Internet.
There are many ways in which cryptocurrencies can be used today; even financial entities consider joining this digital market. However, it is still difficult for them to accept that cryptocurrencies do not have legal support.
We have seen how countries like Venezuela have created their token called Petro, which, in addition to fluctuating freely in the market, offers its investors the support of Oil and the mineral wealth that this country possesses.
Although the idea may be crazy, cryptocurrencies contribute to the economies so that they can come out afloat in a decentralized way and without having to go into debt with the International Monetary Fund.
The confidence that the P2P platform generates for its users would benefit the economies by eliminating the high commissions that correspond to financial institutions for monitoring transactions.
Currently, we can see the impact of cryptocurrencies during the war between Russia and Ukraine; both nations are trying to save their economies and avoid further stagnation through digital currencies.
This situation has caused cryptocurrencies to decrease in value since their users disagree that blocking measures are a method of pressure for Russia to lower its weapons. Therefore, they do not influence the normal development of the economy of the Russian country.
Benefits of using cryptocurrencies in economies
There are many advantages when using cryptocurrencies as a financial tool; let us remember that during the COVID-19 crisis, the refuge of many citizens was to invest their savings in cryptocurrencies.
From this moment, Bitcoin and its similar4es began to have a more significant impact since the returns are greater than those of working in a traditional company earning a minimum wage.
The fact of being able to offer a tool that helps countries to extinguish crises, where reinvestment generates higher returns avoiding the escape of capital through the payment of commissions because we must be clear that the funds that manage the finances of a country. These commissions must be juicy.
Conclusion
The socioeconomic impact that has had on the use and management of cryptocurrencies has benefited the countries and private families, and investors who intended to acquire cryptocurrencies as a savings refuge and revaluation of their capitals.
