When Satoshi Nakamoto introduced the Bitcoin White Paper (BTC) more than a decade ago, it was hard to imagine the role the cryptocurrency sector would play in global finance. Some argue that the invention of blockchain technology can be compared to the revolution brought about by the invention of the Internet in the 1980s. Started as a niche for tech enthusiasts, in just 12 years Bitcoin has become a serious player in the financial arena, and the market cap has approached Google, one of the world’s biggest tech giants.
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One reason for the growing popularity and growing interest in cryptocurrencies is that the technology that is the backbone of cryptocurrencies promises greater economic inclusion compared to the traditional economy. This is especially important for developing countries and emerging markets with rapidly growing economic potential – areas with promising potential for mass adoption of cryptocurrencies. Although blockchain may not solve all of society’s problems, it is the society behind the industry that must address the factors that cause economic isolation. The cryptocurrency industry, which is asset-centric and community-led, emphasizes diversity and inclusion, including contributions from women and the LBGTQ + community.
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The widespread public debate about cryptocurrency continues to plague the infamous reputation of the Silk Road saga and the ICO madness in 2017 – 80% of the first cryptocurrency offerings turned out to be scams. Meanwhile, with the attractiveness of the younger generation, which will soon become the most important engine in the global economy, the cryptocurrency is definitely gaining momentum. Just last year, PayPal, the world’s largest payment processor, announced that it would allow its customers to buy, sell and store cryptocurrencies, and demand for the service was higher than the company had expected.
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Also in the past year, the world has witnessed the rise of the decentralized financial industry, with some even claiming that DeFi will complement what Bitcoin started, proving that it is “a guarantee of a better and freer future”. DeFi has become a symptom of a veritable shift from centralized to decentralized services, which has led to massive innovation and growth in Web 3.0 protocols and the demand for a decentralized Internet. With the old economic system rotting and decaying, we have seen an unprecedented amount of money printing governments around the world in the midst of the COVID-19 pandemic. DeFi drives the prospects for a paradigm shift and promises not only the democratization of money, but also the democratization of finance, which marks a major shift in the banking path in the future.
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Due to its decentralized nature, the cryptocurrency industry is and will not be a local trend – the changes it is causing in the economic landscape are global. As central bank digital currencies, or CBDCs, are being explored by governments around the world and by many institutional actors such as MicroStrategy, Mastercard, Bank of New York Mellon, Tesla and many other companies entering the market, it seems inevitable that The global economy should be. a favour. The cryptocurrency and its underlying technologies are not going anywhere. These examples also show clear signs of maturity in the industry.
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Meanwhile, not all countries treat cryptocurrencies the same way: India has had a complex relationship with the cryptocurrency field for quite some time; China is leading the way in developing the Convention on Biological Diversity; The European Commission proposed its rules for cryptocurrency markets, which raised concerns in the cryptocurrency industry; In the United States, where the cryptocurrency space hopes to conclude new agreements in the administration of President Joe Biden, regulators are tightening cryptocurrency belts. Cointelegraph decided to reach out to China’s blockchain and crypto experts to express their views on the following questions: What role will new technologies such as blockchain, cryptocurrency and DeFi play in shaping the future of finance in the world in general and in China specifically?
Bobby Lee, Founder and CEO, Ballet:
“I think the way blockchain and cryptocurrency changed the economy around the world was really to introduce a whole new asset class. Traditionally, there was only gold and silver in the world. After that, we invented paper money, which became currency, and it was a new asset class.