The very idea of a cryptocurrency, especially one as big as bitcoin creates a lot of tension as a lot of economic activities and financial operations have already being disrupted since its rise. It has affected the way banks operate and this has made governments and financial institutions wary of the economic powers they have and how crptocurrencies will change all of that in the nearest future. The several ways in which bitcoin is affecting the economy, banking and finance are:
- Money politicization – bitcoin being a cryptocurrency is decentralized and not under central banks and so the transactions on bitcoin cannot be monitored or regulated through central bank. This shifts the economic power they had from the government to the masses.
- Encouraging the dark web – the dark web is where activities such as the finding of weapons, assails and many illegal stuffs, and as such, you cannot easily access the dark web just through the search engine and can only be found with special software and browsers which allows you to delve deeper into the internet. With the emergence of crypto currencies, transactions on the dark web can be made and these illegal buyers and sellers of illegal stuffs will remain anonymous, therefore, bitcoin is seen as one of the available ways in which power is given to them and this will eventually lead to more cybercrimes.
- Speculations and gains – this usually isn’t bad news for the masses, but the steady rise and fall of bitcoin value has proven to be a thing of marvel, but since its inception, it is certainly more on the rising edge than otherwise and this has made people to give speculations of gains on their investment, as the opportunity to invest very little and gain incredibly large is something very juicy to the masses and naturally knock others opportunities of shares and stock out of the way.
- Anxiety among central banks – Bitcoin is unpredictable and uncontrollable, this has made it difficult to monitor moneylaundering across the globe by the central banks, weakening their powers on financial matters as regards digital currencies.