Currently, technology has impacted the lives of people, mostly positively generating changes that increase the quality in all sectors of the population. According to World Bank figures, poverty is declining and extreme poverty is below 9% worldwide. The Internet has been the precursor of the last industrial revolution called the 4.0 revolution, which marked the arrival of B=big data, artificial intelligence, machine learning, and others. Kimberly Rosales, an expert in the growing era of cryptocurrencies, explains how these digital currencies have also been a fundamental tool for finances to continue to rise in a positive way.
It is no secret that these companies have taken advantage of these constant technological changes to grow their competitive advantages. This, as a consequence, improves their profitability by developing innovative products for all the inhabitants of the planet, leveraging on the current globalization. It is no coincidence that the five largest companies in the world by market capitalization, four companies are dedicated to the development of technology.
“These changes have impacted all sectors of society and finance does not escape it. They introduce the creation of new financial instruments to help get maximum benefit to investors and so in these times emerged cryptocurrencies being the most famous and well known the so-called Bitcoin (BTC), based on blockchain technology,” explains Rosales.
BTC is a financial instrument considered a high-risk asset used for speculation, being this crypto the one with the highest capitalization, which is estimated at more than $886 billion to date. This amount is higher than the capitalization of the famous electric car company Tesla. Another important fact is its profitability, which at least this year has had a return to date of 62.99% approximately. This makes BTC one of the assets with the best performance of the current year.
“It should be noted that the idea here is not to stimulate investment but rather to understand how technology can help us improve our lives. The adoption of cryptocurrencies is increasing. Countries like Venezuela and Argentina are the leaders in LATAM in this process. Voluntarily, the citizens of these countries decide to make financial transactions in cryptocurrencies and not by government decrees as it is in the case of El Salvador,” Rosales clarifies.
In both Argentina and Venezuela, for example, there are exchange controls and aggressive inflationary processes. Most of their people seek to protect themselves in major currencies or receive help from their relatives abroad by sending remittances, being cryptocurrencies the tool that helps to jump the exchange fence.
The remittance business led by Western Union at a global level is threatened by the advance of the use of cryptocurrencies due to some advantages of doing them through these. The transactions take less and less time to complete. Making use of these platforms is not very complex, and registration is very simple. They usually ask you to validate your identity with a document and indicate a bank account where you want the money to be deposited once you sell the crypto.
“Finally, we can highlight how some larger exchanges such as Binance have dared to go further and offer loans to their users at a fixed annual interest rate that will vary according to the term of the loan and the conditions of the same, which is a great help for those who do not have access to credit from traditional banks, Likewise, these exchanges offer returns for lending capital to finance new projects in the crypto world, offering variable and fixed returns according to the established conditions, thus helping people to recapitalize their savings and prevent the effects of economic cycles,” Rosales concludes.