How Will Cryptocurrency Transform The World?

If this happens, it will have big effects. It could help many countries get out of poverty, improve the lives of billions of people, and speed up the rate of innovation in the world.

This is why I helped start a company that deals with digital currency. I think it's the best thing I can do now to improve the world. In this post, I'll explain what free enterprise is, why it's important, and how virtual money can change it.

What is economic freedom?

Economic freedom is a way to measure how easy it is for people to participate in a country's economy. It is made up of several things, such as:

● How simple it is to obtain a business started

● How property rights are upheld (can you keep what belongs to you)

● trade with other countries

● Work and business regulations

● How stable the currency is, etc.

Several groups rate and rank the countries worldwide based on how free their economies are. The Heritage Institution and the Wall Street Journal put the information in the table below. Here are the countries that came in first and last on their 2016 list.

Why is it important to have freedom in economic matters?

Having economic freedom is linked to several good things in society. Some of them make sense, like a higher per-capita income, longer life expectancy, and more people who can read and write. But economic freedom is also linked to things you might not expect, such as:

● Better pay for those with the least 10%

● Better care for the environment

● There are fewer wars and violent fights.

● More citizens who say they are happy

● Less bribery and corruption

Since I first read this, I was surprised that more people didn't know about it. Of course, correlation doesn't prove cause and effect, so we shouldn't jump to too many conclusions. Societies are very complicated, and what tends to work in one place might not work in another.

How digital money affects economic freedom

Economic policy changes and how money works can take a long time. Some might say they haven't changed in forty years or more. With the rise of smartphones and the formation of cryptocurrency, we now have the chance to improve the free markets of every country in the world in a much more effective way than ever before.

Here's how digital currency gives people freedom in the economy:

It makes starting a business simpler.

Anyone with an idea can have customers worldwide in just a few hours. It makes accepting payments easier and helps businesses grow around the world.

It enforces property rights.

Many people today can't store their money safely without it being stolen or taken away by the government. Digital money will allow everyone to be in charge of their cash (see brain wallets). In this way, people who don't have bank accounts will be able to "bank" with digital money.

It encourages free trade and globalization.

Digital currency shines at transborder transfers. It makes it easier for people from different countries to do business together (for example, to get a loan or hire someone to complete a job).

It allows freedom of contract.

Smart contracts on Ethereum have made it easier for people to make agreements, no matter where they live or if they can pay for a lawyer.

It encourages people to move out of countries with low scores.

People will be more likely to move to another country if they can take their money and use it there. Digital currency lets the economies of all countries work together. Countries will get better as switching costs go down.

It makes corruption and bribery less common.

When starting a business, there will be fewer gatekeepers and intermediaries, so there won't be as many places to pressure or gain favor.

It gives people access to stable money.

Today, digital currencies are more volatile than the dollar or euro, but this has been getting better every year (and is now approaching the levels of some fiat currencies). Compared to many of the 180+ fiat currencies in use today, the digital currency will become more stable in the future.

There are many new ways to use digital currency today (prediction markets, micro-payments, smart contracts, remittances, games, etc.). But I think that in some markets or countries, digital money could "tip." It could spread quickly from there.

Conclusion

In the last 20 years, the normal level of economic freedom worldwide has only increased by 3 points, from 57% to about 60%. Things are going in the right direction but moving much too slowly.

One of the biggest issues of the time is economic freedom. If we can give the world more economic freedom, it will be like a big stimulus plan for the whole world. It will speed up innovation, cut down on wars, help the 10% poorest people, get rid of corrupt governments, and make people happier.