The Impact of Cryptocurrencies on Traditional Economic Models
Keywords:
Economic models, Currencies, Financial resources, Cryptocurrencies, Digital EconomyAbstract
DOI: http://doi.org/10.5281/zenodo.7415892
In this work, the transformative impact of cryptocurrencies on the global economy is examined, with a special focus on Bitcoin, the forerunner that paved the way for a new era of digital assets. It explores how Bitcoin and other cryptocurrencies have reshaped banking and investment practices, especially in emerging markets where they offer alternatives in the face of economic instability and a hedge against inflationary monetary policies. The analysis delves into the regulatory challenges and power dynamics introduced by these digital currencies, as well as their valuation and inherent risks, such as volatility marked by external influences and investor psychology. Bitcoin, in particular, has proven to be a catalyst in reevaluating assets and investment strategies, showing exponential growth and significant corrections, as reflected in its average historical price that went from just cents to tens of thousands of dollars. The conclusion projects a future where cryptocurrencies, led by Bitcoin, will continue to be disruptive, suggesting an ongoing evolution in finance and a constantly changing global economic landscape.
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