The Role Cryptocurrency Plays In Crisis Situation

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INTRODUCTION

Hello amazing steemit bloggers, how is your day going, smoothly I guess it is a new day and I welcome you all to another mind-blowing content from my blog which is Role of Cryptocurrencies in crisis situation

We can see across the globe that we are currently in what I call unpredictable times where no one can predict the next possible event to come, with national disasters and wars going on around the world all we seek for is stability and security.

I was doing my study and a question popped up, and I ask the question have you ever thought on if digital currencies also play vital role in changing challenging times into great opportunities,

I know you would want to find out so join me as I go in-depthly, the world of Cryptocurrencies and uncover how it helps during crises situation.

ECONOMIC CRISES: FINDING STABILITY IN THE MIDST OF FINANCIAL STRUGGLE

There several factors that causes economic crises at a devastating speed and impact on the economy such as inflation, failure in the banking system etc these crises can deplete human trust in financial system and financial stability

But we have seen that during such troubling times in the past, Cryptocurrencies like btc and eth have been able to give crucial support as a way to offer alternative solutions

Cryptocurrency have served as a safe Haven for countries like Zimbabwe Venezuela in the past during periods of inflation,

where there is rapid increase in prices of goods or service and also diminishing of purchasing power
Which has led to mismanagement of the economy by the banking system, printing money in excess which can cause loss of confidence in the currency

But in cases like this Bitcoin limited supply makes it impossible for inflation to increase when traditional currency falls.

POLITICAL CRISES: SAFEGUARDING FINANCIAL INDEPENDENCE

The world to we live in, is an unpredictable environment where unrest caused by political activities, which on regular basis brings up waves of financial restrictions that negatively impact the financial stability of Businesses in a country.

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In these Turbulent Times Cryptocurrencies acts as a vital tool during political unrest by maintaining what I call financial freedom, it is able to do these by

Bypassing sanction and financial Restrictions
There are countries currently facing sanctions from all over the world due to wrong political policies. and they can find themselves isolated from the world during such troubling times

Cryptocurrency enables a method of bypassing theses problems by allowing a fast and seamless cross-border transaction which allows industries and individuals to participate in foreign trade.

Also Cryptocurrency allows small scale Businesses in political unstable region like Palestine to acess global market

NATURAL DISASTERS: MEANS OF QUICK AID DELIVERY

There is need for very fast and reliable means of aid distrution just in case of natural disasters or it aftermaths.
Cryptocurrency have proven to be effective in that aspect of sending fast aids to those in distress ensuring it reaches them on time .it enhances relief efforts through

Cryptocurrency enables quick transaction making it easier for aid Delivery in areas affected by natural
It also allows for cross border donations without any issues associated with traditional banks.

Cryptocurrencies also can be transferred directly to affected person more faster, bypassing all third party that might slow the process down making sure that the aids reaches it destination without delay

PANDEMIC; ACCEPTANCE OF A NEW FINANCIAL METHOD

Ever since 2020 covid 19 deadly pandemic which affected the whole world, if somehow in a way reshaped the financial structure of of the world, making it easier for wide Acceptance of digital currencies

From then onwards Cryptocurrency has palyed a very huge role in the new financial system by offering different ways and methods of carrying out transaction

To drastically if not eliminate physical contact mode of transaction during the pandemic, digital currencies where adopted to fill in the space by making available a means to make transaction digitally,

this removes the needs of stepping out for cash or goods enhancing and enabling transparency in each transaction increasing the trust of the public,

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the pandemic also taught about the importance having access to financial services especially for individual who are unbanked mean they don't have a bank, to rely on blockchain system of banking

CONCLUSION

Cryptocurrency have proved to be more than a digital asset but a potential tool for individuals during crises
As we continue to face global uncertainty, Cryptocurrency may as well be adopted fully as a financial system