What will happen to economy with the rise in popularity of cryptocurrency?

Joined
May 2021
From
american samoa
With the explosion of Bitcoin in the last few years and with the whole GME and AMC ordeal, people are highly incentivized to « get in on the action ». And I notice more and more cryptocurrency subreddits popping up (ETH, DOGE, BTT, etc) and people investing in them trying to get rich quickly. What could the effects of having multiple « viable » cryptocurrencies be on the world economy?

Note : I am very much a novice in the world of economy and apologize if some terms I use aren’t used properly and all that stuff. An explanation in layman’s terms would be appreciated.
 
Joined
Jun 2021
From
USA
I think a lot of countries will start accepting one crypto. I would say that about 5 cryptos will dominate and the others will be the stock market of the future. For example, El Salvador has adopted bitcoin as legal tender along with the US dollar. They are not forcing people to take the coins but they have to accept them as payment. The government has a wallet and strike [inc] has developed a phone application that will give the receiver the option to get dollars or bitcoins. The payor can use their bitcoins but the receiver has a choice of receiving US dollars or bitcoin. Since it is a national coin, no capital gain taxes will be paid if your money value increases. Panama, Paraguay and Brazil might follow and if that happens, bitcoin will be the big winner until another coin replaces it.

By the way, El Salvador will give away about 100 million dollars in bitcoins ($30 each) when they create the wallet the gov is offering. I don't know how they will do it but they say that those bits of bitcoins will not be transferrable to US Dollars and they must spend them or hodl them. Imaging if brazil gives $100 to each adult to promote bitcoin?
 
Joined
Aug 2020
From
Hungary
Right now we don't know too much about how cryptos will generally affect the economy - this is part of the reason why global economies have such widely differing approaches to them. One of the big concerns for regulators is how cryptos could affect different currencies and the forex market.
To look at some recent examples: the president of El Salvador believes that accepting Bitcoin as a payment method will help the country's economy, because their GDP is highly reliant on money flowing in from foreign countries, and with Bitcoin, they are hoping to boost that. At the same time, Turkey has imposed strict regulations because when cryptos started to be popular in the country, their fiat currency started weakening.
 
Joined
Aug 2021
From
Argentina
Cryptocurrency is complicated enough. I would say that the impact of cryptocurrency on the economy is big enough to cause damage in case of bankruptcy or closure of the cryptocurrency market for any other reason (be it attempts to centralize the currency or completely destroy this niche, though there is no way to destroy it anymore).
 
Joined
Aug 2021
From
England
I personally think only a few crypto coins will make it big, the main one being bitcoin but believe a few others will follow. Lots will still be there but I suspect only so many will be accepted.
 
Joined
Sep 2021
From
Philippines
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Joined
Sep 2021
From
Sugar Camp
Well, given that the largest US investment banks have begun to use bitcoin, changes in the global economy will not be long in coming. Even JPMorgan has pledged to create the first actively managed Bitcoin fund. But for better or for worse - this is already difficult to predict. But until the global economy collapses, I'm going to continue to use exchanges. By the way, you read this review on CoinLoan Earn?
 
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