The Crypto Economy, in Perspective
What happens when Total market cap overtakes world GDP' and other markets and assets ?
Because there’s no reason why it couldn’t i dont know. And that’s the issue.
The largest concern of all in a failing economy, however, is when people are afraid of losing everything. While bitcoin and other cryptos are a tempting place to store assets until an economy recovers, it is a much more volatile storage method than banks, But significantly decreasing the risk of inflaction.
Price spikes in bitcoin have correlated with financial crises all over the globe.for example When Cyprus was in the thick of its banking crisis in April 2013, prices of the cryptocurrency reached record highs. Bitcoin prices surged to even higher in 2017, or obviously in recent global pandemic of corona virus .
One of the main deficiencies with bitcoin and virtual currencies is that they are not backed, regulated or guaranteed by a government or system. This means that it will be very difficult to recover funds lost in the event of theft or other losses. Bitcoin is only secured by blockchain, which records ownership and prevents tampering by individuals.
Without regulation, it becomes difficult for governments to tax, reducing the ability to raise revenue or function to enforce critical regulations. Essentially, governments will have to find alternative means to fund themselves if a move to bitcoin (as it is today) is supported.
It will certainly become a source of income for some governments after legislation.
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World GDP
Gross Domestic Product (GDP) is the monetary market value of all final goods and services made within a country during a specific period. GDP helps to provide a snapshot of a country’s economy and can be calculated using expenditures, production, or incomes.''
The world GDP is the added total of the gross national income for every country in the world. Gross national income takes a country’s GDP, adds the value of income from imports, and subtracts the value of money from exports. The value of gross national income, GNI, differs from that of GDP because it reflects the impact of domestic and international trade.
Because there’s no reason why it couldn’t i dont know. And that’s the issue.
The largest concern of all in a failing economy, however, is when people are afraid of losing everything. While bitcoin and other cryptos are a tempting place to store assets until an economy recovers, it is a much more volatile storage method than banks, But significantly decreasing the risk of inflaction.
Price spikes in bitcoin have correlated with financial crises all over the globe.for example When Cyprus was in the thick of its banking crisis in April 2013, prices of the cryptocurrency reached record highs. Bitcoin prices surged to even higher in 2017, or obviously in recent global pandemic of corona virus .
One of the main deficiencies with bitcoin and virtual currencies is that they are not backed, regulated or guaranteed by a government or system. This means that it will be very difficult to recover funds lost in the event of theft or other losses. Bitcoin is only secured by blockchain, which records ownership and prevents tampering by individuals.
Without regulation, it becomes difficult for governments to tax, reducing the ability to raise revenue or function to enforce critical regulations. Essentially, governments will have to find alternative means to fund themselves if a move to bitcoin (as it is today) is supported.
It will certainly become a source of income for some governments after legislation.
----------------------------------------------------------------------------------------------------------
World GDP
Gross Domestic Product (GDP) is the monetary market value of all final goods and services made within a country during a specific period. GDP helps to provide a snapshot of a country’s economy and can be calculated using expenditures, production, or incomes.''
The world GDP is the added total of the gross national income for every country in the world. Gross national income takes a country’s GDP, adds the value of income from imports, and subtracts the value of money from exports. The value of gross national income, GNI, differs from that of GDP because it reflects the impact of domestic and international trade.
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