It’s easy to see the insane value of Bitcoin right now and only think of it in financial terms. The value has skyrocketed so much that it has captured the attention of a lot of people who ordinarily wouldn’t think too much about it. There is a lot more to cryptocurrency than trading and having a Lambo in the garage, however.
Now that it is becoming more mainstream since you can buy BTC with PayPal and lots of people are investing, we should take a look at how it affects society as a whole. Some people feel that the adoption of cryptocurrency is a bad thing. Others think it is one of the best inventions of the 21st century. The truth is somewhere in between.
However, we believe that there is a net benefit that comes with cryptocurrency so we’ll highlight some of them in this article.
Increase in taxable revenue
Many people focus on the fact that cryptocurrency is not a real currency and so shouldn’t have any value. Since it isn’t printed or distributed by a central bank they think that it is made out of thin air and skirts the usual process.
While this is true, it doesn’t paint the whole picture. No matter where you live in the world, cryptocurrency gains are taxed. How they are taxed depends on the country as some tax it as a capital gain since it is considered a commodity and others as income as it is considered a currency.
No matter how it is taxed, it brings in additional revenue to the government coffers. This money can then be used to build better roads or improve the schools. More tax money is better than less so there is no negative to people earning money in cryptocurrency from a government standpoint.
It has lifted people out of poverty
One of the biggest benefits of bitcoin is how it is global. Anybody with a computer or smartphone can make money with bitcoin. Actually, all you need is a connection and can use a computer at a library or internet cafe.
This has allowed people in third world countries to belong to a growing economy and take part in it. Often, people in those poor countries are locked out of taking part in the economy through circumstances that they can’t get out of.
Access to this type of investing that doesn’t require a bank has allowed many people to make enough money to raise themselves out of poverty and break the cycle that often keeps people poor.
With more money in circulation, especially in poor countries, there are more jobs created. Not only because people are out spending more money, but also because investing can happen on a local level.
Even the servers that help to create the cryptocurrency can create jobs as there will be construction for the buildings and then people needed to maintain the equipment.
*This article has been contributed on behalf of Paxful. However, the information provided herein is not and is not intended to be, investment, financial, or other advice.