Virtual trading and the global economy

[Nadilapars]

 

We have seen the rise of virtual trading in the twenty-first century, which is a world that exists entirely on the internet. This has had an effect on the global economy. Bitcoin has now become a widely used currency, especially in China, the economic powerhouse. However, the lack of physical form makes it completely different to what money should be. 

A long time ago, the value of money was worth exactly what it was made of. The value of gold coins depended on the amount of gold in circulation. Nowadays, most money is printed on paper, which does not have that much value. Therefore, the government can print as much money as it wants as long as it has the cheap materials needed to print the money. 

Bitcoin transactions

Bitcoin is the next step in this worrying trend regarding the creation money. They have no physical form, and they cost almost nothing to create. However, using this currency is very convenient. Online transactions can be carried out using a currency which is suitable for expediting simple financial transactions. 

China has become a common user of Bitcoin, and its population uses it for purchases from abroad. The widespread use of Bitcoin in China has resulted in it becoming noted as a large factor in China’s overall economy. A sudden, unexpected drop in the value of Bitcoin has resulted in a slowing down of China’s economy; a negative trend in China’s economy will definitely have an effect on the global economy as a whole. 

 

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