Cryptocurrencies have been influencing all aspects of the world’s economies and the coastal region is not exempted from this. The introduction of digital assets has recorded both benefits and downsides, though the gains may well outweigh the disadvantages. This blockchain technology removed a great deal of clumsiness in transactions that were done with fiat currencies in the past, giving users both banked and unbanked a new way to carry out their businesses.
Coastal Economies and Cryptocurrency
Every economic activity carried out in the coastal region comes under the heading of coastal economies, from what transpires in beauty parlous to the goings on in surf shops, hotels, eateries, and more. The coastal zone is reported to be home to over 40% of the global population occupying 20% of land surface with a good portion of the world’s best natural resources.
These natural resources of the coastal region are what fire its economies. However, trading in fiat currencies alone did not allow for some flexibilities that cryptocurrency eventually brought into the system. This shift has opened up new opportunities for economic growth and efficiency. Globally, the adoption of cryptocurrency has been steadily increasing, with more people trying to minimize trading costs and seeking out the cheapest crypto exchanges with the lowest fees such as those reviewed by Bitcoinist.com. Platforms offering the lowest fees have become particularly popular among traders looking to maximize their profits.
$BEACH began trading in the coastal regions decades ago and it is what powers the Beach Collective (a blue circular economy platform). It brings planet-friendly brands, climate-conscious consumers, businesses, and ocean conservation supporters together in one ecosystem where every consummated transition funds climate action and ocean regeneration. This innovative DeFi currency internalizes both ocean and planet health into each transaction. Business people who adopted $BEACH in the coastal region unlock access to a universal marketplace of businesses and planet-friendly brands. They can work remotely as freelancers as well as climate-conscious consumers.
For many years now, blockchain has become the buzzword that appears to be dominant in any conversation concerning the future of technology ranging from the power wielded by crypto to newer forms of cybersecurity. This ledger technology records and stores all the data needed to transact with virtual currencies anywhere in the world and this eases transactions. Thanks to its ability to nullify the need to have a reliable party to expedite digital relationships, Blockchain has become the pillar of cryptocurrencies, both in the coastal zones and other parts of the world. Cross bother transactions have also been made easier.
How Cryptocurrencies Influence the Coastal Zones of the World
A country like El Salvador became the first to recognize the cryptocurrency, Bitcoin as a legal tender. The coastal region of the country situated along the Pacific Ocean benefited from this decision as it fostered financial inclusivity and boosted remittances. With all the merchants in this Central American country, accepting Bitcoin, transactions became smoother.
The city of Zug in Switzerland is another coastal region that has been greatly influenced by blockchain technology. Zug is often tagged, the “Crypto Valley,” and to date, it has remained a hotspot for cryptocurrency startups and innovations. Because the Swiss took a positive stance on all digital assets, the country has become a global leader in the crypto arena.
The Mediterranean nation of Malta has become a blockchain island, thanks to its proactive approach toward fostering crypto-friendly regulations. Its decision to adopt a holistic approach towards digital assets has nurtured technological development as well as investor protection.
In the entire Asian continent, Singapore is firing on all cylinders in the crypto world. The country is now a veritable blockchain and fintech hub. MAS (Monetary Authority of Singapore) which functions as the nation’s regulatory body has clear-cut licenses and guidelines for cryptocurrency exchanges which have done a great job of attracting more investors and businesses.
The Implication of Using Digital Assets on Coastal Economies
With crypto, over 1.7 billion people who don’t have conventional bank accounts but can operate internet-enabled mobile phones can perform financial transactions. The part of the world’s demography where the old financial system failed can now transact seamlessly with crypto. And this financial inclusion is not restricted to coastal regions but the entire globe.
Cryptocurrency: a hedging tool?
Traditionally, digital assets such as BTC have been considered as hedging tools against inflation. The decentralized nature of the coin and its capped supply is believed to have made useful contributions to the growing value of readily available Bitcoin, including those that have not been mined over time.
However, the falling prices of crypto and high inflation rates have made many wonder whether Bitcoin fulfils this high expectation of hedging against inflation financial inclusion. The answer to this question is yet to come.
Criminal activities
In the same way that they utilize cash, cybercriminals have already cued into the gains that cryptocurrencies have to offer. However, the volume of crypto transactions consummated by hoodlums is quite abysmal representing a paltry 0.15% of digital; asset transaction volume carried out in 2021.
Environmental danger
Environmentalists have condemned cryptocurrency because it is quite bad for a human-inhabited environment. PoW (proof of work), BTC’s consensus mechanism is believed to cause both negative economic and environmental impacts. However, the result from estimating studies has revealed that 0.08% is only what BTC contributes to global CO2 emissions.
Volatility is also a downside of cryptocurrency as users may be running a very high risk with digital assets, especially when the value has the potential of running down very fast. Because central and commercial banks are not involved in crypto transactions, people have argued that its value can never be guaranteed.
