Economic growth is achieved when a country’s real gross domestic product (GDP) increases. The increase in the value of an economy’s goods and services then creates more profit for businesses which causes stock prices to rise and gives companies capital to invest and hire more employees. When more jobs are created, incomes also increase. Consumers then have more money to spend on more goods and services, which leads to more growth. All countries strive for positive economic growth. For this reason, economic growth is the most closely monitored economic indicator.
It’s difficult for economists to make precise arguments about whether economic growth has enhanced happiness because this is largely subjective. However, it’s essential to evaluate the different side effects of economic growth and how this affects overall living standards.
As mentioned previously, one of the benefits of economic growth is increased consumption. When countries go through growth, their consumers can benefit from more goods and services. Additionally, economics assumes that consumption is tied to utility; therefore, higher consumption levels should lead to greater wealth. Another benefit of economic growth is improved public services. With higher tax income, the government will spend more on critical public services like health and education. Improved health care increase the quality of life and boost life expectancy. High educational standards can provide a broader range of skills and literacy and a greater understanding of civic and political issues. This opens up more possibilities and freedom. Education is also seen as a key factor in determining one’s well-being and happiness. Economic growth also leads to lower government borrowing. Furthermore, economic growth generates more tax revenue, reducing the need to spend money on benefits like unemployment compensation. As a result, economic growth aids in the reduction of government borrowing. Economic growth is also crucial in lowering debt-to-GDP ratios. Finally, economic growth also protects the environment. Rather than focusing on maintaining a high GDP, a society with high economic growth can devote more resources to promoting recycling and the use of renewable resources.
Rather than looking for growth in the traditional finance industry, many are looking for opportunities in the cryptocurrency industry. Cryptocurrencies have been around for a while, but they’re just now becoming widely recognized as financial tools that can be used by those who aren’t finance and tech experts. When they emerged in the past, many people were skeptical about whether they would significantly impact the economy. Even so, by providing better access to cash and financial services, cryptocurrencies can enable social and economic growth around the world, even in underdeveloped countries. Cryptocurrencies, like Bitcoin, have a very utilitarian but also disruptive nature that has gradually begun to challenge the existing financial system.
Let us look at how cryptocurrencies can help the global economy and build a better future.
First of all, they boost economic activities. There is already an entire industry established around cryptocurrencies. This industry is governed by organizations tasked with overseeing all digital coin exchanges worldwide. Early adopters who became wealthy overnight and discovered opportunities to expand financially might attest to the incredible rate of growth in the industry. The most common cryptocurrency, Bitcoin, has already helped many people and businesses to grow and prosper. Many people and companies rely on trading as a source of revenue. The economy is gradually adapting to these needs, and cryptocurrencies have potential to meet them.
The crypto industry has created greater opportunities for countries with poor banking services. More than a third of the world’s population lacks access to essential banking services that could assist them in the event of a personal financial emergency. These include loans, checking accounts, and so on. These individuals, who are usually already financially disadvantaged, are more likely to use dubious and risky loan tactics. The interest rates for these activities is far from fair, resulting in increased hardship among people who rely on loans. Since cryptocurrencies are easy to use, they are ideal for this situation. Many apps and tools are available that make it easier to utilize cryptocurrencies and bring them closer to a broader audience. Moreover, they are entirely decentralized, which allows for cross-border commerce. The use of technology will enable a financial revolution where everyone will be more financially connected, empowered, and enabled. Cryptocurrencies also have low transaction costs.
Given that cryptocurrencies don’t require a physical location to operate, the costs of transacting with them are cheap. Employee pay, power expenses, and rent are not factored in. These savings naturally translate into minimal transaction fees. As a result, more people trust these new financial technologies. Once these people start transacting, this activity, allows the global economy to become more linked. There is also increased transparency when it comes to transactions. This is because all blockchain and cryptocurrency transactions are recorded on a distributed ledger. Additionally, transactions cannot be influenced by individuals or businesses, significantly reducing the danger of fraud and corruption. As a result, developing countries have a better opportunity to participate in financial transactions and boost their economies and social prospects.
Furthermore, with cryptocurrencies residents can trace where governmental funds are directed, giving them a voice in their local political atmosphere. Last but not least, cryptocurrency offers entrepreneurs the ability to gain their power back. The world is evolving at a breakneck pace. The rapid adoption of cryptocurrencies is a clear indication that traditional financial institutions can no longer hold the fort. New financial requirements are arising that must be met.
The world needs go break down more boundaries to achieve full social and financial inclusion – and blockchain technology has everything it takes to handle this. It will only be a matter of time before these cryptocurrencies firmly establish themselves in our lives, transforming them for the better in the interests of economic growth and inclusion. Thanks to the wonderful possibilities that cryptocurrencies bring to the table, millions of individuals will now be able to invest, send money across borders, save money, and establish a business.
In order to help people establish financial and economic growth, Jada Finance has created a cryptocurrency ecosystem that boosts financial and economic development through Artificial Intelligence. This AI-driven ecosystem analyses financial and economic behavior, learning from every scenario and creating decisions that lead to growth for participants. Jada AI helps by giving participants access to smart banking that makes their money work for them. This ecosystem also creates new opportunities to earn more value, such as new employment and business opportunities.
While their ecosystem is still in development, the native currency – Jades – is already available for purchase. Crypto enthusiasts can either hold onto the Jades and then use them on the platform upon launch. Alternatively, you can sell them for profit once the price starts appreciating in value upon listing in crypto exchanges.
If you’re interested in reserving tokens on Jada’s financial ecosystem, click here.
You can also learn more about Jada Finance below: