How Crypto Is Innovating Economic Freedom Worldwide?

Know how crypto is innovating economic freedom worldwide? So, since the advent of cryptocurrencies in 2009, the way people trade and manage

Updated on July 25, 2022
How Crypto Is Innovating Economic Freedom Worldwide?

Know how crypto is innovating economic freedom worldwide; So, since the advent of cryptocurrencies in 2009, the way people trade and manage money online has changed worldwide. 

Bitcoin, the first cryptocurrency, has swept almost every corner of the world, unleashing a wave that has changed the financial situation as we know it. Now let’s find out how cryptography expands economic freedom globally.

How Crypto Is Innovating Economic Freedom Worldwide?

How Crypto Is Innovating Economic Freedom Worldwide

What is economic freedom?

Before assessing how this $2 trillion industry can contribute to financial liberation, let’s define economic freedom first. The term refers to measures allowing users to freely manage their money and property, work in any country, and compare them globally.

More specifically, the measure of economic freedom is determined by the Index of Economic Freedom, which measures 12 factors contributing to a country’s overall efforts. It is divided into four categories, each containing a different subcategory. For example, market openness measures a country’s trade, financial, and investment freedom. The others are regulatory effectiveness, the rule of law, and the size of government, each with its subcategories.

The index was published by the Heritage Foundation and The Wall Street Journal in 1995 and is now used worldwide. Additionally, Singapore, New Zealand, Australia, Switzerland, and Ireland have been named the freest countries in the world this year.

Crypto is innovating economic freedom

Cryptocurrencies were first introduced in 2007 to provide an alternative financial solution to the global financial crisis that shook the world. Satoshi Nakamoto has created a new age payment system; that allows individuals to control their finances so that they can manage their finances and trade money without the control of the authoritarian authority. As a result, for the first time in history, people have been able to send money abroad without suffering from the usual cost and time-consuming setbacks of regular global flat transactions. 

Due to the decentralized operations, people are responsible for managing their crypto wallets; with professional users on networks located around the world responsible for verifying; and executing transactions. Furthermore, since the advent of Bitcoin, there are many new cryptocurrencies exceeding 12,000 in writing. So, while some maintain the same “medium of exchange” model; many new cryptocurrencies are emerging that offer alternative solutions to the industry.

For example, Ethereum, the second-largest cryptocurrency in the world, provides developers with decentralized apps and a platform for building cryptocurrencies. In contrast, other cryptocurrencies have faster transaction times and Revolve around cloud storage and private transactions.

These projects utilize a blockchain network to improve and innovate cryptography and blockchain space. As a result, cryptocurrencies can operate completely online beyond government control and lengthy paperwork and offer unverified global currencies at national borders. In addition, cryptocurrencies are global, accessible 24/7, and cannot be frozen in your account.

And why is crypto positioned so uniquely and innovating economic freedom?

So, because it has these inherent properties:

Crypto is an open, global network

The encrypted network is open and removes perimeter barriers. This allows transactions to perform over a common network; much like anyone in the world communicates over a common network (the Internet). 

And more importantly, these networks themselves are not controlled by governments; which can use the monetary system to impede economic freedom (and prosperity). This design principle provides a more open market and freedom of trade, investment, finance, and currency.

Crypto enforces property rights and is innovating economic freedom

Property rights allow people to save income, increase wealth, and plan for the long term, knowing that the fruits of their labor will not be unfairly confiscated or stolen. Before encryption, your trust in property rights resulted from your trust in governments and their respect for the rule of law.

Cryptocurrencies allow anyone to acquire and increase wealth without the interference or fear of trusted third parties such as governments or banks and can easily confiscate their wealth. Ownership is also related to the ability to enter into contractual agreements.

In some parts of the world, a contract has little value because you can’t rely on it to enforce it. Smart contracts move law enforcement from the courts to the blockchain, allowing specialization and commerce to exchange benefits.

Crypto is unbiased

Encrypted networks are generally anonymous (or anonymous). They don’t care where you live, what race or gender you are, or who you voted for in the last election. So, unlike the current financial system, they are inherently open and fair. Moreover, anyone with an internet connection can create a wallet; get paid in cryptocurrency; spend in cryptocurrency, and build wealth.

While service providers like Coinbase have compliance programs required by law, we do not control access to all cryptocurrencies, and we do not own the network. Anyone can access encrypted networks through other providers if they make the wrong decision or force poor regulation. Additionally, self-hosted wallets like Coinbase Wallet offer ever-increasing freedom regarding financial inclusion.

Crypto enables mobility and is innovating economic freedom

There are essential elements of economic freedom that cryptocurrencies cannot directly benefit from (e.g., government integrity, fiscal policy, fiscal health, etc.). However, cryptocurrencies provide a condition for mobility by reducing exchange costs and allowing people to accumulate wealth and use it across national borders. 

Cryptocurrencies are the ultimate embodiment of individual power by significantly reducing immigration/exit barriers and increasing financial freedom.

10 cryptocurrencies that give economic freedom to investors

Cryptocurrencies cannot directly improve every facet of economic freedom (e.g., tax policies and government spending). Still, they can improve most underlying drivers like trade freedom, investment freedom, financial freedom, and monetary freedom.

 A key economic feature of the cryptocurrency system is mining is a public good, while double spending to defraud the cryptocurrency depends on individual incentives to reverse a particular transaction.

Investing in cryptocurrencies helps build a more functional economy and promotes migration for a better life in countries with less financial freedom. Here are the top 10 cryptocurrencies that give investors financial freedom.

Bitcoin

Bitcoin is the first cryptocurrency and the first choice for crypto investors. BTC is the flagship product of the crypto industry. Currently, 9 out of 10 people want to invest in Bitcoin. Since it is the most trusted cryptocurrency on the market, it gives crypto investors financial freedom.

Ethereum

Ethereum is the second most popular cryptocurrency, and we have also launched Ethereum 2.0 to provide crypto investors with better seamless services than the original version. The mass adoption of digital currencies can significantly increase the price of cryptocurrencies. One of the top 10 cryptocurrencies gives crypto investors financial freedom.

Terra (Take Care but Review)

So, Terra is a blockchain protocol that uses fiat-pegged stable coins to power price-stable global payment systems. So, LUNA combines the price stability and wide adoption of fiat currencies with the censorship resistance of Bitcoin and offers fast and affordable settlements. As a result, experts generally use LUNA to stabilize the price of the protocol’s stable coins.

Solana

So, Solana is a highly functional open source project that leverages the unauthorized nature of blockchain technology to provide decentralized finance (Defi) solutions. The project’s ideas and initial work began in 2017 officially launched in March 2020 Solana, by the Solana Foundation, headquartered in Geneva, Switzerland. It aims to kill the significant cryptocurrency Ethereum. As a result, one of the top 10 cryptocurrencies gives crypto investors financial freedom.

Cardano

As a proof-of-stake blockchain platform, Cardano is one of the top competitors of Ethereum and Bitcoin in this highly volatile crypto market. This cryptocurrency combines state-of-the-art technology to provide DAapps with unprecedented security and sustainability. In addition, tokens allow crypto investors to participate in network operations.

Tether

Tethers are helpful for crypto investors because they provide a way to avoid the extreme volatility of other cryptocurrencies. This creates liquidity for the exchange platform, creates an investor’s free exit strategy, and adds flexibility and stability to the investor’s portfolio. So as a result, it is one of the top 10 cryptocurrencies that give crypto investors financial freedom.

Binance Coin

Binance operates the world’s largest cryptocurrency exchange. So, crypto and economic freedom make sense that BinanceCoin is the third most popular digital coin. Investors who pay transaction fees on Binance Coin will receive a rebate. Every quarter, Binance reduces the supply of digital coins based on transaction volume.

XRP

XRP is used interchangeably with Ripple, but it is different. Furthermore, XRP is a cryptocurrency by Ripple Labs for financial products. For example, it can use for international payments and remittances (remittances). An interesting fact about XRP is that the coin “pre-mined” using what its creator calls a smart contract system. This makes the transfer of tokens faster and more energy-efficient.

Avalanche

So, Avalanche, along with Solana, is another example of cryptography with a clear purpose instead of a meme coin like a purposeless Dogecoin. So, according to cryptocurrency exchange Gemini; Avalanche is one of many projects aimed at “replacing” Ethereum as one of the most widely used; and using blockchain platforms.

Polygon

Experts consider Polygon a solid investment as it is a blockchain network framework and compatible with Ethereum virtual machines. Polygon has become a significant feature of multiple decentralized and other platforms; and is routinely adopted. Users need to bridge Ethereum assets over the Polygon network. And it is one of the top 10 cryptocurrencies that gives crypto investors financial freedom.

Polkadot

Polkadot is an open-source shard multi-chain protocol that connects and protects special blockchain networks, facilitating cross-chain transfers of all data and asset types, not just tokens, and allowing blockchain to interoperate. So, it is one of the top 10 cryptocurrencies that gives crypto investors financial freedom.

Conclusion

As you can see, cryptocurrencies can influence many factors that lead to greater economic freedom. It can help build better economic operations in countries with less economic freedom and facilitate better lives for immigrants. For this reason, our core thesis as a company is that greater acceptance and use of cryptocurrencies will increase economic freedom in the world.

Technology is the longest lever we can use to improve the human condition. Essentially, cryptocurrencies are a technological breakthrough that allows us to build a freer and more open financial system that empowers people to control their work and property. It is the best tool to advance our mission to increase economic freedom worldwide.