The freedom of people to gain what they need through hard work and legal means (like money) and control what happens to their assets and property is called economic freedom.
The study of economic freedom is growing in popularity. It is often discussed in the media as several indexes of it exist. To better understand how economic freedom and crypto interact with each other, we analysed the data from seven different indexes of economic freedom.
We found a strong correlation between economic freedom and the number of searches for the word “cryptocurrency”. The correlation is especially high in the list of countries with the highest economic freedom.
The Benefits of Crypto Towards Economic Freedom
1. Access To The World’s Financial System
Financial transactions are being strictly regulated in many countries, while access to international financial systems is limited. It makes it difficult for the citizens of these countries to invest their savings and take part in the global economy. This is visible in the following map, which shows the countries where the citizens still don’t have access to global financial systems.
Blockchain technology can provide a financial system for people of countries with a lack of access to the international financial system.
2. Equal Access To Financial Services
In many countries, financial services are only available to people with bank accounts. However, there are some countries with a large number of unbanked citizens.
For example, only 56% of the population has access to a bank account in Nigeria. Blockchain technology can provide financial services to these people.
3. Protection Of Property Rights
In some countries, property rights are only limited to the citizens. The rest of the population doesn’t enjoy the same amount of freedom. For example, the government of North Korea doesn’t allow people to move freely. People cannot leave the border area of their homes. The government also doesn’t allow them to move their money outside the country.
For years, the government of China has been trying to control the citizens’ savings and investments. Recently, the government announced that all the deposits in private banks have to be moved to state-owned banks. The private banks then have to be sold to the state-owned banks. This means the private property is being transferred to the state, although the government hasn’t paid for it.
Blockchain technology can help people to move money and invest outside of their countries easily. It provides full control over their savings.
4. Protection Of Private Data
Financial services often require people to personalise their data. Any financial service that requires the use of credit cards requires the users to share their private data. However, this data can be potentially misused by the service providers. Blockchain technology can protect the user’s private data while still providing the service.
5. Preventing Double Spending
Double spending is the ability of money to be spent twice. It happens when someone spends the same amount of money twice without the owner’s permission. Blockchain technology can prevent the double-spending of the same amount of money.
Cryptocurrency is growing in popularity. Although it has some dark sides, its benefits to the people living in countries with economic restrictions are clear. It provides them with equal access to financial services, protects property rights, and prevents the double spending of money.
Such is the correlation and benefit of crypto towards economic freedom. Feel free to invest in it and see the difference that it makes towards your money and other valuable assets.
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