Despite tremendous progress in economic globalization, the international financial system is still quite fragmented, with just a few players using an invitation to sit down at the table with all the big boys. It’s clear that blockchain has clear potential to unite and, possibly, even standardize financial markets all around the world. Different private enterprises and authorities have already started the journey of incorporating blockchain in their business models.
Recent competitive hikes in Bitcoin Price are equally inspiring and about. Retail investors are extremely enthusiastic, while bystanders are waiting for the green light in the big institutional players. Enthusiasts are expecting the new, decentralized, self-governing future, although fundamentalists are searching for details behind the hyped-up and obscenely significant valuations within this world.
When many media resources coin the cryptocurrency area as the upcoming financial bubble, they all don’t understand that this very “bubble” will help resolve the pressing problem in the world financial system.
So, What Is This Pressing Problem?
The pressing problem that the world is going to confront is that the slowing down of economic growth. While nearly all the planet’s problems we read from the media are extremely real and rather shocking, the absence of economic growth is one problem that may quicken the other problems that the planet is confronting.
Many world associations acknowledge the problem of decreasing economic growth. The United Nations report begins using a poignant name; “The International Economy Remains Trapped at an extended Episode of Slow Growth.” It goes on, further highlighting that:
“The variables underlying that the protracted economic downturn has a propensity to reinforce one another, during the close linkages between need, investment, trade, and productivity.”
Research conducted by the World Bank admits who “in the past few years, long-term fund has attracted increased interest from policy makers, researchers, and other financial industry stakeholders.” A scarcity of longer-term funding “further improved existing financial sector vulnerabilities and widened potential long-term financial openings for infrastructure in particular.” A research by the Organization for Economic Co-operation and Development (OECD) adds that “long-term investment plays an integral role in encouraging growth and creating jobs.” It further pinpoints that “while long-term investment is necessary to growth, its funding faces serious challenges that call for a growing function by institutional investors,” suggesting that private enterprises will want to have a more active part in solving Bitcoin Price problems linked to some scarce source of long-term funding.