The world economy is changing. Currencies are losing or gaining value every day. “Everything affects everything else”, Jim Rohn. And nowadays, in the center of all that we can clearly spot the word Cryptocurrency. The internet is ablaze with conversations, articles, videos and services about cryptocurrencies and their effect on the world economy. And the question arises. Are cryptocurrencies destroying the world economy?

Before we answer that question however we must understand exactly what a cryptocurrency is. The most common way to explain cryptocurrency is the following: A digital/virtual currency that uses cryptography in order to maximize security and avoid detection. Organically, cryptocurrencies are not issued by any governmental authority, making it nearly impossible to be controlled or manipulated in any way.

For many people, cryptocurrencies started as just a trend that would go away at some point. A trend that remains to this day. From social media all the way to news broadcasts, the world does not go a day without at least one cryptocurrency related issue. The sentiments on the subject are rapidly changing. People do not consider cryptocurrencies to be just a trend anymore. It is growing to something a lot bigger. And it seems to be getting out of hand.

More and more people today believe that cryptocurrencies are severely disrupting the world economy and could lead to a potential destruction if not handled properly. A very large percent of people is using cryptocurrencies, like Bitcoin or Litecoin on a daily basis for their online transactions. This has resulted to physical currencies losing their value and corporations worldwide facing huge influx problems.

Over the past few years, a little over 1600 cryptocurrencies have been created and are being used. But why is it that cryptocurrencies have taken up so much space in the world economy? Are they really that cheap and easy to use? The answer is simple. Cryptocurrencies eliminate the middleman.

In a mainstream financial environment there are certain stages that need to be passed in order for a transaction, of any kind, to be completed. International transactions cannot be completed without exclusive monitoring. The fees that one needs to pay in order to make a national or international transaction are usually a lot bigger than the product or the services themselves. And in some cases the transactions could take days if not weeks to be completed.

Those fees, that monitoring and pretty much everything else surrounding a simple transaction of paying the money and getting the product are the middleman. Now imagine a society without all that fuss around one single purchase. Imagine prices reduced in half even for the simplest of products.

This is what cryptocurrencies do. They allow people to make international transaction in no time and without extra fees. And this is the reason why the world’s physical currencies are being undervalued.

Cryptocurrencies are indeed disrupting the world economy but they are not destroying it. Could cryptocurrencies be new world order regarding the economy? Could they form new potentials on the field of economics? The outcome still remains to be seen…