Cryptocurrencies are a contemporary factor that was developed to facilitate digital asset portfolio development. There are many who still do not understand the way the cryptocurrencies function. The currency is also referred to as crypto money. It is used as a medium of exchange just as the government issues currencies are used in standard trade. The currencies are considered to be secure as they are used in the digital platform. The currency is considered and designed to be entirely self-controlled system. As such, it is designed to follow up on all the currencies that are being traded on the internet. In other words, all the units are designed to interconnect with each other and as such are in a network.
The use of the cryptocurrencies comes with some political impact. Interestingly, there is an ideology that cryptocurrencies could be the start of authoritarianism. Certain aspects and factors can be considered to sign for this to come in the future. For instance, certain physical services are now being paid for online. For instance, the physical parking meters that were once visible in almost all street corners are disappearing slowly. More and more services are being paid for using applications. This is a situation where the computers are taking more and more responsibility in the society.
Cryptocurrencies such as blockchain were invented with the intention of decentralizing government. The other main reason for the creation and invention of blockchain is the decentralization of the power of the corporations. Nonetheless, after the innovation was put in play, different things have come to be, and now more and more libertarians are convinced that the cryptocurrencies are consolidating the power of the governments and corporations. For instance, the creation of the bitcoin is considered to be quite libertarian. The ideology behind the libertarians is the need to decentralize power from the states and relaying this power to the individual.
Those that are in support of the libertarian school of thought believe that the states do not always have the best interest of the individual at heart. As such, the libertarians think that the individual ought to make their stand against the state. The libertarians think that when the individual is empowered instead of the state, then the society is made better since there will be a free-market economy that is driven by the individuals in the community that own property. The corporations and governments are shunned in this case. There is an argument on the issue of how the cryptocurrencies are considered to be better than the money used in the markets.
Money is considered to be efficient when it comes to application and use. However, the issue of currency is not highly regarded by the market anarchists. The money supply is controlled by the central banks. In turn, these central banks are controlled by the state. On the other hand, the popular and commonly used Visas are corporation owned, and these corporations are not a better option either. As a result of the negative impact and image that these entities have already created in the world, the cryptocurrencies were developed to give more power to the individual physical currencies.
As a manager, it is important to consider the factors that are affecting the business and managing these to facilitate better performance. In this context, the current innovations in the market are essential and need to be put into consideration in line with the operations of the business from a political point of view; the cryptocurrencies could in deed me a means to an end to the controlling of the market by the major corporations. The issues around the innovation should also be looked into. It is vital to consider whether the cryptocurrencies are a good real or are likely to get the business into trouble.
Politically, the management of an organization has to be positively charged and in line with the organizational goals. The employee of an organization needs to be assured of the well-being and future of the organization that they are working for. This will motivate them to do their best. When organizations are associated with the cryptocurrencies, they have to be clear on how they will handle the investment. This is particularly serious when it comes to organizations that were not initially dealing in the cryptocurrencies or were not formed to trade in cryptocurrencies. Such organizations if not properly invested in their primary business might be affected by the cryptocurrencies. Such a status would then affect the employees of the organization.
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The economic aspect of the application and use of the cryptocurrencies displays an innovation that created an opportunity for worldwide trade and investment. Interestingly, there are some that are of the opinion that cryptocurrencies are starting to affect the real economies. There is a reported surge in the cryptocurrencies in the market. The surge has been considered by some to be a sideshow apart from the real market in the economy. The prices for most cryptocurrencies has shot up to such as that of the bitcoin. However, to the ordinary people, no impact can be felt from the trade of the cryptocurrencies. Interestingly, some companies are getting into the business of trading in cryptocurrencies.
Some companies have publicly traded stocks that are getting into the business of cryptocurrencies. The decision to do so is based on the promising future of trading in the cryptocurrencies. More so, there are evident financial benefits that are associated with the cryptocurrencies. Interestingly, already some markets are rewarding the companies on the same. The involvement of such companies in the cryptocurrencies has both good and bad effects. The concern here is associated with the impact that such a trade would have on the company and on those that are employed by the company or are shareholders that have nothing to do with the trading. If the cryptocurrencies were to suffer what is referred to as a crypto bust, then the individuals would also suffer.
Other companies that are getting into the business and are not right users of their capital and other resources. As such, they are not the best users if the cryptocurrencies as well. Such companies are noted to hire people and even use up their resources with the intention of acquiring the much gain as far as the trade in cryptocurrencies is concerned. Sadly, they also use up their funds to purchase equipment and rent office space that ends up not being utilized. The businesses make loses, and these are just some of the impacts that the cryptocurrencies have on the community around. Interestingly, most of the money that is made through the cryptocurrencies is caused by the major companies that are funding the smaller companies. These corporations benefit from the trade through the economic growth that is brought about by the trade is not long lasting.
As a manager it is very important to consider the economic activities that the organization is involved in. This consideration facilitates the strategic decision making in such organizations which enables the organization to remain stable in its business operations. As far as the cryptocurrencies are concerned, it would be any manager’s concern to want to know the impact that these currencies would have on the overall performance of the organization. The fact that the cryptocurrencies are considered to be illegal and are even banned in some countries is a serious issue that tells a manager they ought to consider the investment on such as a serious matter.
The technological aspect of the cryptocurrencies has to do with the technology that is employed in the management and operations involving the use of the currency. The technological impact of using cryptocurrencies is quite obvious. Due to its use, innovators have had to look into the issue of security since the cryptocurrencies are quite expensive and need to be highly secured. In the same context, innovations have had to be made to create awareness of how the cryptocurrencies are used.
In the context of the technological implication of the use of cryptocurrencies, a manager would most likely have to worry about how safe is the technology. The reason behind this ideology is based on the fact that the cryptocurrencies are not a physical thing that one can protect and have physical control over. The cryptocurrencies are digital and as such only digital solutions can be applied in the context of their security. The manager would naturally have to consider whether the technological implication of the investment is with it. They would have to train some of their staff members on the innovation to have some in-house understanding of the operations and management of the cryptocurrencies.
Certain legal elements are associated with the investment in cryptocurrencies. Different laws have been put in place for the control and management of how businesses and organizations are managing and financing cryptocurrencies. In some countries, the cryptocurrencies are not entirely legal, and even the governments are discouraging their application. The reason for such steps is based on the notion that the cryptocurrencies are weakening and would affect the legal currencies.
The legality of the cryptocurrencies is from country to country. For instance, it is illegal to trade or invest in cryptocurrencies in Algeria, Cambodia, Nepal, Bangladesh, etc. There are different regulations on the use of the currency such as in the European Union. The EU has regulations that state the taxes to be paid by the companies which are trading in cryptocurrencies. The cryptocurrencies are also recognized by the banking sector in the EU region. As for the countries that have determined the cryptocurrencies to be illegal the law states that it is illegal to use, hold, and even trade in the cryptocurrencies. From a managerial point of view, it is very important to know the legal implications of using or investing in the cryptocurrencies. There are different reasons for this including the fact that if the organization was to be involved in such, it could be found guilty in a court of law and made to pay hefty fines. In other contexts, the organization could be forced to shut down, and in such cases, the staff members would be left suffering.