Ukraine is a country in eastern Europe. In December 2013, Ukrainians were among the top five nationalities to search for Bitcoin on Google. Visit the https://bitcoins-era.io/ for more information on bitcoin trading.
Ukraine ranks 8 in the world for Google searches of the word “Bitcoin” at Q4 2013. Ukraine has a large number of online businesses involved in cryptocurrency mining.
7 Ways how bitcoin benefits the economy of Ukraine
1. Export of Services
Due to the global nature of bitcoin, Ukrainian citizens have the unique opportunity to exchange their services on a worldwide market. Furthermore, free trade with anyone in the world provides Ukrainians with the ability to export their talents to other countries/markets at any time.
Furthermore, this allows people looking to receive professional help or advice from experts outside their country/market to easily access such assistance or guidance from Ukrainian firms who have a great deal of experience in the fields they are involved in.
2. Import of Capital
Further, due to free trade within bitcoin (at nearly no cost), Ukrainians can now import capital into their country at any time. This allows for a highly fluid money market, where Ukrainian citizens can easily buy/sell bitcoins to cash in quickly or cash out of the market at almost any time.
This is especially beneficial compared to traditional trade between Ukraine and other countries, which usually only occurs twice a year at best (NAFTA) or quarterly (World Trade Organization).
3. Decreasing Risk of Fraud
As bitcoin is a digital currency, the risk for fraud involved in international trade decreases dramatically. This is especially beneficial to Ukraine, as many goods or services sold via marketing are usually transported long distances and can go through various legal jurisdictions before reaching their destination.
4. Encourages Saving
The advent of free trade within bitcoin has also increased financial security for Ukrainians. This enables people to hold their savings in bitcoin rather than the Ukrainian Hryvnia.
Unfortunately, like many other nations, Ukraine’s currency is volatile. It loses value at an incredible rate compared to more powerful currencies such as the US Dollar, Japanese Yen, or Chinese Yuan.
5. Decreased Corruption
As mentioned earlier, bitcoin allows Ukrainians to easily monitor and track trade between two individuals or corporations. This makes Corruption much more difficult because it’s so easy for them to be caught and prosecuted.
This is especially helpful for Ukrainians looking to use bitcoin as a haven from the rampant Corruption currently occurring in their country.
6. Decreases Unemployment
While not widely reported, many Ukrainian citizens lost their jobs when the Soviet Union collapsed in 1991. As such, the unemployment rate has been steadily increasing since then. With the advent of bitcoin, Ukrainians can easily export their trade services worldwide and improve their economic efficiency.
7. Free Market Trade
An important factor that many people tend to forget is that any government does not regulate bitcoin. People are free to buy and sell their goods and services as they please with bitcoin, and Ukrainian citizens can do the same without needing permission from the Central Bank of Ukraine (which is currently hostile towards digital currencies).
3 Negatives of bitcoin on the economy of Ukraine
1. Increase in Crime
As bitcoin is extremely untraceable, criminals recognize the benefits of utilizing it to further their criminal activities. This includes trafficking illegal goods and services, extortion, money laundering, and much more.
2. Decrease in Economic Activity
By having many Ukrainian citizens holding large amounts of bitcoins concurrently with little economic activity, you see a decrease in the money supply within Ukraine and, therefore, a reduction of economic activity.
3. Decreases in Production
Much like #2, this occurs because bitcoin is not directly connected to any country’s economy and, as such, has little effect on local production levels when compared to more traditional currencies such as USD, GBP, or EUR.
Conclusion:
Bitcoin is a powerful tool that can have numerous benefits to an economy. It remains to be seen whether or not other countries will see how beneficial it can be, but believe that Ukrainian should take full advantage of its power while it remains unregulated by the government; otherwise, they may lose out on a significant opportunity.
