Since the end of 2021, the United States Federal Reserve has been making decisions that, by trying to counteract the inflationary effects on the economy, have caused the opposite effect; the economic and financial outlook of the United States has been complicated in 2022. However, platforms like 1G Profit System allow people to register, load their accounts with money, and start purchasing and selling Bitcoin.
Despite the thousands of opinions that arise every day about the digital financial market, specifically cryptocurrencies, after having shown an upward trend that was stopped by January 2022, it does not seem to have meant a positive factor for the United States economy.
It is noteworthy that digital currencies have been considered by many investors the perfect refuge in situations of the financial crisis that may arise.
It was demonstrated from the beginning of the pandemic by COVID-19 were many people, after the isolation measure, had to start an alternative search for additional income where the main option was cryptocurrencies, specifically Bitcoin.
The unique identity of the blockchain
Blockchain technology has demonstrated the diversity of uses and applications in which it can be executed throughout the world, even demonstrating that it is linked to what is known as digital identity, which represents a relevant turn in the way in which we identify ourselves in the network and how safe this can be.
The blockchain has unique elements that stand out among the technologies that have been created to date, its ability to store information in an unalterable way is perhaps the most outstanding element, and that draws the attention of state, corporate and private institutions.
The control characterizes the development and management of projects through the blockchain platform it gives its owners in data management and global monitoring of transactions executed in a certain period.
The ability of this technology to carry out processes independently and encrypted, giving security to users is what identifies it and separates it from cryptocurrencies as digital financial instruments.
Blockchain as a financial security tool
When it comes to Blockchain technology, it should be known that it represents a technological advance that securely allows the timely monitoring of transactions.
The blockchain is the new form of self-management of information digitally, which financial entities are joining.
The transfer of information and capital through this platform is one of the safest ways due to the extreme coding and encryption it has, which is why at a financial level; it represents a tool that could be indispensable in protecting the client’s interests.
Fed’s position on cryptocurrencies
The United States Federal Reserve has yet to have a good relationship or perspective on the future of cryptocurrencies, unlike blockchain technology, which assumes excellent potential for the future.
After the takeoff of cryptocurrencies in 2020, it should be noted that the blockchain detaches itself from digital finance to have its autonomy as a data processing and information storage security tool.
This element, in particular, is what has attracted the attention of the Fed, to the point of considering it a high-impact tool at the level of the creation of digital identity and the use of it for the creation of digital currencies, as it is the case of the result of the digital dollar.
The project to create a digital dollar represents an alternative for the United States to solve the excessive issuance of banknotes and coins, which undoubtedly impacts inflation rates.
On the other hand, considering this technology for the execution of international or cross-border payments in a safe and timely manner is one of the main aspects that must be taken advantage of for the efficient functioning of the economy.
Cryptocurrencies are different from the blockchain.
Blockchain technology is the basis of cryptocurrencies in terms of technology as an essential element for creating a digital financial system; it is there where it is linked to cryptocurrencies.
Cryptocurrencies could be considered the means to execute payments, that is, the point-to-point payment method, which is systematically supported by decentralized technology that cancels double spending to give way to operations where only the participants have control.
Conclusion
After the positioning of the digital currencies, system and software engineering specialists are in charge of evaluating in depth what the blockchain represents, and that is where the opportunities arise for the creation of applications based on this technology.