How Will Cryptocurrencies Affect the Global Economy?IntroductionFirst, an overview of cryptocurrencies, what they are and how which they can benefit the global economy. A cryptocurrency is a “digital medium of exchange” (RhettandLink) – managed via extensive encryption techniques known as cryptography. Comparable to fiat currency, no group or individual can curb, increase or abuse the production of cryptocurrencies. No economic system can regulate the production or value of money, the system on which cryptocurrencies are based was created by Satoshi Nakamoto – deliberately creating Bitcoin whose fractional reserve banking practice would be virtually impossible. Bitcoin is currently the most successful cryptocurrency to date: created in 2009, this decentralized and anonymous digital currency has been the target of several raids and hacking sprees; the media is reflecting on the importance of Bitcoin in our current global economy. Whether it has the potential to supplant fiat currencies or whether it's just a childish project created by the aberrant Satoshi Nakamoto. Global Perspective Since its inception in the 1960s, the Internet has paved the way for many phenomena that have affected the way we live, the way we communicate, and which have affected the global economy. One such phenomenon concerns successful cryptocurrencies. A country where cryptocurrencies have been successful are both the United States and Japan; The creator of Bitcoin is from Japan. These two countries have the two largest cryptocurrency exchanges, with Mt. Gox in Japan handling over 70% of all Bitcoin transfers and exchanges. BTC-E is its American counterpart (TheNextWeb. January 8, 2014. Web Image. March 21, 2014.). As...... middle of paper...... global organizations, demographics, and communities are responsible for the great success of many cryptocurrencies in the digital market today. Since my discovery of cryptocurrencies in late 2013, I have discovered a significant trading community with the international population. Cryptocurrencies are growing significantly in size and popularity. I'm concerned about the stability of cryptocurrencies - many types of currencies have suffered large capital losses, a decrease in market capitalization, theft, illegal trading, etc. These certain currencies could be dangerous to deal with in the future. I believe that cryptocurrency trading and transactions should be encouraged locally, nationally and globally. Although they have suffered major setbacks in the global economy, I maintain that cryptocurrencies have a positive future and will undoubtedly affect the global economy..