The world has seen numerous occasions at different times when countries have witnessed a decline or crash in its economy. It is nothing to be surprised about as it is a natural phenomena as rise and fall depend upon the time and circumstances.
The great depression of the 1930s is known to everyone with the world economy in shambles and down to the core with drought and famine rampant in different countries of the world, most prominently United States.
The situation was at its worse with newspapers being crammed from top to bottom with reports of hunger related deaths and hitting the front page everyday what with photos of women and small children where their bones are simply sticking out of different parts of the body and with no flesh that they could easily pass of as skeletons.
The prosperity of the economy of any country depends upon the Gross Development Product (GDP). GDP is defined as the calculating of the final market value of goods and services in a country at the end of the financial year, which is generally from 1st April to 31st March of each calendar year.
Financial crisis is a dire situation arising out of different reasons that no country of the world would want to find itself in. The crash in the economy can be a result of circumstances that are beyond human control such as natural disasters and calamities affecting the market economy that results in little business thereby a fall in growth rate of GDP is imminent.
When talking about an economy, which primarily depends on its three sectors-primary, secondary and tertiary sector that act as the three pillars on whose success lies the fate of the economy.
When we talk about financial crisis, we have to always keep in mind the factors that cause the slow, steady and gradual decline of the economy and thereby a low GDP count compared to other countries.
So today, our topic of discussion would be about what role does technology and digitization play in the rise and fall of the economy of the country. But first of all we need to understand what is technology. What is meant by digitization?
Basically, technology means a level of skill and merit which bring us different types of inventions and discoveries for accomplishing our goals that we have aimed for in life through our hard work and sincere efforts.
Digitization is the process of converting data into a digital format. It means doing everything online in a manual format. It has been seen that technology and digitization go hand in hand and are dependent on each other for survival and the ones that have been working together with coordination and harmony.
So now we come to the topic of bitcoin. What is this bitcoin? In simple terms, it can be defined as the digital currency that is decentralized in nature and devoid of any central bank to its name. It is deregulated and not governed by anything.
It was launched in January 2009 to great success with many investors and youngsters turning towards it for making quick money through easier means. It was a blockbuster in its initial stages with many people, especially the youth, becoming millionaires in a short span of time, earning millions everyday.
However, after the initial rise, it was a rapid decline at an even faster pace as without a financial guru or institution, many people found it difficult to trust it and viewed it as a fraudulent scheme of siphoning money.
Yes, going by its current standing, bitcoin could very well lead to financial crisis in the near future and has been predicted by many experts to render any economy bankrupt in the next 10 years if strict measures of regulation are not taken. The bitcoin era declined faster than it could succeed and is today on the very brink of extinction.