The intricacies of modern-day capitalism pretty much force several nations to focus on just one industry and turn it into their main export in the long run. This is why we have the notoriety of cheese coming from France and Italy, cars generally stemming from Germany and pretty much any product you can think of associated with a specific country or culture.
However, as the economies of the world developed and moved towards a more digitalized platform, the concentrated economic model became more and more unsustainable. Meaning that the whole nation could suffer if there is one small mishap in a specific industry.
For example, there could be a serious disease with the cattle, thus ruining the cheese productions in France and Italy, causing a serious recession, or maybe some kind of raw material shortage in Germany causing a deficit of automobiles.
The picture is pretty clear. The more concentrated an economy is, the more fragile it is to small changes in the market.
In this article, we will take a look at how cryptocurrencies are the perfect opportunity to diversify one’s economy and keep it as a backup industry no matter what could happen to traditional markets.
Norway- a good example
The Norwegian economy is a perfect example of concentration. A large majority of the market share belongs to oil and fishing, which are slowly but surely becoming redundant all over the world.
The development of new technologies which is promoting the usage of alternative energy sources instead of oil has become more and more popular over the years, forcing multiple oil-heavy economies to think about future diversity in their economies.
However, Norway is still sticking to oil as the primary source of its income. In fact, the Norwegian Kroner is pretty much completely tied to the performance of the oil industry. What this means is that should the oil prices drop down considerably over the next few years, not only will the Norwegian government have a lot less to spend on future economic development, but it also creates less opportunity for the local population due to a devalued currency.
However, the reason why Norway is a primary example of future crypto diversification is rather simple.
Crypto education is already present
Cryptocurrency education in Norway is already present, meaning that the government will not have to undertake any funded projects to spread it more extensively.
The primary source of the crypto knowledge is, of course, the presence of crypto exchanges in the country and the overall involvement in the investment space. However, many don’t know that another primary contributor to crypto knowledge in the country is the betting odds bonus for Norwegians that has been active for the last couple of years. The bonus encourages Norwegians to stock up on crypto knowledge in order to find out about the intricacies of acquiring it. This was recognized as one of the best marketing strategies simply because of how much interest was already surrounding both iGaming and cryptocurrencies.
It may seem a bit weird that the gaming industry has so much influence over a country where iGaming is nationalized. But the fact that it’s nationalized is what makes crypto gaming so attractive.
Norwegians use cryptocurrencies in order to avoid restrictive regulations from the government, thus gaining more crypto knowledge in the process. Sooner or later they delve into the investment side of the blockchain and learn even more.
How cryptos could contribute to the economy
Cryptocurrencies are not something that belongs to everybody. Regular manufactured goods or raw resources could be considered something a nation specializes in, meaning that they have a lot of influence over the asset.
However, when it comes to cryptocurrencies, the market is responsive to the market alone (at least in its primary form). SHould countries start focusing on blockchain initiatives, the crypto market is guaranteed to become a lot more stable, thus bringing in steady income rather than providing very risky investment opportunities.
Once this stability is reached, countries that focus on the crypto industry, be it mining, exchanges or just crypto startups in the first place, could start taxing the industry in exchange for relatively no regulation and a very free environment for development.
Considering that the whole world will be participating in their product on both retail and institutional level, cryptocurrencies have what it takes to replace a primary industry of a whole nation.
Bitcoin is also considered as a safe haven
In the recent events of the Iran-US crisis, Bitcoin managed to confirm for many investors that it is indeed a safe haven.
The moment the first missiles fell in the region, Bitcoin started to soar considerably, passing the $8,000 mark. Google search for Bitcoin Iran grew considerably as well, indicating that many locals were starting to look for ways to diversify their assets into Bitcoin and hope for a more stable environment than what was going on with Iran.
Having such an industry under control in a country is guaranteed to provide some form of protection from financial crises.
So, all in all, not only is the cryptocurrency industry a great diversification option, but also a perfect defense solution in the event of a financial crisis, which according to some reports is just around the corner.