The Financial Crisis and Global Recession
As you likely know, the world is in the midst of a global recession. It started with the burst of the U.S. housing bubble in late 2007. It then quickly spread into a global financial crisis which included the collapse of several major banks, but this was just the beginning.
Despite repeated attempts by politicians and central banks to reverse the situation, it has only grown worse. It is considered by many economists to be the worst financial crisis since the Great Depression of the 1930s.
Worldwide Impact
The recession has negatively impacted the lives of most people across the globe in various ways. Its effects can be seen in foreclosures on home loans, high unemployment rates, bankrupting of pensions and retirement funds, massive loss of personal wealth caused by decreases in home values—and much more.
These troubles have also led to a debt crisis in Europe. The roots of this crisis are so deeply rooted that it has the potential to actually lead to a break-up of the eurozone monetary union. If this happens, it would mean the end of the euro area “single currency”, the Euro.
How does the Crisis affect VirtaPay?
Contrary to the “doom and gloom”, we expect VirtaPay will benefit tremendously as a result of this financial turmoil, increasing in value and spreading more quickly than ever before. In fact, we are already seeing this begin to happen.
There are numerous facts which lead us to believe that these current events will help accelerate widespread adoption of the VirtaPay virtual currency. In line with this scenario, we project the purchasing power of VP$ will strongly increase, even as many world currencies lose value due to the financial recession.
A few of the facts behind this reasoning include:
- VirtaPay is currently independent from all major world currencies and therefore stands outside of the current financial troubles.
- A very large number of VirtaPay’s new members reside in emerging and developing economies. Interestingly, the financial crisis has caused these economies to replace advanced economies in leading global economic growth. (According to the International Monetary Fund, when looking at incremental global nominal GDP: advanced economies accounted for only 29% of the total, while emerging and developing economies accounted for the remaining 71% from 2007 to 2012!)
- We are working to make it quick and easy for merchants in emerging and developing economies to use VirtaPay’s payment services, whereas with existing payment networks, many of these merchants face a difficult process when trying to get “approved” as a merchant.
- VirtaPay is working on a debit card system designed to provide more value and better features for both card holders and merchants as opposed to existing payment networks.
- As we look at growth trends, our membership growth rate continues to accelerate as time goes on. This is in line with the projections shared in our last blog post… that VirtaPay will grow exponentially.
In Summary
We are working to bring the VirtaPay currency into worldwide acceptance as a universal payment method. In our view, the global financial crisis and recession will actually help accelerate the spread and adoption of VirtaPay. In the end, the current global financial troubles could actually create enormous opportunity for many VirtaPay users.
Times are changing and the Internet is creating a new decentralized global economy. We expect this will ultimately put many of the old “players” out of business. At the same time, it will create new opportunities for those who are ready to take action.
We believe that those with the foresight to create a VirtaPay account and help with our early testing will be rewarded with strong growth in purchasing power for their VP$ in the months and years ahead.
We Still Need Your Help!
VirtaPay can’t grow without your help. Be sure to share your personal referral link (found at the bottom of your “My Account” page). Your sharing will help us get enough Premium members to begin testing the debit card system sooner. We cannot begin testing until we have enough Premium members. Have a look at the “Debit Card” menu link when you log in to learn more.
Important: If you haven’t signed up for AdSharing / Premium membership, be sure to take a look at it. For a very small one-time fee, you can begin earning ad revenue from the ads on the VirtaPay website for life. These earnings can be paid directly to your existing bank account (see the Ad Sharing page for details). In addition, as a Premium member, you will be eligible to participate when we begin to beta test the debit card system.
