Why The World Needs Bitcoin
Updated September 24th, 2021
Updated September 24th, 2021
There are many societal problems which Bitcoin as a monetary instrument and technology solves. Bitcoin gives people power over their money and financial freedom and helps us in ways where traditional financial instruments cannot. In this article we go over reasons why the world needs Bitcoin and the problems that Bitcoin solves.
When you place your money in a traditional checking or savings account. Not only does the bank hold your money, but it also lends it out. Typically, a bank is allowed to load out a large portion of the money that they hold as reserves. As a matter of fact, in 2021 a bank has the ability to lend out all the money that they have on hand in the bank. This is fractional reserve banking. Khan Academy explains this with great details.
Having money in the bank requires permission to withdraw it and to deposit money into your account. People also need permission to transfer it to anyone or to anywhere. Transferring money between bank accounts internationally not only requires permission but also time. Typically, it takes from 1 to 5 business days to transfer money internationally.
However, there are many issues that may arrive that may increase the time it takes to send international payments. These include fraud prevention, switching between currencies and different time zones, as indicated by GoCardless.
A great feature of Bitcoin is that you can be your own bank. You have access to your money anywhere at anytime in the world. Billions of dollars’ worth of Bitcoin has been transferred instantly to anyone, anywhere in the world. Using Bitcoin also allows you to have all the control over your own money.
Using different services, you can also use Bitcoin in today’s age to buy many goods and services much like you use a traditional bank account.
After Bitcoin had been invented, thousands of cryptocurrencies have been created. These cryptocurrencies range from complex useful ones to useless meme coins. The main purpose of the more popular cryptocurrencies is that they bring other more useful features. Some of these features include faster transaction times, larger amounts of transaction processing and much more. One of these popular notable ones is Ethereum.
With the invention of Bitcoin, quickly cryptocurrencies where innovative and brough features like decentralized applications and governments. It is hard to say, however it is likely that if Bitcoin hadn’t been invented, we wouldn’t have all of these other great cryptocurrencies.
Bitcoin has overall changed the manner in which money and wealth is being used around the world. Unlike payments done by credit card, a Bitcoin payment cannot be reversed. Meaning, you can't charge back a Bitcoin and you can't forge a Bitcoin.
Transferring Bitcoin is more beneficial now than transferring money through a bank. For example, you can transfer 500 million dollars’ worth of Bitcoin for under a dollar, to anyone, anywhere.
Bitcoin doesn’t discriminate against anyone, no matter their age, ideals, where they come from, who they are, the documents they have or their socioeconomic status. This is because of the solid fact that Bitcoin is made by the people, for the people, and of the people.
Sure, Bitcoin is volatile however it has out outperformed gold and real estate since 2015. Bitcoin Is also deflationary as a currency and goes against how banks print money without any means to an ending.
Anyone can see what is going on the Bitcoin blockchain for the reason that it is an open-source and is transparent. All transactions are public. Being transparent and decentralized, it has changed the manner in which money as well as wealth is used around the world.
It also allows others to take power over their own money. The creation of Bitcoin itself has inspired many to create new forms of cryptocurrency to be greater, keeping in mind the ideals of transparency and decentralization.
Bitcoin brings many key solutions to today's problems. It is evident enough that the world needs Bitcoin. Because Bitcoin helps people it has been able to expand in popularity and usage.
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