What monetary world problems does bitcoin solve? Many people asked me this question. And each time, I didn’t know how to start. Because there were so many problems that bitcoin will solve, that I could talk about them for hours.
So I thought to make a list of the major world problems. Problems that you can find all over the globe, no matter the country you live in.
The current global monetary system, even if it has many weaknesses, is still considered good enough for most people. The system makes the world economy to work and allow people to live a “normal” life. People can store their value in money and can use them for shopping. Because these are the main money functions, as you already know..
But this centralized system could be different. Better. Improved.
What does it mean?
In order to understand better, I am going to explain what the money problems are, as we know it.
Slow and expensive system
If you want to make a money transfer to another country, it takes a lot of time and it’s very expensive. And the worst thing is that these transfers have high and non-transparent commissions. It’s a real pain.
You have no control
The bank is a company that keeps and controls your money. If it goes bankrupt, you may not be able to recover your money. Your funds are supposed to be guaranteed, but even if you recover them, it will not happen from one day to the next. The government can block your accounts, as happened in Cyprus a few years ago.
Your country and your bank know all the payments you did online or with a card. They also know when and where you initiated them.
The money you have in the bank is still in a digital form. The bank account is a string of characters associated with your name. In that account is a sum of money that is actually a number in an electronic database. You have to rely on cyber security systems. There have been cases in which cybercriminals broke these databases and deleted the information. People’s money were gone.
New money is created from thin air, inflating the market.
Easy global access to everyone
There are poor countries where most people do not have access to banks. If they have a relative in another country, they can only send money through Western Union with huge commissions.
Really? In the Internet age we still talk about hours and days of work?
Even the largest coins in the world, the Euro and the US Dollar have their geographical restrictions when using them. In most countries, you can not pay directly for any goods with Euro or USD. You have to change it some local currency first. By doing so, you lose time and you also lose money.
I think you agree with me that these are real world problems and they are unpleasant because they costs us time, money and nerves.
Solving these world problems, or some of them, would be a big step ahead of the situation now.
That’s why Bitcoin is the next generation of money
Bitcoin solves all the world problems listed above. But not only Bitcoin. Because there are other good cryptocurrencies, and some of them may even be better than Bitcoin.
I hope you understand better now all of these advantages to classic money. Considering these, I’m convinced more than ever, that both Bitcoin and other legitimate cryptocurrencies are representing the future, and sooner or later they will fundamentally change the financial system and replace the physical money completely.