WHY CRYPTOCURRENCIES ARE IMPORTANT?

At present, day-to-day cash transactions are based on a reliable, independent system for maintaining a transaction record. For example, when conducting a bank transaction, the banking system maintains a record and guarantees that the transaction is safe and reliable. Similarly, when Clementine transfers $ 5 to Bulgaria using PayPal, PayPal maintains a central record where $ 5 is debited from Clementine’s account and $ 5 is credited to Pulgaria. Intermediaries such as banks, PayPal and other members of the current financial system play an important role in regulating financial transactions in the world.

WHY CRYPTOCURRENCIES ARE IMPORTANT?

WHY CRYPTOCURRENCIES ARE IMPORTANT?

However, the role of these trusted intermediaries also has limitations:

WHY CRYPTOCURRENCIES ARE IMPORTANT?

WHY CRYPTOCURRENCIES ARE IMPORTANT?

Unfair retention of money. 

WHY CRYPTOCURRENCIES ARE IMPORTANT?

These brokers raise billions of dollars in wealth (PayPal’s market cap is ~ $ 130B), but give virtually nothing to their customers – the everyday people beneath whose money they are directing a significant portion of the global economy. More and more people are losing ground.

Fees. 

Banks and corporations are heavily charged for making transactions. Commissions have a disproportionate impact on lower-income populations with fewer options.

Censorship. 

If a particular broker decides that you should not transfer your money, it may impose restrictions on the transfer of your money.

Approval. 

The intermediary serves as a regulator that can arbitrarily prevent anyone from being part of the network.

Pseudonymity. 

At a time when the issue of privacy is gaining importance, these powerful regulators can reveal themselves at random – or force you to reveal more financial information about yourself than you might want.

Summary:

• Bitcoin’s “peer-to-peer” electronic cash system, launched in 2009 by anonymous developer (or group) Satoshi Nakamoto, was a turning point for the freedom of moneyν.

 

• For the first time in history, people could safely exchange money without the need for intermediaries.

 

• Η πληρωμή με Bitcoin σήμαινε ότι οι άνθρωποι όπως η Κλημεντίνη και η Πουλχερία θα μπορούσαν να πληρώσουν ο ένας τον άλλο απευθείας παρακάμπτοντας τις παραβιάσεις, τα εμπόδια και τις προμήθειες ιδρυμάτων.

 

• Bitcoin was truly a borderless currency, fueling and linking a new global economy.

 

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