5 Major Problems Solved by Bitcoin
(BTC) is a virtual currency planned to act as money and a form of payment independent of any one person, group, or entity. Hence, it eliminates the need for third-party involvement in financial transactions.
Bitcoin is by far one of the best cryptocurrencies among all. It is one of the most significant digital currencies to have come into the mainstream. Many cryptocurrencies have been developed since bitcoin, but bitcoin has solved many financial world problems.
According to bankers, regulators, and legacy operators, Bitcoin is a non-solution for a non-problem. Inflation, bubbles, bailouts, questionable regulations, unfair strategies, discrimination, deficiency, the unbanked, and other faults outbreak the present financial system. For various, the system is shattered, with unfair advantages for a few. These are similar people who oppose the revolution. What a shock!
One of the reasons Bitcoin was formed was to provide a more reasonable system that does not rely on shady politicians, greedy investors, or outdated financial institutions. When money and power are in the hands of a few people, bad effects usually happen.
Satoshi Nakamoto observed this through the 2008 financial calamity and decided to do something to solve a fundamental problem. This is what Bitcoin do.
Top 5 Problems Solved by Bitcoin
1- No Need for Banks
In the twentieth century, there are still many billions of people who don’t have access to a bank account. Being unbanked is prejudiced. Currency is behind everything, and even that’s hard to control in remote places.
Crypto wallet is the best medium or service in which you can save, transfer, pay, send and loan money quickly, securely, and reasonably. This is the best chance for many developing countries, who will now be able to job usually with facilities that we take for granted.
You can make your own bank with the help of cryptocurrency. Furthermore, you can increase contact with all the changes that banking gives, minus the gatekeepers.
2- Remittance – Bitcoin solved this problem
Initially, miners own the Bitcoins and other cryptocurrencies and anyone who receives them as transaction payment becomes the owner. They are not fiat currency, are not subject to central government control.
Additionally, they are not linked to any commodity such as gold. Even stock market or currency traders can also not control the value of bitcoin. It is a free, decentralized market controlled by supply and demand. In the probable future, the remittance bazaar will reach even surpass $1 trillion. Mostly, the fees and charges by agents and traders reduces the amount of payments.
Also, sometimes, it even don’t reach the people who want them the most. Bitcoin can only treat this. It is because, transactions on a peer-to-peer network are permissionless, quick, and almost free.
To keep their purchasing power, some famous governments have always resorted to investing in suitable sources of value. For many ages, the US dollar and other assets work as a safe haven to avoid deflation and inflation.
But there is now something far superior. Why rely on an overseas country with undefined financial strategies, limitless money printing, and intermittent goods when you can go direct to the source?
Bitcoin is deflationary and safe to store, send, and hide.
Although gold is a good stock of wealth, Bitcoin is far easier to buy, carry, send, and transact with. Who can blame these countries for welcoming the Bitcoin revolution with open arms? It’s the cure-all they’ve been looking for.
Traders are very excited about this new platform called Defi. They can do any operation that brokers, banks and financial centres offer but in a fast, efficient, cheap, and automatic way.
You can not only trade Bitcoin compared to Ethereum, but you can also gamble with thousands of minor coins and tokens. You can also join liquidity pools, mine yield farms, and buy and sell futures, options, and other byproducts. Thus, Bitcoin not only solves the trading problem but also enhances the trading game.
The blockchain concept is an immutable public ledger which keeps permanent and transparent record of transactions. The blockchain, in conjunction with smart contracts, will create a transparent, reliable, immutable, and secure system.
We can all benefit from it, as well as eliminate unnecessary middlemen who add no value. As a result, while Bitcoin trading is public, Bitcoin owners can remain anonymous. However, this feature attracts hackers as a ransomware payment method.
The major catch of the bitcoin wallet is that users who miss their private key miss all of their funds. It is estimated that 20% of mined bitcoins have been misplaced by bitcoin users. Also, they can never be recovered, unlike fiat currencies.
Any loss of private keys and alphanumeric string addresses, also known as bitcoin addresses can result in loss of bitcoin. Furthermore, there is no central authority with a copy of transactions because of record keeping in distributed ledger known as a blockchain.
Conclusions – Problems solved by Bitcoin
Indeed, Bitcoin does a lot of good. Fraud, theft, inflation, ineffectiveness, speed, privacy, intermediaries, energy and belief are all addressed.
Maybe it is a lot to accept, but the process is straightforward and the bar is also too low to start with. Our systems are old, inefficient, and corrupt for decades. Today’s world as we know it will definitely transform in the coming years, thanks in part to the incredible technology known as Bitcoin.