When the internet was still in its infant years at the turn of the millennium, Satoshi Nakamoto planted the first seed for what would become a decentralized internet in the years to come.
A person who was responsible for laying the foundation for a decentralized financial system is sometimes referred to by a pseudonym, such as Satoshi Nakamoto.
Satoshi is a man that possesses a significant amount of expertise in the field of finance. In addition to this, he has a profound comprehension of the gaps that exist in the economic system. The general population isn’t aware that traditional banking systems come with a variety of problems because the traditional banking internal framework isn’t very popular.
In the 2000s, the decline of the laity was a major contributor to the widespread economic difficulties that were experienced around the world. After the failure of numerous banks and financial institutions one after, the situation in the financial industry deteriorated.
In spite of this, the failure of Punjab National Bank and a great number of other major financial institutions in the 2020s suggests that there is something fundamentally flawed with the conventional banking system that the general public is used to.
Therefore, in the following section of this post, I will first discuss the flaws of the conventional banking system and how bitcoin can solve all of these problems.
Unlimited capacity for printing
The ability of traditional financial institutions to produce an unlimited amount of money is one of the system’s most significant weaknesses. To answer your question, yes, the United States Federal Reserve created more than a trillion dollars out of thin air in a relatively short amount of time.
Bitcoin could solve this problem. You can print more than 21 million bits, or you can mine them. Bitcoin’s restricted number makes it valuable.
It is possible to ban any user at any time.
If you sign up for a bank account, both the government and financial institutions have the entire authority to prevent you from using their services in the future. As is already general knowledge, there are criminals, politicians, and ordinary people, to name a few of the groups. During the war between Russia and Ukraine, even the World Bank froze billions of dollars worth of Russian funds.
Bitcoins solve this – you cannot be expelled from the bitcoin network under any circumstances. Bitcoins operate on a network that is decentralized, which means that no single entity can legitimately claim to be the network’s central authority.
Banks are able to view all of your financial dealings. You represent the hypervigilance employed by major financial institutions and businesses. PayPal has just recently, in November 2022, canceled a payment of two thousand dollars made by one individual on the grounds that he engaged in criminal behavior, and as a result, we wouldn’t allow the acceptance of that payment.
What Bitcoin addresses is the problem that no one can undo your payments and that no one can keep track of your transactions. Bitcoins provide a framework for a payment system that is completely anonymous and cannot be undone once it has been completed.
A few groups of states and peoples hold the majority of the world’s power.
The power of most banks is mostly concentrated among a few groups of individuals, communities, and nations. These powerful parties manipulate the legal system to suit their own interests. They have the capability of printing as much as they possibly can, but they only use it for their personal benefit and not to lend a helping hand to those living in the ordinary world.
Bitcoins offer a solution to this problem because its governing law is the same for everyone, regardless of whether they have a lot of money or a lot of authority. Everyone would be subject to the law in the same manner. According to 192 different countries, the power that runs the Bitcoin network is decentralized.
Moving money around the world is not an easy task.
Even if most of the time they charge a significant fee to move your money from one country to another, banks would nonetheless make it possible for quick and simple transactions to take place between countries.
Bitcoins offer a solution to this problem by enabling instant and cheap global money transfers of any amount, regardless of location. It is possible to travel anonymously via the borders of multiple nations without even drawing the attention of officials from those countries’ respective governments.
The dollar is the predominant currency used in international trade at the present moment, and it also serves as the reserve currency for international transactions. The ultimate authority that the United States holds in each and every international transaction is the most significant disadvantage that comes with the dollar monopoly.
Recent events have resulted in the United States placing restrictions on Iran, Russia, and several other countries ability to conduct financial transactions in dollars. As a consequence, the economy is in danger of collapsing catastrophically.
Bitcoins offer a solution to this problem, and in numerous nations, they are already functioning as a national currency. Bitcoin is going to be the first decentralized trade currency of the future, and no country is going to be able to monopolize it. This will happen very soon.
Bitcoins, unfortunately, are not the currency of the future anymore; rather, they are the currency of the present in the financial world. Bitcoin networks currently hold a value equivalent to over a trillion dollars’ worth of assets.
Bitcoins are used in the majority of anonymous financial transactions that take place across international borders.
The acceptance of bitcoin payments for a company’s services has been made public, and major corporations such as Microstrategy, Tesla, and Square, amongst many others, have admitted publicly that they keep bitcoins in their assets and that they do so.
In conclusion, I’d say that cryptocurrencies like bitcoin represent both the present and the future of the global financial system.