5 reasons why Bitcoin will defeat the banking system
Today, banks and financial institutions mediate monetary and economic interactions to communicate between the transaction parties according to their rules. Blockchain and the underlying technology of Bitcoin were created with the aim of eliminating these intermediary entities. Bitcoin eliminates the need for intermediaries in payment systems and makes financial data transparently and securely available to all users. However, the debate about the efficiency of the Bitcoin system and its ability to cope with and excel in international financial systems is one of the issues that has always been the subject of discussion since the beginning of this financial technology.
Sylvain Sarrell (Sylvain Saurel), a writer and staunch fan of Bitcoin, has an interesting idea about this topic. Sarl lists five reasons why Bitcoin can defeat the current banking system. Sarl’s reasons include accessibility, low fees, optimal savings technology, privacy, and freedom from the shackles of Bitcoin-powered systems. According to him, these institutional features in Bitcoin technology make the aforementioned network have unique and unique achievements. In this article and quoted from SarlWe read more explanations about his reasons. We invite you to stay with us until the end of this article.
five The reason why Bitcoin is superior to traditional financial systems
Satoshi Nakamoto launched Bitcoin in 2008. Undoubtedly, the financial crisis of that year was one of his main motivations to create a fairer financial system for all. The current banking system works for the benefit of a small minority and at the expense of suppressing the majority. From central banks to private banks, the current financial system is not transparent and does not take into account the interests of many people.
Bitcoin, on the other hand, is at the forefront of a huge paradigm shift. With the Bitcoin network, for the first time, you can enjoy the fruits of your labor without an intermediary unfairly telling you what to do. The unique opportunity of Bitcoin for me (Sarrel) the author makes it very clear that this single technology will eventually drive the banks out of the field. In the following, I will examine five reasons that I believe are promising for the victory of Bitcoin.
Bitcoin allows you to enjoy the fruits of your labor at any time
The Bitcoin network is always working. Using this system, you can make transactions without any restrictions. If you plan to make a financial transaction with a friend on the other side of the world this weekend, with Bitcoin you no longer need to wait until the banks start working again the following Saturday.
Another amazing thing is that your friend will receive the bitcoin you send him in just a few minutes. In contrast, interbank payment systems such as SWIFT require you to wait between two and five days. In a world where everything is getting faster and faster, you can’t imagine having to wait for days to transfer money around the world.
Accepting delays in international transactions is more difficult for the young generation, that is, those born after the 1990s; Therefore, Bitcoin can become their first choice. In fact, in a world where everything is going digital, the adoption of Bitcoin will be inevitable.
Bitcoin allows you to use your capital with low fees
When you make a transaction on the Bitcoin network, you must pay a transaction fee. This fee is paid to compensate for the cost that network miners spend on securing the network by providing computing power. The big difference between Bitcoin and the current banking system is that the fee paid depends only on the transaction amount. So, you can transfer several million dollars in Bitcoin for less than $1. It is impossible and unimaginable to do this with the Swift system.
It should also be noted that the transaction fee mainly depends on the number of transactions that are in the processing queue. In fact, if the network is saturated, you will have to increase transaction fees to encourage miners to include your transaction in the next block. This problem has been solved in the Bitcoin blockchain by designing the Lightning Network.
Read more: How does the Lightning Network work?
The Lightning network has reduced transaction fees to almost zero and greatly increased transaction processing speed. In other words, the Lightning network, whose adoption is continuously growing, can be considered the future solution for the mass adoption of Bitcoin as a means of payment in people’s daily lives.
Bitcoin allows you to safely store the fruits of your labor
The right to save is one of the basic human rights. You work hard and you have the right to choose what to do with the fruits of your labor. Unfortunately, the current financial system insidiously forces you to spend your money on unnecessary things that you don’t need. The reason is simple and sad: if you save using the current system, the endless monetary inflation of fiat currencies will severely reduce your purchasing power. Fiat currencies are designed to be spent and reprinted.
On the other hand, the number of Bitcoin units is limited and this feature alone can turn the tide in Bitcoin’s favor. When you invest the fruits of your labor in the Bitcoin network, you can be sure that 1 Bitcoin unit today is always equal to 1 Bitcoin unit out of 21 million units, whether today, or in the next 10, 25, or 50 years. Knowing this, you can safely save on the Bitcoin network; Because your purchasing power will remain constant in this network.
Bitcoin protects your privacy
Bitcoin network users have a semi-anonymous identity. All network transactions are related to addresses, not people. In other words, your privacy is respected in this network as long as you do not reveal the addresses related to your identity. The fact that Bitcoin is an “open” distributed ledger is only about what happens on the network, not what people do with their money. Another advantage of Bitcoin is that no one asks you to provide an explanation of the transactions you are about to make. If you want to send 10 bitcoins to someone on the other side of the world, you can do it. This is your money and your right.
In the current financial system, you have to account for your financial transactions to the bank, customs and other government agencies and convince them with documents that your money is not spent on illegal activities. In fact, in traditional systems, the money is in your hands; But you must use it according to rules that are not your own; Those laws are constantly changing. In contrast, with Bitcoin the rules of the game are already known and never change. The stability of the Bitcoin protocol is a unique feature in a world that is so uncertain and unstable.
Bitcoin gives you the freedom to live your life on your own terms
According to what we said, Bitcoin brings you three basic freedoms:
- Freedom to receive bitcoins
- Freedom to send bitcoins
- Freedom to hold (hoddle) Bitcoin
You have this freedom at any time. Thus, Bitcoin allows you to live according to your wishes and circumstances. For this reason, we can say that the main achievement of Bitcoin is power. As long as you hold the private keys associated with your bitcoins, no one can take your assets from you or let you spend them however you want.
So, Bitcoin can be a massive paradigm shift compared to the current banking system, where you are kind of a slave. The word “slave” may seem a bit extreme; But the feeling of being a slave comes to us precisely when bankers and power institutions prohibit some of our transactions for completely arbitrary reasons. With Bitcoin you will own your money again.
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Out of the 7.8 billion population of the planet, only 130 million people are users of the Bitcoin network; Therefore, it is clear that what we have explained in this article is still not clear to most people. Therefore, if you buy Bitcoin today, you can join the ranks of the first Bitcoin adopters; To the line of people who now know why Bitcoin will beat the banks. Little by little, more people will join the Bitcoin revolution to enjoy the freedom of this system throughout their lives. The important thing is to understand that Bitcoin will bring freedom.
In the article you read, Sylvain Sarrell who always writes the most exciting articles in praise of Bitcoin, this time he has written an article with the aim of praising the Bitcoin network and explained why he believes that Bitcoin will defeat the current financial system. According to Sarel, features such as 24-hour access to Bitcoin, its low fees compared to current financial systems, the role of storing Bitcoin’s value, protecting the privacy and identity of users in addition to providing financial freedom can be a seal of approval on the efficiency and victory of the Bitcoin network against financial systems. be traditional