Why can bitcoin replace fiat money?

Bitcoin is not just a cryptocurrency. This is a transaction method that allows you to exclude all intermediary financial institutions from the chain of relationships. The system, which became the ancestor of the whole industry and technology thanks to which we were able to manage our finances as we wish, without regard to the policies of banks or governments.

Bitcoin is often spoken of as an easy way to launder money. How about a dirty currency, which is used in the distribution of drugs, the sale of stolen goods, or in the arms trade. Bitcoin is credited with financing the activities of terrorist groups, paying for kidnappings, or even murder, and also suggests that bitcoin may disappear . But for some reason, everyone always forget to mention that to this day the good old dollar copes well with all these tasks . So maybe it is not in the currency of the case?

Today, I would like to focus your attention on the light side of the first cryptocurrency. After all, there are people for whom the brainchild left to us by the mysterious Satoshi Nakamoto became a chance for salvation, a real symbol of freedom. A ray of hope, capable of feeding the needy and not allowing them to break under the pressure of the political regimes that are ruining the country.

In the frontier Cukut, whole flows of Venezuelan refugees are trying to move to Colombia. Inflation above 1.000.000% turned national currency into useless garbage, forcing desperate people to search for food in order to feed themselves and their families.

Politicians are ruining the economy, and Venezuelans living under the yoke of the authoritarian regime simply cannot agitate for changes in the country because of the fear of being repressed. People are forced to silently watch how all their savings are rapidly turning to dust.

Venezuela’s example – how bitcoin helped save money

In an effort to save their money, many Venezuelan citizens turned to Bitcoin. Thanks to cryptocurrency, these people got a chance not only to save their money from inflation, but also were able to get rid of hard financial monitoring by the authorities.

The Venezuelan regime closely monitors the money coming from abroad, forcing citizens to use a bank for foreign transactions, in which they have to disclose information about who the money came from and where they were spent.

Nicolas Maduro Venezuelan politician, current President of Venezuela since April 19, 2013.

Nicolas Maduro, Venezuelan politician, current President of Venezuela against the background of the symbol of the Venezuelan cryptocurrency El Petro (PTR).

Do not forget about the commissions. For example, a transfer from the United States may be subject to a commission of up to 56%. And the conversion process into bolivars can take up to several weeks. In an effort to get rid of these bureaucracies and oversight, some Venezuelans began to receive bitcoin transfers from their families, which made it possible to reduce the procedure stretched over weeks to a few minutes. And all this with a minimum commission. Later, in a matter of minutes, with the help of an exchange, you can easily convert a cryptocurrency into Fiat (traditional money).

Bitcoin is a breath of fresh air for politically forced people to survive under the yoke of authoritarian governments. It is easy to hide and can always be cashed quickly. The state is not able to control bitcoin transactions, which makes it possible to receive help in the form of money protected from inflation without any problems at any time.

Even in conditions far from living in an authoritarian state that infringes on the rights of its own citizens, Bitcoin has a number of advantages over traditional money. For example, when checking balances in bank accounts, sometimes you can find small discrepancies, of course, not in favor of the client.

The Venezuelan cryptocurrency El Petro (PTR) is available centrally.

The symbol of the Venezuelan cryptocurrency is El Petro (PTR), which is issued centrally.

Often, in international transactions, both banks and payment systems convert money at their own, far from the most favorable rate. In other cases there are double conversions, which, of course, also affects the final amount. But there is no such thing in Bitcoin. When dealing with a cryptocurrency, you always know in advance how much the receiving party will receive. The blockchain allows you to eliminate all the opacity in a financial relationship.

The lack of financial censorship allows you to manage your funds yourself. No one can limit you in the number of wallets and addresses, leaving you the right to get them as much as you see fit. A great way to protect your privacy.

For bitcoin, there are no geographic or political boundaries. Within minutes any amount you send will reach the addressee in any part of the world. This approach is particularly relevant for countries in which payments from mobile phones and prepaid services are more common than banking services. After all, in order to send Bitcoin, you do not need to build infrastructure – just install a simple application on your phone – a cryptocurrency wallet .

The cost of bitcoin is determined only by the ratio of supply and demand. Moreover, its emission is limited. The states, in turn, are able at any time to increase the number of currency issued in circulation, thereby underestimating the purchasing power of your money. Inflation.

Even fluctuations in the rate of cryptocurrency may be significantly less than the change in the rates of national currencies in the context of political instability in the state. Bitcoin does not depend on central banks, nor on laws, nor on religions, politicians, sanctions, or any other intervention that could restrict your operations.

Can bitcoin lead to financial freedom ?

Bitcoin is convenient and easy to use. Separated from states, it is a clear example of independence and unprecedented financial freedom. Freedom, a part of which you can easily become just by installing a cryptocurrency wallet on your smartphone.

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