5 reasons why we need Bitcoin

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“To the moon” all well and good. In addition to unexpected gains, there are good arguments why Bitcoin should be found well. Here are 5 reasons why we need BTC.

Abolition of cash

Imagine the following scenario. Due to a global crisis situation, EC cards suddenly stop working; Citizens flock to the bank counter to withdraw what still works as a means of payment: cash.

But how much cash is there? According to European Central Bank (ECB) There are currently around 1.3 trillion euros in circulation as physical money (banknotes and coins). Compared to the much broader money supply M3 (13.9 trillion euros), that’s only a fraction.

As a result, only about 10 percent of citizens’ bank balances can be exchanged for cash – which means that we are already dependent on electronic payments. As a centralized system, the traditional banking and finance sector is of course much more vulnerable than decentralized systems like Bitcoin. So if you want to protect yourself, you hold BTC.

Post Malone also opened this scenario in the latest edition of the Joe Rogan Experience.

Hedging against inflation

You have to be realistic. In Europe and the USA, there will probably be no significant pressure on the consumer price index in the coming years. Instead, the euro and US dollar are world reserve currencies, despite being more unconventional Monetary policy still too strong.

The situation is different in Argentina and Turkey. With the last Bull Run, BTC has already reached the all-time high measured in Argentine Pesos (ARS). That means: Every Argentine who ever Bitcoin exchanged for ARS is in the plus. That should not go undetected for long and should generate further demand.

With its limited money supply, BTC is a very suitable means to hedge against excessive inflation.


BTC / ARS set 2015. Quelle Coingecko.

privacy

What you buy and sell says more about you than your words.

Alex Gladstein

It hits Alex Gladstein, Chief Strategy Officer of the Human Rights Foundation (HRF) and a supporter of the Cryptocurrency No. 1, upside down. Because, as the activist summarizes in a Twitter video, the abolition of cash could lead to transparent citizens in the long term. Because electronic payments, which are managed from a central location, allow many conclusions to be drawn about the buyer or seller.

Bitcoin can remedy this. After all, BTC does without central intermediaries such as banks and enables Peer-to-Peer– Payments that are posted locally. This places certain limits on surveillance tendencies by companies and governments.

Financial inclusion

About 1.7 billion people worldwide no access to rudimentary financial intermediation. This is based on data from Global Findex , a database that the World Bank publishes annually. The lion’s share is in sub-Saharan Africa and India.

A lack of financial intermediation means that those affected cannot open a bank account and have to save the majority of the savings as cash reserves. In particular, those who rely on the support of relatives abroad pose a major problem with inadequate access to the financial sector. After all, cash cannot be sent by bank transfer, but only through remittance service providers such as Western Union – and they are expensive.

Who on Bitcoin has better cards. After all, you only need a mobile device and access to the Internet to participate in the protocol. Two things that are much more common than bank accounts.

Capital controls

Anyone who tries today to get into the EU via the Turkish-Greek borders risks everything. In addition to dangers such as a corona infection, European border guards are not exactly known for their deliberate approach. Reports of ill-treatment and theft of refugees are not uncommon. Anyone with valuables such as cash is at risk of loss.

A link to digital gold can also be established here. Finally, ownership of BTC is regulated by knowing the private key of the associated UTXOs. If you are able to memorize the seed phrase mnemonic, you can carry your entire fortune in your head with you across national borders. Theft, confiscation or loss excluded.

Source: BTC-ECHO

The contribution 5 reasons why we need Bitcoin first appeared on BTC-ECHO.

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