When looking at why Cryptocurrencies are resonating with a whole new generation of investors, it’s important to understand the critical reasons for their attractiveness.
In the digital age, where companies like Apple, Uber, Amazon, & Netflix have disrupted industries, finance is now the white elephant in the room.
In this article, we will discuss several areas where cryptocurrencies are poised to change the way we bank, including limitations of the current financial system, lack of privacy, global limitations, inability to complete microtransactions, and quantitative easing.
Lack of privacy
One of the limitations of the current financial system is the lack of privacy.
Keeping your banking private matters to a lot of people and many are uncomfortable with the fact that a banking institution has their private information stored on a server somewhere.
Owning a bank account also requires proof of identification, which is another roadblock in making banking faster and more accessible to billions of people around the world.
With over regulation and invasive digital surveillance on the rise, many people are uneasy that someone can see their transactions and spending habits at any time.
Global limitation
Another limitation of the current financial system is the global limitation. Travelling with money can be a nuisance, especially when going through multiple countries, exchanging from one currency to the next, and being charged for the privilege.
The fees and charges intermediaries make from currency exchange are borderline criminal, and ATM withdrawal fees can be exorbitant.
It would be much easier to have just one currency accepted everywhere without the fees.
Inability to complete microtransactions
The current monetary system also does not allow for microtransactions. With the rise of the ‘internet of things’ and devices, there needs to be a scaling payment system that facilitates transactions on a micro-level.
For example, a smart fridge in the future could automatically reorder your shopping for you when your groceries are running low, or your automated car could recharge itself when running low. These payments will require fractions of a cent to process, which our current monetary system does not allow.
Quantitative easing
Finally, quantitative easing is another limitation of the current financial system. In 1971, President Nixon removed the gold standard from the US dollar enabling the printing presses at the US mint to run day and night. Boatloads of new money could suddenly be printed and pumped into circulation without limit. Quantitative easing, or printing lots of money and hoping it fixes the economy, is not a sustainable solution.
In conclusion, Cryptocurrencies have the potential to change the way we bank by addressing the limitations of the current financial system, such as lack of privacy, global limitation, inability to complete microtransactions, and quantitative easing.
To learn more about how you can take advantage of cryptocurrencies today, message the team now – Click here!
Joe Shew
Founder & CEO of Crypto Consulting Institute
Sam McDonald
Head Analyst
