Table of Contents
- So what are the benefits of Bitcoin?
- Why are people afraid of Bitcoin?
- What is the solution?
The year 2021 began with good news for the crypto world, the rise of Bitcoin up to $40,000 attracting even the attention of more institutional investors.
However, 12 years after the arrival of blockchain technology, the crypto area still has a long way to go before overpowering fiat. Despite the fact that it has everything needed to solve all the financial problems caused by the fiat system, the crypto market is still very small compared to other currencies.
The truth is that as long as people don’t really understand the benefits of replacing the fiat system with the crypto system, it is normal for them to be reluctant to the idea.
So what are the benefits of Bitcoin?
First of all, we talk about a decentralized system that solves the uncertainty caused by centralized entities. All of our assets are actually deposited in banks that have the power to block your account without even acknowledging you and most of the time without a good reason.
You can’t be sure about your financial situation.
But Bitcoin is governed by all the crypto users involved. There is no one that can block your account - you have the authority to decide what happens with your own money.
Add to that the fact that it gives you not just autonomy, but anonymity too. All of your data is encrypted, therefore you are far more protected against malicious actors. We all know that the fiat system is extremely sensitive to bank robbers and hackers.
Better than that, if a malicious actor wants to get access to your crypto wallet, he would have to own at least 51% of the network’s mining hash rate or computing power - which is way too expensive for even world powers to conduct and it isn’t worth the “prize”.
Second of all, the transactions are way smoother.
One of the things that centralized banks do is to involve in your transactions. There are fees that you have to pay in order to transfer money to a loved one (pretty high too). And there is the possibility for your money transfers to be canceled “just because”.
With Bitcoin, on the other hand, you can enjoy P2P transactions – where the only entities involved in a transfer are you and the receiver.
And last but not least, Bitcoin doesn’t cause inflation – because there is a limited number of coins that can be released on the market (21 million more exactly), as opposed to the fiat system.
Why are people afraid of Bitcoin?
When you understand what all of these benefits mean, it's hard to believe that Bitcoin doesn't already have at least the same power as the US dollar. And yet people are afraid. Why? Well, there are a couple of reasons.
- People don’t have financial education
As hard it is to believe, many people don’t know the basic aspects of the financial system, like how it works or who is involved in it. There are adults who don't even understand where the money comes from.
And this is not their fault, but the lack of financial education offered in compulsory schooling.
So how can we expect people to understand how important it is to solve the inflation issue if they don't even know that the government has the power to create money without being backed up by anything?
Young people around the world assume that their parents had an easier life when they found out that the initial price of their childhood house is much lower than the price of today's houses. When in fact it is just the different value of money over time.
- People are blind-joining crypto
Usually guided by the advice of friends or a few ads on the internet, people end up investing money in crypto and then lose them the next day.
Because they didn’t know that the crypto market is volatile and they must be interested in value changes. Because they did not know that mining with ASIC has high competition and that it’s not enough to buy a single ASIC to have a chance. Because they didn’t know that the chosen exchange platform works with assets with a small market cap.
And what do they do after such an experience? They get scared, they no longer continue the crypto experience and pass on that it is not worth it.
- There’s too much misinformation on the Internet
Even if you want to seriously inquire about Bitcoin and other cryptocurrencies, it is very difficult to figure out which information is correct and which is not. When someone misunderstands a concept and writes about it, another person will trust his words and pass it on.
- There are too many options
With over 7,000 cryptocurrencies, thousands of types of wallets, and crypto exchanges, it is perfectly normal for people to feel overwhelmed. Add that to the fact that there are many fake services, and the anxiety felt is justified.
What is the solution?
As we mentioned before, the main reasons why people are afraid of blockchain technology are the lack of financial education and bitcoin education.
The simplest solution would be, of course, to implement such education in compulsory schooling, but that takes time. It will be a few more years before there are suitable instructors who want to teach in schools and until the next generations become financially responsible.
Years where we don’t own our money and where we cannot be sure of our financial condition for the next day. Years in which loved ones receive less money than what we can afford to give them, much of the amount being kept as taxes. Years in which a wrong government move leads to international conflicts and therefore to financial crises.
To speed things up, here's what we can do so far:
- We can start looking for relevant news about Bitcoin from websites like Bitcoin Daily, thus being up to date with any changes on the market. That way, we can reduce the risks and unpleasant surprises, while we can quickly identify new opportunities.
- We can find a way to learn about Bitcoin before joining the crypto world. Beste Bank, for example, offers in addition to in-depth articles in the field, a free Bitcoin course, and other information on current financial affairs, banking, Bitcoin, and the rise of challenges.
Joining the Bitcoin community may seem exciting or frightening. But before making a decision, it is very important to first focus on a good understanding of the value proposition of Bitcoin before investing in other blockchain projects.
The more people understand what Bitcoin is and how it solves today's financial situation, the closer we can get to a carefree and financially healthy future.
Disclaimer: This is a sponsored press release, and is for informational purposes only. It does not reflect the views of Crypto Daily, nor is it intended to be used as legal, tax, investment, or financial advice.