Does cryptocurrency actually solve any problems?

[ZAINmalik75]

what problems does cryptocurrency solve, and what’s its unique value proposition compared to other cryptocurrencies or traditional financial systems.  Would love any other users take on this ..

Yeh In reality there are several things which only solved by Cryptocurrency and especially Bitcoin, In traditional Financial system holding or saving fiat will always damage you portfolio because due to unlimited printing of money, your holding amount will losing his value and you will not get such amount of stuff which you can get from same amount a year ago,
but Bitcoin solve such problem because it's the only currency which will store your wealth and will safe him from inflation, not only hold value but will increase in value from time to time,

Bitcoin provide financial freedom and independence from such traditional banking system, it will provide privacy by hiding your identity and through only Bitcoin you can send million of dallars from all around the world within few seconds with a cheapest fees etc..

[Silberman]

Been asked a couple of times, what problems does cryptocurrency solve, and what’s its unique value proposition compared to other cryptocurrencies or traditional financial systems.  Would love any other users take on this ..

Bitcoin solved the Byzantine General problem, which was a way to describe how difficult it was for computer systems to agree on anything on a distributed network, and this is something that anyone that tried to do exactly that encountered, by bitcoin solving this problem it allowed for the creation of a decentralized currency, and while many people still do not see the value of bitcoin, to have a decentralized network in which no third party can freeze or take control of your funds is invaluable, and as governments get even more powerful the ingenious design of bitcoin and its power will become more apparent.

[Dr.Bitcoin_Strange]

However, its strength and possible weakness stem from the same source: its decentralized character. You claim that it protects your privacy, but when people have felt alone, they have often acted badly. What occurred on the opposing side is too important to simply disregard. Its a convenient way to launder cash or pay for illegal activities.

Furthermore, despite providing financial independence, the market is simple to play. Big swings in the price of Bitcoin can be caused by "whales," individuals or organizations with a large holdings of the cryptocurrency. So, while technology has liberated us free from the constraints of old banking methods, it has also introduced a whole new set of challenges.

There's this common principle in philosophy that says that man creates more problems for himself in search of a solution to an already existing problem. @Blitzboy, You know that some problems cannot be totally evicted; even with or without Bitcoin, there would still be a way to loot money. In fact, money laundering was around long before Bitcoin was created. Drug dealers have already been in the picture and are carrying out their business successfully without Bitcoin. So, Bitcoin cannot just be victimised because of those who are using it to commit any ill activity. Does it mean that even in the banks, there aren't any illegal activities going on?


Bitcoin being decentralised is not just something that is controlled by one or two people. I know that whales exist, but Bitcoin price movement does not just depend on the hands of those whales; there are other factors that contribute to price movement. Even if some whales decide to sell a huge amount of Bitcoin and the market dumps, it doesn't mean that the market will remain bearish for ever; it will still uptrend after experiencing those downturns.

[Volgastallion]

Its a tool like many others and clearly it solves a lot of problems , but the main and only problem like in any other matter of the life its who its used, for example a screwer its a tool and you can use it correctly, but you can anlso make bad thinks with that like puncture a tyre or worst things.

Well with this its the same, some people can use this "tool" to do bad things or dont solve any problem, and others can do a lot of good things and solve multi issues.

[serjent05]

However, its strength and possible weakness stem from the same source: its decentralized character. You claim that it protects your privacy, but when people have felt alone, they have often acted badly. What occurred on the opposing side is too important to simply disregard. Its a convenient way to launder cash or pay for illegal activities.

Furthermore, despite providing financial independence, the market is simple to play. Big swings in the price of Bitcoin can be caused by "whales," individuals or organizations with a large holdings of the cryptocurrency. So, while technology has liberated us free from the constraints of old banking methods, it has also introduced a whole new set of challenges.

There's this common principle in philosophy that says that man creates more problems for himself in search of a solution to an already existing problem. @Blitzboy, You know that some problems cannot be totally evicted; even with or without Bitcoin, there would still be a way to loot money. In fact, money laundering was around long before Bitcoin was created. Drug dealers have already been in the picture and are carrying out their business successfully without Bitcoin. So, Bitcoin cannot just be victimised because of those who are using it to commit any ill activity. Does it mean that even in the banks, there aren't any illegal activities going on?

I highly agree, money laundering had been in existence even before Bitcoin is created.  But, to think about it, Bitcoin transactions being transparent and open to public, I do not think that Bitcoin is the best way to launder money. Though I don't know about privacy coins since I read some articles that some of these privacy coins are actually not private and can be traced.

Bitcoin being decentralised is not just something that is controlled by one or two people. I know that whales exist, but Bitcoin price movement does not just depend on the hands of those whales; there are other factors that contribute to price movement. Even if some whales decide to sell a huge amount of Bitcoin and the market dumps, it doesn't mean that the market will remain bearish for ever; it will still uptrend after experiencing those downturns.

True that, one instance is when there is a huge hype and a whale decided to dump his Bitcoin, as long as the demand outweighs the selling pressure, Bitcoin price will not plummet, and if the whale isn't aggressively selling his Bitcoin and just put it as sell wall, demand will slowly nibble it until it is eaten out completely.

[suzanne5223]

Cryptocurrency actually provides an opportunity and solution to escape some challenges caused or ignore by the traditional financial system like sovereignty, cross-border transactions huge free and long processing, and it also introduces an opportunity to financial benefit. However, most crypto enthusiasts have the believe that it solve financial problem but it actually introduce the opportunity to do that and it's personal knowledge/understanding about how to use the opportunity we solve the financial problem.

If by the financial problem you mean financial stability, then that requires more work from you even after you start using cryptocurrencies and it also requires one to invest money and then trade cryptocurrencies on a daily basis after learning everything, but, it does provide you with financial privacy for sure, Bitcoin does that, because it is totally decentralized and there is no one actually watching and controlling your finances and financial activities.

[snip]

Yes, I mean financial stability and it requires better use of the opportunity cryptocurrency presented before anyone can be financially stable.
Having said that, it doesn't require investors to dive into trading after a successful investment in cryptocurrency because crypto trading is not meant for all investors and it's not a must to join the crypto trading market before being financially stable.

[Ale88]

Been asked a couple of times, what problems does cryptocurrency solve, and what’s its unique value proposition compared to other cryptocurrencies or traditional financial systems.  Would love any other users take on this ..

As many other users already pointed out, inflation is one problem that cryptocurrencies can solve but for me there is another aspect even more important: you can send money to whoever you want, whenever you want, without the need to get the permission from any bank or other agency. Let's not forget that many people in the world have no bank account therefore it's difficult for them to receive/send money. With cryptos you just need a smartphone.

[TheGhostMan]

Been asked a couple of times, what problems does cryptocurrency solve, and what’s its unique value proposition compared to other cryptocurrencies or traditional financial systems.  Would love any other users take on this ..

Of course BTC solves problems… while it may not address all of the world's economic problems, it certainly has value and advantages. Decentralization in finance is one example. Some communities in some nations have restrictions to use traditional banking services. Take Venezuela as an example, where people frequently face withdrawal restrictions due to a lack of cash in banks as a result of the country's economic devaluation, which has forced residents to seek other, more stable currencies (Colombian peso or US dollar). ). In this context, cryptocurrencies can give people financial access by allowing them to engage in transactions and services without relying on conventional intermediaries and without restrictions, and that would be another point. In addition, BITCOIN and cryptocurrencies can help people carry out such transactions not only locally or nationally, but also quickly internationally. This can be especially useful in cases of money transfers where people send money to their relatives in abroad. As if that were not enough, security is another advantage, since this technology guarantees the security of transactions and movements simultaneously. that safeguards the privacy of users. In a world where privacy is a growing concern in the digital sphere, proving useful and again solving a problem.

[bitterguy28]

Been asked a couple of times, what problems does cryptocurrency solve, and what’s its unique value proposition compared to other cryptocurrencies or traditional financial systems.  Would love any other users take on this ..

Won't go into details but here are a few issues that is solved by cryptocurrency.

1. Privacy
2. State surveillance
3. Borderless payments
4. Banking

Cryptocurrency actually empowers you to have complete control of your finances without the intervention of any 3rd parties.

Agreeing completely here .


1. Privacy - Though it is not completely anonymous yet we can at least same some privacy for our transactions.

2. State Surveillance - it can , but it cannot depend on which who will conduct the surveillance .

3. Borderless Payment - This is I will 100% agreed because no matter where we are as long as there is availability of crypto and internet , we can transact .

4. Banking - this will end the Banking corruption for sure.

about the empowerment ? yes this is what we have here .

[Xampeuu]

Been asked a couple of times, what problems does cryptocurrency solve, and what’s its unique value proposition compared to other cryptocurrencies or traditional financial systems.  Would love any other users take on this ..

As many other users already pointed out, inflation is one problem that cryptocurrencies can solve but for me there is another aspect even more important: you can send money to whoever you want, whenever you want, without the need to get the permission from any bank or other agency. Let's not forget that many people in the world have no bank account therefore it's difficult for them to receive/send money. With cryptos you just need a smartphone.

right, that's one of the advantages of transferring using bitcoin, where effectiveness and efficiency are one of the advantages because of its decentralized nature. on the other hand we can also manage our own savings without administrative costs, it's only possible that the value fluctuates due to fluctuations that occur. but unfortunately this cannot be done massively to help with daily needs, because there is no legalization in my country yet, so it's practical with bitcoin just to make money

[laurenB7742]

Its a tool like many others and clearly it solves a lot of problems , but the main and only problem like in any other matter of the life its who its used, for example a screwer its a tool and you can use it correctly, but you can anlso make bad thinks with that like puncture a tyre or worst things.

Well with this its the same, some people can use this "tool" to do bad things or dont solve any problem, and others can do a lot of good things and solve multi issues.

Right, bitcoin is like other tools and products that man has ever created, each tool has its own mission. But whether it becomes a good tool for solving problems or a means for bad ends depends on human behavior. No product is created without functions and tasks, but the most important thing is what we use them for. Like when we use bitcoin for profit or turn it into our own bank...while criminals use it for their evil deeds. So, there will always be mixed opinions about bitcoin because it depends on how each person uses it.

[Litzki1990]

Bitcoin is the safest currency right now. To keep our money safe we consider bank as the safest but in this time of inflation where bank is not safe then surely Bitcoin can be trusted. Even if the value of money decreases due to inflation, inflation usually has no effect on Bitcoin, which is why it is safer to convert your money to Bitcoin than to keep money in the bank during inflation. In some cases, you can protect your privacy with Bitcoin. Suppose you want to pay on a site but you don't want to use your bank card or any other payment system on that site, you can use Bitcoin as the means of payment, it will protect your privacy.

[Dr.Bitcoin_Strange]

True that, one instance is when there is a huge hype and a whale decided to dump his Bitcoin, as long as the demand outweighs the selling pressure, Bitcoin price will not plummet, and if the whale isn't aggressively selling his Bitcoin and just put it as sell wall, demand will slowly nibble it until it is eaten out completely.

exactly. The market is also controlled by supply and demand, and sometimes there are more people buying, which can make the price shoot up. At this point, a whale cannot have much influence in the market, and even if it does, it will only take some days or weeks for the market to recover again, and even after it recovers, would it not still be a disadvantage to those whales to buy at a high price? Well, those whales are also usually very calculative about when to take advantage of the market. they don't get so insensitive as to just play with their Bitcoin because they feel they have quite a lot of it.

[Mr.suevie]

Bitcoin is the safest currency right now. To keep our money safe we consider bank as the safest but in this time of inflation where bank is not safe then surely Bitcoin can be trusted. Even if the value of money decreases due to inflation, inflation usually has no effect on Bitcoin, which is why it is safer to convert your money to Bitcoin than to keep money in the bank during inflation. In some cases, you can protect your privacy with Bitcoin. Suppose you want to pay on a site but you don't want to use your bank card or any other payment system on that site, you can use Bitcoin as the means of payment, it will protect your privacy.

Bitcoin is simply the best kind of money and the government themselves know this fact that is it the truth, that's why they are trying to figure out how to stop the wonderful trend because if Bitcoin is actually adopted, many of these men will have lots to loss as many people will be exposed on the truth that follows this trend and also the fuel issues in the country.

[Kelvinid]

Been asked a couple of times, what problems does cryptocurrency solve, and what’s its unique value proposition compared to other cryptocurrencies or traditional financial systems.  Would love any other users take on this ..

We can take the example of Bitcoin.
The best problem that Bitcoin can solve is the transparency of transactions. Since Bitcoin is decentralized, all transactions are open to the public and it is validated by lot.
And another thing is money remittance, when you send some money from other countries, fees are high and it will arrive for too long, which is mostly considered as cross-border payments.

I can see that Bitcoin is a perfect thing to use when it comes to sending money to other people or countries as we can save time and cost. But if we talk about using it in the form of currency, fiat money was still the best option which is why people are converting their crypto. I can say that Bitcoin serves as an option but can't totally solve the problem. If we can say that it helps financially, yes, it was indeed helping a lot of people but it never is the solution to poverty. It could be an opportunity, not a problem solver.

[serjent05]

Been asked a couple of times, what problems does cryptocurrency solve, and what’s its unique value proposition compared to other cryptocurrencies or traditional financial systems.  Would love any other users take on this ..

We can take the example of Bitcoin.
The best problem that Bitcoin can solve is the transparency of transactions. Since Bitcoin is decentralized, all transactions are open to the public and it is validated by lot.
And another thing is money remittance, when you send some money from other countries, fees are high and it will arrive for too long, which is mostly considered as cross-border payments.

I can see that Bitcoin is a perfect thing to use when it comes to sending money to other people or countries as we can save time and cost. But if we talk about using it in the form of currency, fiat money was still the best option which is why people are converting their crypto.

Bitcoin is great for sending funds internationally because of its boundless nature but in the local transaction, I am somehow hesitant if can outperform the local banking online system because these sytem can enable instant transfers with little to no fee especially when the transfer is done within the same bank.

I can say that Bitcoin serves as an option but can't totally solve the problem. If we can say that it helps financially, yes, it was indeed helping a lot of people but it never is the solution to poverty. It could be an opportunity, not a problem solver.

I also think the same, I believe Bitcoin can be used as a tool to lessen the poverty in a country.  With the feature of Bitcoin enabling financial inclusion of the unbanked, they are enabled to participate in the global economy.  Now it is up to individual how they will take advantage of the opportunities that Bitcoin gives.

[Obari]

Solves many issues which are created by the traditional financial system. You like working to make $100 and instead of spending that $100 you decide to save it, then a year later you can only buy $90 worth of stuff with it. Your money was basically devalued without your control. Fiat money printing hurt many people who were savers.

There are also other problems it solves like it’s decentralized, it’s trustless, it helps those unbanked. Sure it’s possible the price of BTC might decrease or increase due to its volatility but so does many other assets such as price of stocks or real estate.

Perfectly said 👏
Cryptocurrency at large solves a whole lot of problems in the the current society and one of the major problem it solves is decentralization and making the holder a sole controller of his funds.
Bitcoin is trusted and one of the first cryptocurrency and as such has gained ot of trust from people.
One of the major benefits of bitcoin  is that it can be used globally  even in countries where it isn't legalized and in case of travel,  one wouldn't be worried about changing their naira to the country's but rather, they  can simply just do a peer to peer trade and get the currency they want.

[buwaytress]

I actually surprised myself by meeting very few people like myself -- who found a solution in Bitcoin to cross-border money issues, then only later realised it's because of my passport.

I think the people who usually ask don't live the realities of being someone from the South. We generally take OayPal, Visa, etc for granted but you might be surprised to learn how difficult it can be to access these basic payment services if you don't belong to the typical online user.

No such concern for Bitcoin.

[Fuso.hp]

You can solve many of your problems with Bitcoin. You can also use Bitcoin for ease of transactions. Suppose you live in a country where there is no way to transfer money to another country, you can easily transfer that money through BTC without any third party intervention. Or if you want to keep your money private  you don't want some amount of money to be linked to your total money, you can convert that money to Bitcoin. When you convert the extra money to Bitcoin, that money will remain your secret. Beyond these issues, there are many other issues that can be solved with Bitcoin.

[posi]

Solves many issues which are created by the traditional financial system. You like working to make $100 and instead of spending that $100 you decide to save it, then a year later you can only buy $90 worth of stuff with it. Your money was basically devalued without your control. Fiat money printing hurt many people who were savers.

There are also other problems it solves like it’s decentralized, it’s trustless, it helps those unbanked. Sure it’s possible the price of BTC might decrease or increase due to its volatility but so does many other assets such as price of stocks or real estate.

Perfectly said 👏
Cryptocurrency at large solves a whole lot of problems in the the current society and one of the major problem it solves is decentralization and making the holder a sole controller of his funds.
Bitcoin is trusted and one of the first cryptocurrency and as such has gained ot of trust from people.
One of the major benefits of bitcoin  is that it can be used globally  even in countries where it isn't legalized and in case of travel,  one wouldn't be worried about changing their naira to the country's but rather, they  can simply just do a peer to peer trade and get the currency they want.

Bitcoin makes us our own bank without depending on 3rd party, that's also one of the things that I like about bitcoin. Bitcoin can be used globally as long as there is internet we can use it, but I don't think its use in countries that consider it illegal is worth mentioning. You cannot carry bitcoin with you and use it while traveling in a country where bitcoin is banned. Not only will that get you into trouble with payments, but it could also land you in legal trouble. That's really not a problem bitcoin solves.