Does cryptocurrency actually solve any problems?

[GreatArkansas]

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.

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[KingsDen]

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 ..

Been asked a couple of times, what problems does bitcoin solve...compared to other cryptocurrencies.  I just extracted the above statement from Op and it seems you meant bitcoin in the first cryptocurrency used.
Actually, it is not all cryptocurrency that solves problems, that is why people ask for a project road map or whitepaper, to see the actual problem such a project solves.

In the early days of this industry, I think some of the projects tend to solve problems before scammers flooded everywhere. Some of the problems I think cryptocurrency solves compared to traditional fiat are;

• Solved problem of centralization
• Privacy and anonymity by privacy coins
• Low transaction fees sending money and paying for goods internationally
• Fights unemployment

And there are very lots more, especially in technology which the fiat system may not perform.

[lixer]

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.

When using cryptocurrencies, you are your own bank. Whenever you want to deposit some money, you do it with a single click without any questions asked, and whenever you want to withdraw, you can do that so easily without anyone asking you for any paper work or any calls for confirmation or anything.

[Alpha Marine]

I'm going to answer this question from a personal perspective.

Let's take my country, for example, our currency is going to shit as we speak. It's depreciating daily against the dollar and before Bitcoin, I would have had my savings in my local currency (because presently I'm saving for a project I have in mind), and that savings would have also been depreciating.
Now I can just save my money in Bitcoin and if I'm lucky, before the time when I will be ready to use the savings I might have gotten some profit too. This would have never been possible with my local currency.

Secondly, Bitcoin has made it easier for me to send and receive money to/from other countries without any single stress. This used to be a problem for me, especially when I was receiving from a developing country. You'd be surprised to know that in most of these developing countries, only methods like western union and money gram are available for sending money. So I'll be forced to use other means that will leave me vulnerable to scams.
It's as if the innovation of Bitcoin was specifically made for me.

Different people have different solutions that Bitcoin brings to them. The problem of going to banks is also another thing.
I can't speak for crypto as a whole, but I can speak for Bitcoin and say that it solves a lot of problems for different people.

[Ryu_Ar1]

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 ..

Cryptocurrency and other cryptocurrencies what's the difference?
When talking about bitcoin maybe this would make sense to answer but other cryptocurrencies it's definitely confusing to me.
As for when the goal is bitcoin obviously the differences are many.
I don't want to theorise much on this because I feel a significant difference from this. Fiat is indeed still one of the demands in the lifestyle and I realise that because I also cannot live without fiat but when told to choose in investing of course bitcoin is the ultimate.
On the other hand, when talking about the comparison between bitcoin and altcoin it is also clearly not comparable because in my opinion bitcoin is much more feasible and much better. indeed when talking about altcoin's higher returns when you are lucky in memes it may be very absurd and it is really instant but it is not an investment system but only the return from the utilisation of momentum that we find as for Investment here there is nothing better than bitcoin.

[WatChe]

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 ..

There are lot of issues which cryptocurrency has solved for me as an individual. If you work as free lancer on any platform then lots of money is deducted by the platform as there commission. As a freelancer you can receive full payment directly into your account without any deduction. On fiverr 20% goes directly to the platform and you get rest of payment in 14 days. This problem for freelancer is fully solved by cryptocurrency aka bitcoin.

[Agbe]

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 ..

The issues cryptocurrency has solved and still solving are many. First of all, the authorities in the world can not control, monitor your account or wallet because it is decentralized. That is, it has solved your financial freedom from the government. Secondly, your investment and trading can elevate the poverty in your life. Cryptocurrency has made me to acquire a lot properties in my life. Only my life bitcoin has solved 80% of the problems.

[AnonBitCoiner]

First of all cryptocurrency provide you online way of earning where there is no need of going anywhere for doing job, just setting at a home and solve all problems online. Those individuals who are working as labor and work hard does not get any useful amount of money to provide good lifestyle to their families but with the help of cryptocurrency one can stabilize his status.

All those individuals who are unable for certain jobs can easily get income through investment in bitcoin and other useful coins. So simple is that with the passage of time cryptocurrency will make you rich if you work properly but remember that  life of rich people are not satisfied always.

[tjtonmoy]

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 ..

I don't know about all the other cryptocurrencies. But as this topic is in the Bitcoin discussion, I can assume you are talking about Bitcoin. You can also compare many things and find many similarities between BTC and other cryptocurrencies as ALTs are created based on the idea of Bitcoin itself. You can also say, a cheap copy of Bitcoin. Some are better than Bitcoin in many sectors but they are not decentralized like Bitcoin. That's the main reason why they are unable to cross Bitcoin on the leaderboard.

Now let's talk about the problems that cryptocurrency solves. Borderless transactions. You can send and receive any transaction from any place. All you are required is a smart device and an internet connection. You don't need to convert or pay tax in order to use it in different locations. Imagine this with Bitcoin. All over the world, only one currency and you can use it freely anywhere.

The next stuff is decentralization. You are the owner of your own assets. No centralized organization is in charge of your assets. (But this is only possible when you are using Bitcoin. Others are centralized. So keep that in mind). And with decentralization, you will have full control over your assets.

Anti-inflation. This one is also related to Bitcoin and Bitcoin only. Being decentralized and having a limited supply makes Bitcoin resistant to inflation. It can't be influenced by inflation happening all over the world. 1 Bitocin = 1 Bitcoin. That's the truth and it will remain as it is. New bitcoin can't be created or destroyed. (Lost Bitcoin in wallets not included). Inflation happens when the GOVT. prints more money. That can't happen with Bitcoin.

There are many more problems that cryptocurrency(Bitcoin) solves. If I keep on writing them, then this will become a long post. So let's just keep it short and stop right here.

[romero121]

Bitcoin have given new dimension to the transaction as well as investment. It have got the ability to solve the problems that arise due to the third party. Some have said about bitcoin solving unemployment, poverty and all which is completely wrong. Will the traditional currency solve poverty or unemployment. Those things were in the hands of the government. Better they manage and be productive makes the possibility of reducing unemployment and poverty in the country.

[Dr.Bitcoin_Strange]

Does cryptocurrency actually solve any problems?

Yes, it does. Bitcoin has served the purpose for which it was created and has even gone beyond that purpose. The architect of Bitcoin (Satoshi) looked at how monetary policy was only managed by centralised authorities like banks and other financial firms and how third parties were always involved in carrying out monetary transactions, so he designed Bitcoin so that every individual who decides to use it can handle their own financial management without the need for any centralised authority or any third party involved.


If you have some knowledge about Bitcoin already, then you will know that Bitcoin is a decentralised asset. If you are using Bitcoin, you can make payments to anyone in any part of the world as long as the person accepts Bitcoin as payment. To do this, you don't need the help or agreement of a third party, and neither would your identity be divulged to anyone. You can carry out a crypto transaction right on your mobile device without visiting any organisation. So, Bitcoin has really solved a real problem, as I have explained to you.


Secondly, Bitcoin has made some people millionaires. Its volatility feature is what some traders have really used to make some profit, and investors who buy and hold Bitcoin are also making profit.

[isaac_clarke22]

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 ..

I know you're talking about in larger scales, but let me put an input for myself on what it did for me at least. It helped me save transportation, bank fees as well as time when I just wanted to check my balance.
Imagine just the struggle of wanting to withdraw your money to buy something you wanted just to be bombarded by all these fees. Surely not many people would notice that depending on how far ATM machines are in your area.

[Blitzboy]

Does cryptocurrency actually solve any problems?

Yes, it does. Bitcoin has served the purpose for which it was created and has even gone beyond that purpose. The architect of Bitcoin (Satoshi) looked at how monetary policy was only managed by centralised authorities like banks and other financial firms and how third parties were always involved in carrying out monetary transactions, so he designed Bitcoin so that every individual who decides to use it can handle their own financial management without the need for any centralised authority or any third party involved.


If you have some knowledge about Bitcoin already, then you will know that Bitcoin is a decentralised asset. If you are using Bitcoin, you can make payments to anyone in any part of the world as long as the person accepts Bitcoin as payment. To do this, you don't need the help or agreement of a third party, and neither would your identity be divulged to anyone. You can carry out a crypto transaction right on your mobile device without visiting any organisation. So, Bitcoin has really solved a real problem, as I have explained to you.


Secondly, Bitcoin has made some people millionaires. Its volatility feature is what some traders have really used to make some profit, and investors who buy and hold Bitcoin are also making profit.

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.

[awik p]

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 ..

I know you're talking about in larger scales, but let me put an input for myself on what it did for me at least. It helped me save transportation, bank fees as well as time when I just wanted to check my balance.
Imagine just the struggle of wanting to withdraw your money to buy something you wanted just to be bombarded by all these fees. Surely not many people would notice that depending on how far ATM machines are in your area.

especially since I'm in a village, of course to find an ATM I have to go to the city, where I have to do it because I have to pay cash to pay at a shop, and it's not practical after we get to know bitcoin, because there is a more practical way to use it, unfortunately not yet familiar and not yet legalized by the government, but indeed the initial purpose of bitcoin was as a currency, and hopefully in the future this can be realized, for now with bitcoin at least I can improve my family's economy, which can cover the small salary I get as an employee

[xSkylarx]

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 ..

The issues cryptocurrency has solved and still solving are many. First of all, the authorities in the world can not control, monitor your account or wallet because it is decentralized. That is, it has solved your financial freedom from the government. Secondly, your investment and trading can elevate the poverty in your life. Cryptocurrency has made me to acquire a lot properties in my life. Only my life bitcoin has solved 80% of the problems.

No one really can control your account or wallet if you are using Bitcoin, but in the end, if it goes to a bank when you convert it to other fiat, that is the time that they can control it, but still, they don't have total control over your money. Also, one of the things that crypto or bitcoin solves or helps us with is our financial situation. I mean it brought us money and profit that we can use, and we treat it as a side hustle while we work. Even others got rich and bought some expensive stuff, so it solved people's needs and wants.

[irhact]

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 problem of cashless transaction without the fear of banks having issue or reverse transaction. Before Bitcoin was invented we held other digital currency but they weren't decentralized which means there was no trust in the digital currency for your transaction not to be reversed. PayPal was one of them and when transaction were been reported, you can get your money reversed and this was an issue for marchants but with Bitcoin invention that trust issue was resolved.

As for the other cryptocurency claiming to be solving one world problem or the other, they're all lies and just technique used to hype their project so they can get investors who are looking for quick money to invest into the project and make them profits as they sell their tokens.

[kro55]

Now I can just save my money in Bitcoin and if I'm lucky, before the time when I will be ready to use the savings I might have gotten some profit too. This would have never been possible with my local currency.

You can't think of putting money into bitcoin as a way to save money, especially if you intend to use that money in the near future. There is no guarantee for you that bitcoin will bring you profit until you need to use that money for your project, bitcoin is very volatile in the short term, so don't forget that. Bitcoin is an investment that will be risky, you can make a profit or it will make you lose, it all depends on your ability. Bitcoin is not savings.

[Peanutswar]

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 ..

Somehow it does, makes the transaction more transparent and secured, people previously got scammed by unknown sources with the use of cryptocurrency now you can use as heads up if the transaction proceeded or not but the problem right here is, they can still do the same just create a new wallet without activity but if you are making a transaction you can see now if the other party are really saying that they proceed the payment or not, also its being decentralized but most of the people keep using the centralized process because of being convenient. Also the crypto makes more easier to use as mode of payment just waiting for the confirmation.

[kryptqnick]

People often mention privacy, which is a valid point because bank accounts always have your national ID information and usually many other things, so none of those transactions are private because the bank knows exactly who's making them. Another is just being able to transfer money digitally without requiring an approval of any centralized authority.
Some also mention that it can help with inflation, to which fiat currencies are susceptible, but since Bitcoin is also volatile and can be in the bear market for years, I wouldn't really emphasize this feature.
Overall, I don't think it's about definitive solutions to problems, it's more about providing an alternative that has its own ups and downs but it very different from fiat.

[taufik123]

-snip-
Overall, I don't think it's about definitive solutions to problems, it's more about providing an alternative that has its own ups and downs but it very different from fiat.

Crypto is an alternative that will provide several advantages that banks do not have.
Crypto without the need to do KYC and can be used by anyone without any restrictions.

But risks will always occur, crypto risks will have a greater impact on people who do not understand crypto at all, but those who already understand will be quite careful.

As an optional payment or investment, crypto may still not be able to match the usefulness of Fiat, but it will continue to be a good optional for the future.