im new to Bitcoin why is decentralization important for the economy?

[noorman0]

Decentralization actually reduces exposure to the risk of theft/attacks. Decentralization is beneficial because each device/individual can implement different layers of security independently. You probably practice this in everyday life, for example, you keep cash in your wallet for daily expenses and a larger portion in your bank account, and you clearly have a reason for doing so.

[shinratensei_]

Simple, decentralization means no one to control the whole blockchain but through consensus, whatever you do its your own money. If you used bank, there is a chance that your account could be banned and completely cut off from the service but with bitcoin its like you own a gold bar or a paper money.
There is just nobody else to mess with your money and you control fully your own money without intervention, it's the literal form of a freedom.

[snowpega]

hi im delanuit  im new to Bitcoin,why does decentralization matter for the economy and i think what practical differences does it make in daily life?


any oppinion?? 

In my point of view centalization system is more advantageous for the best economic growth, whereas decentralization is more advantageous for an individual entity. The reason is that when you are centralised system, then it is obvious you have to pay taxes because your every move is being recorded, and for that you have to pay taxes, which is good for economic growth.

But if you are the one who prefer more to use decentalized system, then you are the one who is unknown on blockchain, and you are not being traced, and you are anonymus entity on blockchain, which is why you don't have to pay taxes for that. This is why decentalised system is more advantageous for an individual entity but not for the best economic growth. This is my point of view on this.

[Smack That Ace]

hi im delanuit  im new to Bitcoin,why does decentralization matter for the economy and i think what practical differences does it make in daily life?


any oppinion?? 

In my point of view centalization system is more advantageous for the best economic growth, whereas decentralization is more advantageous for an individual entity. The reason is that when you are centralised system, then it is obvious you have to pay taxes because your every move is being recorded, and for that you have to pay taxes, which is good for economic growth.

But if you are the one who prefer more to use decentalized system, then you are the one who is unknown on blockchain, and you are not being traced, and you are anonymus entity on blockchain, which is why you don't have to pay taxes for that. This is why decentalised system is more advantageous for an individual entity but not for the best economic growth. This is my point of view on this.

In addition, a decentralized system is not beneficial to the economy because it would create many obstacles to regulation and maintaining stability. Banks and governments will not be able to implement monetary policies such as controlling interest rates, regulating the money supply, or providing liquidity support every time the economy experiences instability.

Indeed, decentralization is only good at the individual level, it is not good for the national economy or on a broader scale.

[Cgrexp]

Decentralization actually reduces exposure to the risk of theft/attacks. Decentralization is beneficial because each device/individual can implement different layers of security independently. You probably practice this in everyday life, for example, you keep cash in your wallet for daily expenses and a larger portion in your bank account, and you clearly have a reason for doing so.

You are right that decentralization actually reduces the risk of theft or attack on our money. If we keep our money in the bank, is there any guarantee that the bank will not be robbed? There have been many incidents in the world where many big and famous banks have been robbed. In this respect, decentralization provides a security guarantee. In a decentralized system, no one can control our money, everything is our own responsibility. The responsibility of how we manage our money depends entirely on us, so if something goes wrong due to a password or technical error, we will have to take full responsibility.

[dansus021]

Actually, your question could be a thesis title in college.

Im gonna answer it simply. Think of decentralization as The MAGIC Internet of Money. so no single government can turn off your ability to learn, transfer and other. Bitcoin decentralizes value. So you are the bank. There is a ton of people that doesnt have access to traditional bank with money like Bitcoin as long you have device and internet you  can be your own bank

[demondelanuit]

hi im delanuit  im new to Bitcoin,why does decentralization matter for the economy and i think what practical differences does it make in daily life?


any oppinion?? 

Bitcoin decentralization is mostly focused on individual advantage. We cannot have a fully decentralized economy, the government are there to influence affairs of the economy, all aspects including financially and it is no more a decentralized economy, the best way to strengthen an economy is to have both decentralization and centralization, leaving people to decide which system to use, based on what they tend to do.

Reason why i said Bitcoin is much advantageous to individual, is that it allows anyone be their bank, transactions don't need to be authorized, controlled, cancelled, or demand further identifications before completing your transactions, unlike banks and their paper works before approval.

I think Bitcoin truly empowers individual freedoms because being able to conduct transactions without relying on bank approvals is a major advantage. My view is that, whilst full decentralisation may not be possible, a hybrid system is more realistic it provides stability when state economic interventions are necessary but individuals should also be able to take control through decentralised tools. So why this approach Because the strengths of both sides complement each other centralisation for security and order, and decentralisation for privacy and access. What if we approached the issue like this a regulated core infrastructure but with decentralised options available based on user preference

[Mate2237]

hi im delanuit  im new to Bitcoin,why does decentralization matter for the economy and i think what practical differences does it make in daily life?


any oppinion?? 

Have your financial transactions been delayed due to several reasons? Has your bank account ever been restricted or frozen? Have you ever paid high transaction fees due to middlemen? Do you feel more comfortable controlling your finances or giving total control to a stranger? How do you feel when the government monitors all your financial dealings? Do you think it is better to keep your financial worth private than for third parties to be aware of it?

Since the Op said he is new to crypto he may not be too conversant with the world decentralization and it implications as it concerns financial system. Just as you said until the OP can't access his funds for what ever reason that his financial provider will tell him the word decentralization will not make sense to him. This is were Bitcoin comes in as it tries to bridge the gap that exist in our everyday financial situation that the world is facing. Decentralization means that you have full control of your funds with any interference from any third party.

This is important to us because it save us the stress of depending fully on traditional banking systems that is unreliable as their are services related problems which arise from time to time.

[Zlantann]

I think Bitcoin truly empowers individual freedoms because being able to conduct transactions without relying on bank approvals is a major advantage. My view is that, whilst full decentralisation may not be possible, a hybrid system is more realistic it provides stability when state economic interventions are necessary but individuals should also be able to take control through decentralised tools. So why this approach Because the strengths of both sides complement each other centralisation for security and order, and decentralisation for privacy and access. What if we approached the issue like this a regulated core infrastructure but with decentralised options available based on user preference

Many countries are adopting the hybrid system regarding Bitcoin use. But the government is still seeking for means to control the sector. The past US government made decentralization a scarce commodity. Several privacy tools were attacked and the developers were charged with diverse offenses. Donald Trump has been considerate but we don't know what the future holds. The summary is that the government wants to know everything about your finances and Bitcoin will not let them achieve it cheaply. Let's enjoy the freedom we enjoy now and get ready for more regulations because the government can not allow decentralization.

[demondelanuit]

Actually, your question could be a thesis title in college.

Im gonna answer it simply. Think of decentralization as The MAGIC Internet of Money. so no single government can turn off your ability to learn, transfer and other. Bitcoin decentralizes value. So you are the bank. There is a ton of people that doesnt have access to traditional bank with money like Bitcoin as long you have device and internet you  can be your own bank

 Thank you for your reply. What you’ve said is true and i agree. The idea of becoming your own bank using a device and the internet is a very strong one. i’ll learn more along the way and take confident steps forward...

[Hamza2424]

hi im delanuit  im new to Bitcoin,why does decentralization matter for the economy and i think what practical differences does it make in daily life?


any oppinion?? 

Haha, welcome to the rabbit hole, bro. To be fair, once you genuinely understand the answer to your question, you will never look at money the same way again haha.

Hmm, the practical way to understand it is by first realizing how financial transactions work in real life. There is always a middleman, right? So what that middleman does is deduct fees, delay the transaction for days, and there may be more than one middleman if the transaction is international. They can freeze your assets, ask unnecessary questions, and even report your activities to the government, or block you due to geographical differences.

Decentralization removes that middleman entirely, bro. You own the funds, you control the keys, you can send them anywhere, and no one can freeze them. There’s no privilege for the poor or the rich like there is in centralized banks.

For people in stable countries, it feels less urgent right now, but the infrastructure matters before you need it, not after.