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.