Bitcoin vs. the World: Can Cryptocurrency Win the Battle for Financial Freedom?

What does cryptocurrency work

Financial freedom means different things to different people. To some, it simply has enough financial resources to afford one’s desired lifestyle. To others, it controls one’s financial resources and has no external entities dictating the rules. Either way, financial freedom should ensure that every person has enough financial help and, more importantly, control over them. For instance, through the, people can access various digital currencies, including the Bitcoin. The platform creates an opportunity to invest in cryptocurrencies.

Cryptocurrency presents numerous opportunities to users. Apart from ensuring that everyone can access financial services at more affordable costs, cryptocurrency also shifts the power dynamics in the financial system from a few entities to users. Cryptocurrency introduces decentralization. Therefore, governments, banks, and other entities no longer control economic resources single-handedly.

Before cryptocurrencies, the government, through the central bank, could decide on issues such as the availability of money. Banks could determine if one can access his money and how. The people had the money, but these few players had the power. Cryptocurrency provides an alternative financial system that promises financial freedom.

The Growth of Cryptocurrency

Cryptocurrencies are decentralized digital currencies. It is quite a new phenomenon and still developing. While the original ideas of cryptocurrency may have come up several decades ago, the reality of it is only emerging today. Shortly after the financial crisis, Satoshi Nakamoto launched Bitcoin, the first cryptocurrency. Since then, there have been thousands of cryptocurrencies, and more are still emerging.

Cryptocurrencies are creating hitherto unimaginable opportunities in finances and investment. For example, they have become one of the most lucrative investment assets.

Initially, cryptocurrencies were not a big deal. As a new concept, only a few people paid attention. A few years later, cryptocurrencies have become so popular that they are grabbing the attention of governments, banks, the World Bank, the IMF, and other significant players in the old centralized financial system.

While attitudes are changing in favor of cryptocurrency, most players in the centralized financial system still think this is a bad idea. To them, cryptocurrency is a real threat to their existence. They are right. Cryptocurrency eliminates intermediaries and centralized control of the financial system. Therefore, efforts to block and even ban cryptocurrency from these entities have yet to make it easier for it to bring financial freedom.

The World Against Cryptocurrency

Ordinary people have welcomed cryptocurrency because they see the benefits it brings. Millions of people now use Bitcoin, Litecoin, Ethereum, and other cryptocurrencies. The high cryptocurrency adoption rates show it will likely overtake fiat money in a few years.

The guardians and benefactors of the fiat-based financial system are not taking it lightly, though. Governments are yet to embrace Bitcoin as legal tender except for a few countries like El Salvador and the Central African Republic. While most governments do not prevent people or businesses from using cryptocurrency, they are trying to introduce regulations to control them.

Some countries have taken more stringent steps. China banned cryptocurrency altogether. However, it introduced the digital Yuan as a replacement. Other countries like the US are also contemplating introducing their digital currencies, commonly referred to as central bank digital currency (CBDC).

Cryptocurrency vs. CBDC

The real purpose of introducing CBDCs is to fight cryptocurrency to ensure that government retains control. Unlike cryptocurrencies like Bitcoin, CBDCs are government-controlled. The government maintains power with the CBDCs, although these digital currencies work like the other decentralized digital currencies.

So far, cryptocurrencies have continued to grow despite opposition from the government and other financial players. A few countries have introduced their digital currencies. Yet, decentralized cryptocurrencies are taking root. CBDCs do not pose a significant threat to decentralized cryptocurrencies in terms of bringing financial freedom to the world.

Take Away

Cryptocurrencies are succeeding in achieving financial freedom. Efforts to counter cryptocurrencies are dwindling as governments, banks, and businesses embrace cryptocurrencies.

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