Those of you that are involved in crypto / blockchain / web3 will be the pros of the next bull run.
Are you ready to describe how cryptocurrencies are structurally superior to fiat currency?
Here are 5 ways, in plain language, to help you understand.
1 - Cryptocurrencies solve inflation.
A dollar today doesn’t buy what it used to.
A currency with a fixed supply that can’t be diluted is a breakthrough innovation that is simply not possible with fiat currencies.
In fact, scarcity drives value.
Gold has retained its place as a store of value for 5,000 years, in part due to perceived scarcity.
Yet there is no greater assurance of scarcity than a mathematically capped supply, which has been made possible with cryptocurrencies.
2 - There are no foreign exchange fees.
Central bank issued currencies are artificially constrained by geographical borders. I have so much spare change from different countries around the world. They have no utility until I pay an exchange to convert them.
Cryptocurrencies, on the other hand, are borderless by nature.
The next time you are charged foreign exchange fees or find yourself with worthless foreign spare change, remember that there is a better alternative now available to us.
3 - Moving cryptocurrency is far more efficient than moving fiat money.
Go try & wire transfer funds anywhere & you could be waiting 3 to 5 days.
Unlike fiat currency, which requires middle men to move around, digital currencies have a built in payment & settlement network.
You can send millions of dollars to someone across the world using Bitcoin in a matter of minutes, for the price of a coffee. I love coffee.
4 - Cryptocurrencies can be divided up into very small amounts.
The token I support, PULI, has 9 decimal places.
A bitcoin can be divided into one hundred million units (0.00000001 BTC, also known as a Satoshi).
This makes micropayments a reality. Without this, the project I support, PULI, would not be able to drive it’s P2E system with much precision.
BlockchainGaming is a great example of how micropayments are helpful.
5 - Finally, my favorite topic: cryptocurrencies help financing include the globally unbanked.
Think of the problem this way:
1. There are over 25,000 banks with millions of branches.
2. Yet billions of people still cannot access banking.
Source: The World Bank
What do you see as problems solved by cryptocurrencies?This post is based on this twitter thread.