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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.
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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.
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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.
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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.
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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.
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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.
You can send your desired crypto currency be it BNB, BTC, ETH or my favorite token PULI in seconds.
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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.
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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).
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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.
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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
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What do you see as problems solved by cryptocurrencies?
This post is based on this twitter thread.Comments
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