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Here are ways people are made less poor with Bitcoin: 1. Sending money over the border to relatives for 0 fee. There are a lot of stories on how people risk th
by oleganza 13y ago
Here are ways people are made less poor with Bitcoin:
1. Sending money over the border to relatives for 0 fee. There are a lot of stories on how people risk their wealth transferring big amounts of hard earned capital across the border.
2. Do not have to pay hidden costs of using traditional payment systems. Costs are for sellers and buyers: 1) transaction fees 2) fraud risk 3) undersupply of goods because of fraud risk or fees. Tons of business models are simply not possible without Bitcoin. And many are not open to anyone in the world because of regulations, fraud risk etc.
3. No cost of inflation. If you save money for buying something expensive or opening your own shop, central bank steals your wealth by printing money and giving it to privileged organisations (that are supposed to pay you back in a form of "growing economy", but we have yet to see a proof for it). For almost 5 years now, Bitcoin value was significantly growing every single year, comparing to any other asset on the market. And even when/if it stops growing, the value of Bitcoin depends on a decision of every market participant, not a small group of people in the Federal Reserve.
4. Those who wish to save wealth by avoiding some taxation, are able to do so. If some poor teenager learns HTML and makes websites for Bitcoin, he doesn't need to lose 20-50% of his income (depending on your country and how you measure the total tax).
5. If you worry about gangsters from main street or wall street stealing your money by force, you can hide it well extremely cheaply. You can remember a single password to re-create a wallet from it. Or back up your wallet on different cloud services. Or give copies to all your friends. It's much easier to protect bitcoins than gold or paper bills. We only need some easy to use software, but it's entirely possible to do, it just takes some time.
The only cost for you is higher perceived uncertainty (however, our shaky financial ponzi scheme created by government only seems stable, but it can collapse anytime and goes in that direction) and a lack of tools and services. But all of that is coming. Every year it becomes easier to use Bitcoin and more people accept them.
See where the puck is going.