This is The Biggest Problem That Bitcoin Aims To Solve
The remarkable thing about bitcoin is its decentralized ability meaning it can’t be controlled by any country, entity, or person.
The principal difference that separates Bitcoin from the central banking system we’re currently used to is its decentralization.
Inherently, our worldwide banking system is centralized by the banking institutions because our money is controlled and distributed by the government.
This money is termed “fiat” — originating from the Latin word meaning: “a determination by authority.”
When you have a centralized fiat currency like the US dollar (the current global reserve currency), you are coerced into a financial system that can change the rules at any time.
I’m from Nigeria in West Africa and the rules have been changed repeatedly and unfortunately not in our favor.
You are subjected to the big banking system that charges you overdraft fees, requires minimum balances, and lends your money out to other people only to pay you less than 1% in annual interest.
And while big banks in some first-world countries like the United States have healthy competition and therefore have incentives to offer better, freer services to consumers, many countries around the world don’t offer these privileges.
Many banks in these other countries actually charge their consumers to keep their money in the bank.
Which is kinda an open day highway robbery.
As funny as it sounds, the use of physical, insecure piggy banks are a reality for over a billion people around the world.
Financial services create expensive barriers like fees, minimums, and identification requirements that don’t allow people to participate fairly in it.
Additionally, not even everyone has access to a competently secured and insured central banking system; they must participate in the one-handed to them by their government, no matter how unstable or corrupt it is.
But Bitcoin fixes these issues!
Bitcoin works for everyone. Rather than having someone at the top, the Bitcoin Network is based on the consensus of everyone who participates in it.
It doesn’t matter what country you’re in or how controlling your government is — your wealth is secured by the bitcoin blockchain all the same, and no one has the authority or power to change this.
However, it is technically possible for bitcoin to be “hacked” or controlled.
Bitcoin is an opportunity for the unbanked to store and grow their wealth in a secured way, where nobody can be locked out or denied — and Bitcoin doesn't care about your credit score.
In traditional banking, you are subjected to approvals based on credit scores and government identification. This makes everyone susceptible to fraud; if someone steals your identity, they can open up credit cards, generate debt in your name, and destroy your credit score.
Everyone can participate anonymously in the Bitcoin Blockchain, as names and personal data are not connected to transactions.
There are places where you can buy Bitcoin (Bitcoin Exchanges) that require a Know Your Customer (KYC) process that requires you to verify your identity with a selfie-and photo ID.
But once you take your bitcoin off of those exchanges and into your own wallets, all transactions from that point forward are pseudonymous.
Bitcoin allows you to be your own bank and gives you full control of your wealth.