Topic: Does cryptocurrency actually solve any problems? - page 4. (Read 782 times)

I'm going to answer this question from a personal perspective.

Let's take my country, for example, our currency is going to shit as we speak. It's depreciating daily against the dollar and before Bitcoin, I would have had my savings in my local currency (because presently I'm saving for a project I have in mind), and that savings would have also been depreciating.
Now I can just save my money in Bitcoin and if I'm lucky, before the time when I will be ready to use the savings I might have gotten some profit too. This would have never been possible with my local currency.

Secondly, Bitcoin has made it easier for me to send and receive money to/from other countries without any single stress. This used to be a problem for me, especially when I was receiving from a developing country. You'd be surprised to know that in most of these developing countries, only methods like western union and money gram are available for sending money. So I'll be forced to use other means that will leave me vulnerable to scams.
It's as if the innovation of Bitcoin was specifically made for me.

Different people have different solutions that Bitcoin brings to them. The problem of going to banks is also another thing.
I can't speak for crypto as a whole, but I can speak for Bitcoin and say that it solves a lot of problems for different people.

If by the financial problem you mean financial stability, then that requires more work from you even after you start using cryptocurrencies and it also requires one to invest money and then trade cryptocurrencies on a daily basis after learning everything, but, it does provide you with financial privacy for sure, Bitcoin does that, because it is totally decentralized and there is no one actually watching and controlling your finances and financial activities.

When using cryptocurrencies, you are your own bank. Whenever you want to deposit some money, you do it with a single click without any questions asked, and whenever you want to withdraw, you can do that so easily without anyone asking you for any paper work or any calls for confirmation or anything.

Been asked a couple of times, what problems does bitcoin solve...compared to other cryptocurrencies.  I just extracted the above statement from Op and it seems you meant bitcoin in the first cryptocurrency used.
Actually, it is not all cryptocurrency that solves problems, that is why people ask for a project road map or whitepaper, to see the actual problem such a project solves.

In the early days of this industry, I think some of the projects tend to solve problems before scammers flooded everywhere. Some of the problems I think cryptocurrency solves compared to traditional fiat are;

• Solved problem of centralization
• Privacy and anonymity by privacy coins
• Low transaction fees sending money and paying for goods internationally
• Fights unemployment

And there are very lots more, especially in technology which the fiat system may not perform.

We can take the example of Bitcoin.
The best problem that Bitcoin can solve is the transparency of transactions. Since Bitcoin is decentralized, all transactions are open to the public and it is validated by lot.
And another thing is money remittance, when you send some money from other countries, fees are high and it will arrive for too long, which is mostly considered as cross-border payments.

With bitcoin and altcoins, of course, there will be positives and negatives. Of course, many people are helped by their economy with crypto, such as people who invest in crypto and ultimately benefit from their investment in crypto. but there are also those who experience losses due to investing in crypto and end up losing money, for example because they sell in a bear market while buying in a bull market. I think crypto is a tool for making profit for people who have extensive knowledge and experience.

so crypto can solve problems for those who can use it well.

The problem(s):

- You want to send money to someone else, but transfer fees are expensive or not working for some reason.
- You want to send money to someone who doesn't have an open account (or the reverse is true).
- You are worried that inflation will eat away your savings gradually.
- You want to buy something, but your card is declined and you can't get it working in short order.
- You're going overseas and need to take a lot of money with you for some reason

Bitcoin fixes all this!

It actually do solve a problem to some large extent, and the reason why i said to some large extent is that,

1  Decentralization: Cryptocurrencies operate on decentralized networks, reducing the need for intermediaries like banks and enabling peer-to-peer transactions, which can be more efficient and less costly.

2. Financial Inclusion: Cryptocurrencies can provide financial services to people who are unbanked or underbanked, giving them access to the global financial system without the need for a traditional bank account.

3. Borderless Transactions: Cryptocurrencies enable seamless and near-instantaneous cross-border transactions without the limitations of traditional banking systems, which can be slow and costly.

4. Security and Transparency: The underlying blockchain technology ensures that transactions are secure, transparent, and tamper-resistant, reducing the risk of fraud and enhancing trust.

5  Lower Transaction Fees: Cryptocurrency transactions often involve lower fees compared to traditional payment methods, making them attractive for microtransactions and international transfers.

6. Investment Opportunities: Cryptocurrencies offer new investment options, allowing people to diversify their portfolios and potentially benefit from the growth of the cryptocurrency market.

6. Programmable Money: Some cryptocurrencies, like Ethereum, support smart contracts, enabling programmable money and decentralized applications, expanding the range of possibilities beyond simple transactions.

7. Privacy Options: Certain cryptocurrencies offer enhanced privacy features, allowing users to maintain greater control over their financial data and transaction history.

Regarding the unique value proposition of each cryptocurrency, different cryptocurrencies may prioritize specific features or use cases. For example, Bitcoin is often seen as a store of value and a digital gold, while Ethereum focuses on supporting decentralized applications and smart contracts. Other cryptocurrencies may target specific industries or use cases, such as privacy-focused cryptocurrencies like Monero or Zcash.

I'll answer about cryptocurrency solving problems. First, cryptocurrency did solved my problem during the time when I needed money where I was able to earn $2000 and I didn't spend much of my own money before I was able to earn that amount. Anyways, the problem that cryptocurrency solved in my situation is about financial problem. For other people, I am not sure of what kind of problem that crypto have solved like using crypto to buy things online or buying something but you only have crypto to pay and luckily the other party accept crypto as payment.

I see one of the problems bitcoin solves best by far is to create a decentralized asset, meaning we can become our own bank without having to depend on anyone. Bitcoin gives us the privacy we need. Besides, it also helps us save a lot of time and cost every time we make cross-border transactions. Those are two things that I see bitcoin doing very well, but using it as an investment for profit is up to the individual. Not everyone can profit from it.

It doesn't solve many of the problems it claims to solve. Cryptocurrency is not a finncial revolution, it's not a replacement for the current financial system, simply because it can't perform every function of the system.

Crypto's biggest success is giving users full control of their own money, but only Bitcoin fully achieves this, altcoins are controlled by their developers and can change the rules unilaterally or they can even control transactions.

However, controlling own money isn't something most people want. It's a responsibility that they outsource to banks and payment networks.

Buying drugs online is probably the biggest real-world use case for crypto. If you have libertarian or anarchistic views, you can say that it's positive, because it shows that crypto can be the backbone of markets that are free from governments. If you have more mainstream views, you can say that it means that crypto helps crime.

I don’t know, ask people who are now banked thanks to BTC while traditional banking system is still unaffordable to them. Ask people who’ve had their money frozen before or stolen by banks and obtained independency through BTC. And ask people who had to move significant amounts of money cross borders without their leadership knowing (IDK, Chinese residents maybe?) and were able to do so with a piece of paper containing 12 words smartly hidden in art or whatever. Bitcoin’s solved issues. Maybe it hasn’t solved issues you’ve never had but trust me, it’s done great things to humanity!

Thanks to all users that have taken their time to give answers here, but if you maybe put this question directly to me alone, my answer to you would be...

If the entire cryptocurrency market capitalization is currently sitting at over $1.1 trillion dollars, and bitcoin alone has a market capitalization share of $560 billion dollars currently, while the remaining market cap is shared amongst other cryptocurrencies, if the market is worth this huge sums of money and you are still asking what problem it solves, then it shows that you are either very dull in learning or have been ignorant about learning.
Now I don't mean any of this i mentioned as an insult or whatsoever, i am just being as open as i can be, useless thing are usually valueless, worthless, so when something is of great value like this, you should know they are very useful and in high demand, the demand is what gives it the value.

It solves general problems of the financial system, primarily inflation, which is the bane of everyone's existence unless you're a billionaire in which case it just makes you even more rich. Another would be the impaired payment processing and lack of anonymity in the remittance of money over larger distances, which keeps you from keeping your identity safe against scammers, and hackers that may intercept your money and literally close it out for you.

Financial capabilities come in last as it is not necessarily guaranteed especially since bitcoin is a very volatile asset with a high propensity to lower your investment's value in certain occasions, but with enough patience and great timing it has helped millions of people in the past achieve financial stability, which is a good thing.

Here are just some of the value propositions, mostly in comparison to the fiat money system:

Fixed supply vs. Infinite supply
The money which makes the world turn at the moment is infinite. Bitcoin on the other hand, only has and ever will have 21,000,000 supply.

No government or central banks
The only people who call the shots are the people. For decisions and changes to be made to the Bitcoin protocol, at least 80% of the network need to agree to the change. This is fairer and achieves consensus decision making for major decisions. Fiat on the other hand, is completely reigned over by governments and central banks.

Lower transfer fees
How much does it cost to send $1,000,000 internationally with a bank? The answer is; a lot in comparison to Bitcoin. No matter how small or large the transaction, Bitcoin charge the network fee which varies between $0.1 and $1 depending on network activity (at time of post, fluctuates)

Audit-ability and transparency
You can audit the Bitcoin blockchain all the way back to its roots, due to the transparency of the Blockchain that it is built on top of. Fiat is completely the opposite, only banks and their databases keep records of transactions, which is limited to each bank and their administration.

Highest potential user base due to censorship resistance
Out of all internet creations, Bitcoin is the most accessible due to its decentralization. Anyone around the globe with an internet connection can use the Bitcoin network and transact Bitcoin. No other fiat currency is capable of reaching every country like Bitcoin, and never will be.

It fulfills what the traditional payment system fails to perform. The demand to supply is the big factor that helps bitcoin in the bounce of value and acts as the factor to overcome inflation. Limitless cross border transaction is an added advantage, because to make huge transaction through banking system the process involved is really big and makes people tierd. Apart, the transaction cost is really high against the mere transaction fee. Cryptocurrency through its multiple usage have got the ability to solve many problems, but this happens good with people who have understood well about it and travel along with bitcoin.

One of my created threads entails about how Bitcoin and other cryptocurrency solve the logistic problem.  You can find the thread here: Blockchain Tech in the Development of the Global Transportation & Logistics

In this topic it was stated that Global Transportation and Logistics, Bitcoin can improve or solve the problem on:
1. Transportation Payment Dispute
2. Administrative cost
3. Transportation of Temperature controlled goods
4. LTL (Less than Truckload) inefficiency

This is only one of the many Industries where cryptocurrency helps to solve a problem that is naturally hard without the aid of blockchain technology.

Bitcoin has been useful just in a few things,
  - payment option
  - profitable investment

Though not totally is gives 100% help to the people at least it changes the life status of some individuals by improving their financial capabilities. And also, for those who are a fan of online shopping and paying a bill, Bitcoin serves as their option and make their life easy. It matters how people are using this but for me, I appreciate its existence coz I see how it helps me a lot.

Cryptocurrency actually provides an opportunity and solution to escape some challenges caused or ignore by the traditional financial system like sovereignty, cross-border transactions huge free and long processing, and it also introduces an opportunity to financial benefit. However, most crypto enthusiasts have the believe that it solve financial problem but it actually introduce the opportunity to do that and it's personal knowledge/understanding about how to use the opportunity we solve the financial problem.

We all know that the first issue the cryptocurrency solve is the transaction that relies on the third-party financial institution.  It also solve the financial inclusion issue of those that are unbanked.  With Bitcoin these unbank can be able to participate in global financial inclusion where they were denied before due to being unbanked.

Bitcoin also gives the freedom of transaction where the holder don't have or no need to ask for approval of the third party institution.

for me, that's one major purpose of crypto where you can transfer any amount without going thru a lot of documentation processes. the fee is very cheap and the transfer is quite fast. and besides, you don't need to go outside the house to make such transaction. no queues or whatever bottleneck you will encounter sending that amount of money. you just basically need internet and computer.
so yes, for me, that's one big achievement of crypto. and it actually solves the problem about cross-border payments. but this can only be useful to people who understand the use of crypto as payment method.