Topic: Traditional currencies vs Crypto currencies - page 2. (Read 310 times)

The two examples are a bit over exaggerated to be honest. There are many cons to the current banking system, but let's stay fair.

I have never experienced in any of the banks where I have accounts that the systems are down, I wasn't able to send a payment, or couldn't withdraw money from the cashier's desk. Bitcoin and its associated apps can have issues as well. If you are using a hardware wallet, it can break, malfunction, or reset itself to factory settings leaving you stranded at the moment you need it. Software apps can experience bugs. Viruses can cause bitcoins to be stolen from vulnerable wallets or destination addresses changed due to clipboard hijackers.

In decades of working with traditional financial institutions, not once have my accounts been limited, blocked, or hijacked in any ways. I have been asked once to provide proof of paid taxes, and Skrill has sent inquiries regarding the nature of my business and incoming transactions. Centralized crypto exchanges can also cause problems that result from hacking, exit scams, sudden KYC requirements, high fees... Even though there are decentralized alternatives, CEX's are far more popular that's why I am using them as an example.

Crypto is supposed to co-exist with the traditional financial systems, not replace it entirely. Most people still measure their wealth by looking at the dollar/euro value of what they own in crypto. And sooner or later, many coins will get exchanged for fiat once they reach a high enough value their owner is comfortable to sell at.

When the average Joe asks you how much bitcoin you have, he isn't looking for you to tell him 1.1 BTC. He wants to hear you say $55 k worth of coins. We are still far away from a world where non-crypto interested people will understand the value of those 1.1 BTC and not measure it in fiat terms.

Fiat is much simpler, that's just a fact. Especially cash. No apps, no fee calculations, no addresses, or QR codes. You hand over your cash and get your product.

Bitcoin's biggest benefits lie in cheap international transactions via a secure decentralized network (contrary to many other cryptocurrencies), and being a rewarding store of value.

We can compare this technical issue with the delay that your friend might experience if the sender or you've paid for the lowest fee ever. It has been a problem of other newbies that they only pay for the lowest when the network is congested which results to the delay of the sent payment.
Another thing, although the comparison that I'll tell isn't that much to compare but on the other hand, we also got limits in exchanges but not in wallets we use.

I'll be honest, most of the answers here on a Bitcoin forum will likely be in favour of Bitcoin. Although, for ease of use traditional currencies are much easier. This has been discussed before, but cryptocurrencies are still somewhat difficult to use. I don't know about you, but after being involved in cryptocurrencies for several years I still triple check any transaction I send just to make sure my decimal points are in the right position etc.

There's also the matter of fees. Fees in traditional currencies due to its more stable nature are actually fixed amounts only adjusted from time to time. Fees in cryptocurrencies are constantly changing, and evolving which means you have to check whether what your wallet is suggesting as the recommended amount is actually a decent amount to use, since you could very well be overpaying, or underpaying.

Then, if you have lent some money to your friend for lunch, there comes the issue with Bitcoin not really being used for micro transactions, because of its comparatively expensive fees for small amounts. Bitcoin isn't the answer to every scenario, at least in its current implementation. 

But,

1. Crypto requires internet. If you pay at a store and they have no internet connection, there is no way you can pay
2. Payment time depends on how many confirmations the store requires
3. No. 2 may depend a lot based on how congested the network is

etc...

There are pros and cons but let's not ignore the cons and face the reality..

Sure, but we'd have far bigger problems without internet. Not to mention that we can already broadcast transactions through satellites.

The block size was intentionally left small so it would be easier(or more feasible) for people to run nodes. Hence why we're betting on layer-2 solutions. Yes, development isn't as fast as we'd want, but there's progress.

Sure, projects are trying their own ways of doing things. But name a cryptocurrency with better scalability WITHOUT sacrificing security and decentralization.

But crypto also requires an internet network to operate. If there is no internet network, it is certain that the transaction will not be successful.

Then there is a small problem regarding the transaction fees which start to increase. This happens because the network is too congested. So many people are competing to speed up the delivery of transactions by increasing fees.
The reality of cryptocurrencies is not without problems. Bloksize limitation in bitcoin is currently a big barrier for faster transaction processing. This led to the emergence of coins with new technology.

Sure, those are definitely positives. But there's things beyond those that are far more important. Namely, the fact that banks or any central authority can't lock you out of your money. The concept of having "true ownership" over your money/wealth is something that can be quite hard to grasp for some people in decent countries, but is easily easily a huge selling point for people that are in countries with totally nefarious governments(and the people who are totally aware of what's happening in these countries).

Imagine a scenario in which you want to repay a friend who bought you lunch by sending money online to his or her account. There as are several ways in which could go wrong,
Including
1: The financial institution could have a technical issue, such as it's systems are down or aren't working properly
2: The transfer limits for your or your friends account could have exceeded
  There is a central point of failure: The bank

This is why the future of currency lies with crypto currency. Now imagine a similar transaction between two people using the Bitcoin app. A notification appears asking whether the person is sure he or she is ready to transfer bitcoins. If yes, processing take place and the system authenticate the users indentity and it's done

Crypto currency then removes all the problems of modern banking; there are no limits to the funds you can transfer: your account cannot be hacked and finally there is no central point of failure.