Topic: Will crypto solve socioeconomic problems? - page 19. (Read 4371 times)

Crypto will not solve this human related problem and crypto has no rules to set to the people as this is not a mandatory to everyone. It may help to improve the source of financial aspect of those investors but not this socioeconomic problems which needs discipline to every people.

Less than 0.5% of people managed to improve their lives due to the cryptocurrencies. The crypto is great, and it works but it will not help a lot to make the economic situation.

I think encryption can solve socioeconomic problems. If communities can develop and expand smoothly, the world economy may need to be more closely and conveniently linked by encrypting currencies in the future, when many countries will be more open to Bitcoin, and the concept of "state" will be weakened in the future.

Yes, cryptocurrencies can solve many of the human problems. It’s just that you can’t think of it now. Too much can basically change all the industries.

BENEFITS ASSOCIATED WITH BITCOIN

1. Bitcoin’s most important characteristic, and the thing that makes it different to conventional money/normal currencies, is that it is decentralized. No single institution controls the bitcoin network. That means that, in theory, one central authority can’t tinker with monetary policy and cause a meltdown.

2. Those who endorse this digital currency are of the view that it facilitates a much faster, no-fee payment system for transactions across the globe.

3. With Bitcoin you don’t have the problem of inflation because the system is designed to make Bitcoins to be finite as only about 21 milion Bitcoins will ever be released (mined).

4. It’s a re-imagining of international finance, something that breaks down barriers between countries and frees currency from the control of federal governments.

Bitcoin solved a number of problems across technological, social and economic dimensions.

Technologically, Bitcoin introduced a novel and effective way to address a few serious and critical weakness in using computer systems to act as a monetary system. These are

- that computer systems allow (by design) the ability to copy and paste (duplicate / counterfeit) digital / electronic monetary units in an unregulated way

- computing operates at the speed of light, and thus could be used to re-use / spend the same unit of money multiple times across different transactions (the double spend problem), as well as not follow through on an agreed transaction (the Byzantine General’s dilemma)

Socially, Bitcoin is offered as an open source solution, incentivising people to try, learn and use the underlying technology to develop and build their own alternative system (or simply clone the original). This model ensures that there will always be demand and interest in the system.

Economically, Bitcoin was cleverly designed to operate as a deflationary precious commodity / asset. It was designed to simulate the finite quantity of precious metals (like Gold) by setting an absolute maximum amount of 21 million bitcoin units. There is also a mining reward mechanism - a payment in bitcoin - designed to generate rewards to active participants approximately every 10 minutes, with reward quantities halfing at pre-defined intervals. This approach ensures economic predictability of the bitcoin asset, and creates deflationary incentives for people to own and hold Bitcoins (since they should be worth more over time), thus also rewarding long term participation in the Bitcoin ecosystem over time.

Others have answered the question and outlined some specific real world problems and use cases that Bitcoin has been used for, so I won’t go into detail about how it’s used.

Broadly speaking - Bitcoin solves the problem of verification. It allows getting verified answers from a group of untrusted individuals (See my answer here for details on How Bitcoin Mining Works), instead of trusting a single authority to do the verification.

Narrowly speaking - Bitcoin is focused on the banking/financial system. It is meant to facilitate financial transactions directly between peers without clearing them through a central bank. As an open 'democratized' system, it should also reduce fees to the minimum the market would accept.

Bitcoin provides an open secure and fast way of transerring the money. You don’t need any governmental permission or contract to make a transaction - all you need is the internet access. It is a new way for people in countries such as Saudi Arabia, Syria, China or North Korea to make an international secured transaction (at least to have a chance). It’s good to have a guarantee of the infallibility of economics in an appocaliptic situation when no one can be trusted (even the bank-system). The blockchain is absolutely unbreakable whatever happens around and whoever rules the world. All the information stored in a blockchain will exist forever and it’s possible to retrieve an infrormation about a transaction in 200 years for any purpose. Also international bitcoin transactions are much faster and cheaper than the regular ones and are able to reach a destination in 10 minutes (compared to 1–2 days and up to 20% of tax). International transfers also might grow into interplanetary if we’ll manage the internet well.

Cryptocurrency can't solve problems that related to socio economic unless every man or woman is determine to improve life through work or employment. Everyone must make a move to uplift his/her socio-economic conditions by utilizing his/her own skills and strength and not by pinning their hopes on cryptocurrencies.

What I have learnt so far from my experience and observing the world around me, I think that it is not possible for bitcoin or any other asset to change the economy and financial status of a person until or unless that person does something productive. Anyone who will indulge in bitcoin and do work will improve his living standard and this is doubtless.

We always confuse money - which is a representation of value - with value in itself, which is quite another thing.
Bitcoin itself does not solve anything, if you are poor in dollars you will also be poor in bitcoin, that's it!
If we want to be rich, we must create value; then it makes no difference whether it is paid in bitcoins or dollars.

very good for answer!

answer very good! I agree with answer of you!

Cryptocurrency in my opinion is actually a form of globalization, because everyone in the world can interact and transact privately without any regional or state restrictions. So, answering the question above, of course helping the economy of a country, just imagine, for example, I have a jeans manufacturing business with the ABC brand, when I promote to the world via the internet, maybe the whole world will know and when I pin that we receive payment by using cryptocurrency, of course, it will make it easy for anyone anywhere in the world to make purchases for our jeans. When I have been helped by the ease of transactions using the cryptocurrency, then maybe other people will be helped too, and certainly have a big influence on the socio-economic condition of the country.

Right now, bitcoin is doing splendid job to counter this fact too. many people who don’t have permanent job are getting good earning from this bitcoin. They are doing different tasks and at the end, they earn good money. But the concept of people is still hardened, to make world unemployment free. This can’t really be achieved from bitcoin only rather governments should work on it.

To an extent it can help towards reducing the problem if not fully it can solve it. It is important for the people to get the income through different sources which can help you to make money and raise your standrad of living. For those unemployed get the employment benefit and becomes self dependent.

Although crypto can not solve all economic problems in society. But it will solve some problems in some aspect of the economy. It will be the economic stimulus for social development.

definately crypto when fully adopted will ease the process of purchasing of goods online, but the economy is not also left out as they will gain emersely from crypto in the sense the if i order goods online for instance with my bitcoin, the seller will definately add cost of importation because the seller will definately pay import duties which will directly be of benefit to the economy. so both the government and the individual will gain if crypto currency is generally accepted globally.

A lot of people has improved their lives through cryptocurrencies. Poverty is one the most rampant socio-economic problems here in the country and I guess it has been lessening with the help of crypto. As long as people will focus more in crypto, we can minimize unemployment then we will improve economically as well as the lives of many people.

It is actually happening but still with the fiat system.

Buying goods from other countries is an easy thing now. Just need to pay for the shipping and you will just have to wait for your item at your doorstep.

It will actually speed up things like that. The only problem is there is no getting back. Once you made a transaction then be sure that it is that you want and also think about the quality of it. A bitcoin transaction can never be changed. Better double check it.

The good thing about it is you wont pay much for transaction fees sending them money.
Credit cards wont be good too. You are paying annual fee for that and they didnt even do anything.