Crypto's biggest problem

in bitcoin •  7 years ago 

IMG_6465.PNGThe hardest thing about Bitcoin and crypto unfortunately is trying to explain to someone why they need this technology, people think it is just simple money for the internet but it's much greater than that.

Crytpocurrencys like bitcoin are decentralised networks that allow the whole world to participate in a financial system without the need for vetting or to pass a credit check, it gives everybody the ability to have a Swiss bank account in your pocket, where you can transact wealth, information, assets and much more without the need for government or institutional oversight.

The bitcoin network allows for this through the magic of mathematics, trust and security are inherited built in to create a financial liberty meaning absolutely anybody and everybody can participate in a transactions with whoever they want for whatever they want without the need of an intermediaries.

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A sorta good way to explain the block chain in simple terms is to pose two scenarios. Scenario 1: I am over seas and need my (parent, freind, spouse) to send me 2k, they agree and let their bank know, to give me 2k. Now their bank contacts my bank and moves the funds and both banks make a note of it. Transaction complete.

Scenario 2: I am over seas and need my (parent, friend, spouse) to send me 2k, they agree and let our 5 friends know, each friend makes a note on a piece of paper(blockchain) and now we all have a record of it. So now if one or more of the records is damaged or lost or altered, we have more records to prove the transaction happened.

In scenario 1 the banks are the only ones with concrete evidence that the money was moved, if they lost or altered the evidence all that would be left was the word of the 2 parties involved.

This doesn't cover much but it at least gives a small real life example of one advantage of blockchain financing. You could expand on the story further and say your whole freind group or family keeps the records and after 10 transactions, they seal the paper away and agree to make no more changes to it. I also did not come up with this little story myself but read it elsewhere online and it was more eloquently written. Hope that helps someone.