BITCOIN
I am of the belief that this "magic internet money" cam have dramatically positive implications on the world, if adopted at scale. Rather than explaining why bitcoin, I'd like to highlight two urgent real world problems, that can be solved through bitcoin and solutions built over it.
Hyper - Inflation : The world we live in is operated and ruled by fiat currencies - US Dollar, British Pound, Indian Rupee etc. The value of these fiat currencies are extremely significant and inexplicably tied to the destiny of the people using the. This value is an outcome of the government that "manages" the currency and tries to maintain/ improve the purchasing power of their population. However, this government "management" has led to the various currency crisis, that are peppered across history. Whether, it is pre World War Germany or Venezuela/ Argentina right now, governments have abused this fiat monetary system by recklessly printing money to finance their illicit activities and completely devalued their currencies...case and point is Venezuela.
If bitcoin, were to be used (at scale), it could prevent such a problem from occurring as it is a deflationary currency...the money supply is fixed..the governments cannot hyper inflate their currency into oblivion.
International Remittances : One of the problems with the current payment system is that there is the need for a middle man. For instance, as an international student from India, every time my parents have to send me money - they have to go through AML and ATF (Anti money laundering and anti terrorist funding) checks, paying a fee for transferring the money across borders, and I have to wait a few days to get the money. The situation is not bad for me, but imagine how it is for the billions of immigrants and refugees across the world. Bitcoin, due to it being a blockchain based solution, does not require the middle-man to attest the transaction and identity, it is a frictionless solution.
Therefore, through these two use cases we can see that the Bitcoin, if adopted and developed to scale, can have a fundamental impact on the world. I hope to, at some point be involved in the adoption and use of this technology and if possible, as money.
I am of the belief that this "magic internet money" cam have dramatically positive implications on the world, if adopted at scale. Rather than explaining why bitcoin, I'd like to highlight two urgent real world problems, that can be solved through bitcoin and solutions built over it.
Hyper - Inflation : The world we live in is operated and ruled by fiat currencies - US Dollar, British Pound, Indian Rupee etc. The value of these fiat currencies are extremely significant and inexplicably tied to the destiny of the people using the. This value is an outcome of the government that "manages" the currency and tries to maintain/ improve the purchasing power of their population. However, this government "management" has led to the various currency crisis, that are peppered across history. Whether, it is pre World War Germany or Venezuela/ Argentina right now, governments have abused this fiat monetary system by recklessly printing money to finance their illicit activities and completely devalued their currencies...case and point is Venezuela.
If bitcoin, were to be used (at scale), it could prevent such a problem from occurring as it is a deflationary currency...the money supply is fixed..the governments cannot hyper inflate their currency into oblivion.
International Remittances : One of the problems with the current payment system is that there is the need for a middle man. For instance, as an international student from India, every time my parents have to send me money - they have to go through AML and ATF (Anti money laundering and anti terrorist funding) checks, paying a fee for transferring the money across borders, and I have to wait a few days to get the money. The situation is not bad for me, but imagine how it is for the billions of immigrants and refugees across the world. Bitcoin, due to it being a blockchain based solution, does not require the middle-man to attest the transaction and identity, it is a frictionless solution.
Therefore, through these two use cases we can see that the Bitcoin, if adopted and developed to scale, can have a fundamental impact on the world. I hope to, at some point be involved in the adoption and use of this technology and if possible, as money.
Yo Vish (the legend),
ReplyDeleteHow you doing man! I'm not in your infinity group but I wanted to read your idea. I love it, as you know I am a big believer in bitcoin and blockchain as well. I think over the next few decades we will see the biggest transfer of wealth ever. Cryptocurrency allows developing countries to get on the same playing field as developed countries by allowing them to participate in the global economy. The case for cryptocurrencies for International Remittances is a no brainer - people will be able to send any currency immediately with literally the smallest transaction fee. And the case for cryptocurrency instead of fiat because of hyperinflation is solid, but the cryptocurrency needs to be stable, which it isn't right now. I think years down the road once it stabilizes than we can replace fiat.
yessir!
DeleteThis is a very cool idea! I am not too familiar with Bitcoin (I remember last year around this time the value was high and then it sank) but the implications of Bitcoin seem great! Given that this currency's "printing" is fixed, it would eliminate the problems other countries face with inflation. I also like how liquid it seems to be by transferring between parties, without having to go through a middle man. If Bitcoin or another cryptocurrency were to take over, how do you envision it changing the world? Would we be able to distribute wealth easier? Would it give countries more purchasing power? This is a very neat idea and I am excited to hear your pitch!
ReplyDeleteThis is a very unique idea. I also think bitcoin would be a potential solution to dealing with hyper inflation. A question I have is do you think there is too much, appropriate, or too little concern over the risk associated with bitcoin? I know its value has fluctuated tremendously over the past year or two leading many to worry about its volatility. I also think you could help readers be more informed with a brief overview of what bitcoin is and how it works essentially.
ReplyDelete-Ryan Baer
I like how you pointed out 2 practical uses for cryptocurrencies. I think for most people, Bitcoin is a difficult concept to wrap their head around, so it can be useful to point out how it impacts everyday life. I learned a bit about crypto in a class I took, and we also discussed how countries such as Venezuela can benefit from this idea. However, in practice it is much more difficult to achieve since cryptocurrencies are still very unstable. If I'm not mistaken, I believe the president of Venezuela wanted to roll out their own national cryptocurrency called the petro, but that kind of defeats the purpose since it would still be state-run.
ReplyDelete-Diana Zhao
I’m not too familiar with the details of bitcoin but from your explanation it sounds like a great idea in theory. I do have a few questions though. If Bitcoin were adopted, who would regulate it between countries? Also what international defense implications would there be? If there is a universal currency, then the currency would lose its value as a commodity bought and sold, and would only have value in buying other commodities.
ReplyDelete