Time Magazine Writes On Bitcoin’s Potential To Liberate Doomed Countries
Bitcoin (BTC) can play a significant role in giving users financial freedom, a report published in major U.S. newspaper Time shows.
Focusing on the value of bitcoin in a ravaged economy like Venezuela, Time’s article points out that factors like the use of crypto for speculation and the potential for fraud have deviated Bitcoin from its real benefits to users.
These factors and the visible greed driving some in the crypto and blockchain technology industry are greatly overshadowing Satoshi Nakamoto’s innovative invention that has the potential to liberate holders.
The article’s author Alejandro Machado says that the use of bitcoin offers users “a valuable financial tool” with its censorship-resistant feature making it a great medium of exchange.
Citing the transfer of money via wire transfer, Machado noted that it costs more to complete these transactions from the U.S. to Venezuela, with fees pushing upwards of 50 percent.
The crypto researcher, who works at the Open Money Initiative, then notes that moving to crypto presents a better deal to Venezuelans.
Venezuelans are reportedly turning to cryptocurrency in massive numbers, receiving BTC from abroad using platforms like LocalBitcoins. It is a cheaper, faster alternative to the other available option.
To evade huge losses at home, Venezuelans have often asked relatives in the United States to wire money to neighboring countries like Colombia, from where the recipients can withdraw cash and cross with it back to Venezuela.
But Machado’s take is that crypto or bitcoin for that matter is better than this option- for the mere fact that the prospect of withdrawing cash in Colombia is likely to waste more time, “cost more, and be far more dangerous than the Bitcoin option.”
Additionally, the Time article suggests using Bitcoin presents one with a means to protect themselves from inflation in their country’s fiat currency.
A good example is Venezuela, where inflation level has soared exponentially and is approaching 1 million percent.
Other examples include Zimbabwe where the country’s former president Robert Mugabe tried to tackle the skyrocketing inflation by printing “endless amounts of cash.”
However, the nature of bitcoin, when adopted, gives users a cushion against such maneuvers because as Times points out, Mugabe’s “successors can’t print more Bitcoin.”
Other than helping users evade mass surveillance, often the norm in many countries including China, bitcoin also gives users freedom because no government can censor these transactions.
Also, centralized authorities can also not freeze bitcoin wallets, with moves like suspending accounts not a death knell to the use of crypto.
Wikileaks had its account at Coinbase suspended last April, but that hasn’t stopped the whistleblower organization from accepting bitcoin donations into accounts whose private keys it controls.
A decade after invention, Bitcoin is still taking its baby steps, and the nascent technology will need much more maturation regarding speed, privacy or ease of use.
The upside is that work on the bitcoin protocol and ecosystem is ongoing and features like the Lightning Network could be instrumental in making bitcoin a better medium of exchange.
Disclaimer: This is not investment advice. Cryptocurrencies are highly volatile assets and are very risky investments. Do your research and consult an investment professional before investing. Never invest more than you can afford to lose. Never borrow money to invest in cryptocurrencies.