Bitcoin is a Global Solution to Divided Problems

The community behind Bitcoin spent a good part of the other day trying to explain Bitcoin to J.K. Rowling. With the help of Elon Musk edging everyone on, they seemed to miss the point all together. Therefore, I want to take just a slice of this cake and dive into how I personally have come to find out why Bitcoin is a Global Solution to Divided Problems.

Nothing should be considered investment or financial advice. Enjoy the Ride.

Peer to Peer Transactions

I want anyone reading this to stop for a second and come up with a way to easily send some one money over the internet. Not just any person but someone half way across the world, who speaks a different language and transacts in a different currency.

Most people would immediately jump over to Paypal or possibly Zelle, or maybe even some off brand solution. The problem with a bunch of these companies is they come with a crazy amount of fees to follow up with your simple transaction.

For instance, I have a guy who provides me with photos and sometimes blog posts for another blog I run who lives in Russia. Brilliantly talented guy whose words just jump off the page as you read them in his British English writing.

I love working with him, but every time I send him even a payment as small as $100, it is hit with fees of up to around $10.

That is insane for simply trying to send someone money for a service or as a gift.

Clearly there should be a better solution, and already Bitcoin knocks that out of the park. A very VERY simple demonstration of how useful Bitcoin already is compared to other payment gateways and providers. Speaking of Payment Gateways, let’s dive into my next point.

Payment Gateways and Payment Providers

I am also currently working on a business idea that requires a payment gateway or payment provider. That’s because through our app we are building, we need to be able to accept credit card transactions for the services it will provide.

Simple enough right? That should be EASY TO DO IN 2020 just accept credit card transations.

Ironically, no it is not. Not only do you need a payment gateway, but you need a merchant account to go along with it. On top of that, that bank that will process the credit card transactions for you is going to fee the heck out of you. At the end of it all, most companies end up losing from 2% – 5% on every single transaction from credit card transactions alone.

I know that does not sounds like a lot, but when you start to do the math, it add up fast. With some businesses having very narrow margins of profit, this just digs into their expenses even deeper making it harder to operate and host competitive prices for services.

Let me put it do you this way, you would notice if gas prices were 2% – 5% higher at competing gas stations wouldn’t you? Point made.

Already with Bitcoin and other digital assets like XRP or IOTA, this isn’t even a problem. At scale, we could today all host crypto addresses and be saving these businesses billions and billions of dollars in total. That is a a lot money re-entering the economy and not going straight to the banks to feed their horrible monetary policy. Speaking of monetary policy, that is our next section.

Monetary Policy

This is the last topic I am going to cover, but I want to make very simple points that drive home the utility of Bitcoin and crypto today. The last of which would be monetary policy. With everything going on these days, this term has been a joke. I can say it is nice to get stimulus checks from the government, but bad for the economy since trillions of dollars are flooding the market.

Clearly, the assets and markets have been propped up by this and it is going to lead to a bubble that will burst leaving thousands of businesses with their metaphorical pants down.

Already the banks are struggling to give out loans, the housing market is literally at a stand still, gas prices are lower than ever before, and everyone wants to ignore the massive red flags, but hey, I am game. Let’s play ball economy.

Cash Flow

The current monetary policy of printing money and controlling the flow of cash is doing a few things. One it is delaying the impact of events like Covid to later dates, and two it is covering up the real problem that the banks have no cash flow to cover even their basic liabilities day by day.

The impact of Covid and the current lack of purchasing and operations in the world is going to lead to a miserable 2020 year and an even worse 2021 year. That will all add up to no bonuses being handed out next year, angry investors and board members demanding higher yields, lay offs world wide due to rising expenses over taking profits, lack of development in many industries, and many more things. What I am talking about is extreme hyper inflation after this calm in the storm. The prices of things could sky rocket over night. Just as the bottom dropped out on most things over night with Covid. It will happen fast, and people will not be prepared.

With the administrations at hand trying all they can, there has to be a better answer. That answer is that the world needs a decentralized economy, a decentralized monetary policy. The world economy and eco-system has out grown the traditional fiat world. It has out grown just a single economy setting the scales as the U.S has for decades. The world needs a stronger globalized economy tied together by a decentralized source. A source that can not be manipulated as easily or added to. The solution is Bitcoin at first, but will ultimately take more digital assets to get the job fully done.

Global Solution to Divided Problems

Things in the world are not working now, but the fact is they were not working before. Even before the virus, there have been signs of things slowly falling apart. Like it or not, the world will soon need a digital solution to the standard monetary problems we are facing. It will get to the point where the world doesn’t have a choice like Iran or Venezuela.

The only thing we can hope is that the world adopts the right one with time to perfect it. The alternative is just picking one to try and survive the economic collapses that could soon come.