Protection of assets is one of the major areas of concern for citizens across the globe. The escalating number of financial fraud cases — caused due to identity theft, firewall breaching, and stealing of card details — has made people grow increasingly skeptical about the traditional banking system. Additionally, arbitrary policy implementation by the central banks and frequent changes in regulatory measures, rolled by governments, is compelling the common man to look for alternative asset management systems.
The empowerment of the common man, in this context, would imply freedom from the traditional banking system. It also means offering people the ability to control their money. The emergence of bitcoin and other forms of cryptocurrencies is a matter of great significance in this regard.
How Does the Traditional Banking System Curb Your Rights?
- Your Money, Your Rules: It is not the case with traditional banking systems. Once you open a bank account, no matter what service you opt for – receiving or transferring money, buying stocks, investments and issuing stocks, among others – you have to follow banks’ separate policies for each of these services.
- No Bank Account, No Financial Freedom: The scope of financial exchanges or transactions are narrowed down if citizens don’t have a bank account. It is especially true in the developing economies, such as Latin America, South-East Asia and Africa. A large section of the population either doesn’t have a bank account or they are not habituated with the card-based transaction methods. The goal of empowering people with financial freedom is entirely ignored in this context.
- Unwanted Burden of Service Charge: Globalization has made monetary transactions across borders absolutely essential. To boost their earning, banks capitalize on these necessities by implementing coercive regulations that force customers in paying steep fee on each transaction. For instance, payment processing gateways charge customers almost 12 percent of the entire transaction amount if they have to send money to any African country from other parts of the world.
The above-mentioned factors indicate that banks not only deprive common people from the right to use their money as per their respective discretion but also they keep their customers constantly under scanner. These aspects indicate violation of people’s fundamental rights.
How Does Bitcoin Empower Common People?
- Safe and Fastest Way To Transfer Money: Bitcoin is widely considered as the fastest method of transferring money online. Bitcoin users are required to make the payment through an agent. The agent ensures that bitcoins, equal to the money’s worth, are transferred immediately to the payee. In addition, unlike the erroneous firewall protection that traditional banks depend on to ensure safety to monetary transactions, bitcoin’s encryption contains multiple layers of cryptographic technologies, which guarantee users top-notch protection against frauds or attempts of online theft.
- Freedom From Being Watched: The receiving of payment through bitcoin doesn’t require opening of an account with a traditional bank. Users are also relieved from the obligation of having credit or debit cards that are connected to their personal accounts. They simply need a reliable Internet connection and designated software to perform the task through their phones or computers. As these transactions are not performed through banks, there is no risk of being watched.
- Minimal Or No Fee On Transactions: Send money anywhere you want, without the fear of being burdened by steep transaction fee. If bitcoin users choose a designated agent, then they will be eligible to pay a minimum service charge while sending or receiving money. Unlike the banking system, there would be no arbitrary imposition of huge processing fee or service charge on transactions.
Bitcoin and other cryptocurrencies are not controlled by any centralized banking system. By using these transaction methods, cryptocurrency users are relieved from all kinds of regulatory parameters and policy-based restrictions. People enjoy the absolute control of their own money — something that traditional banking system doesn’t offer.