Satoshi Nakamoto created and launched Bitcoin in 2009. Since its launch, Bitcoin has grown very popular, holding a very high value. Bitcoin uses blockchain technology to complete its transactions that are peer to peer. Since mining the first Bitcoin, its value has constantly increased, and more Bitcoins have entered circulation.
The increase in its value has seen more people investing in it and others speculating whether to buy and make their investments. According to Satoshi Nakamoto, the problem that Bitcoin solves is the reversibility of electronic payments. Businesses lose money when customers reverse traditional transactions, leading to chargebacks. Satoshi introduced Bitcoin as a solution that uses cryptography and blockchain to make transactions irreversible. With Bitcoin, no one can reverse a transaction, protecting sellers from fraud.
According to bankers, regulators, and legal operators, Bitcoin is a solution to no problem, but in reality, there are problems that Bitcoin solves. One of the reasons for creating Bitcoin was to establish a system that does not depend on the greed of corrupt individuals or obsolete financial institutions. Here are the problems it solves:
Contents
- The Unbanked
- Remittance
- Trading
- Blockchain
- Charity Donations
- Conclusion
The Unbanked
Many people do not have a bank account or access to a bank account. One would think that this is a thing of the past, but it is not. Being unbanked is discriminatory. Before you open a bank account, you might be required to provide various documents for the process to be complete. Bitcoin is open to everyone, and anyone can own Bitcoin or invest in it. Having your phone, you can open a crypto wallet that you can use to store your Bitcoin.
Remittance
Soon the remittance market will reach $1 trillion. About 20% of the cost gets lost in third parties and intermediaries. Bitcoin comes to fix this problem because its transactions are on a peer-to-peer network without a third party or intermediary interference.
Trading
Traders are always excited about a new trading platform. These platforms can do anything a bank or operation broker can do fast, cheap, efficient, and automatic. A platform like NFT Profit is one of those places where you can optimize your trade by finding good crypto trades in the market.
You can trade Bitcoin on these platforms and compare it to small tokens and their liquidity levels. This trading is a risky business, just like traditional trading, but there is an option to learn, understand the risks, and make money.
Blockchain
Bitcoin uses the blockchain technology to verify, validate, and facilitate digital transaction. This technology facilitates the recording of all transactions on an immutable public ledger, permanently and transparently. Blockchain technology has other uses beyond Bitcoin and cryptocurrency.
These applications include securing medical data, music royalties, preventing identity fraud, voting mechanisms, NFTs for the creator, and supply chain traceability.
Charity Donations
One of the problems many charitable organizations and NGOs face is getting donations from the people who genuinely need them. Some of this money get lost in unavoidable ways. Luckily, with Bitcoin traceability, donors can avoid this. Every transaction, remittance, and expenditure can be tracked through Bitcoin, making it hard for the middle people to steal. Individuals and organizations can transfer funds directly to the recipients’ wallets.
Conclusion
Bitcoin is capable of solving many problems. It provides a haven to investor assets by keeping them safe. Some financial systems are obsolete, inefficient, and corrupt, so Nakamoto had to do something about it. Investing in Bitcoin would go a long way. It would be a good idea to put in some investments in Bitcoin.
