The opinions expressed are those of the author and do not necessarily reflect those of Cointelegraph.com
Decentralized cryptocurrencies like Bitcoin and Ethereum have strong advantages over centralized financial systems, mainly because of their ability to operate and operate without single point of failure, which hackers and bad actors can target.
On February 19, Jameson Lopp, the chief engineer of the BitGame multi-signature BlockGoin security company, noted that during the US holidays, local banks have closed , not providing financial services to individuals and businesses. need financial settlement services to process payments.
Today is a holiday in America – banks and markets are closed. Meanwhile, Bitcoin soldiers, with over 1 billion dollars passed and 7 billion dollars exchanged today. https://t.co/SDYCGHTcsa pic.twitter.com/HetG9kES7I
– Jameson Lopp (@lopp) February 19, 2018
Meanwhile, Bitcoin, peer-to-peer (P2P) settlement system, has been able to process more than $ 1 billion worth of transactions, and more than $ 7 billion of Bitcoin has been traded on a single day. Apart from holidays and weekends, Bitcoin users and other cryptocurrencies like Ether can freely carry out peer-to-peer transactions, thanks to the use of portfolios.
Non-custodial cryptocurrency portfolios allow users to maintain full control over their funds, allowing only users to access their private keys and no other entity or platform centralized. As such, Bitcoin wallets like Blockchain, Trezor and Ledger can not reimburse transactions or recover user accounts once the private key is lost, encouraging users to be more aware and financially responsible.
Host Max Keizer on several occasions, the financial freedom and independence provided by Bitcoin and other cryptocurrencies on the market are largely beneficial and crucial for individuals and businesses operating in the regions where government entities control banks and financial institutions.
Last year, the Saudi billionaire, Prince al-Waleed Bin Talal, was arrested by the government of Mohammed Bin Salman, who is expected to take control of the Saudi Arabia and become the most powerful leader in the world. Middle East. Salman ‘s government initiated an anti – corruption purge, arresting 11 Saudi princes and 200 businessmen
At the time, the Wall Street Journal reported that the government’ s government was in office. Saudi Arabia had asked for $ 6 billion for Bin Talal’s freedom. , which has collected more than $ 25 billion in net worth from its investments in Twitter ($ 300 million), CitiGroup ($ 550 million), AOL, Apple, MCI, Motorola, Fox Broadcasting and many others.
Report, Keizer criticized the previous remarks of Bin Talal, who had called Bitcoin “Enron in the making.”
“It does not make sense, this thing is not regulated, it’s not under control, it’s not I just do not believe it at this Bitcoin thing, I think it’s going to implode someday, I think it’s Enron getting done, “said Bin Talal in CNBC’s Squawk box.
Criticizing Bin Talal, Keizer said:
“He said that Bitcoin was not good because there is no central government and no central bank.And a week later, the central bank and the central government are tearing all its net worth.If he had them at Bitcoin, he would not have this problem.He is like a child of Poster for why you should buy Bitcoin Anyone who thinks should buy Bitcoin, watch [Talal] sleep on a mattress of a hotel rich in house arrest .In addition, it is overestimated as a manager of the
In November 2017, the Saudi government cracked down on private bank accounts and froze price accounts and businessmen. Keizer noted that this could have been avoided if the wealth of these individuals was stored in a valuable decentralized store, such as Bitcoin.
Cryptocurrency Potential in Offshore Banks
The offshore banking industry, which is dominated by influential financial institutions like JPMorgan, is structured around large banks capable of To cash large sums of money efficiently and securely. But the transfer of several million to several billion dollars requires significant manual work, including transaction verification, anti-money laundering controls, and liquidation of payments.
Ari Paul said the crypto-currencies ability to deal with the offshore banking industry that replaces that of the big banks:
“Cryptocurrency tries to be the system Offshore banking, I think.At least some of the cryptocurrencies.Most financial luminaries, I sincerely think, do not understand what it’s trying to be.Jamie Dimon is an exception.I obviously I know people who talked to him about cryptocurrency four years ago before I was really in space, he understands it, and I think he sees it as a competitor against JPMorgan, “he said. said Paul during an interview with Business Insider.
With respect to settlement of transactions, offshore banking and financial freedom, centralized banking systems fall behind major cryptocurrencies. In conclusion, crypto-currencies such as Bitcoin and Ethereum have significant advantages over banks in a number of areas, including security, settlement of borderless transactions, deletion of payments and lack of means. of payment. dependence on suppliers or centralized service entities. Although the offshore banking industry is valued at $ 32 billion and the cryptocurrency market valuation remains below half a trillion, the above-mentioned benefits could allow cryptocurrencies to compete with banks in many sectors.