Why Bitcoin - Satoshi
Are you already aware of what is going to change in the financial world?
Because times are changing and especially in the financial world, we are forced to do things differently too. Especially with the arrival of CBDC and we would like to keep you informed about what this means.
Why paying with Bitcoin - Satoshi is better.
A lot is about to change in the financial world. Many people have already heard of CBDC and it is coming very soon. What does that mean for all of us.
CBDC stands for Central Bank Digital Currency. It refers to a digital form of a country's national currency (such as the US dollar, Euro, or Chinese yuan) that is issued and regulated by the central bank. CBDCs are a digital representation of the physical currency and are backed by the full faith and credit of the government. (Meanwhile, we now know better) They are considered legal tender, just like physical banknotes and coins.
CBDCs are distinct from cryptocurrencies like Bitcoin, as they are issued and controlled by a central authority, typically a country's central bank or monetary authority. CBDCs are designed to provide the benefits of digital currencies, such as faster and cheaper transactions, increased financial inclusion, and enhanced security, while maintaining government oversight and control over the money supply.
What are the disadvantages of a CBDC?
There are a number of serious drawbacks to deploying CBDCs. The main one is the concentration of power that further occurs in the current monetary system. It can easily lead to a financial technocratic surveillance and control system without financial privacy and autonomy for its users. This becomes especially problematic when CBDCs will increasingly replace book entry during bankruptcies during a new banking crisis.
CBDCs make outdated banks obsolete!
Central banks may choose to bankrupt system banks now, further concentrating the current banking system with only a few selected commercial system banks left. Giro money from a bankrupt bank is replaced by a CBDC issued out of thin air by the Central Bank and reinforced to duped account holders via a CBDC app. Eventually, the outdated commercial banking system could be replaced by fintech companies. The on paper bankrupt Deutsche Bank could be dismantled. In fact, lending and other banking services to households and businesses could be taken over by the fintech sector if they were given the right to lend via APIs to CBDCs.
CBDCs will eventually increasingly become a larger part of the total money supply and replace most book money as well as physical money (cash). Especially replacing cash for a CBDC is an important step as central banks can directly charge negative interest rates in a CBDC. A user can no longer flee to coins or banknotes to escape the negative interest rate. Regular commercial banks, in one sense, stand in the way of the power ambitions of central banks. This is currently going on, according to Professor Richard Werner. You can see Richard Werner speaking in the video below:
Advantages of Bitcoin over traditional money
1. Decentralization: Bitcoin operates on a decentralized network of computers, which means it is not controlled by any single entity, such as a government or central bank. This decentralization can reduce the risk of government interference or manipulation of the currency.
2. Security: Bitcoin transactions are secured using cryptographic techniques, making it difficult for unauthorized parties to alter or counterfeit transactions. This security feature can reduce the risk of fraud and improve the overall security of financial transactions.
3. Transparency: The Bitcoin blockchain is a public ledger that records all transactions. Anyone can view the blockchain and verify transactions, which enhances transparency and accountability.
4. Borderless: Bitcoin is not bound by geographical borders or exchange rates. It can be used for international transactions without the need for currency conversion or traditional banking intermediaries, potentially reducing fees and transaction times.
5. Accessibility: Bitcoin can be accessed and used by anyone with an internet connection, providing access to financial services for individuals who may be excluded from the traditional banking system.
6. Lower Transaction Fees: Bitcoin transactions can have lower fees compared to traditional financial systems, especially for cross-border transactions. This can make it a cost-effective option for international money transfers.
7. Ownership and Control: Bitcoin users have direct control over their digital assets. They can send, receive, and store their Bitcoins without relying on third-party intermediaries, like banks.
8. Inflation Resistance: Bitcoin's supply is limited to 21 million coins, making it resistant to inflation. Traditional fiat currencies can lose value over time due to inflationary monetary policies.
9. Divisibility: Bitcoin is highly divisible, with each Bitcoin being divisible into smaller units called satoshis. This divisibility allows for microtransactions and greater flexibility in using the currency.
10. Financial Inclusion: Bitcoin can potentially provide access to financial services for unbanked or underbanked populations who lack access to traditional banking services.
11. Programmability: Smart contracts and decentralized applications (DApps) can be built on top of the Bitcoin network, allowing for a wide range of financial and non-financial applications.
