The technology of blockchain moves around the planet and threatens the changes not only of the traditional banking system but of the whole world economy.
How the Blockchain Can Free You From The Banking Industry
At present, one of the main characteristics of economic security is the ability of the economy to self-development. When the country’s economy does not develop, the possibility of its survival, adaptability, and resistance to external and internal threats is rapidly diminishing.
Creating favorable conditions for innovation and investment, continuous improvements in production are especially crucial in a modern, actively developing world.
It can not be said that economic security can achieve such a state that it will need only support.
The world is changing at an enormous rate, with each year there are new goals and problems that make us think about the need to improve the legal mechanisms for ensuring economic security. The technology of blockchain is amid them.
Why Does Bitcoin Threaten the Global Financial System?
For many people who are interested in what is happening in the world, it was a shock when they heard that Bitcoin technology could dramatically change the work of the financial sector. Many did not take this statement seriously, but also some curious analysts tried to learn this technology and find out what kind of weapon it possesses.
The development of the worldwide Internet and modern encryption methods led to the formation of the newest form of electronic money – crypto-currencies.
First of all, the emergence of crypto-currencies is caused by the desire of people to receive an additional source of income, as well as to conduct financial transactions privately.
To date, there are virtual trading platforms, Internet communities and social networks that create their payment systems and sell their digital currencies. Companies that accept bitcoin are amid them. All this contributes to the emergence of new forms of cryptocurrency.
The State Does Not Decide Anything
The essential difference between bitcoin and other systems of electronic money is that bitcoin is not a money substitute and is not provided with anything.
Issuers of bitcoin are the participants of the system, but no one during the issue of bitcoins assumes the obligation to exchange them for something else at a fixed rate.
Bitcoin forms a network in which there is no provision for any governing body, the system functions as the interaction between peer users.
The absence of a single center makes it difficult for government intervention and manipulation of the course through a change in the money supply.
Banks No Longer Have Control
Weapon and potential of the bitcoin technology are huge. As we have already said, the bitcoin network is decentralized, which allows users of this financial network to entirely not depend on the central financial institution that controls your account.
What problems can any bank client have, regardless of his status and financial situation? His account can be blocked, robbed, the bank can be out of business, and your funds will repay the debt to the state.
It is possible to recall a typical example of the initiative of the bank and the state. A few years ago, the European Union once again gave credit to Greece and ordered one of the country’s richest banks to repay the loan. From each separate account, 10% of the deposit amount was withdrawn.
Anonymity as a Priority
The anonymity of the network still has invaluable advantages. For most people who open a bank account, it remains unpleasant, and for some, it is unacceptable that it is necessary to leave your full data.
In addition to official earnings and residence, and in most banks you will certainly also be photographed. All your transactions are recorded in the bank’s database. If law enforcement agencies want to look at them, the bank employees will not hesitate to provide them with your data.
If you need to send a large amount of money abroad, this money is not officially registered and it will be found that you have not paid the tax with this money, then you can be charged with non-payment of taxes.
Therefore, if you use bitcoin network as a payment system, then you should know that you are absolutely not limited by the state borders of any country, you can send money anywhere in the world in any quantities and do it without permission from banks and government agencies.