1 Comment

Cryptocurrency vs Bank (Day 504)

It's summarized nicely with the key points in this CNBC article:

For many Afghans, this week has laid bare the worst-case scenario for a country running on legacy financial rails: A nationwide cash shortage, closed borders, a plunging currency, and rapidly rising prices of basic goods.

In some ways, it’s a perfect test case for the usefulness of bitcoin and other cryptocurrencies. CNBC spoke with several Afghans who are using crypto to learn how they got into it, how it’s helping them, and barriers to further adoption.

When legacy financial systems fail due to any reason--war, economic and political instability, or a shaky economy, etc.--cryptocurrencies become valid alternatives. You can buy Bitcoin, which could be volatile, or cryptocurrencies pegged to government-issued currencies such as USD, EUR, JPY, etc. These are known as "stablecoins," which you have total control over.

At the end of the day, you still need some legacy bank to cash out your cryptocurrencies. Or, you may use services and buy goods from places that accept cryptocurrency as a form of payment.

For people who live in unstable regions, cryptocurrency could be better than legacy banks.

  1. 1

    Maybe I don't understand something, but what's the point of using crypto in the case of Afghan guys. "You can buy Bitcoin, which could be volatile, or cryptocurrencies pegged to government-issued currencies." Why do they want to buy bitcoins or stablecoins if they could buy dollars and use them online? What's the point of stablecoins? Plus, you need to use safety tools, such as bitcoin tumbler https://mycryptomixer.com/ , to ensure your crypto transactions. Dealing with dollars or euros is much more simplified. But I don't state you are wrong, maybe it's just me don't get something.

  2. 1

    This comment was deleted 5 days ago.

Trending on Indie Hackers
After many failed product attempts I bootstrapped a file uploading service to 1K MRR in 6 months - AMA! 34 comments The world's fastest startups are working on just ONE metric... 20 comments Twitter 101 for Indie Hackers 11 comments Catching up to my main competitor Veed 9 comments I built an NFT Guide site. Feedback welcome! 5 comments Do You Find It Tough To Take Good Decisions In Uncertainty? 🤔 3 comments