Cryptocurrency continues to gain relevance in the world despite existing issues and criticism. This article examines the main aspects in which crypto can offer an alternative to traditional finance.
Traditional Finance vs. Crypto: Who's More Inefficient?
Traditional financial systems are often criticized for their inefficiency. International transfers can take three to five business days and cost 6.18% of the transfer amount. In contrast, cryptocurrency transfers using stablecoins can be completed in minutes with minimal fees, making them more advantageous and faster.
Financial Access: How Crypto Helps the Most Vulnerable
According to the World Bank, about 1.4 billion people lack access to banking services. Cryptocurrency offers the opportunity to conduct financial transactions without formal requirements via a smartphone and the internet. Decentralized Finance (DeFi) platforms enable users to earn and borrow funds without filling out forms or going through credit checks.
Crypto: Challenges and Paths for Improvement
Despite its potential, the crypto industry faces issues including scalability and security concerns. Hacking incidents and flaws in smart contracts remain pressing risks. Additionally, improving user experience and regulatory engagement is essential to ensure stability and trust in cryptocurrencies.
Cryptocurrency serves as an inconvenient yet vital alternative to traditional financial systems. Considering its opportunities and challenges, it could lay the groundwork for a fairer and more accessible financial infrastructure.
