Power is everything
Power rules over all in the world of virtual currencies.
The world of cryptocurrencies; a decentralized society in which individual power is everything. In order to survive in this decentralized society absolute power is essential.
Why is it that when you use cryptocurrencies the fees are so low? It’s because there are no middlemen taking a cut. On the flip side, it’s a fact that the convenience to users and improvements to the security offered by the centralized control are done away with when these costs are removed.
One of the reasons the fees are high when transferring money internationally at a bank is because of the KYC (Know Your Customer) system, which improves safety by preventing you getting involved in money laundering by only allowing transfers to verified clients. ATM usage fees are taken to fund the ATMs placed all over, in order to increase convenience. It isn’t as though banks are taking our money immorally. Although sometimes they might take too much, the presence of a middleman is generally because they have established that they offer some sort of value in return. However, their reduction in efficiency improves is a fact; I don’t think the trend in the reduction of people acting in this role is going to change.
The change that began with Bitcoin
In contrast to the management of money through banks, Bitcoin is structured around the elimination of intermediaries to the extreme. In the world of Bitcoin, both the banks that normally act in between and the central bank do not exist. Because of this, it has the merit of reducing costs in many aspects. But at the same time, the protection methods that until now have been undertaken by the banks must now be arranged by yourself. You are the only one you can rely on to protect yourself.
For example, if you happen to lose your bankbook, then you can just go to your bank and have them reissue you with one. If your credit card is stolen and used illegally, with a single phone call you can get your money back. But with Bitcoin, you take all the responsibility. If anything is lost, that is your fault for losing it. If you are a victim of fraud or theft, well “That’s too bad,” and the conversation is over. The law is still playing catchup with cryptocurrencies; there are instances where theft of it may not be judged to be criminal.
The trade-off between freedom and responsibility
You only have your own ability and knowledge with which to protect your assets. That is what it means to rid yourself of centralized currency; this responsibility is the flip side of the freedom of cryptocurrencies. In order to obtain freedom, it is necessary to carry out these responsibilities. You can’t have anything without a price.
From my personal point of view, I don’t see cryptocurrencies as being suitable for everyone. For those who are unable to take on the responsibility or find the barriers to entry too high, there is no need to take the risk and venture on over to the world of cryptocurrencies. I think it’s perfectly fine to outsource your authority and stick to using dollars. That may be letting go of some freedoms, but it allows you to make use of the services that a centralized system is ideal for without having to give a second thought. I’m sure that eventually, technology will resolve the barriers to entry; so there is no need for everyone to force themselves to enter the tough world of cryptocurrencies right now.
I think it is okay if those who are thoroughly satisfied with the current framework of society, or those who simply don’t wish to have to think too much about it, continue as they have until now using the various physical currencies (dollar, yen, etc.) On the other hand, I’m sure there are people who, although it requires some study, are eager to enter the world of cryptocurrencies but are worried all the same. These people should investigate Bitcoin and do some independent studying. Because if you want to protect yourself, then you’re going to need the knowledge to do so.