Does the world need crypto? Part 2: Replacing the banking system - Crypto in Plain English - Episode 122 - by cryptohunt.it

Does the world need crypto? Part 2: Replacing the banking system

Welcome to the cryptohunt jam where we spend one minute a day to explain crypto. In plain english.

Welcome back to our mini-series on: Does the world need crypto? This is part 2, so make sure you start from the beginning.

Last time, we learned about the history of Bitcoin, and how it was born out of the 2008 financial crisis as a digital currency that is not centrally controlled by a government, with wallets that are like bank accounts without having banks involved.

The content of the bank account, of course, is crypto and not real money... and do we really need all that?

And it does sound like a compelling argument: Cut out the government and the banks, who all messed up in 2008 and didn't protect us enough in the first place.

But it has been 14 years since then and Bitcoin has only turned into a speculative asset, and ironically has almost no practical use as a currency. Structural problems, like slow speed and high energy consumption make it suited at most as a store of value, not a real payment method.

Meanwhile, Visa, Mastercard and co are still charging multiple percent from every person buying something, and Bitcoin didn't address the problems with financial institutions themselves. You still have a regular bank account and tolerate the outrageous fees without complaints.

So, where are the real-world use cases of crypto helping us avoid the next financial crisis?

Enter Ethereum, and the power of decentralized finance, a world of applications that aim to replicate what only banks are able to do. And they promise to perform it transparently on the blockchain, for everyone to participate.

Will they be the real breakout case for crypto? Let's dive into it next time and see what is already happening and where defi still falls short.

Disclaimer: This podcast references our opinion and is for information purposes only. It is not intended to be investment advice. Do your own research and seek a duly licensed professional for investment advice.