Economic trust and confidence in crypto amidst censorship and crackdowns

Mar 30, 2022
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           The crypto industry has been aiming toward one thing since its inception: to bridge mainstream users out of the legacy financial systems and introduce them to an ecosystem where geopolitical divisions do not matter.

Cryptocurrencies could represent a critical financial tool nowadays, not only to surpass the current economic inflation we are experiencing worldwide but also to overcome political repression and censorship, especially amidst crackdowns and international sanctions.

Money, which has been evolving from the moment of its inception, from seashells to golden coins, paper bills, and now, is taking a big leap into the future: digital money.

Government institutions might oppose what bitcoin and other cryptocurrencies bring to the table, as the reinvention of money as we know today would harm their monopoly on money printing. That said, crypto’s endeavor into reinventing currency presents some benefits which cannot be understated, such as censorship resistance, an alternative to gold in store of value, a very strong community which in turn makes it more resilient, and, on top of that, it’s being embraced by large businesses as an alternative to cash in their portfolios and balance sheets, which further strengthens its staying power.

Cryptocurrencies offer freedom from surveillance and financial oppression, this is something we have observed lately in countries with hyperinflation, in which their population quickly adapted to the ins and outs of crypto and blockchain technology in order to protect their savings, and it also provides a valid alternative to those in nations with restrictions and international crackdowns, especially nowadays with the current conflicts in the European region.

Communities around the world that face challenges transferring and accessing their funds can also take advantage of the freedom offered by cryptocurrency. Individuals affected by biased laws and cultural norms which difficult their economic independence, even if caused by untrustworthy financial or banking systems, could also benefit from cryptocurrencies and securing capital.

These issues which affect some middle eastern and African countries can be potentially sidestepped thanks to blockchain technology. Digital literacy gives the communities of these countries an opportunity to supplement their income, allowing them to generate small but very tangible economic gains which they can freely access to complement and boost their quality of life and even utilize independently from regular banking systems.

One thing is certain, even if cryptocurrencies such as bitcoin represent highly volatile assets they can definitely help investors build wealth over the long run thanks to their usually deflationary nature.

Financial ownership and privacy

          Cryptocurrencies can offer a layer of protection for an individual's financial privacy which usually is absent from regular fiat currency transactions. It can be more than just an alternative to poorly managed issuance of currencies by the hand of government institutions which usually leads to inflation, together with a fistful of issues plaguing traditional currencies.

Consider, for example, cases such as China, which over the years, continuously increases the surveillance of their population and their finances or the case of India where they are planning to launch a central bank specifically for digital currencies with the end goal of diminishing anonymity and monitor transactions to the individual level. In both of these countries, there is massive adoption of blockchain technology to avoid this kind of surveillance, and their corresponding government actively look to ban cryptocurrencies for the same reason.

Cash has always been an essential part of achieving financial freedom, mostly because of its quality to allow transactions that are private and anonymous. It allows individuals to process transactions and exchanges of money outside of the surveillance of government institutes which is a role now being taken over by cryptocurrencies.

Without a doubt, cash itself is in its decline, and the trend of people replacing cash transactions with card payments is not something new, but a matter that has been ongoing throughout the years, and it has diminished the role of bills in our modern society. The pandemic has also speeded up this by having individuals avoid physical payment methods and embrace digital payments.

Altogether, the acceptance of crypto by the mainstream is in full force, and the privacy and censorship issues related to fiat currency are appearing more evident, whether because of the current events or the development of more appealing alternatives.

Isaac Vitales