The Place of Bitcoin and Other Cryptocurrencies in Our Lives

 Banks

Banks were invented in 1587 by the Italian Medici family. The Medici family, realizing the problems that arose because people had to leave their assets for a long time while they were going to war, realized that by coming together they could actually protect other people's assets and moreover, they could earn money from this work.

In the 16th century, due to the long duration of wars and campaigns, people who went on expeditions often found their homes looted when they returned. Especially because they lost their precious belongings, they had to start a new life, which was already difficult.

The Medici family, on the other hand, offers a very simple solution. After the expedition entrusts their valuables to the family, the family hides these items in a place where no one knows. These items are waiting in their hiding place until those who set out on the expedition return. They also reserved a predetermined amount of valuables for themselves as a protection fee.

Since Italian merchants and wealthy people handled all their business on benches at that time, they named their new inventions "il banco", which means bank, inspired by this name. In time, it evolves as "Banca".

In addition to the wages they received as protection fee, the Medici family started to own the assets of those who could not return from the expedition and opened the doors of a life full of wealth to them with a simple idea.

This idea has spread around the world by word of mouth. It has led to the opening of new banks in all countries and the emergence of new rich families. Therefore, the kingdoms that ruled the economy gradually acquired new rivals.

The American Dollar Is Also Included In The Game

In recent history, the American dollar has become one of the most important currencies in circulation in the world. Almost all the transactions made by the banks started to be cut in US Dollars, and America opened the way to gain wealth through trade all over the world.

However, there are many technological problems that banks, which date back to almost 500 years, still cannot solve. Money to be transferred between countries has always been a problem, and it seems that it will remain a problem for even longer.

The most important of these is the cycle and time problems. For example, in addition to the money that a person who wants to send money from Turkey to Bangladesh will pay for the transition from Turkish Lira to Dollar, the person/institution that makes this conversion also deducts a fee from this job. Then SWIFT vs. For transactions, both your bank and the other party's bank make deductions. If the person who will use the money will also make transactions in his own currency, not in dollars, a cutoff is also experienced here. So your money melts on the way.

So how does Bitcoin solve this problem?

Bitcoin allows you to transfer 24/7 without time constraints. There is still a fee you have to pay, but that money goes to the diggers, the yanni miners, rather than the banks. However, the important thing here is that any person can use their computer for mining and earn the mentioned transfer fee. In other words, you can earn money from Bitcoin without making buy-sell transactions.

Although it seems like a dream at the moment, there is an agenda to use Bitcoin in daily life in the future. This completely eliminates the need for banks. The disappearance of banks means eliminating a segment that earns billions of dollars just from the transfers of their customers. In other words, it means eliminating the central dependency of the markets.