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Financial system has shortcomings, but they can be fatal

financial system

Current financial system and cryptocurrencies. If you are interested more deeply in this topic, you certainly know the differences between them. But could you put together the biggest shortcomings of the current financial system?

Let’s take a look at what the current financial system is faulty in.

The gold standard was far too good – so it was ditched

In 1944, a financial system was introduced that revolved around the US dollar and was pegged to gold. This gold standard has reduced income inequality and stabilized the economy. However, this system was abolished. It was supposed to be temporary, and in the end it remained permanent. Since then, endless inflation has been on the rise. The rich are getting even richer and the poor poorer. The gap is getting bigger…

Governments take advantage of the fact that they can print money in unlimited quantities. Because of this, they are borrowing more and more money. The world’s debt will soon be $ 100,000 billion. And since the crisis in 2008, the situation has been deteriorating. The bigger problem, however, is how this money is used. The government will use them on the financial market and there is a great risk that they will form a big bubble.

Do you know that banks can track your payments?

The system we live in is not transparent. No one from outside sees where the money really goes and whether it is laundered. Recently, there has been a scandal where the largest banks have been laundering money for 18 years and laundering huge amounts of money. A system you can’t see in, is not a good system.

The power of today’s banks is enormous, especially in the field of censorship. When the bank doesn’t like your transaction, it simply rejects or blocks it. At the same time, this system is not evolving. The chances for improvement are slim. High-ranking people know that this system is faulty. But they are not trying to correct it, but to abuse it for their benefit.

No wonder people are looking for alternatives to today’s financial system. One of the best alternatives are cryptocurrencies. Unlike the central financial system, they are transparent, anonymous and no one will guard where you send your own money. Nowadays, entering the world of cryptocurrencies is very easy.

Conclusion

To sum it up, the financial system is not adequate for the world we are slowly entering. Many people are aware of the need for a change in a system that we can trust and that will support us in times of crisis. Cryptocurrencies can provide us with such a system. And the current situation only shows us how much such a system is needed.

Source: ssaurel.medium.com

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