The world needs a new financial system – and here’s why

financial system

The financial system we know is outdated and could allow bad things to happen.

Let’s take a look how one event showed the wrong side.

Greed is bad

We have already written to you about what happened to GameStop trading. It was an attempt by investors from the Reddit forum r/WallStreetBets to thwart the plan to fill the pockets of greedy people. It worked, but it had a bitter ending, with Robinhood suspending trading of GameStop shares only for sale to mitigate losses.

This whole fact only shows us how well the market could be manipulated and how the financial system is outdated and not suitable for many things. Many questions arise about this, but one is probably asked by everyone: Who allows such things to happen and why is no one responsible for it? The answer is simple, it is a part of a far more bigger problem. Brokers and hedge funds are having an agreement that allows them to make great profits.

Could there be a solution?

The answer to the question of how this could be prevented can be found in digital currencies. Digital currencies offer an alternative to the financial system we now live in. It could give access to finance to those who do not have one, and above all it could make money fairer. These manipulations could be prevented and due to the transparent nature of these digital currencies, secured by blockchain, it is much easier to see, who controls what and how funds move around. There is also no authority that would freeze your account if you have your private keys or your secured wallet.

Conclusion

The financial system we currently live in is unfair. One situation has shown us that change is needed for the better, which digital currencies can provide.

Source: cointelegraph.com

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