Cryptocurrency is drawing widespread attention globally. El Salvador has made it legal tender, requiring merchants to accept it just like cash; meanwhile, blockchain summits in the U.S. are attracting billions of dollars in companies rushing into the Web3 space.
Behind this craze, cryptocurrencies like Bitcoin and Ethereum mean far more than just money; they are redefining how currency operates.
However, complex terminology and overwhelming information leave many confused, as if everyone assumes you already understand. In reality, many are still struggling to grasp the true value and meaning behind cryptocurrency.
So, what is decentralized currency?
Imagine if Venmo, PayPal, and your bank suddenly disappeared overnight; how would you transfer money?
This is a reality for millions around the world.
But the issue is not just about accessing banking services (though that is a big issue). It’s about who controls the currency itself.
Now, when you transfer money, you're not really transferring it yourself. You're asking a bank or payment processor to do it for you. They are intermediaries who charge multiple fees, decide who can or cannot use their system, and have the right to freeze or stop transactions at any time.
Decentralized currency eliminates all of this. Simply put, you can transfer money directly to others through a digital wallet without going through multiple banks. A blockchain made up of a global network of computers verifies and records transactions through cryptography and code.
No company, no state, no CEO can intervene to stop it.
Unlike banks, decentralized currencies like Bitcoin, Ethereum, and others operate 24/7. There are no business hours. No waiting for 'processing time.' Banks don't even take weekends off.
It's not just a matter of speed, but a matter of control.
Why is decentralized currency important?
For the first time in history, people can send, store, and control their funds without the approval of banks or governments. If you live in a country with a stable banking system, this may not seem like a big deal. But for hundreds of millions, decentralized currency equals survival.
1. No one can freeze or stop your funds.
States and banks can (and do) freeze accounts when they deem it appropriate.
Take Canada in 2022 as an example. During the trucker protests, the government froze the bank accounts of protesters and donors without a court order. Or Nigeria in 2020, where the government shut down the bank accounts of activists supporting the #EndSARS movement (protests against police violence).
In these two cases, the state deemed it necessary. But at what cost? When you take away a person's money, you deprive them of their ability to eat, pay rent, and survive.
With Bitcoin and decentralized currency, this situation will not happen. If your assets are in self-custody wallets or traded through decentralized exchanges (DEX), no bank, state, or corporation can freeze, stop, or seize them. This suddenly becomes not just financial freedom, but a fundamental human right.
2. Providing services for the unbanked.
Think about this: globally, there are 1.4 billion people without bank accounts. Not because they don't want one, but because they live in places without financial infrastructure, lack proper identification, or are restricted by their governments.
In El Salvador, before Bitcoin was adopted as legal tender, over 70% of the population had no bank accounts. Now, people can send, receive, and save money without a bank.
For billions, decentralized currency is not just an alternative; it is the only viable option.
Moreover, in addition to basic banking services, decentralized finance (DeFi) is becoming a powerful alternative to traditional financial services.
3. Potential inflation protection.
Even if you can use banking services, inflation erodes your savings. Inflation means that the things your money can buy decrease over time.
Governments control traditional currencies, and when they print more money, the value of the currency decreases. This is what has happened in Venezuela, Zimbabwe, and Lebanon, where inflation has destroyed people's savings.
The supply of Bitcoin is capped at 21 million coins. No government can print more, and no central bank can arbitrarily change the rules. This is why some people call it 'digital gold.'
In the short term, price volatility is rapid. But in the long term, some believe it will become a strong store of value due to its fixed supply.
Bitcoin is not yet a perfect inflation hedge. But it is an alternative currency that is not controlled by any state. For many people, that is enough to draw their attention.
Decentralized currency changes everything.
Bitcoin and decentralized currency mean much more than just finance. For some, they provide a cheaper and faster way to transfer money; for others, they are potential inflation-resistant tools; and for hundreds of millions globally, they are the only way to access financial services.
Cryptocurrency and the technology behind it are not perfect, and there are indeed risks, but it is prompting us to rethink how money operates. For the first time in human history, people can access a financial system that is not controlled by banks or governments.
Regardless of our attitudes towards it, decentralized currency is shaping the future.
