Cryptocurrencies.. A Financial Revolution or an Economic Bubble?
Cryptocurrencies, such as Bitcoin, represent a revolutionary shift in the financial world, as they limit the traditional role played by banks and financial institutions in managing transactions. But how does this impact the traditional financial system?
Let’s review the main differences between the two systems.
*Financial Independence and Direct Control Over Funds
In the traditional financial system:
1- Banks and financial institutions control money trading operations, as all transactions are conducted through these entities.
2- Sending money to another person requires resorting to a financial intermediary, such as a bank, to complete the transaction.
In digital transactions:
1- Money is transferred directly between individuals over the internet using blockchain technology, without the need for a financial intermediary.
Blockchain is known as a shared distributed database among network devices, where each device is called a "Node" and information is stored distributed across multiple "Nodes" simultaneously.
2- Cryptocurrencies give users complete control over their funds, eliminating the need to rely on banks or financial institutions to execute transactions.
