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Economic Impact of Bitcoin

The implementation of cryptocurrency has been very apparent to the public. The new

form of currency has significantly established itself as a viable source of currency due to its

convenient nature. Currently, various cryptocurrencies such as Bitcoin exist, which gives a more

digital base of currency. As a result, this form of currency is a direct transaction between the

seller and buyer without intermediary from third parties. Bitcoin is associated with various

advantages such as faster processing and low transaction cost. The use of cryptocurrency has

fostered new technology, blockchain, which has taken a step towards the mainstream. The film

“How Cryptocurrency Can Bank Everyone” by TED Talk details the importance of

cryptocurrency. The decentralized currency, cryptocurrency, in the modern world can bank

anyone.

Based on the film, the main issue presented is how cryptocurrency eliminates the barriers

associated with the traditional banking system, thus leading to the banking of everyone. TED

Talks depicts that, 1.7 billion adults globally remain unbanked. About two-thirds of them have

mobile phones that can help access financial services in conformance to the research conducted

by World Bank in 2018. The presenter presents this issue to show how cryptocurrencies are

bridging the gap associated with the traditional banking system. For instance, people have faced

challenges when opening banking accounts through the traditional banking system due to the
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lack of proof that they legally exist due to the lack of some documents such as birth certificates.

In addition, cryptocurrencies have bridged the distance gap associated with the traditional

banking system as now individuals can carry out transactions through mobile phones. Therefore,

TED Talks depicts how cryptocurrencies are effective in banking everyone.

Cryptocurrency such as bitcoin helps in eliminating the challenges of infrastructure. The

infrastructure includes items such as ATMs and other physical machines vital for allowing

money transfer. Mozgovoy depicts that the first ATM was opened in Somalia in 2014. As a

result, it shows lack of this infrastructure subjects few people to banking. Bitcoin or other

cryptocurrencies can eliminate this issue by using distributed applications that allow individuals

to carry out money transactions effectively. One of the possible solutions is the use of De-

wallets, a cryptocurrency wallet used as a mobile application to enable users to store and retrieve

their digital assets (TED Talks 9:49). Therefore, cryptocurrency is vital for eliminating the

challenges of infrastructure.

The cryptocurrency eliminates the identity crisis issue associated with the traditional

banking system. Conforming to another research conducted by World Bank, Mozgovoy

illustrates that about the 1.7 billion unbanked people struggle to prove who they are, especially

when accessing banking facilities because they lack the necessary government-issued

documents. The issue subjects them not to be in a position of opening bank accounts.

Cryptocurrency can eliminate this challenge through De-identity, a decentralized identity that

can replace the standard IDs (TED Talks 10:29). Therefore, cryptocurrency is vital for

eliminating identity crisis issues.

In addition, another challenge associated with the traditional banking system is no fair

access to remote works. Using blockchain technology to facilitate cryptocurrencies transactions

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has “allowed us to finally create a situation where two parties can safely execute work and

provide value to each other with no third party to be handling the dispute”, says Mozgovoy.

Therefore, using possible solutions such as de-contract can help eliminate the lack of access to

remote works as with de-contracts or smart contracts, no need for the third party to handle

disputes. Finally, cryptocurrency eliminates the issue of unstable currency media of exchange.

Mozgovoy suggests that “whenever we are dealing with British Pound, euro or the US dollar on

a daily basis we’re far from experiencing staggering money inflation problems” (TEDx Talks

11:23-24). Therefore, cryptocurrency fosters remote works and eliminates the issue of inflation

which is contributed by unstable currency media exchange.

The arguments presented by Mozgovoy are well supported through the use of external

researchers, statistical data and graphs to depict bitcoin trends. It represents how cryptocurrency

is of major consideration as it can eliminate the challenges associated with the traditional

banking system. For instance, Mozogovoy graphically shows how countries such as Venezuela

have used cryptocurrencies to store their wealth. The strengths of the presenter are that he is

knowledgeable about cryptocurrencies. He also makes the presentation effective the future of the

cryptocurrency with the past. The presenter connects with his audience by posing questions. For

instance, he poses the question, “what would the world look like if every person on the planet

was financially included?” (TEDx Talks 12:58). As a result, this makes the audience to be

attentive. The presenter seems to be confident as he inspires action, has a sense of calm

persistence and is courageous. Generally, the above aspects structure how effectively the

audience will accept the message. Finally, the limitations of the presentation are that the

presenter has failed to show how one can buy or sell bitcoin and how technology illiterate people

globally can be incorporated into this banking strategy.

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In conclusion, the presentation highly depicts the importance of cryptocurrency. It

bridges the challenges associated with the traditional banking systems, such as lack of necessary

infrastructure to carry out money transactions, lack of remote work, identification issues and

inflation related to unstable media exchange of currency. Cryptocurrency through bitcoin and

other currencies bridges these challenges by using techniques such as de-contracts, de-identity,

and de-wallets. Therefore, cryptocurrency can positively impact the economy by incorporating

all people into the banking system.

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Works Cited

TEDx Talks. “How Cryptocurrency Can Bank Everyone”. (2020).

https://www.youtube.com/watch?v=OlbCvA7U-EM