Bitcoin Remains the Best Solution for Cross Border Money Transfers
Bitcoin’s other strengths would almost make you forget this essential quality.
The economic crisis that is starting to unfold highlights the flaws of the monetary and financial system, but also the advantages of Bitcoin. Under the guise of supporting the U.S. economy, the Fed has already decided to inject more than $8T into the fiat system.
The Fed has, according to its terms, an unlimited amount of U.S. dollar at its disposal, and it is determined to save the monetary and financial system no matter what it costs. It must be said that the bill will not be paid by the governors of this prestigious institution.
In fact, the bill for this meteoric increase in the money supply of the U.S. dollar will be paid by American citizens. As always, I should say.
In the face of the currency devaluation that we will all face in the coming months, Bitcoin is emerging as one of the best hedge available to citizens. Many of the disappointed in the fiat system are beginning to take a strong interest in Bitcoin and its unique monetary policy.
I speak of a unique monetary policy because Bitcoin protects what its users own while being totally independent of the arbitrary side of human decisions. With Bitcoin, everything is written in the source code of its Blockchain. You won’t have any unpleasant surprises, because everything is automatic and predictable.
These incredible advantages of Bitcoin in times of crisis would almost make people who hear about it for the first time now almost forget that Bitcoin is also the most efficient and secure payment system in the world for making cross border money transfers at low fees.
A few multi-million dollar Bitcoin transactions that I just saw on its Blockchain made me want to recall how beneficial Bitcoin is for this use case as well.
Bitcoin Lets You Manage Your Wealth
Created by Satoshi Nakamoto at the end of 2008, Bitcoin was offered to all its users as a gift. Bitcoin therefore belongs to everyone. It has no leader. In Bitcoin world, each user has the same weight as another.
Bitcoin allows you to regain control over what you own.
Once you’ve bought Bitcoins, the first reflex is to secure them on a hardware wallet. This is a special feature of Bitcoin.
Bitcoin teaches you that you are responsible for what you own. You are your only insurance with the Bitcoins you own. For me, it is the best insurance, because it allows me to manage what I own as I wish.
I can save my Bitcoins by taking a HODLER position. Bitcoin allows me to do this because it guarantees me, through its monetary policy, that my Bitcoins will still be worth the same in 1 year, 2 years, or even 20 years.
The US dollar, whose inflation works against citizens, cannot guarantee this, unlike Bitcoin.
Since you should be responsible for securing what you own in Bitcoin, you can enjoy it the way you want too. That makes perfect sense.
Bitcoin Has No Censorship
No one can stop you from making a Bitcoin transaction. Your Bitcoins are entirely yours as long as you own the private keys associated. So you can spend them as you wish.
Bitcoin has no censorship.
This completely free side of Bitcoin is in contrast to the current banking system where banks can decide at any time to block some of your transactions in a completely arbitrary way.
I know several people who have been censored by their banks when trying to send U.S. dollar to cryptocurrency trading platforms such as Coinbase or Binance.
The reason given was entirely fallacious. Their banks told them that they were censoring their transactions in order to protect them.
The big question that comes to mind is:
What do the banks want to protect their customers from by preventing them from transferring fiat money to buy Bitcoin?
The banks are preventing you from using hard-earned money as you wish. I think this is totally unacceptable, but it is the reality of the current banking system.
With Bitcoin, there can be no such censorship because the system is leaderless.
In addition, it is increasingly common for banks to freeze the assets of their clients in response to government requests. Again, all this is done in a totally arbitrary manner without respect for the users and what they own.
Bitcoin fixes it.
Bitcoin Remains the Best Solution for Cross Border Money Transfers
Now, let’s say you had a little over $34 million. That’s your legally earned money. You paid taxes on that income. You’re in good standing with the tax authorities in your country.
So you hope to be able to enjoy your money as you wish.
It is obvious to me that you have that right. Well, now, let’s imagine that you want to transfer this $34 million to a friend on the other side of the world.
Under the current banking system, you’d have to justify why you were transferring this money. You will have to provide countless documents. If the information you give your bank is not considered sufficient, I am willing to bet that they will contact the tax authorities.
These tax authorities will be happy to come and question you in turn.
In the end, chances are that your transfer will even be blocked. If it is not, you will have wasted valuable time justifying it.
Now that the transfer can take place, you will have the unpleasant surprise of discovering the exorbitant fees that the banks of the sender and the receiver will take on the amount of the transfer.
The fact that they will take so much fees from your money will not even encourage them to speed up the transfer on the SWIFT interbank payment network. It will take you several days like everyone else.
Now, let’s imagine that you have this $34 million in Bitcoin.
You want to transfer it to a friend on the other side of the world. Today is Saturday, April 11, 2020, and it’s a little after 12 o’clock.
In today’s banking world, you would have to wait until the end of the weekend for your transfer to start. With Bitcoin, you don’t have to wait because it works 24/7.
You initiate your 5055 Bitcoins transaction to the address of your friend on the Bitcoin network.
In just over 10 minutes, the transaction you just sent to the other side of the world is confirmed. Your friend’s Bitcoin address is credited with 5055 Bitcoins.
Now you’re thinking that a $34 million cross border money transfer that only takes about 10 minutes must have incurred astronomical transaction fees.
Here again, Bitcoin makes the difference since this famous transfer of 5055 Bitcoins that just took place on the network could be done for only $0.25 transaction fees.
This transfer took really place and it was included in block 625,437 of the Bitcoin Blockchain. You can check all the details for yourself on the Blockchain.com block explorer, or via the screenshot below directly :
While current events highlight the incredible qualities of Bitcoin in times of crisis, you must not forget its primary function:
Bitcoin is a completely decentralized Peer-to-Peer payment system that allows for safe, ultra-fast, and above all low-fees cross border money transfers.
Another advantage over the current banking system that should not be overlooked when making a choice on the best way to store your money.