Bitcoin Cash: The Solution To The Failures Of Legacy Finance

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2 years ago (Last updated: 1 year ago)

Crypto.com was hacked, and almost nobody in the Bitcoin Cash user base noticed, since we all use non-custodial wallets and not centralized platforms.

It seems the hack on crypto.com was a minor one, I'm reading about losses up to $15 million worth of Ethereum, but the damage to another centralized entity operating as a "crypto bank" was already done:

There is no centralized platform that is completely secure. All operate with centralized servers, admins with access to accounts, and in control of the private keys.

The majority of the Bitcoin Cash userbase is using BCH in a non-custodial approach, utilizing the cryptocurrency features to their full extend.

The Solution

Part of the Bitcoin Cash community still holds crypto in exchanges and other types of crypto platforms, perhaps to take advantage of staking or trading options. Or perhaps some feel it is more secure, ignoring the long history of hacks in cryptocurrency exchanges.

However, the examples are just so many that nobody can ignore. Maybe crypto.com just lost $15 million worth of ETH today, or perhaps it was none as the platform now officially states.

It doesn't matter. The use case of crypto is about empowering the individual. This is the purpose the private key holds. We are masters of our wealth with cryptocurrency.

Not the same with banks or any financial institution that demands trust from the individual. For those that haven't lived the 2008 financial meltdown, this is exactly what happened:

Money saved at a bank comes with multiple dangers and various levels of trust. But it is no different with the "crypto banks".

Can we trust the financial establishment won't just meltdown again and our money in one of those "too big to fail" banks will be safe forever?

The example of 2008 was just one side of the story, but the issues with the legacy financial establishment don't just end there.

The western economies are facing today high inflation levels.

Inflation in the US has reached 7%, the EU follows, and the outlook is even worse. Not to count the fact that official inflation is always lagging since statistics are not based on real-time price change, but on big-data observations that take a while to process.

But wait, there is more! A tax rally is underway.

Every Central Bank in the world printed money at excessive levels, thinking this approach will save the economy causing these high inflation levels. And soon governments will start asking for new and higher taxes to bridge the debt gap.

Expect bills and taxes to double soon, as the government's expansion needs more funding.

And a final note into all this turmoil is the internet income that the government would love to grab part of it.

Bitcoin Cash has mechanisms offering a remedy to the ailing financial establishment.

It will be a lot worse, get ready for prices you didn't even imagine anywhere you live in the world. Also, get ready for a cash-grabbing race by the banks and governments.

Bitcoin Cash will help everyone with enough guts to realize this.

If you planned to keep selling the BCH you were making online, perhaps it is time to start doing the opposite and start sending your national fiat into Bitcoin Cash, ASAP.

The use of Bitcoin Cash sidechain smartBCH and the financial services it includes offers vast potential unlike anywhere in the traditional finance sector.

In Conclusion

Funds are not SAFU unless we hold the keys to our crypto. The private keys grant us access to the Bitcoin Cash on the blockchain, and with Binance or any other centralized exchange, we just relinquish control. Do we trust the admins and all personnel of centralized exchanges and trading apps?

The traditional financial system and the crypto-related centralized exchanges are no different. Both banks and crypto exchanges are in the same bracket. Using Binance and Coinbase, Robinhood, Revolut, and CashApp, to buy crypto and never withdraw, is actually supporting the banking establishment.

The dangers of holding our wealth in fiat come in plenty of forms, yet in this decade, two more are added. Inflation and increased taxation will keep looting our income and wealth forever.

The hack of Crypto.com is just another example of the need to hold our private keys. We are not secure, and we don't hold our crypto if we trust financial institutions like crypto.com, Binance, coinbase, or the rest of online platforms.

Decentralized solutions in the form of P2P transactions through decentralized networks and Web3 applications will dominate in the future.

  • Cover Photo by, Ridderhof on Pixabay (modified)


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2 years ago (Last updated: 1 year ago)

Comments

Goodnight! Brother congratulations for the very interesting article. You have to see that on the street or on the net we are safe. I think prevention is the best thing to do. Hackers will always be on the lookout so we have to look for more radical solutions to protect our funds.

$ 0.00
2 years ago

of course Bitcoin Cash taught me to always save me my money where it is safest, its either i have them saved on bitcoin.com wallet or rather on metamask on smartbch, thats even way better.

$ 0.00
2 years ago

Good article again man! Inflation is my biggest worry for my fiat money as well to be honest, so bring on the crypto!

$ 0.05
2 years ago

It is the only approach I see safe lately.

$ 0.00
2 years ago

Hacking in these days is getting common on every social media platforms or also in the world of crypto. Even though in past months we saw such cases on noisecash. Some users complaining that their funds are stolen. Otherwise in the world of Bitcoincash everything is going good and also hoping Best for future. In b/w think honesty is the best policy if we hacked or stole the amount may be it's got wasted and didn't give any kind of advantage. God put such hackers to the right path.

$ 0.00
2 years ago

I don't know why you wrote this about noise.cash but it is false. Nobody lost BCH during that hack but it was only hackers that lost their time. Should be more careful, really. Do you know how this looks like?

$ 0.00
2 years ago

I would actually prefer that certain protections are in place for such exchanges similar to what we have with banks and stock brokerages. SPIC and FDIC are things that shield consumers from catastrophe. Not entirely. But mostly.

Furthermore, all these hacks will accomplish is to force governments to create regulatory rules and bodies—something apparently crypto does not want. So even with that, if these exchanges cannot and will not protect their data, they are simply begging for regulation.

$ 0.00
2 years ago

The protection is not using them as wallets. Exchanges have as puspose to trade and move the crypto to our wallets.

$ 0.01
2 years ago

I guess I prefer simplicity. lol. The more complicated or dare I say 'convoluted' something is, the less likely people will adopt it. The stock market is a prime example of this. It is probably the biggest generator of wealth in history, and yet many people simply leave it alone because they think it is complicated or convoluted.

I could be entirely wrong in my thinking as well of course. 😉

$ 0.00
2 years ago

It is all simple already.

I've explained Bitcoin.com wallet to a grandma lately and she can now receive BCH and make payments. Holding your private keys needs certain steps, but this is the price for economic freedom.

Otherwise, you will always be on the phone with your bank asking why your debit card transaction was rejected, why you can't withdraw your funds, why someone from the other side of the world managed to use your credit or debit card details to buy stuff from Amazon and nobody even cares to persecute them. Eventually, the bank will also suspect misdeed on your part and may even block your funds. The worst that has happened to me was a branch director of one of my banks asking me questions about my deposits, like where I found the money. Privacy invasion and a way to tell you, we control the money in your account, not you.

I feel that just the responsibility of securely storing a private key or a seed phrase is way less trouble than having to deal with the banks.

Exchanges are just an extent of the banking system. Pass KYC send us selfies, write down Binance 2022 on a piece of paper and send a selfie again. Online KYC regulations are a big failure.

Meanwhile, all the data is being sold in the black market and one day you learn how cards have been issued under our private information and scammers are having a party with our money. Not going back again, there is only one way for me: fiat -> crypto (non-custodial).

$ 0.05
2 years ago

Everything is hackable, but non-custodial wallets and De-FI reduce it. Centralized companies store data in servers which is more vulnerable and could leak our ID - Pass and personal data we give while KYC. The drawback on CEX.

$ 0.00
2 years ago

KYC is a worse liability than the problems it is supposed to solve. A total unecessary regulation governments forced just because they don't understand the real dangers.

$ 0.00
2 years ago