WHY IS HOLDING ASSETS ON BLOCKCHAIN SAFER AND MORE EFFECTIVE THAN BANKING?
In recent years, a series of incidents in the global banking industry have made us worried about putting money in traditional banks. From bankruptcies like Silicon Valley Bank to liquidity risks and currency devaluation, our assets are no longer as safe as many people think.
So what is the optimal solution? Blockchain! This is not only the technology of the future but also the current tool that helps us protect and grow assets in a transparent, safe, and more effective way.
1. Basic Comparison: Traditional Banks vs Blockchain
Bank:
• Risk of losing control: When you deposit money in a bank, you essentially lose full control over your assets. The bank uses this money for lending or investing, and if the bank goes bankrupt, you risk losing your money.
• Reliance on intermediaries: Every transaction must go through the bank, preventing you from freely using your assets anytime.
• You are the owner of the savings book: however, when you go to the bank, you must play the role of someone asking to withdraw money. Sometimes you can't withdraw because your signature does not match the one from the past. Or simply because the bank does not allow withdrawals and freezes the account for some reason.
• Transaction fees and inflation: Bank interest rates are not sufficient to offset inflation; in fact, your assets may be 'eroded' by hidden fees.
Blockchain:
• Full control: Your assets are held in a personal wallet (like Yoroi or Daedalus on Cardano). No one, not even the government or financial institutions, can intervene.
• High transparency and security: Every transaction on the blockchain is public and secured by modern encryption technology.
• No reliance on intermediaries: You can trade directly with anyone, anytime, at extremely low costs.
2. The Superior Benefits of Holding Assets on Blockchain
Absolute safety:
• With decentralized blockchain, your assets are not dependent on any organization. Even if a bank, company, or government collapses, your assets remain intact.
• The risk of hacking is extremely low if you use hardware wallets (Ledger, Trezor) or reputable wallets (Yoroi, Daedalus).
Opportunities for asset growth:
• Staking: With blockchains like Cardano, you can stake ADA to receive regular rewards. This is an effective way to increase your assets without needing to sell your coins.
• Mitigating inflation: The value of major coins (like ADA, BTC, ETH) often increases in the long term, helping to protect your assets from devaluation.
Financial freedom:
• Blockchain operates 24/7, with no holidays. You can trade anytime without waiting for bank approval.
• No geographical limitations: You can transfer assets anywhere in the world within minutes.
3. Some concerns and solutions when holding assets on blockchain
Security concerns:
• The biggest risk when using blockchain is losing your private key or being scammed (phishing). However, you can completely mitigate this by storing your private key in a safe place, avoiding sharing personal information, and using hardware wallets.
Price volatility:
• The price of cryptocurrencies often fluctuates greatly, but this also presents opportunities for significant asset growth in the long term. Only invest in reputable blockchain projects like Cardano to minimize risks.
4. The Financial Future: Will Blockchain Replace Traditional Banks?
Blockchain is not just a technology, but a revolution that changes how we store and use assets. Instead of relying on banks with the risk of losing control and devaluing assets, blockchain offers true freedom and security.
Imagine a world where your assets are not affected by inflation, economic crises, or the wrong decisions of financial institutions. With blockchain, this is becoming a reality.
Conclusion: Start today!
If you are still worried about putting money in the bank, try to learn and experience blockchain. With platforms like Cardano, you not only protect your assets but also have the chance to increase their value in the future.
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