Lesson 2: Why is Crypto the Future?
Overview:
This lesson explores why cryptocurrencies are considered the future of finance, addressing their potential to disrupt traditional financial systems.
Key Topics:
1. Global Access:
Cryptocurrencies provide access to financial systems for people without access to traditional banking, especially in underbanked regions.
Over 2 billion people worldwide are without access to banking services.
2. Lower Transaction Fees:
Crypto transactions often have lower fees compared to traditional bank transactions or remittance services like Western Union.
Cross-border payments are faster, cheaper, and more secure.
3. Decentralization and Financial Freedom:
Cryptocurrencies operate without centralized control, allowing users more financial autonomy.
Decentralized Finance (DeFi) platforms allow borrowing, lending, and trading without traditional intermediaries (like banks).
Practical Takeaways:
Cryptocurrencies can reduce financial exclusion by offering a decentralized alternative to the current banking system.
DeFi, blockchain-based lending, and other innovations have made it possible to invest and transact in ways previously unavailable.
Exercise:
Compare a traditional bank transfer fee and time to send money to a cryptocurrency transaction fee and time. Reflect on the benefits.
Research DeFi platforms and explain how they work.
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