Crypto Zorro

@yife

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7： But what if there was a system where our money was perfectly safe, belonged only to us, couldn’t be lent out or used by others, and was just as convenient to use, free from the limitations of distance? In other words, could there be a financial system that didn’t rely on banks as intermediaries? Actually, there already is, and it’s been running for fourteen years. It’s called Bitcoin. In my opinion, Bitcoin is the most suitable financial system for the future, and it’s one that ordinary people should embrace.

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6： In the past, we used to hold physical cash, depositing only our surplus into the bank. But now, money has become a mere number, and a simple scan of a QR code allows us to spend it. Our money is being funneled into banks at an unprecedented rate, fueling economic growth and widening the wealth gap. Depositing money into the bank has become, for ordinary people, a form of financial exploitation embedded in common sense. 3. Why Do People Keep Depositing Their Money in Banks? Aside from safety, the key reason is convenience. This system is highly developed and integrated worldwide, much like the system we envisioned in regions A and B. Convenience means being able to make payments without regard to distance, and avoiding the hassle of physically carrying money.

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5： So the key question becomes: who is the safest borrower? The answer: people who always repay their debts. And who are these people? Those with good credit. And what is credit? This is a tough question, but the current answer is simple: the rich and the powerful. The wealthier you are, the easier it is to borrow money from a bank, or more specifically, to borrow abundant and relatively cheap money. Ordinary people without money can only borrow at exorbitant rates, often as high as 24% per year through online loans. The result is that those who need money the most can’t borrow it, while wealthy capitalists can easily access the funds that ordinary people have deposited in the bank to expand their own businesses and then profit from the same ordinary people. This process of capital flow is the mechanism by which wealth disparity widens. Ordinary people's money will eventually end up in the pockets of the rich. As mobile payments have become widespread, the ease of money flow has increased dramatically.

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4： As long as borrowers can repay their loans before the fixed deposits mature, this game can go on indefinitely. Even if a borrower fails to repay on time, the game can still continue as long as depositors don’t all withdraw their money at once. Or perhaps you decide that lending money is still too risky—what if it doesn’t come back? So, you bundle the loans as "bonds" and sell them to depositors: “These ‘bonds’ are investment products from our bank and offer higher returns than fixed deposits.” In this way, you share a bit of the profit margin while avoiding the risk of non-repayment. Ultimately, as a middleman—or rather, a banker—you must continually innovate in how you manage the flow of funds. 2. The Game of Capital Flow No matter how you innovate, the ultimate goal is to lend out more money under limited capital. But the game only works if the borrower repays the loan, ideally with interest, on time.

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3： Once people in both regions A and B widely accept your deposit services and start using your notes for transactions, your notes effectively become paper currency. As other people imitate your model and open banks to issue their own notes, the market becomes flooded with a variety of paper currencies. When all the banks agree to standardize the design of these notes and form a unified ledger, the central bank is born. If this process is privately driven, the central bank is privately owned, such as the Federal Reserve in the U.S. If the state intervenes, it creates a national central bank, like the People’s Bank of China. But we’re getting ahead of ourselves. Let’s return to our previous point. Now that your bank has accumulated a large amount of funds, you’re finally rich enough to lend money and earn interest. You pay part of the interest to those with fixed deposits, and the difference between the interest on deposits and loans becomes your profit.

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2： First, you rent two offices in two regions where trade is frequent (let’s call them A and B). Then you announce in region A: “I can help you safeguard your extra money. If you deposit your money with me, I will give you interest after a year. The longer you keep it with me, the more interest you’ll earn. It’s much better than letting it sit idle at home.” At this point, some residents in region A deposit their surplus money with you. Then you approach a merchant who travels frequently between regions A and B: “Why don’t you deposit your money with me? I’ll give you a note, and when you reach region B, you can exchange the note for cash at our branch there. It’s safer and more convenient than carrying gold or silver on the road.” The merchant agrees, and others soon follow.

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1： Why is BTC considered the future? Many people have been trading cryptocurrencies for a long time without truly understanding what BTC represents. Why does BTC have so many believers? It’s because BTC represents humanity's longing for financial freedom. We are all subject to a financial exploitation that has become so ingrained in our everyday lives that we consider it common sense. Storing money in the bank is one such form of financial exploitation that we take for granted. Why do I say this? Bear with me, and let’s go through a thought experiment. 1. A World Without Banks Let’s assume you live in a world without banks or paper money. You’re a smart person, and you notice that there’s a massive, pressing demand: people need money, or more accurately, they need to borrow money. Naturally, lending money is not free; there’s interest to be paid in return. You want to earn that interest, but you don’t have much money yourself. So, what do you do? That’s when you come up with an idea.

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