Why blockchains?
Inflating currencies
Government has been printing currencies left right and center. This leads to increasing inflation, price of everything goes up.
Holding on to cash is a losers bet in the long run. Holding on to any asset (Gold, Stock, real estate) is better compared to currencies like USD, INR.
Fractional reserve Banking
Banks dont have your money. They lend out most of it.
If there is a bank run (everyone goes to the bank to withdraw their money), banks wont be able to pay everyone
Silicon valley collapsed in 2022. I was in the US when it happened. Most YC companies had their funds in SVB. They were bailed out, but if not, you would’ve seen a lot of startups die.
Bailouts
The 2008 Financial crisis was triggered by a financial instrument called mortgage-backed securities.
Even though the banks at Wall Street were at fault, the government ended up bailing them out using Taxpayer money.
INR Depreciation (even worse in countries like Japan)
- USD
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JPY
Currencies are not backed by assets anymore
