Author: Asira S Compiled by: Vernacular Blockchain

Cryptocurrencies are attracting widespread attention worldwide. El Salvador has designated it as fiat currency, requiring merchants to accept it as if they were cash; meanwhile, the U.S. blockchain summit attracted billions of dollars in companies to flock to the Web3 space.

Behind this boom, cryptocurrencies such as Bitcoin and Ethereum have a lot more meaning than money itself, and they are redefining how currency works.

However, the complex terminology and overwhelming information confuses many people, as if everyone assumes that you already understand. In fact, many people are still trying to understand the real value and significance behind cryptocurrencies.

01 So, what is a decentralized currency?

Imagine how you would transfer money if Venmo, PayPal and your bank disappeared overnight?

This is a reality for millions of people around the world.

But the problem is not just about getting banking services (although it is a big problem). But who is controlling the currency itself.

Now, when you transfer money, you are not really transferring money by yourself. You are requesting a bank or payment processor for you. They are middlemen, they charge multiple fees, decide who can or cannot use their system, and have the right to freeze or block transactions at any time.

Decentralized currency eliminates all this. Simply put, you can transfer money directly to others through a digital wallet without going through multiple banks. A blockchain composed of a global network of computers is verified and recorded transactions through cryptography and code.

No company, no , no CEO can step in to stop it.

Unlike banks, decentralized currencies like Bitcoin, Ethereum and other cryptocurrencies run 24/7. No business hours. There is no "processing time" waiting. Banks don't have weekend breaks.

This is not just a matter of speed, but a matter of control.

02Why is decentralized currency importantFor the first time in history, people can send, store and control their funds without banking or approval. If you live in a stable banking system, this may not seem like a big deal. But for millions of people, decentralized currency equals survival.

1. No one can freeze or stop your funds

and banks can (and do) freeze their accounts when they see fit.

Take Canada in 2022 as an example. During the truck driver protests, the bank accounts of protesters and donors were frozen without court orders. Or Nigeria in 2020, closing bank accounts of activists supporting the #EndSARS movement (protest against police violence).

In both cases, it is considered necessary to do so. But what is the price? When you take away someone’s money, you deprive them of their ability to eat, pay rent and survive.

With Bitcoin and decentralized currencies, this will not happen. If your assets are traded in a self-custodial wallet or through a decentralized trading platform (DEX), no bank, or company can freeze, block or confiscate them. This suddenly is not just financial freedom, but basic human rights.

2. Provide services to people without bank accounts

Think about this now: There are 1.4 billion people worldwide without bank accounts. Not because they don’t want to have it, but because they live in places without financial infrastructure, without proper documents, or are subject to restrictions.

In El Salvador, more than 70% of the population had no bank accounts. Nowadays, people can send, receive and save money without a bank.

For billions of people, decentralized currency is not only an alternative, but the only viable option.

And, in addition to basic banking services, decentralized finance (DeFi) is becoming a powerful alternative to traditional financial services.

3. Potential anti-inflation protection

Even if you can use banking services, inflation can erode your savings. Inflation means that your money can buy less and less over time.

Controls traditional currencies, and when they print more, the value of the currency falls. This is exactly what happened in Venezuela, Zimbabwe and Lebanon, inflation destroys people’s savings.

The supply of Bitcoin is fixed at 21 million. There is no printing that can be added, and no central bank can change the rules at will. This is why some people call it “digital gold.”

In the short term, prices fluctuate quickly. But in the long run, some believe that it will become a strong store of value due to its fixed supply.

Bitcoin is not a perfect anti-inflation tool. But it is an uncontrolled currency alternative. For many people, that's enough to get them to pay attention to it.

03 Decentralized currency changes everything

Bitcoin and decentralized currency not only have the significance of Bitcoin and decentralized currency far more than the financial field. For some, they offer cheaper and faster ways to transfer money; for others, they are potential anti-inflation tools; for millions of people around the world, they are the only way to access financial services.

Cryptocurrencies and the technology behind them are not perfect, and there are risks, but it is pushing us to rethink how currency works. This is the first time in human history that people have access to a financial system that is not under banks or control.

Whatever our attitude towards it, decentralized currencies are already shaping the future.