Bitcoin and other cryptocurrencies are built based on blockchain technology.
If a user’s bank is hacked, the user’s personal information is then made public. If a client’s bank falls or lives in a country with an unstable government/economy, the value of their currency may be jeopardized.
In 2008, several bankrupt banks were saved with taxpayers’ funding. These are the issues that motivated the invention and growth of Bitcoin.
Blockchain lets Bitcoin and other cryptocurrencies operate without a central authority by distributing their operations over a network of computers.
This lowers risk, but it also removes a lot of the transaction and processing fees. It can also provide a more stable currency with more uses and a more extensive network of individuals and organizations with whom they can do business domestically and globally in countries with unstable currencies or financial infrastructures.
Using cryptocurrency wallets for savings accounts or payment is significant for those who do not have state identification.
Some countries may be in the midst of a civil war, or their governments may lack the necessary infrastructure to offer identity. Citizens of such countries may be unable to open savings or brokerage accounts, leaving them with no means of safely storing wealth.