Some people argue: well, people don’t need to be paid daily! Getting paid every couple weeks promotes responsibility!
But they’re missing the point. In the current system, people have no choice. In reality, many people are living paycheck-to-paycheck. To fill the gap between now and the time they get paid, they’re forced to rely on credit cards or deplete their savings to make ends meet. Because of this inefficiency, it puts more burden on the consumer and makes their lives harder. You even have apps like Earnin (disclaimer: no affiliation) where people sign-up and are able to get their paycheck a few days sooner.
We often shame payday loans for ripping off poor people. Yet, we seldom mention how apps like Earnin are finessing the middle class by charging extra fees just so people can pay for the simple things they need. Millions of consumers are willing to take out these micro-loans just to get paid sooner. But instead of fixing the root of the problem, we add more middlemen that take fee after fee and leech off of wage workers.
When you give people the freedom of money — that is, to truly have control of their funds 24/7 and the ability to send/receive anywhere in the world at any time, everything changes. You start to remove rent-seeking apps, then legacy banks, and slowly start paving the way for a world where it’s normal for people control 100% of their finances.
To put it another way…
Why do we need PayPal, CashApp, Venmo, Zelle, Google Pay, Apple Pay, when we can all just use a universal system? Shouldn’t banks allow us to send money anywhere in the first place?
We’ve all been there before. Somebody owes you money, or you have to pay them back.
“Do you have Cash App?”
“No sorry, mine is broken. Do you have Apple Pay?”
“Yeah, but mine isn’t set up. My card isn’t linked correctly or something”
So….how do we pay each other back for buying food yesterday?
The problem is so common, and seems trivial. Most people just accept it as a way of life. But it doesn’t have to be. You shouldn’t have to drive to a store, get cash back over-the-counter, hit an ATM, or walk into a back to get lunch money. It should be as easy as sending money on your smartphone.
Doing so not only creates a better experience for end-users, but companies as well. Apple and Google both benefit from higher transaction volumes. iPhone users can use Apple Pay to send money to Android users who use Google pay. Both companies can take fees on each side of the transaction. Companies win. Furthermore, it forces companies to compete to distinguish themselves with better rewards, more cashback, and merchant partnerships. Consumers win. As we know, increased competition is net positive for societies. It would be as easy as using the web, except with sending money anywhere in the world.
A loose, overly-simplified analogy would be something like: Bitcoin is like the internet. It’s an open system that no single entity owns, and everyone can access as long as they have a connection. Except instead of transferring information like news updates, Facebook posts, or sending photos, people can transfer monetary value back and forth.
You can DM a friend $20 on Instagram, or tip your favorite influencer .99 cents because you like their content. No complicated sign-up, no social security number, just the click of a button. Without boundaries, and without anyone’s permission.
Bitcoin laid the foundation for a new type of internet that many are calling the “Internet of Value”. But what makes it so unique is the technology behind it, which is called blockchain.