bitworkers - Main Work, System & The Need for Escrow

Main Work - The overwhelming increased need for escrow

The main reason bitworkers was founded refers to the dramatically increased need for escrowing that large cryptocurrency transactions impose

Just think about it, the current financial system relies on third parties to validate transactions, right? Such reliability turns major financial institutions into judges of who may or may not ask for their money back after transactions. Cryptos totally change that scenario. Though you may ask for your money back to the seller, there is absolutely no certainty it will happen whereas if you contact your credit card or bank service, you are almost certain the money will go back to your hands by issuing a chargeback request.

Cryptocurrency is just like cash, remember

Now since cryptocurrency acts precisely as cash, ask yourself the following: would you sell a house, a car or any other major asset with cash? How difficult it would actually be? A nightmare, correct? Transferring property needs to occur precisely at the time of payment.

That is why escrow systems are going to be increasingly necessary in the future as cryptocurrencies get more and more adopted.

Trading with cash in a highly volatile environment

Let's continue using our "Would you sell a house with cash" example. Now, to make matters even worse, imagine the cash you are accepting has a very high volatility value. So volatile that it may occur that in the meantime between agreeing for an amount of that cash and actually having it in your hands, its value may drop or rise 40, 50 percent or even more. (A recent bitcoin transaction between friends resulted in an increased amount of U$ 1,300,000 to the buyer just during the period of confirmations since sending and receiving the value).

bitworkers escrowing system removes volatility issues from the equation by transforming the whole amount of the transaction into gold while selling steps are being taken and safeguarding the transaction!

[[ this post is from a series of explaining articles about bitworkers ]]

First article of this series: https://steemit.com/introduceyourself/@bitworkers/what-is-bitworkers

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EDUARDO CAPANEMA
@bitworkers