# Limitations of Traditional Finance

Despite its long history, the traditional financial system has gradually become out of touch with the needs of the times due to its high threshold and centralized characteristics: High threshold and exclusivity: Private investment opportunities are often monopolized by institutional investors and high-net-worth individuals, and ordinary retail investors find it difficult to participate due to capital constraints, information asymmetry and regulatory barriers. According to statistics, although the global private equity market has reached trillions of dollars, the participation rate of retail investors is less than 1%. Inefficiency and high cost: Traditional financial services such as cross-border payments and asset transactions rely on intermediaries, resulting in high fees and lengthy processes. For example, the average cost of international remittances is still as high as 6.5% of the transaction amount. Lack of transparency: The operation of centralized institutions lacks openness, users find it difficult to track the flow of funds, and the cost of trust remains high.
