Will Bitcoin destroy the banks or will it slowly infiltrate the workings of traditional finance to better supplant it?
Will Bitcoin destroy the banks or will it slowly infiltrate the cogs of traditional finance to better supplant it? The question is worth asking and it is some members of the " yellow vests"who suggested it.
For some people, hyperbitcoinization seems inevitable. For others, it seems that the bank has taken the lead in flirting with Bitcoin itself or its subordinates.
We can think, for example, of the case of Ripple who flirts very seriously with the largest banking institutions. Banks are increasingly using Ripple company profiles and are very interested in the advances in this technology.
The reluctant bank? Not so much, in the end...
So, will Bitcoin and cryptocurrencies in general replace traditional currencies and banks?
This is the question of the day, which I decided, firstly, to deal with quickly so as not to make it indigestible.
Once again, my goal is to popularize cryptocurrencies and not to add a veil of intellectual snobbery to them, see?
So, we will simply give the broad outlines, preparing us for a much more complete presentation later, rest assured.
The banks are already faltering
This is what the most convinced say. This scenario is already unfolding before our perplexed eyes. People use cryptocurrencies, and pay themselves in Bitcoin. The changes in classical finance are already visible. The appearance of the decentralized finance already shows the future.
Classic payments show their flaws and anyone who tries cryptocurrencies realizes the superiority of cryptocurrencies. Changes in the financial system are inevitable now, especially due to the inadequacy of modern payment methods with security requirements.
And although the banks try to deny it, the evidence seems ever stronger among users.
If there is no control over banking operations, this will reduce the influence of political forces on this industry. After all, this is one of the goals of Bitcoin, to free itself from centralized institutions.
There is nothing more democratic than Bitcoin and the current banking system will not be able to resist for long. Competent laws that control cryptocurrency will create a unified system of digital assets, which will be much more efficient than banks. This seems a certainty.
Is Bitcoin the ultimate threat to banking institutions?
The threat that the crypto industry poses to the banking system is ever greater. It is not for nothing that many States are starting to think seriously about it. It's astounding how digital payments are better than traditional payments and even a reluctant personality like Warren Buffet can admit defeat.
The fact that DeFi financial platforms which promise interest rates much higher than those of banks will bring the ultimate death knell.
- Why continue to deposit your capital in a bank if it only costs you more than it earns you?
- Why continue to pay in dollars when you can send cryptocurrencies at no cost (or almost) anywhere in the world, immediately?
- Why use cash when you can pay for everything via your wallet?
Many other questions could be added with obvious answers.
For example, on October 15, an amount of $933 million was transferred to the Bitcoin network. The commission for the transfer was less than $4. You imagine?
And here again, we're only talking about one transfer, there are lots of them. Free or almost non-existent. A shame! A traditional bank would have taken 3%, or even more if it was SWIFT.
So, will banking eventually jump in with Bitcoin?
It's a very short article, I wanted to be radical in my remarks.
We do not know whether the two systems will continue to coexist as is the case today. Moreover, today, war seems to have been declared in several ways, notably with what is calledopen banking. This is proving particularly effective in modernizing banks and bringing new financial services to as many people as possible. This is also the aim of the decentralized finance..
Moreover, we see rather than a war, a sort of cooperation between the banking sector and cryptocurrencies. This is for example the case with crypto bank cards.
Perhaps, in a more neutral and wiser vision, it would seem that classic finance will integrate elements of blockchain. However, this will not be a total merger as one might think.
There will be decentralization, with a little centralization, as the future seems to show us.
Some questions just take time. Time to see how this will play out.
