Will Cryptocurrency replace traditional banking?
In the past banks have playes significant role in financing in loans to the public. As gold and silver have been replaced with fiat currency and fractional reserve lending practices, the banks have reached an almost omnipotent position. Bailouts (taxpayer money) have been provided by governments to failing banks, due to the risks of financial meltdown in the society.
The question is what can replace such an abuse of both trust and taxpayer money?
Cryptocurrency has been such an alternative. Free from the influences of central banking it can be used by everyone, everywhere over the world. With new innovation and technology the time and cost of transaction is reduced to almost nothing. The question of the need for a private centralized banking system thus arises. What value can a bank deliver? Gold and silver have already been replaced by digital currencies. Transaction through traditional banks take time and is costly. The new cryptocurrencies are swift and free.
The case is clear it seems . Are we looking at the deaththrows of the traditional banking systems?
I sure as hell hope so.
We all like to think so. My mind is now occupied with P2P lending as a replacement for small business loans. I will write more of this further on. Thanks for replying and don´t forget to upvote. ;)
You can argue that it did so already for people who use it. If you mean the mainstream that potentially might never happen. It might take a few generations - if not more - to push people more into cryptocurrency paradigm. With no understanding and fear towards the new, people will continue to call it a scam for a long time.
Banks will adopt blockchain technology for sure but as an underlying process supporting current financial systems.
I agree. Blockchain tech is the future. Already now we can see encoding systems taking over the banking sector. However, the new tech is susceptible to functioning of electronics. What if the solar flare decides to happen? Or EMP? Our civilazation is not invulnerable to outer threats.