Since the inception of cryptocurrency and blockchain technology, several traditional banks have felt intimidated due to their presence. The reason for this intimidation is because banks mostly centralize and control the flow of money, and cryptocurrencies offer a less controllable, decentralized way of monetary exchange. A question that arises in people's mind is whether the cryptocurrencies will replace traditional banks in the future. In this article, we will discuss how cryptocurrencies can replace the traditional banking industry.
History About Cryptocurrency
Cryptocurrency became popular when Bitcoin, the first virtual currency was launched in 2009 by Satoshi Nakamoto, with the purpose to secure business transactions. Since then, several websites are giving information about a cryptocurrency airdrop. Cryptocurrency is a digital asset that works without the involvement of the bank or any other third-party system. In this regard, the cryptocurrency can be thought of as a medium of exchange and a value storage system.
How Cryptocurrency Will Replace The Traditional Banking Industry
Below are some reasons why the cryptocurrency is better and can replace the traditional banking system in the future.
1. Cryptocurrency Is an Available Medium All The Time
People are always subjected to the rules and regulations forced by the banks when it comes to managing the investments and finances. However, if people will adopt cryptocurrency and blockchain technology, they will no longer have to face issues that come with centralization. Unlike banks, that remain closed on public holidays and weekends, people have to depend on banks to be open for them so that they could do the transactions. Also, with the use of cryptocurrency, transactions can be completed at any time, including the holidays.
2. Cryptocurrency Offers More Security
The main advantage of using cryptocurrency for transactions is the involvement of its underlying technology, blockchain, which is generally secure when compared to trading through online wallets like PayPal, Google pay etc. If any fraud occurs, the account gets suspended, resulting in the issue of getting your money released. These frauds occurring in case of cryptocurrencies are reduced since only the sender will have access to the online wallet, with the help of public/private key. In addition to this, the blockchain supports peer-to-peer encryption.
3. Cryptocurrency Will Reduce Transaction Expense
Transferring money across the globe involves high transaction fees. These high transaction fees exist because third parties like banks and other financial institutions exist between sender and receiver. Transactions involving digital currencies will lower the transaction expense in comparison to those involving the traditional banking system.
4. Cryptocurrency Will Make Transactions Extremely Fast
Sending money across international borders takes a lot of processing time. The processing time duration will be reduced significantly when there will be no intermediary between the transactions. Transactions involving the traditional banking system takes about 2 to 3 days, which can be diminished to minutes with the help of cryptocurrency.
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