Being a financial and investment instrument, cryptocurrencies like bitcoins have shown a promising future. However, since its beginning in 2009, not many people have had a belief in cryptocurrencies. If you aim to invest in bitcoin or other cryptocurrencies but are unclear about its opportunities, this article can help you.
Crypto Currencies like bitcoins work almost like the traditional fiat currencies. One of the most distinctive features is that bitcoins are digital currency. Even though these currencies are digital, they gained people’s trust quite quickly. But, the main question is whether the craze for bitcoins and other crypto will continue or vanish. Currently, looking at the popularity of cryptocurrency, it can impact traditional investment with ease.
What does disruption in bitcoin mean for traditional financial institutions and customers?
One of the fantastic benefits of digital currency is how people can access trade and finance with more ease. Thus, it will help people in getting out of poverty. Thus, even the people who were not exposed to the previous banking system can now get investment opportunities. People who used to hate the banking system will have an option now. Another advantage that people expect is that they can also avoid the banking fee.
As per a report, between April 2015 to April 2016, almost 600 bank branches in the UK were closed. In 2016 alone, HSBC reported that they saw almost a 40% reduction in the number of people who visited banks. Paying a close look at all these factors, it is clear that cryptocurrencies can easily change the banking landscape. If the craze of bitcoins and other cryptocurrencies grows in the coming years, the banks and other financial institutions under the impact of the government will get obsolete.
How bitcoins and other cryptocurrencies will make an impact?
Decentralisation of currency
You need to know that, unlike traditional currencies, bitcoins are not controlled by government or financial agencies. Thus, when you are using cryptocurrency, you will be the direct owner of your money. Cryptos are also getting attention from investors worldwide as it does not include any involvement from the government.
Accessibility
Due to their digital nature, cryptocurrencies are more accessible. You will need internet connectivity to participate in a crypto transaction for using it. In addition, people are taking part in speculative investments because of the ongoing craze for cryptocurrencies.
Ease of banking
Since cryptocurrencies are digital, an investor does not have to visit the bank to complete the transaction. Thus, people don’t have to worry about paying any travelling costs when they want control over their money.
The better choice for investment
These days, digital currencies like bitcoin have gotten attention from institutional investors. Thus, it is also gaining trust from general people. People investing in cryptocurrency know that they have a better chance of getting significant returns.
No limitation in border
Unlike the regular fiat currencies, you are not restricted to your geographical borders when investing in cryptocurrencies. Instead, you can live in any part of the world and easily participate in the crypto trade.
Cryptocurrencies and the future of banks
It is pretty challenging to predict whether a cryptocurrency will make the banking system obsolete or not. But, it is essential to note that if the crypto world does not adhere to the traditional financial practises, it can impact its trustability among people.
As per a few experts, the middle ground is the clear path. On the one hand, banks need to accommodate cryptocurrencies. But, on the other hand, the crypto world needs to consider the advantages of traditional business practises.
Despite the inhibition about cryptocurrency, almost six banks are working to create their cryptocurrency. As per a report, the names that have come up include Barclays and HSBC. Moreover, banks are gradually adapting to blockchain technology to eliminate criminal activities.
Impact of cryptocurrencies on the banking landscape
We are yet to know the impact of cryptocurrencies on the traditional banking landscape. As per many reports, it is clear that changes can’t be stopped. We can wait and watch to know what will happen at this moment. If you want to invest in bitcoins or other cryptocurrencies, you should monitor the crypto market to understand it better. To know more, click the platform bitcoin-code.live.
