Topic: [2017-10-12] Why Big Banks are so Nervous About Bitcoin (Read 232 times)

When you find a good opponent in the competition it is natural to get nervous and tensed. Same thing is happening with Banks now, they were simply calm till now because there was no better substitution that can transfer money and pays good interest on money. But with the gaining popularity of Bitcoin, more and more people are investing their money in it for better returns in a short span of time. The amount of interest given by Bitcoin is way more as compared to Banks. Banks know they can't just vanish from the society but reducing profits and market value is making them nervous.

Bitcoin became a progress of all humanity and money in general. Yes, just few years ago it wasn't known and were used for little operations. I have heard that people were buying a pizza per 50k BTC like 8 years ago.
Today Bitcoin is gaining momentum and banks and government paying attention on it like never before. The wave of regulation and legalization is waiting for all of us in nearly future. I understand it, they need to solve all the moments of negative use of Bitcoin, altvoins, ICOs and other things, to it would not be a support to the criminal. How this regulation will affect on Bitcoin and it's price we may only guess.

Truly, banks have gone berserk due to the birth and influx of cryptocurrencies. Its being decentralized has done Bitcoins' business quite well although we must face it that Bitcoins seem like everybody who has it has the capacity to take control of ones own money unlike when one decides to put in ones money in banks. Say I have my own Bitcoins. I can can sell, buy, trade, and loan my own money with my own terms and conditions unlike when you sell, buy, trade or loan in banks, you have to abide by the banks terms and conditions. What is more is that you earn better in Bitcoins than that of banks. 

There was a time where Bitcoin was not even on the radar, it was a novel idea that was primarily used by thieves and drug dealers on the dark web. Nothing to be afraid of in terms of holding a monopoly on money.

However, that same little upstart is now disrupting the system of things; from Bitcoin and other cryptocurrencies, ICOs and the ever impressive Blockchain technology. This is now a legitimate threat on traditional banks.

    "Bitcoin’s skyrocketing run in value, as well as adoption and mainstream acceptance, has led to banks - and regulators, getting very nervous and instigating a few knee jerk reactions. These reactions are, however, simply asserting the fact that Bitcoin is a legitimate disruptive threat."

Bitcoin taking on the banks

Regulators are trying to play catch up with Bitcoin and other cryptocurrencies, realising now that it’s not going away. In fact, it is challenging their monetary system which is intrinsically linked to banks, and especially central, government-backed, banks.

China, especially, Russia, recently, Japan and the US have played their hands in varying degrees of harshness in efforts to try and control the decentralized monetary idea.

In fact, traditional centralised, powerful organisations like banks, governments, regulators and technology behemoths are all spending billions in figuring out how to use and control distributed trust technologies.
A powershift

Banks have existed unchallenged for hundreds of years, and that is the key issue here; Bitcoin, backed by a solid platform such as Blockchain technology, is a ghost that is incredibly hard to control due to its decentralized nature.

    "John McAfee has been brazen about regulators’ power plays to try and control Bitcoin, saying that they will never be able to ban it."

The power and control of money is being ripped away from traditional institutions, which can also be seen on Wall Street. Some of these traditional investors are siding with what could be the future, while others vehemently denounce it.

Individuals can now enter into direct peer-to-peer trusted exchanges with strangers. They no longer need a central institution to vouch for the other party.

Just like the fax machine, the library, even metered taxis, new technologies have come along and made others obsolete. Banks are now in the sights of Bitcoin and are in their death throws, as they lash out with the power of states behind them.

However, there’s no stopping progress, and even with state-backed regulations trying to wrestle the money of the people under control, banks have every reason to be nervous.


https://cointelegraph.com/news/why-big-banks-are-so-nervous-about-bitcoin