Cryptocurrency will ultimately come full circle back to having centralized banks

FinanceX

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Quote from: avjn7 on June 30, 2018, 12:53:51 PM

I'd like to throw an idea out there to see what people think given that we hope cryptocurrency while become widely adopted by the world some day.

As much as people in the cryptocurrency community hate banks, has anyone ever though that even cryptocurrency can't escape the idea of having a bank?

If we expect "institutional investors", fund managers, our family members, banks, governments, Warren Buffet, Bill Gates, Dave Ramsey, Aunt Mary, Uncle Bob, grandma, (just for the safe of debate) to all get on board with holding cryptocurrency, where do we realistically expect them to hold their digital assets?

Will these people take on the task of securing their digital assets on their own via some offline device or will they not even think about holding digital assets unless someone else can hold them which would give them the ability to handle their digital assets just like they do their fiat currency with their bank?

As the decentralized blockchain keeps evolving, they will become more trusted and adoption will take place. It's only a matter of time

tsaroz

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That could be a case but unlike fiat, cryptocurrency would have a lot of loopholes to work around making users always the real owner of the value. There would be centralized and decentralized tokens but P2P trade among them would ease up the situation.

PlayChip

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I think you're missing the point.

The revolution is not cryptocurrency. The revolution is blockchain. Blockchain will usher in a new age of honesty and transparency that the vast majority of the population both want and need.

If we get to a point where blockchain gets the wealthy and powerful to be more accountable and have more visibility over their shady behaviour, ultimately that should deliver a fairer and more transparent society.

Even if banks do return (or stay), hopefully they will return to their original model of helping the local community (and poor) in escaping poverty and accumulating personal wealth without being exploited by others, which ultimately the banks have ended up doing themselves in the competition that this current economic policy has encouraged them to do.

tytanhamon04

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If I am not mistaken, even 3-4 years ago, Swiss banks first began to use the blockchain in their banks. At the moment, a very large number of banks use blockchain all over the world !

iconoclast

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No, I think it may take some time but eventually the fact that cryptocurrency makes disintermediation a realistic possibilty will mean that all old line financial services companies including banks will disappear. The main role that banks have played is to take your money and then lend it to other people and pay you a portion of the interest they get back to you as interest on your savings. Why will you need a bank to do this in the future when you will be able to purchase interests in loan portfolios directly using cryptocurrency and collect not just your interest but also the portion that would have gone to the bank.

Senya777

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I think that most likely banks will work on the blockchain system, not Cryptocurrency will return to centralized banks. Already has passed a lot of campaigns ICO, which was the idea of crypto punks, and now there are these companies, and some even successfully.

darthmaul

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They are already holding the bitcoin in the public ledger and that is their own bank. If you check the initial sayings by satoshi then you will see that his vision stated clearly he wanted to have a currency which will run through the public ledger and people will be able to skip the banking system (traditional) and have their own bank environment. These are not his words but im explaining it in my words. And this is what have happened right now. If they have the crypto currencies then they can hold it in their personal wallets and transact directly via it so that they can skip the banking networks. Wink

fruuom

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I don't really agree with the idea that the cryptocurrency will eventually return to the centralized bank. After all, the banking system and the cryptocurrency operate in a very different way, but in the future, the bank will develop its own cryptocurrency, which is very likely. Big

bartolo

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The idea is that each person is their own bank, always keeping control over their own coins. It would not make much sense if one of those millionaires invested a fortune in cryptocurrencies and then deposited them in a bank. To do that, they better not buy cryptos and leave their fiat money intact in the bank.

Nicolaus Copernicus

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Well banking system is a lot different from how the cryptocurrency works. In bank you are putting your money to their storage. If you want to send or receive money to foreign country you need to proceed through bank where bank will cut some of the money as their charges. In cryptocurrency you are able to send, receive, hold money with no charges or minimum charges.

AK47-

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Cryptos are still pretty different from banks or fiat. No one can control the supply here. The concept of digital lockers for cryptos might be a possible happening. But I believe that most of the people will keep their cryptos on their own wallets and will not need third party to secure their coins. Cryptocurrencies give the best option of offline storage where you can control and secure your own money. Why won't people go for their personal cold storage and rather pay a third party to secure their funds which themselves gonna use cold storage?

avjn7

newbie

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I'd like to throw an idea out there to see what people think given that we hope cryptocurrency while become widely adopted by the world some day.

As much as people in the cryptocurrency community hate banks, has anyone ever though that even cryptocurrency can't escape the idea of having a bank?

If we expect "institutional investors", fund managers, our family members, banks, governments, Warren Buffet, Bill Gates, Dave Ramsey, Aunt Mary, Uncle Bob, grandma, (just for the safe of debate) to all get on board with holding cryptocurrency, where do we realistically expect them to hold their digital assets?

Will these people take on the task of securing their digital assets on their own via some offline device or will they not even think about holding digital assets unless someone else can hold them which would give them the ability to handle their digital assets just like they do their fiat currency with their bank?

Topic: Cryptocurrency will ultimately come full circle back to having centralized banks (Read 115 times)