Topic: The Relationship Between Cryptocurrency and Traditional Banking - page 4. (Read 672 times)

Banks have been under threat for a very long time, and the ETF and other activities will make bitcoin even more unique. Bitcoin can act as a currency and an asset, which is something that fait cannot do. If fait implements such kind of futures, it could potentially destroy the entire financial system, and we live in a new era where practically everything is evolving.  even though they are a part of the financial system, I am aware that the most of them will use bitcoin and pretend to be against it. The entire potential of bitcoin has not yet been shown, but even in the event that it is adopted, we can all agree that it won't have an impact on our banking system because bitcoin is similar to government-issued money.

The government is the only entity opposing bitcoin, and we all know what they want: the ability to control the cryptocurrency and begin levying taxes on it. I don't even think banks have a problem with bitcoin. And when bitcoin first gained popularity, many banks had no problems with it until the government began to restrict it. After that, though, the rest realized they had no control over the matter, and in my country, the ban was lifted, allowing you to do whatever you wanted with your bitcoin at the bank. yet even before then, it is rare to hear of someone being detained for using Bitcoin alone.

Both banks and bitcoin depend on each other to function; without one, the other is impossible. I'm confident that the bank will receive a certain percentage from traders, as that is what the government has requested and is currently receiving. Furthermore, the fact that bitcoin is now more widely viewed as an investment than a medium of exchange makes things better.

There's no such thing about happily ever after on which traditional banks could neither accept or adapt on blockchain technology and not really that directly made out some acceptance about those cryptocurrencies into their institution or simply with integration. They cant really be having that harmonious or mutual thing on both considering that banks are heavily regulated and really that getting in line with government laws and regulations on which means that they cant just easily deal up with crypto or trying out to make those possible integrations. Everything would really be just that requiring that confirmation and verification whether
they should really be doing such act.

Thing here is that blockchain technology is something revolutionary and if ever banking system would really be just making using such tech then it wont be shocking nor surprising
that they would really be sticking on being centralized on which its not shocking about into these institutions. So its better not to expect that much
that both things could collide without any issues.

Crypto is still at its early adoption so there's no reason for banks to feel threatened. Yes, crypto adoption is increasing but majority of the people are still relying on banks with their finances. Some banks are open and have positive view towards crypto. And in fact, some banks are adopting as well and slowly becoming crypto friendly for their users who are also into crypto. Tho there are instances where banks tend to be more cautious when it's involved in crypto. Their relationship is like having to co-exist together, now that the technology is getting more advanced. It's like, both of them are there but it doesn't mean that they have to be "close" or have that happily ever after situation. Crypto is crypto, bank is bank. Some situations may get them involved with each other but not every time.

Crypto was not created to challenge the traditional banking system. So if someone things that the banking system will become useless due to cryptocurrency, they need to rethink. With cryptocurrency people can enjoy surveillance free monetary system which is not possible with the banks. That is the only difference.

The way this market has been progressing I can safely say that banking and cryptocurrency will go hand in hand in next couple of years. Financial corporate have started understanding the power of cryptocurrency and have started embracing it. Slowly but surely that traditional banking system will go that way.

Bitcoin is causing fear among traditional bankers and those operating traditional banking. I don't consider other cryptocurrencies to be anywhere near Bitcoin. Therefore, I will only consider Bitcoin for my argument. Here are my top 5 reasons why Bitcoin is more famous with a common man and why he would like to buy it.

1. Bitcoin is decentralized and traditional banking is not.
2. Bitcoin empowers a common man whereas banking makes the rich richer and the poor poorer.
3. Bitcoin is for everyone and banking only supports those who can maintain a minimum balance and follow their rules and regulations.
4. Bitcoin was created to overcome the uncertainty of Banking.
5  Bitcoin transaction fees are still cheaper than Banking transaction fees for international payment.

When financial institutions come up with an option to create a fund such as ETF then it is clear they are unable to stop Bitcoin.

Banks for feel like cryptos are their enemies. In a way, they are, because without cryptos, people have no other option but to trust a bank if they want to make digital transfers, and while cryptos there's an alternative. But banks are strong and versatile, they offer lots of services that cryptos can't perform. Also, banks have an advantage because they cards are widely accepted, whereas cryptos are barely adopted as a form of payment. Banks can also adopt cryptos, and sometimes they do, but it's still not very common. There's tension between banks and cryptos, but they aren't fully enemies, and they aren't a threat to each other.

There are competitions among cryptocurrencies and traditional banks, fiat currencies but they need each other.

Like Bitcoin need altcoins to have a cryptocurrency market. Altcoins need Bitcoin as a King, a leader of this market and if Bitcoin, the only decentralized cryptocurrency can be killed by government, altcoins will be in brink of massacre and massive deaths.

People use bank transfers, credit cards, debit cards to purchase cryptocurrencies and it helps traditional banks to have more income. Traditional banks with acceptance on cryptocurrencies, will help cryptocurrencies to reach to more users.

Banks are not threatened by crypto payments because so few people actually pay with crypto and the total transaction volume is just a tiny drop compared to global fiat payments. But the competition in the field of investment is more likely to happen - if people would buy Bitcoin instead of opening bank deposits, that could force banks to act. The first thing banks could easily do is to disconnect all crypto exchanges from their system, and that would kill a large share of crypto market liquidity. If that would be not enough, they could start lobbying the government to impose more restrictions on crypto activities. But so far we have seen nothing like that happening on a large scale.

Traditional banking system is already introducing Bitcoin and other cryptos to their platforms. They adopted cryptocurrencies, like all of us did, so there is a strong relationship between them, because the traditional banking system wants to take advantage of the profitability factor of crypto. They are just adapting themselves to the current circumstances of the world, so they don't become obsolete and overcome by common crypto investors.

Here in my banking app, there are many offers of crypto investments to start, from about 0,20$ on, which you can buy and sell at anytime, although you aren't allowed to move your coins or tokens to anywhere. It means you can just buy and sell them for fiat, inside the banking platform. How convenient it is for the traditional banking system to offer this to their customers... In fact, by investing in crypto through these banks we don't actually own our funds, as it remains on their hands during the whole process of holding.

Thankfully it's still possible to invest in crypto by ourselves, without relying on any middlemen services to keep our money. So, even though banking system is already into crypto, it doesn't mean you should make use of them when investing in cryptocurrencies.

Traditional Banks and Bitcoin share no relationship.
One is centralized and another is decentralized.
One operates on controlled and finite supply, another can be printed at will.

Banks can hold Bitcoin just as the would any valuable asset like gold, but this does not mean that both have anything in common.

I'm talking about Bitcoin specifically cause most other altcoins are not centralized and more importantly would not interest the banks when they can simply get their own by creating a CBDC.

The financial ecosystems are connected to each other, and fiat is ruling the world right now. Controlling the traditional banking system is mandatory, and without it, we can't live a life. We can't ignore the fact that cryptocurrency is a threat to traditional banking systems. Because if we can use cryptocurrency like fiat, then who and why will use the traditional banking system? Why do we need to trust banks if we don't need to use fiat? Since fiat is mandatory, we need to use traditional banks. . So traditional banking system dare to cryptocurrency always.
 

I guess it's the former that both of them will end with a happy ending. The adoption is rising and before, the talk was always about the taking over of Bitcoin, crypto over the banks.

But we get to see the whole situation now and it's about the matter of adoption and banks having their own thoughts about having services related to cryptocurrencies.

Before, they're like the mortal enemies but we're going to see the bandwagon or we actually seeing it since countries are having their CBDCs which is inspired by crypto.

Traditional banks lose their revenue not to the cryptocurrency but to third parties. What they say is different from reality. Most often, we see banks revealing revenue differences between two financial years and that the decrease in revenue is due to the growth of cryptocurrencies, which is a false statement. Traditional banks never go down if they're well managed. When advancement is incorporated with traditional banking, the growth will automatically be high. Some banks have begun to follow it with the addition of cryptocurrency-related services. This is a kind of mutual growth that benefits the common people who use the same platform for all their needs.

It depends on how a certain region's system foresees cryptocurrencies. A lot of countries don't want Bitcoin or cryptocurrencies to be available to the general public because they feel threatened since they know Bitcoin and many other cryptocurrencies promote decentralization and financial privacy and they can't let that happen, they want to have control over the finances and financial activities of their people which won't be possible if people are using Bitcoin or some other cryptocurrencies.

However, some countries and governments don't think this way and they care more about the well-being of their country and its future than personal agendas and power, and those are the countries that are welcoming the innovation and are doing their best to make it a part of their economy as they know it can be beneficial for them in the future.

Traditional banking one day will eventually embrace the blockchain fully if they end up switching everything to a CBDC, which is looming and also a bit of a scary potential future for citizens, but this is where Bitcoin comes in handy. The one thing I always say is that of the US government pulls another rug pull on Bitcoin like they did with gold in the 1930s, I don't see that happening because there would be revolt plus it would be a completely exhausting regulatory process and getting people to comply and verify their actual holdings is too problematic

One thing that needs to be clarified concerning bitcoin and the traditional fiat system is that they both have their differences and the people realized about what they needed to have with bitcoin after several years of being tired of using fiat currency, our privacy have long time being taken, the trust in the financial system was not achieved because they can easily manipulate reasons for making deductions on our accounts without any official permission or access, no profitability in fiat, while you can choose to invest on bitcoin and hold for a time making profits instead of loosing value in fiat due to inflation.

The two are fundamentally different, banks are centralized controlled by some entities to be censored and has an inflationary growth while bitcoin is decentralized without any controlling body thus censorship resistant and has a deflationary growth.

Both are complementing each other at this stage because you cannot completely live on crypto even today and you will need fiat or the help of the traditional banking system. Hence the two are not at war but working together.

Banks have seen the potential in blockchain technology and are involving it in their infrastructure too.

Cryptocurrency aka altcoins doesn't threating banks because both of them are centralized, the creator can froze the coins whenever the government, banks or any centralized entity ask them to freeze a specific address.

But if we talk Bitcoin, surely it could threating banks because if every people are educated and choose Bitcoin over fiat, it would make banks can't make money and force them to print money which lead to inflation.

I don't think neither crypto nor traditional banking will ever manage to kill the other, though they will keep trying whenever the opportunity arises.

In the meantime I'd say it's an uneasy alliance of sorts, that will continue existing as long as they can profit off one another -- crypto by using traditional banking infrastructure for fiat off- and on-ramps; traditional banking by having new products to sell. That's a state of things that I don't see changing anytime soon.

Crypto is acceptable to institutions. However, they refuse to accept Bitcoin or even get strong rejection from institutions in many countries.
In a broad scope, when people generally hear the name cryptocurrency, the first thing that comes to mind is Bitcoin because there are quite a lot of types of crypto that come after Bitcoin. People in general think that they cannot be blamed even though Bitcoin is very different from the many types of crypto in circulation.

I think the power of Bitcoin will go hand in hand with traditional banks to the extent that some of them will not accept Bitcoin.
People who know how the traditional banking system works with the Bitcoin system work, they will choose to prioritize Bitcoin, but because they live in a country that still prohibits Bitcoin, maybe they will understand it and secretly also use Bitcoin according to its use.