Topic: What are the likely problems that cryptocurrency poses to the financial sector? - page 2. (Read 266 times)
March 07, 2019, 11:59:23 AM
Bitcoin and Cryptocurrencies in general poses a very huge risk to the current financial sector because presently banks are heavily relied on for financial transactions and they charge a money to do this, but Cryptocurrencies put the power of transaction confirmation in the hands of miners, if Cryptocurrencies are adopted worldwide, the banks would go out of business fast.
March 07, 2019, 11:15:31 AM
Some say it doesn’t really pose any kind major threats to the financial system, since it’s too unstable to be accepted as a regular currency. However, others say it will totally disrupt the current model. What do you guys think?
Everything has a positive side as well as negative side. Cryptos are no exception. The fluctuation in crypto price is a real challenge for businesses to accept it as a regular currency. Beside government regulation, this fluctuation is the biggest challenge in crypto.
But I don't think that existing cryptos have the power to disrupt the current financial or economic model. It would certainly bring some changes in the current model but disrupting is out of question. In a nutshell, I don't think crypto poses any significant risk to the current economic model and it will co-exist as a parallel economy!
March 07, 2019, 11:09:54 AM
It will definitely steal market share away from banks and fiat money. This is why people like Warren Buffet are against bitcoin, he is a large shareholder in major banks and credit card companies. Paypal has been heavily against bitcoin because they know how much business they can potentially lose to crypto payments.
March 07, 2019, 11:08:01 AM
The biggest problem the crypto poses to the financial sector is that it offers save haven during a financial crisis. No more total control over the flow of the money for the old guard. So perhaps a new shuffling of financial cards will be possible
March 07, 2019, 10:57:55 AM
As of the moment, bitcoin and cryptocurrencies don't pose a major threat to the financial system we currently have as the people are really not into it yet. Once people knew that bitcoin is a possible workaround for slow and expensive wire transfers, people will do the switch, and perhaps will be doing it not only on transfers but also on purchases etc. should cryptocurrencies find its stable value (that is entirely questionable at the moment.) Most are still associating crypto with illicit activities, and the banks and the media are doing a great deal in keeping that story intact by producing content and articles that emphasizes the weak nature of cryptocurrencies as opposed to the banks and fiat.
March 07, 2019, 05:52:20 AM
Some say it doesn’t really pose any kind major threats to the financial system, since it’s too unstable to be accepted as a regular currency. However, others say it will totally disrupt the current model. What do you guys think?
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