In my opinion, Bitcoin will become the world's reserve asset in the future and a part (probably the main part) of central bank gold and foreign exchange reserves.
I do not think Bitcoin will become the main means of payment in the future. As a means of payment, Bitcoin is not very convenient (even taking into account the development of layers 2 and 3). However, as a reserve asset, Bitcoin is ideal. All the disadvantages of Bitcoin become advantages if you think of Bitcoin as a reserve asset, and not as a means of payment.
For example, central bank gold and foreign exchange reserves can be easily audited (assuming they are entirely made up of Bitcoin).
Topic: What is bitcoin future roles in Finance? - page 2. (Read 692 times)
Considering how bitcoin might shape the future of finance, it’s potentially impact on traditional banking systems and regulatory challenges it’s may face
The future of Bitcoin in the field of finance seems promising, as even huge financial monsters like BlackRock have already introduced Bitcoin ETFs, which allow traditional investors to reach the crypto market with much more ease. This movement here suggests that Bitcoin may eventually be able to coexist with traditional assets by adding new options for financial portfolios without directly removing the banks. This would mean that in such a direction, the potential of blockchain technology to support even faster and more inclusive financial products could also allow Bitcoin to allow greater access to finance than traditional banking has yet achieved.
Yet, the most significant challenge is no doubt regulatory. Some jurisdictions, like the EU and Singapore, make concrete crypto regulations with the hope of driving innovation. Other jurisdictions, like the US, view the sector as a "Wild West" and most likely will be resistant to quicker mainstream Bitcoin adoption. Whether Bitcoin will go completely into the center of finance depends on how regulatory frameworks adapt to the unique needs of Bitcoin, and how much mainstream acceptance will be there from traditional financial institutions.
I'm not spreading Fud or pessimism, but we should be realistic about what's going on. What you said may happen in the future and everything takes time but not now.
We can still be optimistic about bitcoin and criticize what can be done to improve the system.Yep. In an argument, the truth is born.
An asset that is highly volatile, has high transaction fees, and has not been accepted as legal tender by many countries, how can it play an important role in the financial system?
One thing I can think of is how many people are adapting to cryptocurrency. Even though the transaction fees are high, there are still people who decide to use it. The fact that there are options now to pay either in cash, bank or cryptocurrencies is already proof that crypto has changed the financial system.It will only go wider from this moment forward - more and more countries are loosening their belts on crypto, and who knows how the space will coexist with bigger entities.
I hope though that it will have a positive impact overall and that crypto will become more widespread and understood by the common man in an informational sense.
An asset that is highly volatile, has high transaction fees, and has not been accepted as legal tender by many countries, how can it play an important role in the financial system?
One thing I can think of is how many people are adapting to cryptocurrency. Even though the transaction fees are high, there are still people who decide to use it. The fact that there are options now to pay either in cash, bank or cryptocurrencies is already proof that crypto has changed the financial system.Quote
I'm not spreading Fud or pessimism, but we should be realistic about what's going on. What you said may happen in the future and everything takes time but not now.
We can still be optimistic about bitcoin and criticize what can be done to improve the system. 
I believe that it is going to be one of the very big main assets in the world. These days people invest into three things, gold stocks or real estate. I do not think that real estate will be gone anytime soon, people keep investing, and the prices are rising like crazy which makes no sense because there is enough houses in some parts, and people decide to not sell it at all if they do not want to, and let others be homeless.
But, I think gold may lose its value as well, because we are talking about something quite slow, and as we all know each new generation has slower and slower attention span meaning that they may not be fine with gold in the future. This won't happen just in a few years, but it may take a few more generations instead. Bitcoin will skyrocket when that happens.
But, I think gold may lose its value as well, because we are talking about something quite slow, and as we all know each new generation has slower and slower attention span meaning that they may not be fine with gold in the future. This won't happen just in a few years, but it may take a few more generations instead. Bitcoin will skyrocket when that happens.
Considering how bitcoin might shape the future of finance, it’s potentially impact on traditional banking systems and regulatory challenges it’s may face
First of all I want you to understand that ordinarily if not for the tax gotten from Bitcoin mining and exchanges, the government of some nations wouldn't have allowed Bitcoin transactions in their country, it is very obvious that the government dislike this digital asset, if you look at the adoption rate, sometimes it seems to us bitcoiners that mass adoption can not be atualized just because of the frustrating tactics of the government, as far as financial systems are concerned, the government wants to be in control once they noticed that they can't, they will start frustrating such means, for me Bitcoin has faced several humiliation from the government and nothing new to me, as much as i cant predict the future, i will say that bitcoin may face hard times in future but it might be a disguise means for the powerful people to acquire more of this asset.
These will usually depend on different countries many countries are opting for this digital currency to reduce their stress. can help financial industry professionals monitor transactions detect criminal activity reduce risk increase transparency and provide new opportunities for their clients. Many finance professionals understand that crypto represents a huge opportunity but institutions are hesitant to enter the market due to perceived risks and some don't even realize exposure to crypto.
Most countries are already adopting the use of bit coin as a legal tender in their country, with such a country it becomes very obvious that the future of bitcoin in such place is very promising such that you can be very expectant of the possible chance of bitcoin becoming a vital part of the economy. they are even opportunities that still lays further around the bitcoin eco system. Bitcoin has played a vital role in the financial system,and it also stands as a challenge to the traditional banking system to improve their monetary policies.
Specifically, what role does bitcoin play in the current financial system? And what challenges is bitcoin creating for banks? I've also seen many people talk about this issue, but no one has given specific evidence and just talked in general terms like you. An asset that is highly volatile, has high transaction fees, and has not been accepted as legal tender by many countries, how can it play an important role in the financial system?
I'm not spreading Fud or pessimism, but we should be realistic about what's going on. What you said may happen in the future and everything takes time but not now.
Bitcoin has played a vital role in the financial system,and it also stands as a challenge to the traditional banking system to improve their monetary policies.Bitcoin in most cases is referred to as a currency for the future,in essence it wasn't invented to replace fiat rather it's a store of value that when an investor hold it for the long term it gives profitable ROI.The decentralized nature and it's limited supply makes Bitcoin a store of value.The future role of Bitcoin in the financial system as it is written in the Bitcoin white paper is to serve as a transaction without financial institution and to prevent double spending.
It has the potential to revolutionize the way we think about money, payments, and even the structure of financial systems. Some see it as a digital gold, a store of value similar to precious metals. Others see it as a medium of exchange that could challenge traditional currencies. Its decentralized nature and limited supply make it appealing to those who are wary of central banks and government control.
I'm not sure about revolutionary about payment system. Do you see what Bitcoin mempool change to yesterday when the price fell sharply? The mempool went as high as $50 per a single input and output transaction and it has been slowly coming down now to 50sats/vbyte for high priority, this is not and will never be affordable for people, there is no way this is changing the financial system when other payments system like light app such as zelle and cashapp charge less.
However, I give into the financial money thinking, it has been able get get the attention of high profile like Blackrock and many more. Some are partnering with Coinbase and some US companies to push Bitcoin and that's good for revolution of money, they all want to put money into Bitcoin so they can grow their money more and more and gradually if they succeed in this phase, more bull run that will be coming there is going to be more of them coming to buy Bitcoin.
These will usually depend on different countries many countries are opting for this digital currency to reduce their stress. can help financial industry professionals monitor transactions detect criminal activity reduce risk increase transparency and provide new opportunities for their clients. Many finance professionals understand that crypto represents a huge opportunity but institutions are hesitant to enter the market due to perceived risks and some don't even realize exposure to crypto.
Most countries are already adopting the use of bit coin as a legal tender in their country, with such a country it becomes very obvious that the future of bitcoin in such place is very promising such that you can be very expectant of the possible chance of bitcoin becoming a vital part of the economy. they are even opportunities that still lays further around the bitcoin eco system. Some other countries actually don't support anything related to crypto currency even the usage are even prohibited which is not giving bitcoin a chance in such a place at all even the institutions cannot venture in to it even asides the fact that they have some skeptical taught about it, they wouldn't want to venture into it because their government is against it and so it make it almost illegal as well.
Considering how bitcoin might shape the future of finance, it’s potentially impact on traditional banking systems and regulatory challenges it’s may face
I didn't understand exactly what you wanted to say in your topic, so I would like to comment based on your topic title.
Bitcoin and crypto will play a big role in the future of finance. There may be some developments thanks to the existence of cryptocurrency. It is difficult to predict what these developments will be, but crypto, which is open to development, will greatly reveal its presence in the field of finance.
Crypto education may become a new segment of finance education in universities. Many universities that I know of offer crypto education. In addition to departments such as economics, finance, and business, universities can also open a department that teaches crypto. This could be an important development for the future of Bitcoin and crypto in finance.
Bitcoin is an alternative way to make your payments which doesn't involve any intermediaries aka banks so if Bitcoin becomes mainstream payments there won't be any banks.
Other than this there won't be inflation, it's just deflation which is good for the most people but only sucks for the rich that's why avoid the decentralized system and want to keep the bitcoin and crypto from growing any further by throwing whatever they can in the name of government policies and restrictions.
Other than this there won't be inflation, it's just deflation which is good for the most people but only sucks for the rich that's why avoid the decentralized system and want to keep the bitcoin and crypto from growing any further by throwing whatever they can in the name of government policies and restrictions.
These will usually depend on different countries many countries are opting for this digital currency to reduce their stress. can help financial industry professionals monitor transactions detect criminal activity reduce risk increase transparency and provide new opportunities for their clients. Many finance professionals understand that crypto represents a huge opportunity but institutions are hesitant to enter the market due to perceived risks and some don't even realize exposure to crypto.
I don't think this is relevant, scammers and frauds will stay even in the cryptocurrency market or non-cryptocurrency market, it is already in the traditional market. As you can see there are still lot of issues about scammers/frauds in cryptocurrency. So for me, it's not that really the significant role of Bitcoin in finance right now.
The support of Bitcoin in finance is zero in the countries where Bitcoin is not legal yet, but the countries where Bitcoin is legal have given big support to finance. Ever since Bitcoin came into the market, the burden on banks has been greatly reduced, people prefer to store their large amounts of money in Bitcoin and consider it safer that way.Banks are businesses and to make profits they need to have as many customers as possible, if people do not use banks but use bitcoin to store assets. That means banks are losing customers, do you think that is a good thing for the bank and is it a way to reduce the burden on the bank when it causes the bank to lose revenue?
The public is also protected from paying extra taxes.
If you use bitcoin to avoid taxes, it means the government is losing income, do you think that is one of the supports of bitcoin to a country's finances?
In countries that do trading and where trading is legal, more than half of the population is earning money from trading, and unemployment and poverty have been reduced to a minimum. In this way, it can be said that unemployment and poverty have decreased in many countries after the introduction of Bitcoin. People are securing their future by using Bitcoin and also avoiding stress.
Are you saying that legalizing bitcoin can help reduce a country's unemployment rate by encouraging people to trade? Are you serious about what you say? In your opinion, is it easy to make money from bitcoin trading and have you made a profit from bitcoin trading? Where do poor and unemployed people get money to participate in trading?
It's unbelievable that these naive thoughts come from someone who has been in the market since 2016, someone who has 8 years of experience in the market
. I don't think this is relevant, scammers and frauds will stay even in the cryptocurrency market or non-cryptocurrency market, it is already in the traditional market. As you can see there are still lot of issues about scammers/frauds in cryptocurrency. So for me, it's not that really the significant role of Bitcoin in finance right now.
The support of Bitcoin in finance is zero in the countries where Bitcoin is not legal yet, but the countries where Bitcoin is legal have given big support to finance. Ever since Bitcoin came into the market, the burden on banks has been greatly reduced, people prefer to store their large amounts of money in Bitcoin and consider it safer that way. The public is also protected from paying extra taxes.In countries that do trading and where trading is legal, more than half of the population is earning money from trading, and unemployment and poverty have been reduced to a minimum. In this way, it can be said that unemployment and poverty have decreased in many countries after the introduction of Bitcoin. People are securing their future by using Bitcoin and also avoiding stress.
Considering how bitcoin might shape the future of finance, it’s potentially impact on traditional banking systems and regulatory challenges it’s may face
Well, there goes the pressure already for some countries and it truly has changed finance and investment in a different way. While obtaining it, you already have an asset and at the same time you can spend it however you want. Unlike the fiat money, it's dwelled to inflation and whatever global issues may have although with the latter, Bitcoin isn't exempted with that. There have been a lot of optimistic about DeFi as well but they've got a lot of security concerns and we do not have to go that far, Bitcoin is already for it. 
But because of the way it is people saying that bitcoin is going to shape the financial institutions in the world which I strongly disagree with because investing in bitcoin can't change anything and the governments are closely watching so bitcoin will also stay on it lane
No matter how many people use bitcoin, this will not make it legalized.Sure this will get the attention of the government and possibly they could either accept it or break it but if you think that we can change the financial system of the world just from sheer amount of investors then you are wrong. The government will still have the end word.
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and that is why they fighting seriously with mixers and Centralized exchanges.
The government is not in favor of decentralization and being anonymous that’s why I said that in the end it’s all up to the government how would crypto progress. Would it adopted finally or would it remain like a private entity? 
Considering how bitcoin might shape the future of finance, it’s potentially impact on traditional banking systems and regulatory challenges it’s may face
It seems the OP is asking the future of Bitcoin and the Banking finance and to be honest, Bitcoin and Banks relationship has been on the rise more than 10 years, you need bank way to sell your coins into fiat. Some banks have Bitcoin custody but we have more of them coming now. Take a look at Robinhood, they bought Bitstamp exchange and where do you think that money is coming from, from their traditional finance to fund cryptocurrency and this is because they see it as the future.
The banks need Bitcoin same way the Bitcoin needs the banks but this adoption isn't going like that, they are all afraid to buy real Bitcoin. This is why many of them has decided to buy Bitcoin coin ETF instead, this is what Blackrock who are asset managers to many banks are doing with Bitcoin right now, it's obvious they all want to have Bitcoin but are afraid of the government.
Considering how bitcoin might shape the future of finance, it’s potentially impact on traditional banking systems and regulatory challenges it’s may face
As for the title of your thread, by now we already know that Bitcoin plays a big role in finance already, as it become one of the best asset if not the best in the last couple of years and many traditional investors or Wall Streets maybe moving some of their wealth to Bitcoin already.
On traditional banking, still very controversial, there could be banks that are really anti-Bitcoin as they see it as competition or maybe consider it as a scam or fraud. But there are money servicing company that has accepted Bitcoin for now and very friendly. There are still regulatory challenges till now, but it seems that it has died down already as financial watchdogs see their efforts futile as this will be the next technology, cashless society with Bitcoin at the forefront.
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