Banks will get phased out like blockbuster
Once upon a time there was a company called blockbuster. This is where you go when you wanted to watch a movie at home with your girlfriend or with friends. Block buster would charge you a fee to rent the movie for three days lets say $5.99 or so. If you didnt bring back the movie they would charge a $10 late fee. They had 'VHS' :) DVDs.....
Block buster customers thought they had it good.
Then came along Netflix and streaming services Netflix and other streaming services completely wiped out the business that blockbuster thrived on. Also cable companies were very resistant to streaming services. Today if you have a cable provider like comcast they allow you to rent movies for very affordable price and recall shows or movies you like. This is all because of the internet, streaming revolution that was started in the late 90s early 2000s.
https://www.fool.com/investing/2016/07/07/netflix-stock-split-history-how-early-investors-ha.aspx
Banks remind me of the cable companies that resisted until they realized they couldnt win. The new crypto currency revolution has started and bitcoin will win.
Keep in mind if you bought 1 share of nflx in 2004 it would be worth about $1400 today.
https://www.stocksplithistory.com/netflix/
If you like this type of content please upvot comment and resteem.
I love this. I totally agree. Most people think banks are too big to fail but there will be a tipping point when people just stop using them.
Right they will have to adapt or fail. Ultimately they are smart enough to know when the battle is lost.
Banks arent in trouble and whether they will be in trouble, we will have to see. Bitcoin adoption is small and trading bitcoin as an asset is not a utility that will challenge banks. Even if institutions start trading bitcoin, it will not increase use cases or genuine adoption. There are lots of challenges as of now. Wallets are diffocult to understand. Buying bitcoin is tough and while more and more people are trading bitcoin, very few are using it as a personal bank or for value transfer.
Bitcoin attacks two aspects of traditional banking. Custody and remittance. Till the day other goods start being valued in bitcoin, we wil always have fiat and therefore banks. Loans may be made using bitcoin but they will be dollar loans. Banking deposits may come down, banking cost of funds go up, securitiea custody vanish but banking as a business will not be under threat. And most basic fx transactions will be eliminated and if swift become outdated and banks use bitcoin, operations jobs will vanish but the banking shareholder will still prosper. Other money making businesses are not under threat .. trading, ib, money management. Banking isnt really under threat.
Very good feedback but I have to disagree with you on this point. Banks are under threat. Banks do not want money to flow out of banks and be stored or utilized outside of the control of the banks. Banks are under direct threat as it relates to crypto currency.
I will admit the process for moving and storing crypto is a bit rough around the edges, but that will work itself out in time.
I agree that wallet technology, transfer times and transfer fee will all be sorted with time to make the whole process of storing and spending crypto much more user friendly.
However, money may move out banks but will be short term. Some things will also change on the banking side. Firstly investment banks will not suffer. Its only the retail banks that suffer.
Banks used to compete for our money through interest rates they paid on our savings. What if they started offering interest to hold your cryptos? Secondly in majority of the non crypto world, transactions are still in fiat. Goods are valued in fiat, loans are in fiat. Even bitcoin is valued in fiat. Banks will also evolve their business model to be custodians of bitcoin and provide you fiat mortgages. They will use your bitcoin for fiat liquidity and hedge market risk in futures market. Banks are worried because need to settle down on a business model to fight crypto and for that they need regulation.
All your points are valid ones, you sould like you have a background in finance or banking.
I have always worked in the financial sector in different capacities. If you feel like it, i wrote a piece recently on something similar -
https://steemit.com/bitcoin/@karamyog/is-bitcoin-going-to-destroy-goldman-sachs-the-answer-is-absolutely-not
Hi I read your article upvoted, and followed you.
Thanks a lot, returning the favour now.
Banks will adopt and modernize or die, but they are not going anywhere and will be here in some form or another. Coinbase is crypto bank and doing very well and expanding.
@clearbluecrypto ..As futuristic as this may seem, this nothing but the REALITY! ..Thanks for this write-up.
Thank you sir the future is here.
To be honest, I dont think banks will disappear, ever, they might just evolve. I mean, financial institutions as we know it might get phased out but new ones will appear and get shaped by what we are building now. If you see what Coinbase is doing is probably the closest thing to become a bank, a new type of bank, but still will behave like a financial behemoth and a service provider for financial assets.
Good point. Coinbase seems to be a leader on the exchange platform but high fees and less than accurate timing of orders make them a third or fourth behind better exchanges in my book.
Banks will only exist in the future as safety deposit boxes for crypto keys, seeds, and wallets.