Cryptocurrencies vs. Banks: Advantage of Decentralized Financial Systems
From
Decentralized cryptocurrencies like Bitcoin and Ethereum have strong advantages over centralized financial systems, primarily because of their ability to function and operate without a single point of failure, which hackers and bad actors can target.Read more: https://cointelegraph.com/news/cryptocurrencies-vs-banks-advantage-of-decentralized-financial-systemsTransaction processing
On Feb. 19, Jameson Lopp, the lead engineer at multi-signature Blockchain security firm BitGo, noted that during a holiday in the US, local banks closed down, failing to provide financial services to individuals and businesses that could be in urgent need of financial settlement services to process payments.Meanwhile, Bitcoin, as a peer-to-peer (P2P) settlement system, was able to process over $1 bln worth of transactions, and more than $7 bln worth of Bitcoin was traded on a single day. Regardless of holidays and weekends, users of Bitcoin and other cryptocurrencies like Ether can freely transact on a peer-to-peer basis, through the utilization of wallets.
Non-custodial cryptocurrency wallets enable users to remain in full control over their funds, by only allowing users to gain access to their private keys and no other centralized entity or platform. As such, Bitcoin wallets like Blockchain, Trezor and Ledger cannot refund transactions or recover user accounts once the private key is lost, encouraging users to be more financially aware and responsible.
While I do agree with the spirit and am a fan of blockchain technology I think articles like this often don't give banks and our fiat system enough credit. When you look at the global financial system it is all interconnected but no more centralized than bitcoin. Different countries all have their own currencies, monetary policies and they are all competing as well.
Let's not pretend like cryptocurrencies don't suffer from forms of centralization as well with most of the mining power and coins being held by only a few individuals or entities. Then there is the code which has it's own centralization and governance.
With some of the liberating features of crypto currency like being able to cross a border with all you money also comes great risk. You could be hacked and lose all your money. In fiat world at least I'm insured if someone robs me or the bank.
Banks also bring with them safety and stability.
Leave your thoughts in the comments below.
Follow @contentjunkie to stay up to date on more great posts like this one.
Click one of the links below to signup for a free crypto trading account
to be organized implies a certain level of centralization. i think people think dencentralisation means no big power players or that the masses will gain power of those who time and time again exhibit the ability to come out on top.
I personally wonder how much of this "revoloution" is actually banks
just selling us the future.
Nice post
The cryptocurrencies will win....
Good
I think Cryptocurrencies is a game changer for investor because it is easy, fast to make transaction compare to bank. Thank you for this great post @contentjunkie!
You got a 4.41% upvote from @postpromoter courtesy of @contentjunkie!
Want to promote your posts too? Check out the Steem Bot Tracker website for more info. If you would like to support the development of @postpromoter and the bot tracker please vote for @yabapmatt for witness!
good. vary good post