Why Banks Don't like Bitcoin

There are many more people who haven't heard about Bitcoin than have, especially the ones who do the day to day shopping and who will be needed to embrace the idea if the currency is to become part of the everyday scene. But we’ll need to see the words written on this mug in daily view on city high streets for that to happen.

The irony is that natives of Africa with their smart phones are more aware of this new coin than citizens of more advanced countries simply because the ‘Have Nots’ are usually more alert and alive to opportunities.

Those more content with their lot use phone technology to look at what their favorite celebrity is doing first.

Bitcoin and cryptocurrency is big news with financial traders and journalists mainly for trading and betting the price movement on the exchanges. But it cannot achieve the growth predicted until it is being regularly and widely used for buying goods and services as well.

And that is the chicken or egg first stumbling block.

Shops and businesses especially in the west are cautious, but they will have to make the first move in my view and install facilities to accept the bitcoin tokens that will be issued by ATMs. So banks too will have to be early adapters.

And the tokens issued at ATMs will I understand be downloaded to smart phones for spending in the shops. Of course the main source of Bitcoin will be an Exchange to Smart Phone.Practically everyone in the world will have a smart phone soon, if they haven’t already, including children for their pocket money.

And knowing children and their natural affinity with computers they will be ahead of the game and showing the adults. The writer of this book obviously hasn’t got children.

The ‘Its a Bubble’ stories haven't helped

In early 2016, bitcoin developer Mike Hearn dramatically announced that bitcoin had failed. The blame fell on rampant censorship in China and Bitcoin community in-fighting over how to speed up handling the growing volume of transactions.

A few months later, TransferWise CEO Taavet Hinrikus declared in an interview that bitcoin was dead.

Bitcoin is a currency that dies a hundred times a day, hence the yo yo ing price.

But despite all the knocking and predictions of doom, bitcoin’s value rose 125%, in 2016 making it the years top performing currency.

In early 2017, the price of one bitcoin soared past the $1,000 per Bitcoin mark. Despite a dramatic example on January 5th of the cryptocurrency’s notorious volatility – when its value dropped $200 in a single hour – bitcoin has since enjoyed relative stability at around $1.500 per bitcoin.

With respectable giants like Microsoft, Wholefoods and Save the Children deciding to accept bitcoin, the digital currency may start to move up the ladder of respectability, away from its tag as the currency of crooks and criminals.

It is also being considered as a viable payment option for ecommerce websites in 2017?

And so it should. Its ideal peer to peer transacting, individual bitcoin wallet to individual bitcoin wallet, or individual bitcoin wallet to shop or company bitcoin wallet, so it cuts out credit card and bank charges.

The Banks are not going to like that!

Already they are softening their image in preparation for much needed proper competition, with the announcement in the U.K.that credit card surcharges are to be dropped. It was released as a government order, but the fact that there were no protests or squeals of interference would suggest that it is a bank initiative

Crypto currency is the natural bedfellow for the Internet Computer and Smart Phone age. Made for each other. Its time has come. Banking will have to adjust adapt and change to meet the challenge of progress, just as other major industries like steel, coal, publishing and the shopping high street have done or are doing.

There are signs that trade organizations are now waking to the possibilities. The UK Business Forums user DEFCON1 thinks so and says “It's getting harder to just ignore this trend as it becomes more popular and more mainstream,” he writes in the thread.

“While it’s not huge at the moment, the signals look like that's set to change and the concept could take off. Bitcoin integration also allows vendors to avoid the standard 2-4% charge of credit card transactions - with charges from third party BTC vendors standing at around 1% - and the payment usually takes less than ten minutes to process. An immediate financial win for a small business.”

As Adam White, Coinbase’s director told Entrepreneur:

“Small businesses, on average, are paying higher credit card fees than Walmart. Large businesses can negotiate lower credit card transaction fees. Small shops can’t. Bitcoin will level the playing field”

For those looking to trade internationally, bitcoin is universal. Its borderless, so another area for savings. Exporters will not have to deal with multiple currencies, exchange rates and expensive cross-border fees.

There’s no doubt, as DEFCON1 admits, that bitcoin has had some bad press. Yet with the security of ordinary currency regularly compromised, he says he’d be happy to accept bitcoin for his business, but would manage the risk by “not holding too many”. Above all, he’s interested in differentiating his business in a competitive market.

A final word in a comment received about this article which I first published on Blogger a few days ago -

"Interesting article. We already accept Bitcoin for small transactions (for the reasons outlined above). I personally love the idea of the blockchain, cryptography and decentralised cryptocurrencies and the influence they could have on industries worldwide."

I’ve been working on a website on Blogger. Got to do something as a widower too old and slow to chase catch or do anything else. I tried to make the image clickable but not succeeded yet Here’s the link - http://onlydrones.net/

What do you think ?