Some people define Bitcoin as being a digital currency or a crypto currency. Others like to call it much more sophisticated, as a software protocol which allows the safe transfer of value or propriety between two parties.
What I can say about Bitcoin is:
No matter what different people would call it or predict different evolution of its price, the greatest thing about Bitcoin future is that it could eliminate the inflation, and so the power of buying for example 100 RON (LEI) the fiat currency in my country in Bitcoins would remain practically unchanged even over the years.
The traditional way, monetary transactions are done in the fiat world is by transfer using specialized intermediaries, which we all know as Banks. As almost all of you have experienced these Banks are perceiving a commission for the job they do for you, commission which apparently is really really small in your eyes, but in reality at the world wide level there are Billions of Dollars taken from us just during a year. Would you still say that this amount of money is little now that you see its real number? Would you be surprised if I tell you that in 2016 America's three biggest banks JPM, BAC and WFC earned over 6 billion Dollars just from ATM fees, according to an analysis by SNL Financial ? Do not be surprised, there are a lot more money leaking from your pockets into the banks.
Every time I hear the word commission I remember about how many types of commission I pay to my banks. Tens of commissions for different transactions an almost useless services and that just in the case of a regular man like me who has not that much contact with the banks as a business man would have. Besides the commissions that are taken for the bank transactions, there is also some time until they are processed and for instance in the US a transaction for a personal check would take on an average, 2 working days.
Things are slowly changing to other directions and the financial mechanism of the banks could be soon too expensive and too lazy compared to other new options that people can have available nowadays. Today, besides the physical values and proprieties, more an more of our earnings and holdings are transformed in a digital holdings.
Now, with BITCOIN, everything is different and the banks are not the only possibility to transfer our values. Practically, with Bitcoin, the fee would be 0 as we eliminated the banks from the process. Let's say that for example each transaction of Bitcoin is recorded in a public register accessible to everybody and each client gets a copy of the register which is quite different from the banking system as they keep only a centralized register for all the clients. In that way fraud can be eliminated as it is more transparent and more opened to the eyes. In that way, Bitcoin brings safety to our propriety and holdings, which is what everyone wants for his funds. On the other hand, if the holdings would be taken away from the banks this could destabilize their ability to give loans to those in need. Banks would be more reliant on the markets, which is a source of money that is not so stable in case of economical crisis.
With all this being said, I could not say whether or not Bitcoin will be our hope and future without banks and as well I could not predict its exact price evolution but I am certain that at the moment we are the witnesses of a big change with regards to the monetary systems and holdings of people. The cryptocurrency market and Bitcoin is at the moment still a small parts of the total value of world's money, market accounts and savings, and has recorded since its beginnings, an exponential growth of value, of technology and an important expansion of the market. So consequently if more and more people will trust Bitcoin more than other assets, they will slowly decide to transfer their still available huge amount of money Bitcoin. That is why I am complacently sure that Bitcoin will undoubtedly become the best performing asset in the near future and will drag in it more and more investors that will sustain its value.
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This post is upvoted by Polsza for 20 %.
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Thanks !
I met Bitcoin earlier this year and made many investment mistakes without knowing it, but today and more than ever I know that Bitcoin will be something much bigger than it already is ... greetings.
We all do mistakes when we are at the beginning, but most important is to learn from this mistakes. Or better would be to learn from others mistakes. Thanks for your feedback @alrosua !
cool article. as crypto grows I wonder how the banking business will adapt and try to counter it. will be interesting to the least.
We will see how it goes. They need to adapt or stay on the side, there is no other option.
Nice article, for sure I will keep an eye on it! Cheers mate!
Thanks Raul !
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