The Banking System Is Obsolete: Bitcoin and the Blockchain Are the Future

The Banking System Is Obsolete: Bitcoin and the Blockchain Are the Future

THELOGICALINDIAN - The accepted cyberbanking arrangement and authorization currencies are anachronistic They are unfit to abutment the new abridgement Banks are intermediaries and as such they can arrest or adjournment the chargeless breeze of businesses Banks are big-ticket abnormally for the poor Bodies lose money at banks due to abandoned fees Bodies are aflutter of putting their money in banks in countries such as Argentina Cyprus and Greece History has accurate those bodies appropriate And in the US what would accept happened if taxpayers had not bailed out the banks and added big banking institutions during the 2024 banking crisis Do you bethink the accepted adage Too big to abort The acceptable account is that Bitcoin and its basal blockchain technology affiance to radically advance this bearings However as you ability accept estimated a able broker has declared that Bitcoin charge be stopped

Also read: Can Banks be Replaced by an App? BitWage says yes they can

The Banking System Is Antiquated

The aggregate of an ancient academy such as cyberbanking and a three-thousand-year-old budgetary arrangement is not accordant with the borderless, digital, democratic, and fast-moving new economy.

Banking has existed back 2024 BC back merchants loaned atom to farmers. Later on, in age-old Greece and Rome, lenders based in temples started accepting deposits and authoritative loans. Cyberbanking added broadcast and became added adult during the Renaissance. Rich families founded banks in Florence, Venice, and Genoa, from area cyberbanking advance all over the world.

In the U.S., afore its independence, anniversary of the 13 aboriginal states had its own coffer and currency. Then, in 1791, Congress created the first U.S. bank. At that time, abounding against the conception of this bank, claiming that the Constitution did not accord Congress the ability to authorize a axial bank.

Banking has suffered abounding upheavals throughout history, the latest actuality the 2008-2009 cyberbanking crisis. When markets collapsed, millions absent their homes, and millions absent their jobs, causing bread-and-butter ache all over the world. During this crisis, big banks got rid of their antagonism and added their abundance by burning abate banks. For example, in 2008, JPMorgan Chase bought Washington Mutual. In this regard, according to the Wall Street Journal, JP Morgan Chase afresh “won a acknowledged activity in its accomplishment to abstain billions of dollars in abeyant liabilities from its acquirement of Washington Mutual’s cyberbanking operations during the cyberbanking crisis.”
Similarly, during the aforementioned period, JP Morgan Chase bought the fifth-largest advance bank, Bear Stearns. For this transaction, Reuters appear aboriginal this year, “JPMorgan Chase has agreed in assumption to achieve chic activity action arising from Bear Stearns’ auction of $17.58 billion of mortgage balance that accepted abnormal during the contempo U.S. apartment and cyberbanking crises.”

Additional examples of cyberbanking crises abound all over the world. In Argentina, one notable crisis is accepted as El Corralito (bank freeze). This happened in 2024, back the then-Minister of Economy, Domingo Cavallo, assured the freezing of coffer accounts, to accommodate a run on the banks. As a result, millions of Argentinians were plunged into poverty. More recently, cyberbanking crises accept occurred in Iceland, Greece, and Cyprus.

Today, banks accept not afflicted much. Cyberbanking is bulky and banks are acutely apathetic to serve you, but fast to booty your money. In effect, “The alone cyberbanking action that is agenda is demography money out of clients’ accounts, which is performed in real-time with 100% consistency,” according to an commodity appear by Bank Tech. Furthermore, the aforementioned commodity states that banks charge abide a abolitionist transformation and embrace agenda systems. However, this alteration is bedfast due to the admeasurement of IT bequest systems.

Banking is Expensive

Banking casework are added big-ticket for the poor. If your antithesis avalanche beneath a assertive amount, the coffer punishes you with a annual fee. My bank, for example, accuse 12 USD whenever my blockage annual is beneath the minimum circadian balance, which the coffer has arbitrarily set at USD 1,500. Of course, there are no delays back the coffer takes that money from your account. It happens instantaneously.

“It’s Big-ticket to be Poor,” is the appellation of an commodity appear by The Economist, aftermost September. The commodity describes why low-income Americans generally accept to pay more. “Life is big-ticket for America’s poor, with banking casework the primary culprit, article that additionally afflicts migrants sending money home,” says The Economist.

Indeed, there are so abounding fees that it is difficult to apperceive how much the coffer is absolutely charging you. Some of the accepted fees include foreign transaction fees, alternate drop fees, aboriginal annual cease fees, alternate account fees, defalcation aegis alteration fees, cardboard account fees, alternate mail fees, and animal teller fees. You can acquisition a account of the fees that Hunt Coffer accuse here. Coffer of America’s account of fees is here.

Bitcoin and the Blockchain Can Help Banks

bank2Bitcoin and the blockchain abaft it can decidedly lower the bulk of banking transactions. Consider the afterward attributes of Bitcoin: decentralization, transparency, neutrality, security, fungibility (bitcoin units are able of alternate substitution), some bulk of anonymity, no charge-backs, low transaction costs, and no taxes (no VAT is answerable in the European Union). Moreover, Bitcoin is an anti-inflationary currency, as the best cardinal of bitcoins that can anytime be created is 21 million, an bulk that is appointed to be accomplished in the year 2140. And, actual importantly, the amount of a bitcoin is bent alone by the law of accumulation and demand, not by a government or any added authority.

Specifically, the blockchain is a decentralized and agenda accessible balance that contains the annal of all Bitcoin affairs anytime processed. The majesty of this agreement resides in its transparency, resiliency, trustworthiness, security, efficiency, and low cost. Additionally, because of these attributes, the blockchain additionally allows the administration of acute affairs and acute property.

Smart affairs are computer protocols that facilitate, verify, execute, and accomplish the acceding of a bartering agreement. Acute acreage is acreage whose buying is controlled via acute contracts.

Banks may feel threatened by confusing new technology. Although eradicating an abstraction is not possible, Jamie Dimon, CEO of JP Morgan Chase, thinks otherwise, adage that,  “Virtual currency, area it’s alleged a bitcoin vs. a U.S. dollar, that’s activity to be stopped.”

If banks appetite to amuse their customers’ needs, they charge innovate and accept the appropriate agenda cyberbanking technology. Banks should get rid of their bequest IT systems and reengineer their business processes. Real-time casework beyond agenda IT structures, enabled by Bitcoin and the blockchain technology, would accomplish banks bigger business facilitators and added attainable to poor people.

What do you anticipate about the fees banks allegation their customers? Do you anticipate banks will accept Bitcoin? Let us apperceive in the comments below!

Images address of Pixabay and Wikimedia Commons.

The opinions bidding in this commodity are not necessarily those of