Post Menu and Details.
- Difference between crypto banks and traditional banks
- What is the limitation of traditional banks?
- Know about the role of decentralized technology!
- Understand crypto banking!
Reading time: ~4 minutes
We all can see the massive popularity of the cryptocurrency industry. Every 8 out of 10 people are aware of digital currency, and they want to invest in crypto because of its outstanding advantages. You will be glad to know that the market capitalization of bitcoin has reached over one billion dollars, and it is expected that the blockchain will soon hit the record of $23.3 billion. Some people don’t know that the market capital of cryptocurrencies, in general, is going to hit 10877 billion dollars by the year 2026. However, there is no denying that these are eye-catching numbers, and they have attracted a lot of people to become crypto investors. This high demand for crypto is the reason behind the increase in crypto banks, and the traditional banks face a lot of backlashes because of the fantastic services offered by the crypto banks.
You need to know that according to a public survey done in America, 79% of Americans know about cryptocurrency, and a number of people are already investing in crypto. Coinbase is one of the most significant crypto markets, and it has verified that there are more than 56 million users of crypto all over the globe. According to the statistics released officially, this platform has 35 million user accounts. The crypto banks are now surpassing the traditional banks. In the process of learning about bitcoin trading, you may have to understand why the midwestern utilities mine bitcoin to maintain the electricity supply balance.
Difference between crypto banks and traditional banks
Almost every person is aware of the fact that the terms like bitcoin, blockchain, AI, and cryptocurrencies are always trending on each platform where the discussion of the financial market is done. You need to know that this is the time when we see a lot of changes, and these are the changes that are motivated by the cryptocurrency world because the transactions made from crypto are increasing day by day. Financial experts from all around the world are assuming that the compound annual growth rate will be 12% by the year 2024.
This will be the period of time when people will literally start to question the role as well as the future of the traditional banks. Fiat currency is the currency that we have been using for centuries now, and the considerable usage of cryptocurrencies will help the fiat currency to gain the role of technology in our lives at an even higher rate. One of the most prominent difficulties which traditional banks are facing, if compared to the crypto banks, is that the speed of the transaction is way lower than making the transaction of cryptocurrencies.
What is the limitation of traditional banks?
You need to know that the use of digital currency helps in making the transaction process as well as the investment process utterly different from the procedure which we have been following for decades in the traditional banks. The one thing that you might be aware of is the global financial crisis which happened in the year 2008, and this financial crisis proved that the traditional banking system is also prone to economic difficulties.
When people started to understand the fact that even the financial institutions are not able to secure the funds, then the demands for the alternatives of the financial institution started to increase. People started to look for other options so that they can secure their funds. This was the year when Satoshi Nakamoto launched the very first digital currency, which was named bitcoin. There are so many advantages of cryptocurrency, but one of the significant advantages of bitcoin was that it removed the traditional banking system from the procedure of making transactions. There is no third party involved while making the transaction of bitcoins. At the present time, the value of bitcoin is so high, and it is all because of the great benefits which it offers to its users.
Know about the role of decentralized technology!
There were various obstacles that the traditional banking system created for its users that included their own policies, laws, regulations, and interest rate, which led to the promotion of insufficient processes for the customers. The newest and modest technology cryptocurrency payment system offers the users services which not even a single bank in all around the world were offering them.
This is the approach known as the customer-centric approach, and they are provided with the facility of holding all their funds in a completely anonymous way. The only solution for the complicated banking system was the introduction of a decentralized banking process. The idea of this decentralization first came into the mind of Satoshi Nakamoto, and he created the world’s first crypto. There is no denying the fact that this new idea has its own risks, but the thing is that it also has some significant advantages which people cannot resist taking.
Understand crypto banking!
It is essential for you to learn that crypto banking is mainly the process of how the cryptocurrencies are introduced in the market for getting an exchange or transacted. There are various specialized cryptocurrency platforms that allow people to hold their digital currency and store it for as long a period of time as they want. When you hear about the term crypto banks, then it refers to the apps for the platform which are created on the internet.
When the users sign up on their account, then they can easily see their completely secure digital wallets, and they can make the transaction of their digital currency whenever they want. It is now believed by financial analysts and crypto enthusiasts that the whole procedure of the crypto banking system is well appreciated by the public, and they like this whole idea. It is expected that the future of the crypto banking system is very bright. However, there are still some significant security issues that not only the cryptocurrency industry but also the blockchain technology has to work on in order to become more safe and secure for the users.
Thank you for reading!