The crypto industry attacks banks since the beginning. We´ve watched over and over crypto radicals declare the end of all banks during the cryptocurrency era. However, what if banks were to transform and adapt to cryptocurrencies?
Predictions of various experts and bank CEOs declare that within 10-years bank branches will undergo a serious decline or even disappear.
Whether the consumers readjust to online banking or shift to cryptos, which are also online, it seems as though banks do not have many options.
Bank branch demographics show that consumer visits to retail branches are set to drop 36% by 2022. And with mobile transactions increasing 121% during the same time. Customers will increasingly shift to obtaining their banking information through apps and websites on their mobile phones.
Physical bank branches are fading little by little because the options offered online today are far better. Customer access, service, and experience online are far more convenient.
It´s all about convenience.
People carry their phones with them at all times, making it quick and easy. Same goes for cryptos. People use it and will continue to make use of it (especially once it becomes more accessible to the general public) because of what it can do for them, where it can take them, for the least amount of money and time.
Cryptocurrencies were never meant to be an investment or a way to make money. Although cryptos have made some millionaires, it was never created to do so.
Bitcoin first came to life to give people control, to create better use of their money while in control of it. In other words, cryptos were not made to make money but to become a vehicle for your money, your values.
As John McAfee says “if we have economic freedom, all other freedoms will follow.”
Several banks have fought against it for years now, however, they should find a way to connect with this new era or else they will disappear. I do not suppose they will just vanish, that would be naive.
But eventually, once cryptocurrency hits mainstream, people will find out they can be their own-personal-bank. They will also learn that anything and everything can be tokenized, and once they do, the crypto industry and blockchain will become unstoppable. (Some would argue it is already unstoppable).
Dislikes about banks
There are several things to dislike about banks, all of which was unchallenged until cryptos showed up, such as bank fees, the banking system, storage, security, the bureaucracy in general.
Sadly, it doesn’t end there:
- Once you put your money in the bank it isn’t your money anymore, banks “borrow” your money.
- Governments have control over all your information through banks.
- Banks can legally suspend your account and keep your money.
- Banks make tremendous profits using your money while you do not get much in return.
- If the bank goes bankrupt you could lose all of your money.
- Money transfer services provided by banks are poor, particularly international transfers.
- And last but not least, banks have too much power.
It´s probably safe to affirm that all of the above have been fixed by cryptocurrency and blockchain era. With that said, if banks are to survive, they will need to improve their services.
Question: Do you value Bitcoin in dollars, or dollars in Bitcoin?
The answer to this question today may be far different from the answer within ten, twenty years from now.
Hypothetically, if we were all to shift to cryptocurrencies (because it makes sense), what would be of banks? No one can affirm this will not happen, because it could happen. So why not join the industry dear Banks?
Innovation is your way out, or should I say in? Adapt to the new.
One issue that banks must resolve is the public trust. Consumers in our days perceive banks as deceitful and dishonest among other things.
As an alternative, cryptocurrencies have gained the trust of most of its adopters because no one needs to put their trust in one person or institution.
Anyway, the only key advantage the bank has when it comes to the public is that traditional people trust what they are accustomed to. So, there is still a massive crowd to support banks survival, like the Warren Buffett kind of crowd. The question is, for how long though?
Please let us know your thoughts in the comments.
Can banks survive?
Do you believe cryptocurrency have the power to change how economy functions?
Would things change if more people understood how money works?
Disclaimer: Our team works hard to bring you the best content in the cryptocurrency market, but it is only our point of view and not legal advice, and may be divergent from other opinions, so please do not make any decisions without concluding studies of your own to understand the profit possibilities and uncertainties involved at your own risk.