BLOCKCHAIN CRYPTOCURRENCIES WILL KILL BANKS

Blockchain is increasingly evolving and shaping the way things are being done in various facets of life. Talk about finance, education, legal, transportation, telecommunications, trade etc.

Unfortunately it is another disruptive technology that is going to affect the way businesses are done. In fact it has already begun.

I will take a look at how it will affect banking especially in the retail side for now.

The main principle of blockchain technology is to securely record successful transactions on a general ledger seamlessly using cryptography.

Another key area of blockchain is to make the transfer of value possible from one person to another in a secured network without the need for a third party verification or bank.

What does this mean?

It implies that, banks or clearing houses are going to be cut off in the transaction when it comes to movement of funds. Another area is the reduction of huge transaction fees that results in the movement of funds across the world. The least you could pay for a transaction of $1000 being wired across continents is around $30. The same amount could attract a fee of about $5 to anyone in any part of the world. Who needs the bank anyway?

The question arises from how I can withdraw or spend my bitcoins. Indeed you can spend your Bitcoins online or find merchants that accept them as payments. Bitcoin is accepted by over 400,00 merchants worldwide.

The effect on Banks?

With Blockchain, everyone has access to a much secured wallet when it comes to cryptocurrencies making each user their own bank. Once you have access to your wallet, you become your own bank. In this space, you now control where and how your money moves. No Interferences, no account block by anyone. You have access to your own private keys. When you misplace it, you lose your money and no one can get access to it. No queuing, no monthly charges. The only thing you get to enjoy is the volatilities. Any increase in its growth is to your benefit and all risk is yours.
On the retail space, banks are going to lose out on lots of customers even in remittances. Ability to mobilize deposits is going to be affected hugely. When people sort to keep their monies digitally with separate wallets, it will be a huge choke to banks. Banks thrive on deposits and when deposits are no longer kept with them, it becomes another hurdle for them to cross.

Unfortunately, that is the way we are going and nothing can be done about it unless banks use Blockchain too, which is possible. People want total control of their money and Blockchain cryptocurrencies easily brings that on the table. That is where it is going and I am so sorry for banks.

The revolution has begun, and you can simply make the most out of it.

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