In the 21st century, you can find nearly everything in digital form. It’s exciting and sometimes horrifying to imagine that someday everything will be digital and there will be a time when we will crave real things. A lot of people have that fear, anyway, they continue to develop that sphere. And the typical representative of the area is cryptocurrency.
What is a Crypto?
Cryptocurrency is a digital or virtual currency based on a network distributed across millions of computers. There are thousands of cryptocurrencies today but the most popular is Bitcoin. It was first available in 2009, and in 2022 in circulation, there are over 19 million Bitcoins.
We can say that a cryptocurrency is a form of money, but the Internal Revenue Service (IRS) says they are a financial asset.
Now, let’s see how does crypto replace the banks?
The day that crypto will replace the bank is quite near, the start was given. A lot of people now are trying to be “their own bank” using cryptocurrency.
Crypto is growing and developing and now we can see that it is forming cryptocurrency infrastructure which is about to serve as an alternative to the traditional financial system.
Cryptos Vs. Banking System
Here are some things that make crypto a better bank system:
- You can deposit as much paycheck as you want and you will be charged 0 fees.
- Having a debit/credit card is not a problem as well.
Visa has over 50 crypto wallet partners now, and Mastercard is also on its way to embracing crypto, so as you can see spending your crypto is becoming easier.
- I know what are you going to ask, yes, you can borrow without a credit check. In many U.S states, you can borrow up to 1$ million.
- The next best thing about crypto is that it is borderless, as in many developing countries traditional payment processors are quite expensive and crypto is the best solution here. So, with crypto, you can do cross-border payments.
- Good news for the investors as well. You can earn interest on your crypto, and it is better than with the banks as it is a lot more. Also, if you want to buy or sell your crypto there are a lot of crypto investment brokers that can help you with the process, such as eToro, Uphold, Pionex, etc.
- You forgot to complete transactions on weekdays it’s not a problem with crypto, as it is accessible on weekends and holidays also. Another scenario: you are sick, or you’re at work and you can’t go to the bank, your physical appearance is not important for crypto, you can do your transactions from wherever you want.
To sum up, we can state that crypto advantages outdo banks, but the question is, is crypto has the stability that the bank has? Crypto has a long way to go, and if it can prove to be stable for a long period of time it can easily replace banks. As a closing here is a brilliant crypto investment quote by Gun Gun Febrianzo “Money is a network of perception, in order to not become useless this perception needs to be distributed”.