In a world with an unstable financial system, and where bitcoin is slowly, but surely becoming the choice of exchange for millions of people, it is understandable that banks are against bitcoin, but so far, nobody is sure to which extent.
In this article, we will try to cover the main reasons explaining why banks often tend to hate Bitcoin, yet are very interested on its underlying ledger, the blockchain, and its potential on the market.
With this in mind, the traditional banking system has been around for hundreds of years, and during this timeline, not many advancements have been made on the market. The main reasons behind this aspect are that banks like it this way, and that the system works well in their advantage, while also not making people hate it completely. With this in mind, due to the evolution of bitcoin, which is a decentralized currency with no central authority governing it, banks are mainly afraid to lose their control over the financial market. Bitcoin wallets can be regarded as banks that are happy to keep your funds safe almost free of charge, whereas traditional banks ask for large commissions and processing fees for each transaction being made. On the other side of the spectrum, bitcoin transactions are virtually instant, and almost free as well.
If Bitcoin were to completely rise into power, the traditional financial system that can be both controlled and influenced by governments and financial institutions would fall completely, thus creating a world where money if free and governed by the people, whereas value is set automatically, rather than manually. Because of this, numerous banks have started closing accounts that can be directly related to bitcoin activity, thus creating numerous conflicts on the market.
There is a bit of hypocrisy in this debate as well, considering the fact that many banks have shown an interest towards the blockchain. For those who do not know, the blockchain represents the main system powering bitcoin, therefore giving banks the possibility to make their own transactions much cheaper, while also reducing processing times, thus saving fiat currencies from doom.
Numerous economic experts have showcased their own opinions on what would be better suited for the world that we live in, and consensus has not yet been reached, which is understandable, considering the fact that banks and fiat-based payments have been around for centuries, whereas bitcoin has only been around for a few years.
Based on everything that has been outlined so far, what do you personally think about hate being expressed by banks towards bitcoin and other digital currencies, in relation to the love being expressed towards the blockchain technology and its potential on the market? Let us know your thoughts in the comment section below.