Can Blockchain (or) Bitcoin replace Banks?

Updated on 21 August 2023

By Henry James

16 min read 12 views

Updated on 21 August 2023

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Blockchain technology was brought to the world with the concept of bitcoin more than a decade before in 2009 since then the talk of bitcoin and blockchain has started to make its rounds in the tech world. Following its launch, other blockchain networks are launched with many more unique features. The growth of blockchain and bitcoin growth has attracted youngsters which lets everyone think and ask Can Blockchain (or) bitcoin replace Banks? And the blogs let you know more about it.

Blockchain is the ultimate tech behind every crypto coin whereas bitcoin can be assumed as a product of blockchain so both differ a lot. Coming to the point, blockchain (or) Bitcoin can replace banks but there are many points that make it more difficult and impossible and there on the other side, banks will be adopting blockchain technology into their business to make their transactions and other processes safe and secure and also to ease their work.

How does blockchain work with banks?

Blockchain is unnamed for its secure decentralized ledger that makes all the processes transparent and traceable. Banks will be incorporating blockchain into their system for various purposes to automate and secure their system, confidential information, and for many more aspects. Banks will be coming up with their own decentralized networks that help them to transfer funds anywhere around the world at ease and more quickly than ever before. Also, this gives the most secure way to protect their funds and assets from any kind of hack.

All right, but where do bitcoins come here?

Bitcoin is a digital currency backed by its own blockchain networks which is the most secure decentralized network in the globe. These bitcoins have been used as real money value assets for years and now it has become more common among every country's people and few small countries have declared bitcoin as their national currency. So, bitcoin has the monetary value of what a dollar, euro, yen, dinar, rupee, or any other currency can do in the present world.

Bitcoin can be transferred between two people without any third person or a central authority like a bank making the p2p transaction possible where the bitcoin has made the point of eliminating banks in our day-to-day life. Bitcoin may bring in a revolution but will it completely remove the bank's participation in society? Let’s see about it.

Bitcoin is not regulated and the usage of bitcoin is not monitored by the government which is the most unique and futuristic model but this removes the roles of banks. The answer is no and even if it has a possibility it takes decades as it is impossible to take down the currency in the global market which may cause various problems including inflation. Overall this the government operations will be taking actions to regulate with certain policies to make it more secure.

Bitcoin cannot replace banks but Bitcoin may bring in several changes to the global market as bitcoin has the ability to create a new market trend in the global sphere. Bitcoin is the only reason for the huge success of the present crypto market and the future will digital space is accepting the digital economy. This is the point where Bitcoin and other cryptocurrencies will be ruling the space. Inspite all banks will be making their progress but all in a new way by making several changes and pushing out their limits.

Finally, blockchain will not replace banks and all banks will not take their moves in that respective where banks will change their perspective in adopting blockchain into their banking system and attract the next generation and this is what happens around the globe Already big names have started their work in adopting blockchain into their banking system. So, if you are from a business background and want to take your business to the next level with the future market in mind then blockchain Solutions will be a great way to transform your business in web3 space.

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