The world has evolved, and now we are moving towards a vision that was long seen, but we never felt ourselves so close to it. In the post-medieval era, people might have thought that coins and valuable metals would always remain a payment method, but with the introduction of paper notes and scarcity of valuable metals, they swapped the currency. The government created regulating bodies called banks, and they managed money. Still, now we are witnessing a new currency known as cryptocurrency, and it shakes the fundamentals of the traditional banking sector.
So we would discuss various issues with the traditional banking sector and then mention various ways to fix them using cryptocurrencies.
What Are Cryptocurrencies?
Cryptocurrencies can be said to be the derivative of the blockchain idea. We know that the blockchain concept allows users to store their data on virtual blocks that are highly secure and impenetrable. So cryptocurrencies are virtual currencies, and transactions take place using the blockchain. There was massive confusion when cryptocurrencies came into the hype and a boom in bitcoin prices. The governments were concerned because people started investing in these cryptocurrencies aggressively, and as they are part of a decentralised body, there is no regulating body involved. If you are looking for an application to trade using cryptocurrencies then bitcoinbuyer is the perfect application for you as it provides ease in management and security of the wallet.
Let us further under the challenges faced by users with traditional banking.
Challenges In The Banking Sector
Banks are the central body that controls all the payments and money transfers in the country, but there are some significant concerns in this industry that need to be resolved. Some of these challenges are discussed below. Banks make it easier for users to create an account in their account and deposit money in it and gain specific interest over it. It also provides loans to the people and asks for interest on the principal amount. This working pattern of banks is very smooth, but it has various loopholes which have led to various frauds and scams. Hence, cryptocurrencies eliminate human validation, which reduces the chances of fraud.
Bank Holidays Are An Issue.
Banks have their leaves on Sundays and second Saturdays, but it is crucial to notice that money, business, and transactions are interrelated, and they can never stop. When banks are on strike or leave, multiple transactions are halted, resulting in issues for users.
Discriminatory System For Rich People
It would be a hasty decision to say that the banking system is fair for all because it does not provide loans to the people without collateral, and on the other hand, it provides soft loans to rich people and industrialists. These soft loans and discriminatory interest rates are unfair practices that you must eliminate.
There have been multiple data breaches and thefts in the bank, leading to the loss of essential documents and a massive amount of money. So keeping your money in banks is always risky because if someone robs the bank, you will get back a minimal amount from your actual amount.
Ways Cryptocurrency Could Revolutionise These Sectors
Cryptocurrency is a concept that comes in with innovation in managing money. Each crypto transaction is mentioned in a public ledger accessible by users, but the identity remains anonymous. Cryptocurrency has dismantled the fundamentals and need of traditional banking in transactions.
Cryptocurrency can provide users with secure and faster payment, and as there is no regulating body involved, so the fees and total expenditure cost are reduced to greater levels.
ICOs (Initial Coin Offerings) is a new concept that focuses on providing finance and funds, and this is managed and noted down efficiently using cryptocurrency.
Blockchain has replaced the assets like shares, bonds, and other documents as you can easily manage them on multiple blockchains with keys.
Cryptocurrencies can make it easier to avail of loans. With no regulating body, it won’t ask people to pay higher interest rates for their salaries, so there would be a gradual fall in interest rates.
Cryptocurrency would open doors for investment and trading as it would allow people to invest securely and efficiently among multiple parties.
Cryptocurrency would resolve the issue of seeking multiple documents. Now, all the essential documents and KYC would be stored in a block that would be a part of a private blockchain that the user can easily access whenever in need.
Industries That Can Use The Blockchain
The banking industry is not the only industry that the introduction of blockchain technology would revolutionise. Various other industries can also show ease in their management with this concept.
Blockchain In Stock
Stock management uses Big Data to manage the stock trades and humongous information they possess, and sometimes companies share bonds of their shares, too, which have to be kept securely. So blockchain comes into play as it is like a secure vault where you can store your documents and rely on that they are secure and could be easily accessed when needed.
Blockchain In Loans And Account Management
People are paying high-interest rates on the loans, but with blockchain’s help , there would be no need for a regulating body, and there would be a fall in the interest rate and prices. Managing multiple accounts of the same person is a cumbersome and confusing task for banks so they can manage all data under one block with the introduction of this concept.
Blockchain In Hospitals
Hospitals and property dealers can use this concept to save the medical records of the person as well as state the ownership of a person over the particular asset.