Banks Want Blockchain But Hate Bitcoin
Without Bitcoin, Blockchain wouldn’t exist.
Banks finally admit that they were thrilled of the blockchain existence. They see an infinite opportunities in saving millions of dollars annually with these digital currencies they are ignoring all along. This blockchain is faster and economical, most of all it is secured. It is a better alternative to infrastructure that already exists. However, banks are ignorant with the fact that without Bitcoin, there is no blockchain. They don’t know that they are very eager to implement the Bitcoin technology which they don’t want to acknowledge.
The effect of Bitcoin Growth to Banks and Financial Institution
Bitcoin existence causes pain to banks and other financial sector. Banks and other financial institution have never been rattled until the Bitcoin existence. They used to be the gatekeepers of the nation’s money and now they are uncomfortable with the growing digital currency. They feel the pain now that people see an alternative currency. Now people have a choice.
People know the advantages of Bitcoin as another currency. Although the use of this digital currency is limited because of its slow rate of adoption, it can’t erase the fact that people know that it is better to use this Cryptocurrency because of its decentralized nature. Therefore, more and more people are turning into it. People can now decide what to do with their money and banks cannot dictate them anymore on what to do with it and how they are going to save their hard-earned money.
Bitcoin transaction is more efficient than banks. If you want to send money to your relatives, you don’t need to go out and go to the bank, fill up a form, wait in line and wait for few days before the recipient receive the money. Plus they need to pay a transaction fee. People can do it by themselves with this Cryptocurrency. They can do a Bitcoin transaction and the recipient can receive the funds within an hour.
Bitcoin is decentralized thus it creates a free market that is accessible for everyone. The fact that people can decide with their every transaction and bank has no control over it brings panic to the banks. Banks and other financial institution will soon be dead and this leaves them two options. This is either they will embrace the Bitcoin existence or shut down the digital currencies. Obviously they will not gain any profit on embracing Bitcoin so they are trying to shut it down. Now, they are using blockchain technology to improve their operations.
Banks are not using this technology to help customer have a faster transaction but they are after reducing the cost of operation and gain profit from it. Banks have an essential influence to the economy that develops a relationship between banks and the banks of the government. This relationship is not something they will put in stake with the existing of Bitcoin. They will do their best to prevent its growth and they are starting by not giving their services to the companies who are using Bitcoin and other digital currencies in their operations.