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Does CryptoCurrency (Digital Asset) Make the Banking System Extinct?

The existence of cryptocurrency (digital assets) began in 2009, which was created by an organization whose whereabouts are unknown, which later on behalf of Satoshi Nakamoto as his pseudonym. The first cryptocurrency is bitcoin. Maybe you have heard it or have it as an asset saving. Supporting this cryptocurrency is blockchain technology, which is a decentralized big data recording technology, which is often called "Digital Ledger."
CryptoCurrency VS Banking System

The decentralized technology that exists on the blockchain makes a new thought in the financial system. By comparing the current financial system, which is fully centralized monopolized by banks, modern society begins to think again about the ideal monetary system technology. Therefore, there is research conducted on decentralized systems, and the results are better with centralized systems. Because, in a decentralized system, no party has authority and has authority over assets owned by others. Until now, many blockchain products have emerged called cryptocurrency.

At present, there is around 2,000 more cryptocurrency that is listed on the Coin Market Cap. Among them; bitcoin, ddkoin, etherium, lisk, ripple, litecoin, zcoin, and so on. They are all blockchain technology products. All Cryptocurrency can be converted to all world currencies and have different values. For example, bitcoin, which currently had reached $ 8,000 with the price of the floor when it was launched in 2019, only $ 0.1. Each coin has different price variations, ranging from a few cents to thousands of dollars. Cryptocurrency has been traded with a fantastic amount every day, it is something extraordinary.

These coins have become an asset (money) for many people. They use it for trading, mining, and payment or purchase transactions. For example, DDkoin, which is a new cryptocurrency. At present, the coin has been used as a safe asset holder. Not only that, but DDKoin is also used as a transaction tool that can be traded with other types of cryptocurrency, exchanging money for fiat and buying products/services. Cryptocurrency easily can withdraw or deposit at any time through global exchanges.

The more trust people use cryptocurrency, proving that digital assets have the power to change the current financial system. Just imagine, using blockchain technology, there is no need for a third party as a storage service for your assets, so transaction costs are cheaper, transactions between countries are faster, and assets are 100% in your hands.

Many people have realized that the banking system is old and not relevant to modern society. The centralized system used by banks is easily manipulated and has political elements. The economic turmoil that occurred is also the role of banks in some cases. For example, the 10% Fractional Reserve applied to the banking system. Without a clear boundary against money-making. This has an impact on inflation because the system allows each bank to print money by using interest. Money is circulated by monopolists, and attention is applied by banks. Both of these things have an impact on financial chaos that impoverishes the people who own the money.

Banking services are quite high for its customers. But this is inversely proportional to the results obtained by the customer as the owner of the money deposited in the bank. The bank profits as high as the sky, while the customer only gets a few percent of the profit and is still reduced by a discount by the bank. Even though the money managed by the bank is the customer's asset.

With a variety of weaknesses in the current bank system that has been detrimental to asset owners. Will the current banking system be extinct? Or will it be replaced with a new financial system ?. The answer: "yes." However, remember! Not an extinct bank, but the banking system. Everyone knows, banking always innovates with the times. It has been seen from the course of the financial system that had continued to change from the beginning of the period when gold was used as the transaction changed to fiat money, then it might change to cryptocurrency.

So, if the current money system is beginning to be abandoned and extinct, it is undoubtedly because there is a new system that has emerged. Cryptocurrency shows signs of getting rid of fiat money as a transaction tool. However, it all needs time that can not be ascertained. What is clear, the existence of cryptocurrency now exists. Moreover, the latest news, Facebook will also publish its cryptocurrency in 2020. With Facebook users reaching 2.2 billion, it might just be the history of the most prominent use of cryptocurrency in human life.

4 comments for "Does CryptoCurrency (Digital Asset) Make the Banking System Extinct?"

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