Bitcoin Forum

Let's face the truth, it is only in theory that cryptocurrency is a threat to banks/financial system. In reality, the banking/financial system is so big that crypto's threat is not significant at all. Majority of cryptocurrency investors are not really interested in crypto replacing the traditional financial system, they are just interested in it creating enough hype for more people to get in so their investment can skyrocket.
Think of it, if crypto was really a huge threat, don't you think we would have enough regulation by now?? what is you opinion??

Most probably crypto will not replace traditional financial system, or at least not in our lifetime.
But it doesn't matter. Financial system is forced to evolve to something better because of crypto and that's already one step forward.
Then crypto starts being accepted more and more widely by this traditional system, hence they'll coexist and people will be able to choose whichever suits them best (and use any of them just as easy).

Crypto is already a globally recognized thing and in most countries that have came up with crypto rules and regulations it is termed as digital asset which just adds to the value.
I do not know you are following all the right news or not but crypto is already regulated by law in many countries and a large number of countries are working to come up with regulations about crypto. I think in couple of years time crypto will be fully regulated worldwide and it will be mainstream and mass adopted.

You've got points with what you've said.

But it isn't only about the hype. There's real-money flowing in crypto and the banks can't even ignore it. In terms of investment, the risk is much better taking in crypto. The talks about kicking the financial system were years ago until we start to see the institutions started to adopt it as well and a lot of changes happened and in favor of us.

It's a threat somehow that their customers will be withdrawing their money and having it in crypto as we're also our own bank. But what I see is they will eventually join.

Traditional financial system is already too old and exploiter of the common man that it needed alternatives or competitors and i think crypto will soon grow big especially after worldwide compliance and regulation you will see crypto competing with traditional business and financial sector.

I often hear people say cryptocurrency especially bitcoin will replace bank but that's absolute.
I can't really say about altcoins in general but Bitcoin was never intentionally built to replace bank and it's not even feasible when you think bank will cease to exist because we want bitcoin.
Banks will operate on their and cryptocurrency is king on their lane, and will work together now and in the future, PayPal is one of the examples and the traction is about to explode in few years.
Imagine if Amazon integrate cryptocurrency as Payment on their platform, that will be a combo for all cryptocurrency investors.

Why cannot you find so many solutions that the crypto is providing, huge infrastructure comprising of coding, smart contracts and programming is being developed that will effectively deliver dozens of products like defi, AI, IOT, automation, banking and whole lot of innovation that will give direction to future digitalization drive as well.

Crypto can't go even bigger if there's no help from the financial system to make the money will be able to enter the market. both must have worked together. In fact even if crypto already considered as a candidate to replace the traditional banking system and it still needs it to get the demand especially from the institutional investors.
Crypto has a chance against the financial system but it will never replace it. Crypto and traditional banking system could do a symbiosis mutualism.

Both need to be exist in the market.

Quite the opposite of being a financial threat against the banks but right now cryptocurrency is considered as form of investment. Heck, even most of crypto users are also bank users that when they cash out they save up their money in banks.
So, I doubt that crypto really gonna be a threat for the bank even in the future, crypto and bank right now coexisting each other and gonna be like that for many years to come.

Crypto is not there to remove fiat. It's to give people an alternative they never had.

Now you either use government money to trade or barter. There are no other currencies just one per country. It would have been fine if governments were not controling it, spying on you, deciding what you can and can't buy. Because of this we need some form of money that cannot be taken from us at the airport because the government decides that you can only take 10 thousand dollars with you in cash.

We are seeing collaboration from financial systems already like paypal getting involved in crypto. They were probably regretting not doing it as early as possible. Despite how their previous CEO spread negative things about BTC. Institutional Investors are also joining the wagon after Grayscale and MicroStrategy.

If it has to go against the financial system, it might just beat the old one but then I don't fiat to disappear anytime.

The banking/financial system is so big, Yes we can't deny the truth of this, because so big the banking system is easy to control our life, right??
I agree that crypto's threat is not significant at all can't win against the banking system but in cryptocurrency, we control our life, our money. For me this about freedom not about against

This is what I see right now but for the government, cryptocurrency is a big threat for them so I don’t think if cryptocurrency can really work and help our financial system. We already heard many good projects that is working with the big private companies, blockchain make it possible and hopefully our financial system will also be open for this one and finally adopt cryptocurrency soon.

So far the traditional finacial system is too big so crypto is not a threat. This battle was like David and Goliath. But time will come people will start hating the bank/financial system, Our eyes will open to the fact that while we work hard to earn cash, the rich(goverment) are creating unlimited cash.  Whether we accept it or not crypto is the future currency because people want transparency and equality.

Crypto needs a traditional financial system. it sounds very strange to say if crypto will be a threat for a traditional financial system just because it's decentralized by build in the blockchain system.
Im not sure people will be also hating the centralized financial system consider they able to join in the crypto by using the traditional financial system to deposit their money to be able to trade in crypto.
Both systems are equally but the only difference on the what kind of system is used to create a tx like blockchain and consensus.

Right now the fact is that cryptocurrency is not a treat to traditional banking system but it is a new concept that could be implemented by everyone. The cryptocurrency market is at best an alternative to the traditional banking system but the most attractive part is that it is decentralized and can be traded globally without any government interventions or policies.

Yes, actually it did already for some establishment are already adapting to it making bitcoin as their reserve money from their company. Not a bad Idea though because that money is good for a long term hold and that can beat the inflation rate that fiat currency is vulnerable of getting hit with inflation rate. This is one of the best way to save money in my opinion and even myself had started to accumulate savings by earning few coins and store it for a while.

I see this problem being talked about more because each country will have its own level of economic development and the access to technology of other countries is also different, not everywhere there is technology finance. The full way to use it all, the problem is that we will need time to make the process of accepting and using cryptocurrencies simpler.

Not by any means a threat because it only covers a very small population and that population are still tied to their own banking platforms. Crypto right now is just an alternative means of payment or investment options but not their major financial option. But I can tell those crypto users are enjoying the benefits of what crypto is offering to them. And in the coming years, we will see more adoption among users and merchants.

I think it still stands a chance against our traditional financial system just if any cryptocurrency could only take some portion of the world that's gonna use crypto instead of our traditional financial system.
Not everyone willingly to switching from something they used to a new system like crypto or the whole blockchain so only minor of them gonna do the switch.

Yes crypto stand a chance against banking and financial systems, some financial platforms have no choice but to embrace crypto today and some have already implement crypto payment solution, a good example is paypal and again CBDC is on its way

In general, it is so.  Cryptocurrency does not pose a threat to the global financial system, and a corresponding decision was made at the recent summit of the G7 countries.  Otherwise, the regulation of cryptocurrency would indeed be much stricter.  At the same time, decentralized cryptocurrency has never sought to replace the banking system or the currency of states.  She cannot do this.  The cryptocurrency will exist in parallel with the traditional currencies of states and complement its disadvantages.

It's the regulation of cryptocurrency that will make people have doubts about it going mainstream because once CBDC coordinates with the government, the old system will be over but the newer that is put up by CBDC will have all the data of the unbanked who had been in crypto for awhile. The two financial systems can work together.

Cryptocurrency is not supposed to be against the mainstream financial system. I don't think cryptocurrency can completely replace traditional cash, the bank might adopt cryptocurrency in the future, but it will be just like how they launch atm and credit card. There will still be an option to use casg money, and some people will still using cash. There are people who wouldn't adopt new technology, not just in the financial system, and the bank and other corporation cannot ignore them, they still are valuable customers.

It seems that cryptocurency is not a threat to banks, I see that the ledger in cryptocurency called blockchain is an example for banks,
maybe the bank in the future will use blockchain to record all transactions

It is clear that traditional financial system is much more popular and in demand, but cryptocurrencies financial system appeared only recently and it is worth waiting for some more time and then cryptocurrencies will become much more popular and in demand, and in the future, cryptocurrencies will be able to replace traditional financial system.

Is crypto supposed to go against the current financial system or to replace them? Compared to the current financial system, there is a big gap with the adoption of cryptocurrency. The traditional system is still being trusted by the majority of the population and crypto is still way too far from it to become a threat. And for me, there's nothing wrong with that as long as I can use crypto and the current system at the same time. Crypto still needs a lot of time to achieve mass adoption but it doesn't mean it has to replace the traditional system.

Cryptocurrency aren't threat banks, it just another option for people who want freedom and don't want controlled by government. We're still need fiat money due to stable price rather than cryptocurrency (volatile). Imagine you only have Bitcoin worth for $100 and you buy an item cost $100. Since the price is extremely volatile, your Bitcoin changed to $99, $98, $97, $98, $97, $98 and so on. You need to wait until Bitcoin worth for $100 and you can't know when it will be, it make life complicated and wasting time.

That's true. The fiat system cannot be broken.
But, have you also considered why the hell are we talking about it now?
That also means something right? That means it is recognized. It means it is being seen and could really make a big change.
They just don't want to admit it just yet.
Pride? Evil intention? Like they cannot apply their traditional corrupted thievery.  ;D
Governments will try to avoid regulations for years just to keep their pockets filled.

from the start crypto was not a threat to centralized finance. it's hard to shake this outdated system. but crypto is arguably an alternative for those who are disappointed with the current financial system. if crypto is used as the main choice there will be no more privileges. there will be no anonymity, no more decentralization, and everything will appear centralized in time.

No, but I do know that the financial system is evolving into digital forms, even integrating cryptocurrencies into their system. I really don't see any competitions between them to be honest. I see them as tools, coexisting to make the life of people more convenient. Who knows, we might even see the day where every fiat currency has their own decentralized stablecoin (a pipedream, I know).

Some people want to believe crypto is here to replace the banking institutions but to me I see it as a very hard if not impossible task to accomplished, we aren't talking about an organisation of few years in existence, we are talking about an organisation that is nearly as old as humanity, I like to be realistic, there is very slim chance crypto will get to that level, I know btc is playing such a good role as an alternative payment but there is more to just making payment,
Even if this will happen, certainly not any time soon.

My opinion is, I do not think Crypto is a threat to traditional financial system, rather it is argumenting or supporting a good section of finance and that is the digital aspect of it, before now one cannot send funds to friends and families around the world without going through the bank and paying high fees for it, but now it can be done with Bitcoin and so on. Also, another point is, crypto cannot be a threat to traditional financial system because traditional financial system is backed by the government, and anything fully backed by the government comes with huge support, and since it can  also be controlled by the government, they will do everything possible to keep it growing above crypto.
However, the truth still stand that, crypto has come to stay with us and will continue providing support to the traditional financial system always just like already stated and at the same time, keeping people abreast of what the future holds.

Crypto wasn't created to be a threat to banking industry, it was created to be a threat to fiat currency. Banks could always just take crypto as well and move on with their life without a problem. Look at paypal accepting bitcoin right now for example, that shows how financial industry has started to accept bitcoin and that could be just the start. So, banks could just accept fiat like they have always done, and could move towards accepting crypto alongside fiat as well.

Remember banks were taking gold to their vault back in the day, it wasn't just a small thing neither because we are talking about thousands of gold coins in vaults and that was a risky thing back in the day, one battle or war there and all of that money could have been lost. What did they do? Moved to paper, which now moved to digital, so they could easily move to crypto as well.

things happen in life for better place not for devastating world. Crypto will not kill the financial system rather in some areas it will help to make things improve and in convenient benefits. Also in some cases crypto system may threaten the financial system due to peoples choice to invest. Bitcoin and fiat should goes together to a better world.

Just the way of PayPal, imagine PayPal gaining more customers from crypto communities and vice versa. That's a win for the both parties but whenever i heard influencers says bitcoin will do to Banks what email do to postal service, I don't see it happening anytime soon.
Cryptocurrency replacing banking system is just like saying Gold is replacing Banks which really sound ridiculous.
Banks has vault where tons of Gold are been save, wouldn't it be wise for them to give crypto services and be win for both parties. Bitcoin aren't taking down banks and vice versa.

I don't think that cryptocurrency is against the financial system because cryptocurrency serves as the best solution for the alternative financial system to save our assets from further collapse. Like what happened this year of 2020, the stock market and banking system have suffered from the coronavirus crisis, but the crypto market, especially bitcoin, still manages to have a stable value.

I think crypto is not a threat to financial systems and I don't even think they aim to raise banks because as far as I know crypto is a good investment for investors here and one of its goals is to provide convenient to people by using digital payments for things or products they want. Therefore crypto's capability should not be compared to banking institutions because they have a huge difference impacting to people.

I still believe, because crypto is the future of the world's financial system. sooner or later banks around the world will start adopting blockchain technology. They knew from the start the benefits of this technology, but the problem was regulation. If the regulations are clear, there will be nothing that people will not accept crypto.

Replacing the financial system is the dream of many people. They want to change the current system which is centralized and manipulated by governments and big companies. And as the result, the wealth gap has become larger.

However, I disagree with this thought. Cryptos do have the power to change our world and replace the centralization, but that will not happen. As time goes by, I witness that crypto (especially bitcoin) is becoming a part of this system in a positive way because they not only reunite but they also meliorate the system. People have more opportunities to earn money and limitless power in the market

if you think its only a theory then why ask such question but it isnt really a theory because cryptos have a similiarity to banks and to the fiats . in crypto you can be your own bank and you can print/mine your own money and do you think crypto is only small , well think again .

btc alone has a verry huge market cap that it was already battling between other assets and companies based on the ranking that i see before .

Cryptocurrency is not against the current classical finance, it is a suggestion, a solution and a complement to classical finance. Electronic gadgets are the product of technological and economic developments, creating value for those who own them.
Cryptocurrencies help solve problems of orders and money transfer times and have great applications such as smart contracts and DEFI.
Cryptocurrencies will help humanity save hundreds of years of development if they are developed and applied to the world economy.

That is right and the current financial system should not be threatened about the Cryptocurrency Industry, instead they should be proud since they are a way to convert it into their own local currencies. Regulations regarding the use within the Crypto Industry would be hard to produce since its being used Internationally and some Cryptocurrencies have their own rules to follow.

transparency and equality are the future...
in this era, those at the top like the rich and the government control the financial system for personal gain. cryptocurrencies appear to reduce that level of dependability, cryptocurrencies are currencies of the future that cannot be denied.

They will in the future coexist in this world becasue the two are what we need for a better change we been clamored for in the past. The traditional system will be for those with interest while the digital(cryptocurrency) will be for those in need for change. In my honest candid opinion, the two financial system won't conflict each other in future, rather the two will coexist for the betterment of the financial world.

cryptoqurrency investors are only interested in profits and nothing more. as we know that cryptourrency is a new profitable investment tool, although not all of it will be in the use cases that investors are interested in profits and some may be in adoption as well.

There are already a lot of regulations in place as of this moment. That signifies one thing, that crypto has a place under the sun and the power in society has noticed it. But the point is that the governments are putting up limited regulations because they have yet to really understand how things with crypto work. They are yet to become sufficiently familiar with it. In fact the misplaced regulations right now are reflections that they have not understood the design yet.

There is a lot of regulations already. Before you didn't need to give personal informations to exchanges, casinos and other crypto sites, but now you have to do this because regulations.
The authorities already want to know who uses crypto currency, how much they have, where their crypto currencies are and they also want a big slice of your crypto currencies earnings (taxes). They do this through regulations. I can't say they are feeling threated by crypto currency, but like you, crypto enthusiast, the government and financial system want profit from crypto currency too and that is why I believe on long run crypto will be incorporated to the financial system and it will become mainstream.

It is just wishful thinking that bitcoin will replace banks, anyone who understand the basic principle why banks are functioning will not come up with that claim but bitcoin as a technology will make major changes in the financial sector.

Gold is not a decentralized currency or a market place which is limited in nature  :P ;).

The wrong concept that most people do have in their minds is that fiat and crypto are two competing types of currencies that is why they keep on bumping those two against each other in a way that they always keep on comparing the two types of currencies bringing out the flaws which causes issues and commotion between those two where in reality, those two currencies can co-exist without letting the other to be set aside or be left behind. Crypto is not playing as a large threat to the fiat system. It is just on the minds of the people thinking of such idealization. Both crypto and fiat have their own usages and benefits and people are the ones to decide which suits their preference. Crypto can get along with fiat, and so fiat with crypto.

Traditional financial system is very vast where crypto is just an area of the system,Cryptocurrency is a sub set of the financial system.

It'll just co-exist. Though many regulations happened already like banning of cryptocurrencies, in other countries, for sure it'll just co-exist with our banks these days and any sorts of digital payments using local currency of each respective countires. It's impossible for it to replace nor be against the other because both have different aim and functions differently.
One, depends on the coin, is decentralized and the other is regulated. Coins like Bitcoin is for sure decentralized.

Cryptocurrencies are much more than just BTC, ETH, etc. It’s a tech.
The main thing in cryptocurrencies is not the name or the number of dollars per coin on exchanges, but the technology and what it can offer to the "classic" finance system. Do not listen to those people who say that they dream of seeing BTC as the world's reserve currency. Better listen to those who suggest changing SWIFT to a blockchain architecture to speed up the payments through an interbank international channel, those who suggest VISA to improve its security through smart contracts, or those who offer to conduct tenders and auctions through a similar infrastructure to ensure cleanliness and transparency.
The future is not in the coins that are in your wallet, but in the very essence of architecture and technology as such.

Crypto is not at all threat to the traditional financial system right now, or wouldn't be soon too. Any new system takes a long time to cement its place in the market. As digital technology is expanding rapidly and more and more people have been getting access to these technologies, so they are trying new systems such as crypto. But it hasn't gained their confidence as yet compared to the traditional financial system. A lot of people are very sceptical about it, as most of the governments are not very supportive of crypto.

Everything you have said here is 100% true. Just forget about all these people that be acting like they are addicted to Bitcoin, Bitcoin addicts or whatsoever they call them. These people are just interested in what they will gain, if there is nothing to gain they wouldn’t be here. If they are mainly here because of the technology and because they like the idea of using Bitcoin for transactions, why don’t they switch to stablecoins?

They won’t do that because what they need is profit. Imagine that we all stop making use of centralized exchanges and switched to DEX's, and be using Bitcoin mainly for transactions more than we Hodl, it’s going to become a threat for them.

Firstly, cryptocurrency was not created to be a threat to the banks or financial institutions and it was created as an innovative alternative solution for economic meltdown which will make people financial freedom which I believe the trend posed by Bitcoin during the total lockdown caused by the pandemic has already proved Bitcoin benefit.
With that been said, no genuine crypto enthusiast was just interested in Bitcoin creating enough hype so more investors may join for the purpose of its price to skyrocket.

Crypto never poses any threat to the banks/institutions but it the institutions that see crypto as a threat due to its potentials and we don't by chance need any regulation.

If the cryptocurrency didn't have a chance, it would have died long ago. In a constant struggle, it develops and takes markets away from traditional trade.

Before this COVID 19,the crypto currency had not have huge  impact on cryptocurrency.Not only theory,but also in real ,bitcoin his impact on crptocurrency.Because of such condition,many country government regulating crypto currency.

Cryptocurrency is considered as a threat by the banking firms as well as the governments. This needs to change, because people don't get the true meaning for which cryptocurrencies got innovated. Cryptocurrencies isn't a threat, it needs to function along with the banks or else needs to get associated with the banks. It is something an alternate to the financial system, because everyone doens't like the banking services and doesn't wish to stick on it.

Yes I really think that crypto has a chance to change this world! It's what I believe in, and it's what I am preaching around, and believe I meet with very stubborn, conservative, people!
Long story short, last night my good friend was telling me his view of bitcoin! It's a conspiracy theory, I can't even repeat all his words... in the end I told him if he really thinks all
that about btc, he should buy ethereum...and if he thinks that ethereum is run by the same people he can choose digibyte! This is a free crypto world, you can choose whom you wish to support! You can research all of them and find the one you think it's the best, and that can help in creating a better world for us all, if you find it buy some coins/tokens and support the project!
So I will tell you the same thing! It's how you change the world, you find something good and you stick to it! I support you if you choose bitcoin, and I will support you if you choose some other alt, but just don't sell me the story about fiat currencies, I know enough and I know that we need changes!

Our present financial system should not be thinking of cryptocurrency as a threat. Cryptocurrency can be a huge help to the system we now have, and that it will always co-exist in every way.

The financial system and cryptocurrency are tools for people to transact and move their funds, it's not against each other, both coexist to provide more alternatives for us.
There are several advantages and disadvantages for both systems, hence both should be used to collaborate in order to complement each other's deficiencies.
Although not all countries issue comprehensive regulations regarding the use of cryptocurrencies, several governments have issued rules regarding cryptocurrency transactions, although most govern transactions on exchanges, kyc, money laundering, and taxes.

I have read such information that banks already offer their services for storing cryptocurrencies. But at the same time, no Bank offers cryptocurrency lending services yet. It is this popular niche that has been filled by decentralized finance.