Bitcoin Forum

Considering how bitcoin might shape the future of finance, it’s potentially impact on traditional banking systems and regulatory challenges it’s may face

What? I don’t understand your question, mate.

I mean I get from the title you are asking about future roles of bitcoin in finance but then on your actual post it’s almost impossible to tell what you’re actually talking about. Anyway bitcoin’s role in finance is obvious. It is to serve as an alternative to fiat and serves as an investment opportunity for people.

I don't know what you're trying to convey with the meat of your post, I would assume it was because it was cut off probably due to a copy and paste error or whatever. But I'm gonna gloss over that fact and humor the title of your thread instead as a baseline for this comment.

If you'll ask me, it's not bitcoin who will play a large role in the future of finance, crypto is. Bitcoin has run its mileage and is basically nothing more than a glorified hedge fund at this point where we can make massive amounts of money out of whenever we feel the need to. The rest of the crypto industry though can still be mobilized to make a lot of changes in the way we think about money, loans, and economy in all senses of the word. Even now, we're seeing a lot of these premonitions per se of how the economy would move if it's powered by cryptocurrency.

Hope that we get to live long enough to see that future though, I have a lot of faith in how crypto could shape the economy to be more for the people in the future, judging by the fact that a huge number of beneficial cryptocurrencies on the market are decentralized and are definitely not controlled by a central government or body.

The traditional banking system does not need to feel competitive with the Bitcoin system because what they need to do is follow technological developments from conventional to using blockchain. Bitcoin is just the first step that opens the door where traditional finance must be able to open the eyes that there is technology that can be followed in terms of managing finances today. Bitcoin is the originator of a better financial world, even though previously there was a same system, Bitcoin still comes with all the answers. If traditional finance remains steadfast in maintaining its system, it will be left behind and fiat will increasingly lose its value.

Bitcoin's already shaped the future of finance, it changed a lot of people's view when it comes to how they see finances and it also saved a lot of people from falling into the scheme of the banks to just go with fiat no matter what, imagine a time where bitcoin's not here and we're still relying on fiat, we'd all be dead in the water by now with how high the inflation is and how fast it goes up, a lot of us would never be able to keep our current lifestyle. For me, the only thing that we should anticipate for bitcoin to do is if bitcoin becomes globally accepted/adopted or even better, becomes a legal tender.

If I could convey what you mean right, did you want to ask what are the challenges that the traditional banking system might face in the future due to the rapid adoption of bitcoin by people worldwide? If you are going on that tradition, banking will definitely suffer from many challenges that can even make them go bankrupt. Some of these challenges include: 

1. Decreased in transactions: this is simple and self-explanatory of bitcoin becoming the main source of higher transactions in the future. The traditional banks will have a reduction in people that transact with them, and that is capable of causing them low revenue for the banks, which will make it very hard for them to sustain and run the banks. 

2. Security and fraud from scammers: traditional banks will be in danger from scammers, so they have to increase their security measures in order to be protected against some bitcoin-related fraud because bitcoin is something that requires knowledge, and many scammers are trying to use this opportunity in other for them to scam other people who are willing to join. If this happens, traditional banks will definitely create another strong strategy of security that will prevent their customers from facing such incidents.

First, you have a lot of such topics that have been created, and I don't even think you go back to read the replies you get from them. 
 
Bitcoin has its own role to play in the financial system, and it's not there to replace the traditional banking system. When you talk about the challenges that it's going to face, I think Bitcoin has already faced all the challenges as the banks have attacked its existence over the years and have seen that there is nothing that could be done to it again; they have started embracing it, and even the government has been passing bills and regulations regarding its trading and holdings.
 
The only people that will have more challenges to face aside from the ones that they are already facing are the broker operators. Regulations are not being made in their favour; they are being billed and asked questions by different government agencies.

Bitcoin has its cap in block size and maximum transactions per block and if Bitcoin protocol won't have upgrade, it will not be able to handle massive new demands from bank users who switch from bank systems to Bitcoin blockchain.

Bitcoin will be competed by altcoin blockchains with cheaper transaction fees and higher TPS (transactions per second). I love Bitcoin but this fact can not be denied. Bitcoin takes out customers from bank systems but altcoins will take many users from Bitcoin too. For transactions, they will choose what gives they cheaper transaction fees if the transaction value is not big enough, to force them thinking of security and risk of reversibility of their transactions.

Scammers can scam in both bank system and Bitcoin blockchain or altcoin blockchains. It's wrong to say they only can scam in bank system and can not do the same with Bitcoin blockchain or altcoin blockchains. People who lack of knowledge or are careless will be more easily scammed with any system.

Bitcoin can not do everything, replace bank system, fix economic problems, beat scammers, it can not be a magic tool to do everything.

Bitcoin was created to be an alternative to fiat this is because people will always use the latter. If Bitcoin gains acceptance by the government and the transaction fees still remain low, more people might choose to use it more than fiat. So, it will be common to assume that traditional banks might face a reduction in transactions if using Bitcoin is faster and cheaper. We are already experiencing strict regulatory laws in many countries. The government will keep making laws that will increase KYC, thereby increasing centralization.


We now live in a time where decentralized exchanges are attacked because the government has made laws that group them as a channel for money laundering. The Bitcoin space is gradually moving to an era where the government wants to control every part of it. And they will keep making and amending regulatory laws to achieve their aim.

Bitcoin doesn't have any inter connected role as banks so it not going to Shape the financial landscape in the now or in the future,  bitcoin role is simple, bitcoin is an alternative to fiat currency and also an assets which have long term value,  bitcoin asset role plays significant duty mote than bitcoin currency roles because not everyone accepts bitcoin only a few scanty shoos accepts bitcoin for payments of goods and services,  but when you talk about bitcoin as an asset, there you have huge community of investors and bitcoin holders.

When you talk about blockchain technology,  then you have a point,  because blockchain I going to play an important role in the banking sector in the future,  and alot of development are already underway and aimed at advancing financial sector through adoption of blockchain as a tool for banking.

We are already seeing bitcoin’s role in finance right now.

It is shaping the financial landscape of the future. Its technology has had a huge impact on traditional banking systems. Despite many being against cryptocurrencies, they can’t deny that its blockchain technology is one of a kind and should be utilized as much as possible.

some people think that Bitcoin will be the currency reserve in the future. although this might just be a theory, i would actually think it's possible if all currencies are going to end up like Zimbabwe's currency. this could be the role of Bitcoin in the future.

of course, this can only happen in the West but in the East, something like Gold might just be their reserves as the result of the current geopolitics.

Bitcoin is not going to shape any finance system, haha or maybe I can be wrong on my perspective, we are no-where to set such goals for Bitcoin right now, you need to understand if people want to change it then there's a possibility if you are looking at the institute to do that for you, just forget it because Bitcoin won't be anything else except a golden apple to store your value.

Why I'm thinking so, like that because of lust encouraged by power/control authority. A transparent government system developed with Bitcoin or any such technology is going to distribute the power in the hands of the public even though there are many possibilities to manipulate it as well just like ETFs today, still, it can be a major threat to their desires on the same a single ruling payment mode/currency stands no chance at all, today china has conflicts with the USA, USA has with Europe, Middle East with X, Pakistan with India and much more.

Do you really think there can be any system in such a narrow-minded setup, to revolutionize the finance for the betterment of Humanity? I do support Bitcoin even though I love Bitcoin and Satoshi that there's hope for a system where we can eliminate or at least suppress the 99% of this shity interest-based economy.

Edit: Sorry for the small political touch in the post ignore it if you don't like it, if you still cant then what can I do  ;D.

Transactions, Timestamp Server, Proof of Work, Network, Simplified Payment Verification and several other things including privacy, that is what Bitcoin meant as an electronic peer to peer cash system. Bitcoin whitepaper is worth finishing several times because it is good for adding basic knowledge about Bitcoin.
For the present Bitcoin system is very good, especially to be made in the future of financial. The Bitcoin system does not change in the future relevant to the times.

The traditional banking system has slowly begun to mimic the bitcoin system from what we feel ourselves even though the recognition is not present from the actors of the banking system in question.

Sincerely speaking I don't understand properly what you mean, but judging from the topic, I can say that bitcoin role in finance is already active. Because over the years people has pass through hell in traditional banking system and many other financial aspect of life. But bitcoin has made the financial system to have a better scope and structure. also reliable fast and easy way of transactions without the help of any financial institutions. So currently bitcoin has solved the problem of finance now, not later in the future. What we only need now is for the masses to accept Bitcoin as an alternative medium of exchange and transaction, And also a great store of value.

But is the idea of ​​bitcoin becoming a currency a reality when we only see it as an investment and not too many people consider it an alternative to fiat?
Do you think the government will agree and legalize it as an alternative currency while they cannot control it? Besides, how long do we have to wait for a real solution to make bitcoin's transaction fees cheaper and transaction speeds faster?
All of your “what if” ideas are highly unlikely and even impossible. We should look at reality and not talk about “what if” scenarios.


I think sooner or later the government will issue regulations for bitcoin if we want it to become legal and popular, we should adapt to that because it is inevitable.
Many people have looked down on the power of the government and said that the government will not be able to do anything to us, but look how there are more and more regulations, more bans on decentralized services. It is true that they cannot intervene or directly control the bitcoin blockchain, but they can control and eliminate bitcoin-related services.

You are not far from the truth mate, it is clear that the idea of mass adoption of Bitcoin as a currency is not visible. Many people are comfortable with it as an investment. It is also obvious that the only reason institutional investors buy Bitcoin is not to use it as a currency but to make a profit. However all hope is not lost, most Bitcoiners still believe that there will be a time when Bitcoin will be used as a currency. Maybe the price might become less volatile in the future, making it popular as a means of payment. We also hope that transaction fees will be reduced and people will devise alternative means of using Bitcoin as a currency. The government will keep making laws to control the Bitcoin industry, however, some nations might not be as strict as others. There will always be Bitcoin-friendly nations where regulations will not be too strict. The dream of freely using Bitcoin as a decentralised currency globally might seem impossible, but it is still achievable.       

I don't think this is relevant, scammers and frauds will stay even in the cryptocurrency market or non-cryptocurrency market, it is already in the traditional market. As you can see there are still lot of issues about scammers/frauds in cryptocurrency. So for me, it's not that really the significant role of Bitcoin in finance right now.

It's very much a possibility and not an impossibility at all for Bitcoin to be freely used as a currency for payments after transactions and trades physically, has been made.

Although, the current price still discourages those with little means to even consider using it as a payment means even in their business or for receiving salaries probably because of the fees that they consider exorbitant, but not as much as banks would charge or less,  it is still a successful venture for those who consider it as an investment that is very private knowledge and that with the fact that it still can be used for payments, makes it have a future in finance of any country in the world.

Its impact on traditional banking or financial systems and institutions will not be extremely large because traditional financial institutions are mostly under the control of the government and a government wouldn't let cryptocurrencies make much of an impact on what they use to rule their people. Governments are completely against decentralization because they don't want themselves to be out of money matters of their people, they want to be present as a middleman forever and decentralization opposes this thing.

Talking about regulatory challenges, we are already seeing that in a lot of countries where transactions, holdings, and earnings are regulated and all cryptocurrencies are under the observation of central authorities, they try and do their best to track each transaction related to them so that they can keep an eye on who is involved so that they can tax them or whatever regulation they have imposed on it.

If you live in a country where both government and banks already accept Bitcoin, this is what you will see in the future, which mean nothing will change.

Bitcoin will become commodities, even it's accepted as legal tender, I doubt most people will choose to pay with Bitcoin over other cheaper currencies. Probably, the government will try to accumulate Bitcoin as much as they can since they know Bitcoin is the best commodities for long term.

Indeed, Bitcoin is being widely touted by Bitcoiners as a substitute for fiat money in the future, but when that will happen, no one knows, but what is certain is that currently Bitcoin opens up a big opportunity for us to make a profit from trading or investments, and many people have already gained freedom. finances from bitcoin, with the number of bitcoiners still minimal in the world, it is possible that the price of bitcoin will continue to rise, but indeed the movement is fluctuating

There's no interconnection role between Bitcoin and banks, because it's a decentralized digital cash while fiat currencies are centralized, therefore their functions are different. Central banks controls their fiat currencies while Bitcoin doesn't have any central office that controls it, it gives it's holders privacy and freedom to carry out p2p transactions without any third party interferences. The aim of Bitcoin creation is not to eliminate fiat currencies or banks, but to be an alternative currency for payments and also for those that seeks privacy in their transaction

Bitcoin has made the use of Blockchain technology to become popular, perhaps banks can adopt it as a trial in the future.

The impact of bitcoin in this present dispensation is decentralization and there is no how it can both fit in the same convenance with the government tradition and centralized system, so in later future, we expect that rach should remain independent of each other and both exist together, this will now be our own choice on whether to use either of the two or not, we also habe to have in mind that bitcoin has come to stay and will remain ad long as it has been to this extent, it will serve as an alternative means of making payments aside from the use of fiat.

Its role in the economy is already very clear in its fundamentals... it is an ALTERNATIVE to the traditional banking system... Some say that it will replace the banks, but I do not agree with that, for me it will always be an alternative, a MUCH SUPERIOR alternative, obviously.

I don't believe that bitcoin will every replace that dollar, despite how much I would like it to.  I think bitcoin will continue to play a role in finances much the way it already is, just on a bigger/wider scale.  It's a store of value, essentially digital property.

I also think whenever someone figures out the two party escrow system that Satoshi proposed, that it will be a huge breakthrough in finance and do a lot for bitcoin.

If you mean the future role of bitcoin in global finance, especially in cross-border transactions where transaction costs are high and settlement times are slow, with bitcoin funds can be sent in minutes without having to face significant time and cost constraints. This opens up the potential to increase efficiency and accessibility in international transactions, and change the traditional financial paradigm.

For regulatory challenges, it may need to be developed to ensure consumer protection and prevent illegal activities. So that regulation ensures that bitcoin can create balance and encourage greater adoption so that it is more widely known.

I don't care what government thinks what Bitcoin is, commodity or security, it's not important. If government accepts it and don't consider Bitcoin is illegal for ownership, exchanging, fund transfer, it's good and with me, it's enough because I can store bitcoin for my prosperity, and can use Bitcoin blockchain for fund transfer when I want as well as exchange it to cash or bank transfer when I need money in case I can not use bitcoin to pay service fee directly.

Commodity or security will cause to different regulation according to different Acts and Laws but if I can use bitcoin, it's acceptable at my individual perspective.

Bitcoin is a challenge to the world of finance. It shows that some functions for which people previously had to rely on banks and central banks can be performed without them. Bitcoin is unlike fiat because there are no monetary policies and no centralized control over the value and supply. Also, Bitcoin is something people can store themselves and transfer themselves, without payment processors or banks.
I think its impact is already there, but people haven't fully realized it.

Well, you already know that the monetary system is a bit shaky, not as if it's going to collapse as some people would say, but we can see that the printed money, being our fiat, is undergoing steady devaluation with respect to the high rate of inflation. I remember some years back when the value of the dollar was far less than that of my country's fiat currency, and the value of our money was so high that you could buy land and build a house with just a small amount of cash. The value was so high then, and inflation was also very minimal, but in today's world, the value of the value of the dollar  is far better than our currency, and it is continually appreciated over our currency.That's that. 

Bitcoin is a hedge against inflation, and definitely the rate of inflation is increasingly going up as the years go by, while Bitcoin values are rather appreciative as the year goes by. If you hold $70k for the next four years in your bank account, the value may have decreased before those years ran out, but if you hold such an amount in Bitcoin, you may have X2 of your investment.

We don't need to wait for the future because it is already happening now but I think that is because this current time now we are in, is still considered to, as at the future, due to the advanced technology that we have.

Making money in BTC on the other hand is not a new thing but this is already happening, ever since the world (BTC) began, though maybe we have more ways now and our earnings are now much better than before. To have more money is freedom but BTC being decentralized is literally freedom that we must take advantage of. Fluctuations are normal and not a disadvantage but actually an advantage to help BTC raise more value.

True, its just that many bitcoin investors are too into bitcoin, thinking that it will eventually replace all currency and banks. I get it, we love bitcoin and such, but its too exaggerated if we treat bitcoin as too much. I mean, in order to replace all currency and just use bitcoin, it will be a long process, and replacing banks will make the world chaotic, as all finance and also in the world are going through banks, which is the main system for financial. I love bitcoin, and I want it to be powerful, but I think it's too much that it will replace all. Maybe there's bitcoin as an alternative to traditional currency; it's more like another currency that all people in the world could have. It is a new innovation that will help many people earn, so better take it easy and treat bitcoin as it is. Bitcoin is a new innovation that could bring us more ways to earn or technology; it is not a thing that will replace all currency in the world.

As we speak, btc is already being part of financial transactions and it is already going mainstream. So yeah, somehow, we are already seeing the future. In my opinion, a lot of people will try their hands on crypto as once they have seen the advantages of it over their fiat, the hesitation will stop. High possibility that the demand of crypto especially btc will further increase in the coming years.

What should be answered with your question? Your question applies if bitcoin is legalized in a country, but currently bitcoin has not been approved in any country so how do we discuss the role of bitcoin with finance

Bitcoin was never made to replace fiat. It was only meant to be an option for those who would like to use it. It’s quite unrealistic if we think that bitcoin can remain the only currency in the world when it’s not even the only currency in its industry being crypto. It can be more powerful than most fiat but it can never replace fiat entirely.

Perhaps you want to mention here what is the future of freelancing with Bitcoin, although I am not sure about your question but I am telling you what I think. A freelancer who works is a bitcoin investor or bitcoin user but does not do the same. You may know that freelancers are given work based on their account and they are paid a certain dollar amount for certain work but this is not the case with Bitcoin. In the case of investing in bitcoins, no one will give you a job, but you have to buy bitcoins with your money and you have to sell your bitcoins by understanding the opportunity and thus you have to make a profit. Freelancing is like a job whereas investing in Bitcoin is like a business so both have two different futures. Almost all governments around the world have legalized freelancing but Bitcoin has not been legalized by most governments so there is definitely a difference between freelancers and Bitcoin users.

Satoshi never mentioned creating bitcoin to replace the current monetary system, but even if he had that intention when he created bitcoin, it would never have happened. Even if we want bitcoin to become popular and recognized worldwide, we have encountered many difficulties, let alone thinking about the scenario where it will replace fiat money or banks. Governments will seek to destroy bitcoin if it is truly created to replace fiat and banks. So let's not be naive and blind when spreading this false information, it is completely harmful to bitcoin and not as good as we think.

Since the bitcoin ETF was approved, bitcoin has become increasingly popular, but if there were a harsher ban instead, what would happen to bitcoin? Don't over exaggerate bitcoin and underestimate the power of government.

If we talk about hope, we all hope that bitcoin can become a legal currency in the future, but hope alone is not enough and does not mean that it will definitely happen. Like I said, let's look at reality, look at what's going on, and set achievable expectations instead of expectations based on our wishes. Just like many people always hope that bitcoin will reach 1 million USD in the upcoming bull season, but they only give unrealistic hopes and rely on their wishes without any basis to guarantee what they say. Do you think that will happen? Do you think bitcoin will hit $1 million during the bull season just because everyone is hoping it will?

Personally, I still don't see any good reason for a government to accept a currency they cannot control even if it becomes price stable. Because using decentralized currency will cause a lot of problems for the economy and it will be beyond their control. Unless they find a way to control bitcoin, but will bitcoin still be attractive when it loses decentralization?

Bitcoin is seen to be money even if it is in a digital form to be an alternative to Fiat and also an alternative to our traditional currency,since it's purpose P2P online, that is purchasing for goods and services online. Financial freedom, that is bitcoin assist other countries when been introduced,it helps to reduce hardship and suffering in other to meet their citizens demand financially without any entity governing it. With Bitcoin in a country, there will be financial and economy stability. Bitcoin will be eradicating poverty, unemployment in the globe which it has already started .

We can say in a sense that crypto currency is an alternative route to the conventional banking system. Cryptocurrencies have carved out a reliable place where there was nothing to say against the banking system before. The facilities that were not available in the conventional banking system have become easier after the adoption of cryptocurrency. Due to the traditional banking system being centralized one had to rely on others for various reasons at times but since Bitcoin is decentralized there is no ‍such problem. Cryptocurrencies have become most popular among people due to transparency, scalp cost of transfer, access ability and fast speed of completion. Since Bitcoin is a highly volatile currency I would not say that cryptocurrencies will replace banks but we can accept crypto as an alternative to banks.

I agree with your words. Because what you say is true. The bitcoin price will reach one million USD, which will take a long time. I've seen someone making so much news without a beta that it looks like it will hit a million in two days, but it's not possible that fast.

Yes, I saw this in my country, too. We had talked about digital from the government, but never again. And better than that, it cannot be expected to be valid by any other means. And I think it will feel a lot worse if it becomes legal. If it is legal in my country, the government will deduct a minimum of 30% VAT.

It has a positive impact and many people have felt the benefits of Bitcoin.
Bitcoin is not here to make poverty disappear. Bitcoin's role makes it easier for people to gain freedom over full control that people have as Bitcoin owners. Unlike the traditional financial system.
It has been fully recognized that Bitcoin's role is real, not wanting to overthrow other banking systems as rumored by irresponsible parties.

I don't know for others but from the way I understand bitcoin and the readings I have involved bitcoin was not created to shape the financial system in the world but it was created as an alternative measure to buy and pay services digitally. But because of the way it is people saying that bitcoin is going to shape the financial institutions in the world which I strongly disagree with because investing in bitcoin can't change anything and the governments are closely watching so bitcoin will also stay on it lane and that is why they fighting seriously with mixers and Centralized exchanges.

And the only aspect that n which bitcoin can use to shape the economy of the would is the real p2p.

What do you mean not approved in any country? First of all if you mean legal tender, then we already have 2-3 nations that made it not only legal but literally legal tender, you could use it like any fiat currency, and it has to be accepted anywhere in those nations, you have that option.

Secondly, if we are talking about just being legal to use, nearly 90% of the nations in the world made it legal to use, trade, invest into it as well. Look at big nations like USA, those nations not only made it legal, but they have companies on it, from creation at mining, to exchange like coinbase there are many companies in USA that makes a lot of money from it and that has to be the thing that keeps growing further and further.

As for the title of your thread, by now we already know that Bitcoin plays a big role in finance already, as it become one of the best asset if not the best in the last couple of years and many traditional investors or Wall Streets maybe moving some of their wealth to Bitcoin already.

On traditional banking, still very controversial, there could be banks that are really anti-Bitcoin as they see it as competition or maybe consider it as a scam or fraud. But there are money servicing company that has accepted Bitcoin for now and very friendly. There are still regulatory challenges till now, but it seems that it has died down already as financial watchdogs see their efforts futile as this will be the next technology, cashless society with Bitcoin at the forefront.

It seems the OP is asking the future of Bitcoin and the Banking finance and to be honest, Bitcoin and Banks relationship has been on the rise more than 10 years, you need bank way to sell your coins into fiat. Some banks have Bitcoin custody but we have more of them coming now. Take a look at Robinhood, they bought Bitstamp exchange and where do you think that money is coming from, from their traditional finance to fund cryptocurrency and this is because they see it as the future.

The banks need Bitcoin same way the Bitcoin needs the banks but this adoption isn't going like that, they are all afraid to buy real Bitcoin. This is why many of them has decided to buy Bitcoin coin ETF instead, this is what Blackrock who are asset managers to many banks are doing with Bitcoin right now, it's obvious they all want to have Bitcoin but are afraid of the government.

No matter how many people use bitcoin, this will not make it legalized.

Sure this will get the attention of the government and possibly they could either accept it or break it but if you think that we can change the financial system of the world just from sheer amount of investors then you are wrong. The government will still have the end word.
The government is not in favor of decentralization and being anonymous that’s why I said that in the end it’s all up to the government how would crypto progress. Would it adopted finally or would it remain like a private entity?

Well, there goes the pressure already for some countries and it truly has changed finance and investment in a different way. While obtaining it, you already have an asset and at the same time you can spend it however you want. Unlike the fiat money, it's dwelled to inflation and whatever global issues may have although with the latter, Bitcoin isn't exempted with that. There have been a lot of optimistic about DeFi as well but they've got a lot of security concerns and we do not have to go that far, Bitcoin is already for it.

The support of Bitcoin in finance is zero in the countries where Bitcoin is not legal yet, but the countries where Bitcoin is legal have given big support to finance. Ever since Bitcoin came into the market, the burden on banks has been greatly reduced, people prefer to store their large amounts of money in Bitcoin and consider it safer that way. The public is also protected from paying extra taxes.

In countries that do trading and where trading is legal, more than half of the population is earning money from trading, and unemployment and poverty have been reduced to a minimum. In this way, it can be said that unemployment and poverty have decreased in many countries after the introduction of Bitcoin. People are securing their future by using Bitcoin and also avoiding stress.

Banks are businesses and to make profits they need to have as many customers as possible, if people do not use banks but use bitcoin to store assets. That means banks are losing customers, do you think that is a good thing for the bank and is it a way to reduce the burden on the bank when it causes the bank to lose revenue?


If you use bitcoin to avoid taxes, it means the government is losing income, do you think that is one of the supports of bitcoin to a country's finances?  ;D ;D ;D


Are you saying that legalizing bitcoin can help reduce a country's unemployment rate by encouraging people to trade? Are you serious about what you say? In your opinion, is it easy to make money from bitcoin trading and have you made a profit from bitcoin trading? Where do poor and unemployed people get money to participate in trading?
It's unbelievable that these naive thoughts come from someone who has been in the market since 2016, someone who has 8 years of experience in the market ;D ;D ;D.

These will usually depend on different countries many countries are opting for this digital currency to reduce their stress. can help financial industry professionals monitor transactions detect criminal activity reduce risk increase transparency and provide new opportunities for their clients. Many finance professionals understand that crypto represents a huge opportunity but institutions are hesitant to enter the market due to perceived risks and some don't even realize exposure to crypto.

Bitcoin is an alternative way to make your payments which doesn't involve any intermediaries aka banks so if Bitcoin becomes mainstream payments there won't be any banks.

Other than this there won't be inflation, it's just deflation which is good for the most people but only sucks for the rich that's why avoid the decentralized system and want to keep the bitcoin and crypto from growing any further by throwing whatever they can in the name of government policies and restrictions.

I didn't understand exactly what you wanted to say in your topic, so I would like to comment based on your topic title.

Bitcoin and crypto will play a big role in the future of finance. There may be some developments thanks to the existence of cryptocurrency. It is difficult to predict what these developments will be, but crypto, which is open to development, will greatly reveal its presence in the field of finance.

Crypto education may become a new segment of finance education in universities. Many universities that I know of offer crypto education. In addition to departments such as economics, finance, and business, universities can also open a department that teaches crypto. This could be an important development for the future of Bitcoin and crypto in finance.

Most countries are already adopting the use of bit coin as a legal tender in their country, with such a country it becomes very obvious that the future of bitcoin in such place is very promising such that you can be very expectant of the possible chance of bitcoin becoming a vital part of the economy. they are even opportunities that still lays further around the bitcoin eco system.

Some other countries actually don't support anything related to crypto currency even the usage are even prohibited which is not giving bitcoin a chance in such a place at all even the institutions cannot venture in to it even asides the fact that they have some skeptical taught about it, they wouldn't want to venture into it because their government is against it and so it make it almost illegal as well.

I'm not sure about revolutionary about payment system. Do you see what Bitcoin mempool change to yesterday when the price fell sharply? The mempool went as high as $50 per a single input and output transaction and it has been slowly coming down now to 50sats/vbyte for high priority, this is not and will never be affordable for people, there is no way this is changing the financial system when other payments system like light app such as zelle and cashapp charge less.

However, I give into the financial money thinking, it has been able get get the attention of high profile like Blackrock and many more. Some are partnering with Coinbase and some US companies to push Bitcoin and that's good for revolution of money, they all want to put money into Bitcoin so they can grow their money more and more and gradually if they succeed in this phase, more bull run that will be coming there is going to be more of them coming to buy Bitcoin.

Bitcoin has played a vital role in the financial system,and it also stands as a challenge to the traditional banking system to improve their monetary policies.Bitcoin in most cases is referred to as a currency for the future,in essence it wasn't invented to replace fiat rather it's a store of value that when an investor hold it for the long term it gives profitable ROI.The decentralized nature and it's limited supply makes Bitcoin a store of value.The future role of Bitcoin in the financial system as it is written in the Bitcoin white paper is to serve as a transaction without financial institution and to prevent double spending.

Which countries have used bitcoin as legal tender besides El Salvador, and will El Salvadorans use bitcoin as a payment method when bitcoin transaction fees are too high? I would even bet you that there won't be too many people brave or rich enough to use bitcoin for daily payments at current transaction fees. Frankly, as long as transaction fees remain high, using bitcoin as a currency is unlikely.
Specifically, what role does bitcoin play in the current financial system? And what challenges is bitcoin creating for banks? I've also seen many people talk about this issue, but no one has given specific evidence and just talked in general terms like you.

An asset that is highly volatile, has high transaction fees, and has not been accepted as legal tender by many countries, how can it play an important role in the financial system?

I'm not spreading Fud or pessimism, but we should be realistic about what's going on. What you said may happen in the future and everything takes time but not now.

First of all I want you to understand that ordinarily if not for the tax gotten from Bitcoin mining and exchanges, the government of some nations wouldn't have allowed Bitcoin transactions in their country, it is very obvious that the government dislike this digital asset, if you look at the adoption rate, sometimes it seems to us bitcoiners that mass adoption can not be atualized just because of the frustrating tactics of the government, as far as financial systems are concerned, the government wants to be in control once they noticed that they can't, they will start frustrating such means, for me Bitcoin has faced several humiliation from the government and nothing new to me, as much as i cant predict the future, i will say that bitcoin may face hard times in future but it might be a disguise means for the powerful people to acquire more of this asset.

I believe that it is going to be one of the very big main assets in the world. These days people invest into three things, gold stocks or real estate. I do not think that real estate will be gone anytime soon, people keep investing, and the prices are rising like crazy which makes no sense because there is enough houses in some parts, and people decide to not sell it at all if they do not want to, and let others be homeless.

But, I think gold may lose its value as well, because we are talking about something quite slow, and as we all know each new generation has slower and slower attention span meaning that they may not be fine with gold in the future. This won't happen just in a few years, but it may take a few more generations instead. Bitcoin will skyrocket when that happens.

One thing I can think of is how many people are adapting to cryptocurrency. Even though the transaction fees are high, there are still people who decide to use it. The fact that there are options now to pay either in cash, bank or cryptocurrencies is already proof that crypto has changed the financial system.
We can still be optimistic about bitcoin and criticize what can be done to improve the system.

It will only go wider from this moment forward - more and more countries are loosening their belts on crypto, and who knows how the space will coexist with bigger entities.
I hope though that it will have a positive impact overall and that crypto will become more widespread and understood by the common man in an informational sense.

Yep. In an argument, the truth is born.
 ::)

The future of Bitcoin in the field of finance seems promising, as even huge financial monsters like BlackRock have already introduced Bitcoin ETFs, which allow traditional investors to reach the crypto market with much more ease. This movement here suggests that Bitcoin may eventually be able to coexist with traditional assets by adding new options for financial portfolios without directly removing the banks. This would mean that in such a direction, the potential of blockchain technology to support even faster and more inclusive financial products could also allow Bitcoin to allow greater access to finance than traditional banking has yet achieved.

Yet, the most significant challenge is no doubt regulatory. Some jurisdictions, like the EU and Singapore, make concrete crypto regulations with the hope of driving innovation. Other jurisdictions, like the US, view the sector as a "Wild West" and most likely will be resistant to quicker mainstream Bitcoin adoption. Whether Bitcoin will go completely into the center of finance depends on how regulatory frameworks adapt to the unique needs of Bitcoin, and how much mainstream acceptance will be there from traditional financial institutions.

In my opinion, Bitcoin will become the world's reserve asset in the future and a part (probably the main part) of central bank gold and foreign exchange reserves.

I do not think Bitcoin will become the main means of payment in the future. As a means of payment, Bitcoin is not very convenient (even taking into account the development of layers 2 and 3). However, as a reserve asset, Bitcoin is ideal. All the disadvantages of Bitcoin become advantages if you think of Bitcoin as a reserve asset, and not as a means of payment.

For example, central bank gold and foreign exchange reserves can be easily audited (assuming they are entirely made up of Bitcoin).

Becoming an alternative and widely used payment method is a challenge, let alone becoming the main means of payment or currency. Because when it comes to payment methods, what most of us care about is transaction fees and transaction speed, not privacy. Meanwhile, it is clear that Bitcoin cannot meet those requirements because it has unstable transaction fees and quite slow speed. I also never thought that bitcoin could be legalized and used as a payment method in the future, nor did I ever support that idea because it is unrealistic to become a reality.

The scarce and decentralized nature of bitcoin makes it more suitable as an asset, store of value or safe haven than as a currency.

I disagree with you. I use BTC as both a currency and as an asset. There is really nothing stopping you from buying things in Bitcoin. I mean what, you're going to send it to and from exchanges (and by extension, linked bank accounts) and eat up all those transaction fees?

Banks can become completely affected this much only when Bitcoin completely becomes a legal tender without an option of fiat in any of the countries where it gains adoption. Provided fiat remains a core legal tender the effect of adopting Bitcoin will not lead to bankruptcy of physical Banks and this is because at some point you will need fiat to spend after your crypto assets has been converted to fiat and that's where the banking comes in. Except acceptance of crypto becomes general then fiat may not be needed as you can make payments with crypto exclusively, such scenarios will hardly even come so I don't see this happening any soon rather I see a possible synergy of they can work independently without the banks insisting on crypto not been decentralized.

From your content I take it that you mean Bitcoin has a future role in the economy.  If you mean it, I'd say that yes, Bitcoin's role in the future economy is positive.  Day after day people are suffering with traditional banking system.  In this way people have to suffer a lot of harassment.  But Bitcoin has ushered the economic system into a new structure.  It has become the fastest way to transact without any bank or financial institution.  It is very reliable and error free method.  It is solving the current financial system and will be better in the future.  So we should welcome Bitcoin as a medium of exchange and transaction.

Currently, Bitcoin has a limit on the number of daily transactions. If I am not mistaken, the number of daily transactions cannot exceed 400,000. This does not allow 8 billion inhabitants of planet Earth to constantly use Bitcoin to buy goods (works, services). And this is a technical limitation.

In addition, the Bitcoin network has periods of high fees. With such high fees, sending small amounts of money becomes a very unprofitable business. Of course, there is Lightning, but this system is also very imperfect.

Currently, there are serious discussions about creating Bitcoin reserves in the US government financial system. This, in my opinion, shows the vector of further development of Bitcoin.

bitcoin as a cryptocurrency take over the future if bitcoin runs again for 3 to 4 years added with the one bitcoin have stayed because many persons across different nation is investing in Bitcoin currently bitcoin is done that is marketing itself not testimony from any other person have seen in Bitcoin that made them to have that Faith that Bitcoin can dominate in time coming but I believe that Bitcoin currency that every word across the nations will accept Bitcoin for each purpose but right now I think that bitcoin is still building structure and having more influence but with the time every other countries will make use of Bitcoin

I think it's really just getting started with the way bitcoin is being adopted and accepted by big firms. It will just be a matter of time before other countries will start opening doors for it because they will not want to be left behind.
 
Such moves will definitely contribute to price increases, but governments of different countries will end up holding large amounts in the bitcoin reserve, which will have both a negative and positive impact. The negative one is price manipulation up to some certain level.

It is also important to understand that conventional banking and bitcoin are very different and contradictory.
The conventional banking system uses a centralized system, while cryptocurrency uses a decentralized system.
From here, you can guess how bitcoin is with the existing conventional system.
But in my opinion, in the future, these two financial systems can run side by side.

Using bitcoin as an everyday means of payment is expensive, not just because of the high transaction fees, but because of the tax implications for bitcoin transactions in some countries. Some countries see bitcoin as an asset and not as a currency. For this reason, anytime people buy stuffs with bitcoins, it is assumed that they are selling their assets (bitcoin), so they charge tax for that sale. People can actually carryout daily transactions with bitcoin, but according to you, it is unprofitable for both businesses and private individuals. That is why many just prefer to use it as a store of value rather than as a currency.

Anyway, everyone is at liberty to use bitcoin the way they derive maximise benefit from it, and I won't fault anyone for using bitcoin the way they feel is best for them.

You have spoken like a typical new recruits to the industry, Bitcoin doesn't have to be used by everybody in the world before it has an impact because there are some places that we can't see Bitcoin being used or it won't be as popular as other countries that have the facilities that'll encourage the use of Bitcoin over there. There are countries without good electricity and good internet hence people over they might find it very challenging to make use of Bitcoin because some of them don't have mobile phones or money to invest. They'll use their money for their essentials needs.

Bitcoin future role in finances will be surrounded around being an investment for most people because they'll still prefer to make use of their cash as it'll be less expensive and comfortable to use for them. Bitcoin potential will make many of them to not want to sell.

I think that as time goes on - more and more people and higher/bigger entities will see the potential in BTC.
It's inevitable and it will be a race of sorts what country or a group would be able to utilize BTC to the best extent - and help the community at the same time to bring awareness for what BTC stands for and why.

It's technical limitation but it can be changed in future and not all people who have bitcoins will use bitcoin daily. Assume 8 billion people on Earth have bitcoin, not all 8 billion people will use bitcoin for daily transactions.

Bitcoin has many use cases and some of them is as Store of Value, and people who use bitcoin this way, will hold their bitcoins most of time.

There are times with cheap fees and people ignore it, if they know how to do it, they will take advantage of cheap-fee time for their transactions like consolidation or deposit.

You can not find anything perfect in life and beyond Lightning Network, there are Layer-2 projects to solve it. They're not perfect too, but they can bring additional solutions and options for people to choose.

Bitcoin Layer 2 Technologies. (https://www.lopp.net/bitcoin-information/other-layers.html)

I guess the finance institutions or businesses can adopt the use of Bitcoin of course with their mode of payment. Still, they need to consider if their country has now accepted the use of crypto. Then they are one of the large-scale countries or lets say the third world country because once they adopt this too and other countries will follow of course no one wants to be left behind with the trend and they will grab the opportunity to do the same thing. Again the market of crypto is volatile and they need to consider too having an exchange rates.

I made a few transactions at the time when the BRC20 craze caused congestion on the bitcoin network and my transactions took up to 7 days to complete.

I don't want to use bitcoin for payment because I find it quite annoying and time consuming to have to check transaction fees before paying. I even have to delay the payment if the transaction fee at that time is too high.

For everyday bills, using bitcoin is even worse because I have to pay extra fees just to pay for a cup of coffee that costs less than $1. Whereas if I use fiat or bank, I hardly pay any extra fees and the transaction time is almost instant.  

You are right, think if there were billions of people using bitcoin every day and what would the transaction fees be at that time? I know Bitcoin was designed to be a peer to peer currency but it is more suitable as an asset, an investment, IMO.

It is indeed difficult to see the future of Bitcoin, even until now Bitcoin has not been able to become a legal tender worldwide, but only a few countries do that and the rest of the people use Bitcoin as their asset for the future, because the reality is like that it cannot be denied that the development of Bitcoin in the digital world is only anonymous, whatever the role of Bitcoin in the future I support what the community does to Bitcoin as long as it is on a positive path.

This OP question will have different opinions from different people, but all of them can be said to be true and possible in the future even now. And in my personal opinion and experience, Bitcoin can be the perfect currency in the future, because Bitcoin is very safe and secure thanks to the very secure blockchain technology and will be a financial system that is more acceptable to everyone and is fully controlled by its owner, there are many more beauties of Bitcoin for now and also in the future. And many people are investing in Bitcoin for the future and this is already one of the proofs that Bitcoin will have many benefits for those who have it, and also Bitcoin is an alternative to fiat currency and this will continue to grow until finally everyone does it.

Bitcoin is already doing great, and some countries, I guess, have already made it a legal tender, which I see as a good thing, and I don't think we need to be hoping for more countries to make it a legal tender in the future.
 
All that I think will shape the future of bitcoin is if there could be a more crypto-friendly policy for it all over other countries where anyone can use it where and when ever they want with the feeling that they are breaking the rules of their country and can be prosecuted as long as everyone is free to use it like any other digital currency. It's enough to be expected in the future.

I'm sure the banking system would have no choice but incorporate bitcoin into their system at some point.
the regulation, i'm sure moving forward, will be more flexible toward crypto in general as more and more people finally come to understand what value crypto actually hold.
it was not so welcoming to crypto because some people just haven't yet understood about it deep enough to make valid statement and thoughts.

I'd imagine it's gonna be like how michael saylor went from hating bitcoin to becoming bitcoin maximalist.

What is bitcoin future roles in Finance? Its gonna impact the regulatory of a country yes and of course will have an impact on traditional banking too. For now bitcoin is too big there is and ETF for it, back then some people look bitcoin as a joke and things like that. But now bitcoin already proven as a worthy asset like gold. People start to notice it, buy it and it is not jus regular people like me and you but you can see a big investment company a car company and tech companies buy bitcoin heck even a country.

Certainly,I honestly think We're already in the future.Because for me,70% of what Bitcoin was slated to offer has already been achieved,in as much as there's still more to come and be completed or achieved,the most anticipated features of Bitcoin is what we are currently relying on.Its going to keep impacting and Making flawless transactions for Bitcoin users.Bitcoin users are globally harmonized and higly influential.