So far, we can't really say that banks will really disappear for now, we know how powerful they are that they wanted to control everything, our money, our economy, so for sure they will do something that will prevent crypto or will add crypto to their option, let's see, for sure you they are doing something right now that will surprise us.
And come to think that Bitcoin does get its value from fiat and its impossible for it to replace it one day.We would never say goodbye to banking
yet as government do still exist these centralized things would exist no matter what.Nothing can replace into a system that had been used by many
since from the beginning of time.Bitcoin would only stay up as an alternative rather than the main ones because it impossible for that thing to happen
no matter how hard you do think of it.
The interest system implemented by banks raises injustice. Interest rates are used as a reference to achieve capitalist profits. The bank does not want to know whether the borrower makes a profit or not with their loan capital, as long as the borrower must pay loan capital plus loan interest.
There is injustice between the borrower and the giver of capital. Large profits obtained by borrowers who usually consist of groups under the group are only required to pay their capital loans plus loan interest in a relatively small amount compared to the billions of profits they get. This means that the large profits received by conglomerates from the proceeds of their loan money are not commensurate with the money (depositors in banks) which generally consist of the lower middle class.
Bank interest hinders investment because the higher the interest rate, the smaller the community's tendency to invest. People will be more inclined to save their money in the bank because of the greater profits derived because of high-interest rates.
Bank interest is considered an additional production cost for entrepreneurs using loan capital. High production costs force companies to sell their products at higher prices. Soaring price levels, in turn, will invite inflation because of weakening consumer purchasing power
Even though the bank's interest system has a lot of ugliness, it cannot be denied that people in the world need banks, whether to use banks to get loans, save money to get interest or just to save their money. As long as the fiat currency is still in use, the Bank will continue to exist and before the whole world changes using the cryptocurrency, the fiat system will continue.
Banks realize that Blockchain challenges their traditional business model. There are two ways for banks to survive in the era of blockchain and cryptocurrency advancing
1. Evolution
Changing from a profit-oriented industry to a service-oriented industry. Even if they want to pursue margin, loans are given on a project basis not on a guarantee, so that the role of banks can be felt by all levels of society. It's not only the rich who have guarantees.
2. Performing up-to-date derivation of banking products responding to customer needs (one-stop services). The more complete the services provided, the more interested the customer is. With a blockchain, there is no need for a middle man to transfer funds, but the Bank is still needed as a middle man for validating cross-country transaction documents, or the bank can be the guarantor of the fulfillment of a transaction agreement.
So banking adoption of blockchain technology is a foothold for survival in the future. The application of this system was carried out because of the bank's awareness of the potential of this technology. In addition, Blockchain has also been proven to accelerate payment transactions, reduce transaction complexity, especially in the back office, while reducing costs. The use of the blockchain can reduce the company's operational expenses. Because the data storage will be carried out in a decentralized way. However, in the first implementation, there will be a lot of capital expenditure out. But after that, the operating expense will gradually decrease.
