Will Cryptocurrency Replace Banks of US?

Is Cryptocurrency a threat to banks? Will cryptocurrency replace the US banking system?

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Hello Guys! Welcome, and in today’s video, we will discuss different advantages and push factors about banks and cryptocurrencies, the role of central banks in an economy, what crypto wallets have to change the bank system, and so on.

We reached a point in our lives where this time is the era of cryptocurrency. It’s commencement to feel normal to think that crypto could one day substitute the standard currency. But, have you considered that if it could overthrow our entire monetary system, including banks?

Central banks are at the helm of the modern global financial infrastructure in the current economic system. An overwhelming majority of countries around the world use central banks to manage their economies. While it offers several advantages, this form of centralized structure vests excessive power on a single authority and has resulted in severe economic recessions.

Bitcoin’s technology relies on algorithmic trust, and its decentralized system offers an alternative to the current system. But the cryptocurrency has minuscule adoption rates, and its legal status is still under a cloud. Meanwhile, central banks have co-opted elements of Bitcoin’s design and technology to explore the case of a digital currency issued by central banks.

The case for Bitcoin as an alternative to central banks is based both on economics and technology. A cryptocurrency is a type of virtual or digital currency that works as a medium of exchange. By being virtual in nature, they utilize what is known as cryptography technology to process, verify, and secure transactions.

Digital currencies are created and transacted in open-source environments, where they are controlled by code and rely on peer-to-peer networks. No single entity can affect the currency.
Within the context of a financial infrastructure system dominated by central banks, Bitcoin solves three problems:

• First, it eliminates the problem of double-spending. Each bitcoin is unique and cryptographically secured, meaning it cannot be hacked or replicated. Therefore, you cannot spend bitcoin twice or counterfeit it.

• Second, even though it is decentralized, Bitcoin’s network is still a trustworthy system. In this case, trust is an algorithmic construct. Transactions on Bitcoin’s network have to be approved by nodes spread out across the world to be included in its ledger. Even a single disagreement by a node can make the transaction ineligible for inclusion in Bitcoin’s ledger.

• Third, Bitcoin’s network eliminates the need for a centralized infrastructure by streamlining the process to produce and distribute the currency. Anyone with a full node can generate bitcoin at home. Intermediaries are not required for peer-to-peer transfer between two addresses on Bitcoin’s blockchain. Therefore, a network of banks chartered by a central authority is not necessary to distribute the cryptocurrency.

▶️ Benefits of cryptocurrency than banking system:
• endless storage
• they have your privacy in mind
• 24/7 access
• lack of fees
• higher interest rates
• instant payments
Could cryptocurrency replace the US banking system? What does it need to be able to? Let us know in the comments below.
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