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Could Cryptocurrency Ever Surpass Traditional Banking?

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In the digital era, technological advancements have proven that anything is possible. With 3D printing as well as automated machinery, there are no boundaries when it comes to the capability of technology. But could new forms of online currency ever truly surpass the user of traditional currency, even with its rise in popularity? In this article, we will be looking at whether or not cryptocurrency could over truly overtake the pound. 

Cryptocurrency And Online Security 

One of the biggest factors that lead many to think Crypto could surpass traditional banking methods is the secure deposit methods. With security at the heart of the blockchain system, this has become a popular way of banking for many. With every transaction accounted for with the utmost transparency, this decentralized form of banking seems to be a popular move for many as fintech technology continues to expand. In addition, you are met with your own wallet, this allows you to keep track of the cryptocurrency you own and begin to invest wisely. 

The Affect Of Inflation

In addition to the level of security, it is also important to note the effect of inflation on traditional banking methods. Inflation can cause the prices to fluctuate substantially, however, Bitcoin and other popular cryptocurrencies remain relatively unchanged mimicking that of gold pricings. Though they can still suffer from inflation due to supply and demand, is important to note that the prices themselves do not inflate. Therefore, they lend themselves well as a replacement for traditional currency as this can provide a consistent minimum income. 

Positives To Come From Cryptocurrency Taking Over 

Though there are many that are still sceptical as to whether or not Bitcoin could ever replace traditional currency, there are a number of benefits that could come along with the mass adoption of cryptocurrencies. These can include, a more secure rate of income due to the very minimal disruption as a result of inflation. Additionally, there is also the question of security. It is important to note that any transaction made with a cryptocurrency cannot be manipulated when the transaction has been made. This is beneficial from a security perspective as it can ensure that all payments are secure. 

Additionally, each payment can be made within a couple of minutes. Fast payments can benefit businesses as it helps to increase efficiency. In addition, international payments are made quickly. Faster payment methods can benefit businesses both large and small as payments can be processed within just a few moments rather than taking a day or two. Secure deposit options such as this are an ideal way for businesses to make transfers online and is a fintech technology that many main banks and even online gaming platforms have taken advantage of. These are a benefit to you as there are secure online deposit methods available to choose from. Should it overtake traditional banking, it could be used to prevent identity fraud and hacking of financial information in the future. 

Possible Concerns Of Crypto Replacing Cash 

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Though these are all very positive in the long term, there are also some negatives that come along with cryptocurrencies replacing traditional finance options. One of which is that traditional currencies will lose their value. The mass adoption of cryptocurrency will mean that the new infrastructure will need to be developed to allow the world to adapt to the new digital currency. Though it sounds promising it is a huge change that will take years to occur, and therefore traditional currency may be worth less in the long term. 

The sudden shift from cash to online currency has the potential to leave many without an asset. Though this is unlikely it means that there are a number of financial institutions may be left scrambling to find a solution should the traditional currency be left incompatible. 

There is the bigger issue of government control over financial assets as cryptocurrencies are largely decentralized. The lack of control will affect the government as new digital currencies will be solely dependant on third party miners to regulate the control of currency rather than governmental control.  As well as this, the fluctuations on the market still leave many hesitant to invest in the long term. Thouh it can prevent cryptocurrencies from overtalking traditional finances and therefore hinder the crypto future as many optimists see it. 

With that being said, there is potential for the popularity of cryptocurrency to increase. However, it is unlikely that this will ever overtake the traditional currency,  not only due to the hesitation to invest but also the lack of government control that comes with the worldwide adoption of online currencies.

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