Will blockchain replace banks?

30 Sep 2022

First, let’s have a quick review of why Bitcoin exits until this day:

• Bitcoin is not backed by any person or organization, leading to lower transaction costs.
• It enables people to send and receive money simply by scanning a QR code or using an online wallet.

• As a result, the transaction processing is quicker and more cost-effective since there is no third-party intermediary.

For example, PayCEC charges customers 1.5% per cryptocurrency transaction , while the figure for each card transaction is 3.4%.

But we can not overlook the worrying downsides of blockchain. First, you need a key to access the Bitcoin wallet. If the key is missing, you are on the brink of losing your wallet.

Second, bitcoin is highly volatile; it can nosedive and skyrocket to its peak, after which the market will lose momentum quickly.

For now, all we can say is blockchain technology will be utilized much more as a deterrent against fraud in unprecedented fields, such as provenance or property rights.

But will blockchain replace banks? Only time can tell.