Ever since the introduction of Bitcoin in the mainstream, the future of traditional banking has started to turn bleak. But what made such financial intermediaries struggle in front of the emerging technologies? Well, the primary reason for such struggles on the part of the conventional systems had to do with the conspicuous loopholes in the system. Such loopholes or flaws in the system were left unaddressed by the financial intermediaries, and they eventually became complacent. Now, this complacency on the part of commercial banks overlooked the shortcomings, and people began to look for alternatives. Little did people know that their pool of problems would be addressed in a flash with the advent of cryptocurrency. This is exactly what eventually happened, and now credit creation can easily be done digitally. Check Wealth Matrix to get a piece of detailed information about bitcoin trading.
The Downfall Of Commercial Banks Became The Strength Of Digital Assets
With millions of people constantly transitioning from traditional means to digital means without having any second thought, it is quite evident that the future of commercial banks seems challenging. However, there is still a large chunk of the population that is not acquainted with cryptocurrency & digital assets. Hence, such a segment of the population can easily be taken care of by the established commercial banks.
Digital assets address the shortcomings of commercial banks on just one front but on many fronts. Credit creation, faster transactions, easy buy and sell, Trust factor, etc., is precisely addressed here.
Increasing Awareness About The Crypto Industry
The increasing dissemination of knowledge pertaining to cryptocurrency has paved the way for a lot of educated people to dabble in the crypto industry. In addition to this, the returns that the crypto industry provides seem a lot more promising than traditional means. Commercial banks will undeniably be there to cater to the requirement of the population that remains untouched by the crypto industry. However, they are in for fierce competition from their adversary that continues to claim its dominance in the financial ecosystem.
Today, cryptocurrencies are able to provide robust security, scalability, accountability, transparency, and faster transactions which used to be a far-fetched reality for a significant part of the population. But it has all been done and well-executed, which stirred people to become relentless proponents of cryptocurrency and similar digital assets. Blockchain introduced a new & unprecedented form of security that was only in books for decades. It has allowed all kinds of industries to reaffirm their overall security apparatus, and they benefit greatly from such upgrades.
What Are The Major Factors That Led To An Increased Reliance On Digital Assets?
The level of trust, loyalty, customer retention & longevity goes significantly higher with blockchain. This technology is in direct contrast to the commercial banking apparatus as there is always a lingering possibility of fraudulent activities, forgery, unauthorized operations & embezzlement. All the banking facilities that are usually provided by commercial banks have already been covered by digital assets. Hence, such digital assets not only provide a top-notch pool of services to the existing customers, but also gain the confidence of such users in a short span of time. It works wonders for the users as they are able to cut the time in half with effective results.
Perks That Came With The Crypto Industry That Commercial Banks Struggled With
The overall time taken is significantly faster than the commercial banks, and there is no denying the fact that it is one of the pivotal needs of the customers. People wanted to reduce the overall time, which commercial banks greatly struggled with. Credit creation, along with maintaining the relevance of financial instruments, is impeccably executed by digital assets as they are free from any fraud or replication.
The latest trends have already witnessed the growth of cryptocurrency, NFTs, Smart contracts, Decentralized Finance, Blockchain, Bitcoins, Altcoins, etc. All these digital assets are worth billions today, and their valuation is only expected to grow further with time. It is not something that you witness in the commercial banking system.
