A cryptocurrency is in the form of digital currency which uses cryptography for the purpose of security and has grown rapidly in the public eye. While bankers are against the cryptocurrency banker because they have many benefits over regular currencies. Often banks are extreme volatility of this currency and have their potential to be used for money laundering cases. Another thing is that cryptocurrencies have made their way into banking apps and many of the banks are against them. Below are the disadvantages for bankers against cryptocurrency.
Crypto market exceeds the size of large banks
The crypto market has reached its market cap of $470 billion, with BTC price breaking above $10,000 that overtakes the JPMorgan Chase which is the largest bank in the united states. The banks are more worried that the rate at which the crypto market is growing will have a serious impact on their operations. Now, banks are fighting to slow down the cryptocurrencies for the growth rate and they banned their customers from purchasing cryptocurrency with their credit cards.
The overwhelming increase of cryptocurrency Value
In the previous year, bitcoin has increased its value from $1000 to $20,000. A recent fall in price has led to some analysts speculating that bitcoin experienced low. So, with the use of blockchain technology, the banks have a negative comment on the bitcoin. But with the increase in the value of the cryptocurrency that will attract many people for using it instead of regular currency as the banker’s operations will be disrupted.
Decentralization of cryptocurrency
Cryptocurrency does not require a third party to make the transactions. As of now, cryptocurrencies are growing big and many bankers fear they might lose control over all the money. In case, the individuals turn into cryptocurrency banker, then bank customers will slowly reduce and their income will go down as well. Even the bankers fear that with the update in the technology they might be replaced.
Well, now cryptocurrencies will remain the biggest threat for bankers and it is very surprising to see how fast the cryptocurrency banker is growing in recent times. But the fact is that not all bankers do not hate cryptocurrency and few of them have already invested in cryptocurrencies. I hope that I have covered all the topics in my article about the disadvantages for bankers against cryptocurrency. Thanks for reading!