How Banks Will Have to Evolve in the Era of Cryptocurrency

Published on: 29 May 01:42

Cryptocurrency is here to stay. It’s not a fad like big hair in the 70s or breakdancing in the 80s. Cryptocurrency has already changed the way a lot of us think about banking, our economy, purchasing goods and services, and even investing — and as more people learn about cryptocurrency and employ it, this influence and change will only continue to grow. Already blockchain technology is making huge strides in other industries, and don’t expect this to stop any time soon. There are so many benefits to cryptocurrencies (greater security, anonymity, lesser fees, and greater autonomy in a decentralized space) that soon it’s impact will be felt in almost everything we do that has to do with currency (so, everything really, since money is what makes the world go around).

In the face of this changing environment, banks are going to have to evolve or they will devolve into mere pawns in the world’s game of chess. But how? And why? cDuel is the leader in cryptocurrency trading simulators. For free, you can sign up and trade cryptocurrency using real time values in a gaming simulator with no risk. You can learn how cryptocurrency works and how to trade so you don’t lose a bundle when you’re ready to take the plunge. In this blog post, cDuel will dive into the hows and the whys of why banks need to evolve in the age of cryptocurrency. Sign up with us online for free!

WHY ARE BANKS THREATENED BY CRYPTOCURRENCY?

• No longer need a physical location to store currency. Since digital currency exists on public ledgers (blockchains) where all transactions are visible and are verified and kept secure with cryptographic hashes, you don’t need a physical location with a big vault to safeguard your money.
• Everyone is in charge. With a decentralized network, there will be no rules on transactions, such as needing a checking account in order to make debits or wiring money. You yourself will be able to accomplish all of the transactions a bank does and then some.
• Fees will be eliminated. We’ve all been charged fees for bank services that we felt somehow shouldn’t exist. In a decentralized marketplace where everyone is handling their own storage and keeping track of their own transactions, there will be no need for fees, especially since miners are inherently paid by the system instead of bankers being paid by those who use the bank.
• No need for currency conversions by a bank. Many of the services offered by banks, including converting currencies, will become obsolete. With a digital currency, you won’t have to convert your US dollars to Euros for example.
• Convenience. One of the many arguments and benefits of and for cryptocurrency is that banking will be brought to the millions of people around the world who have no bank accounts currently. With cryptocurrency, you won’t need to “run to the bank” to make a deposit. You perform your own transactions, eliminating the need for tellers completely.
• Third-party trust. Many people distrust banks and bankers, especially since the 2008 financial crisis. A decentralized monetary system and currency puts the power of money back into the consumers’ hands.

HOW WILL BANKS NEED TO EVOLVE TO STAY VIABLE IN A CRYPTOCURRENCY MARKET ENVIRONMENT?

• Anticipating the changes cryptocurrency will bring. Most banks dismiss cryptocurrencies as a hobby and nothing more. Banks need to recognize the areas that cryptocurrencies have a competitive advantage in and make changes now.
• If you can’t beat them, join them. Banks need to invest in blockchain technology now, and look for ways to incorporate blockchain products and services into their offerings.
• Eliminating fees. Let’s face it, money talks, and the more you cost a consumer, the more likely it is they will find a viable alternative. Cryptocurrency is that alternative in the banking industry.
• Downsizing to only offering the services they have a competitive advantage in. For example, banks will hold an advantage in borrowing, financing, lending, underwriting mergers and acquisitions, and maintaining economic stability. Until cryptocurrency takes hold of the mainstream, it will always be more volatile than say the US dollar (which currently is great for investors looking to get rich quick). By banks letting go of the transaction-based side of banking and evolving into becoming more specialists, like lending, they can still be great profit centers.
• Personalizing banking. Some people will not want to handle their own finances, but some would love to be in charge of their transactions. It is this latter segment that banks will have to court in order to remain viable. Banks can do this by offering more value-added services and personalized advice centers, rather than stuffy buildings full of money.

cDuel is a cryptocurrency gaming simulator designed to bring a greater understanding of cryptocurrency and cryptocurrency trading to the masses. We understand the changes that will be coming thanks to the amazing breakthrough of blockchain technology and digital currencies, and we want to help you be prepared. Through our risk-free cryptocurrency trading simulator game, you can gain valuable knowledge about cryptocurrency in a fun way, using real-time values for cryptocurrencies today. You’ll compete against others (and learn from them) as you make trades and manage your cryptocurrency portfolio.

Cryptocurrency is here to stay, and cDuel wants to do everything in our power in order to give you the tools you’ll need when it’s time has come. Sign up online to get started today!