There's a chance banks will be capitalizing on crypto wealth

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2 years ago

The idea has been one thing from the start, and it will remain as that. A lot of people tend not to understand this concept of finance regardless of being in it. I'm sure banks can pretty much work towards making transactions faster, but this is what crypto is said to do with ease as well, but that ain't innovative enough to grant it dominance. Yes, with blockchain technology, money management and movement is done in a different style, the model is different, and the results are also different. It's a good thing, but cryptocurrency won't really put banks out of business, because banks could flip the coin and Capitalize on it.

People always feel that as new projects are built, it's supposed to disrupt the system by pulling down others and becoming dominative, but this is not the idea, at least with crypto, it has and will never be. Crypto will change the finance model for the better, but only for select sectors. Crypto is meant to polish the system, it wasn't created as a target to certain sectors because it is not the sector but the model, the system it runs on is the flaw.


Wealth Management and Security

No doubt, crypto will cut down charges, creating a decentralized finance and blockchain technology will enhance transparency, it's basically a self reliable solution. However, chances are, what a human creates, another human is liable to break it. The world of coding is broad, the process and knowledge of hacking is widely spreaded. Crypto is not entirely immune to it (my guess), since a human wrote the script, some other human could have it as his target to break it. We've all known or heard about the numerous attempts of hacking bitcoin, and prolly read some news about certain people saying there's a possibility. I wouldn't doubt it if someone said there's a possibility, but if there actually is, there's always a way to make the system more secure.

That said, it's overly common that software storage is one that's at the mercy of getting bridged, kinda like how chains like Binance keep having compromises. With the increased risk of wealth management and security, there's a need for hardware storage. Hardware storage is not so known, but yes, crypto is like a file, could quite be stored in that form. As one's crypto wealth increases, there's a need to get some cold storage, and this is where banks will still be in business, but in a criminal way.

Commercial banks are obviously just following orders, the big players are the central bodies in terms of influencing money supply. Commercial banks can't print money, they don't control Fiat's health, they are just there to take your money and supposedly keep it safe, which is not always the case.

Aside from storing money in the bank, other valuables can be kept there. Could be a sweatshirt but you're likely not gonna go back and find it. It's funny, but this is where banks could rob the system and totally put millions of dollars in unknown places. Deposit boxes are not so known, so it's a thing where you could store valuables which you believe ain't so safe at home. The funniest thing is that money in a bank account ain't really yours, even if your name is attached to the account. Once you deposit money in a bank, you increase their reserve and they are able to lend out a certain percentage of your money which somehow influences the supply by 1 million, but that not being the case, banks are more interested in taking your money so they can make more from it. In real sense, you're making them rich by depositing and you get nothing at the end of the day. It's a lucrative business, the make money from your money, which supposedly, they are keeping them safe.

But when it comes to Deposit boxes, they can't make anything from it other than the payment for the safekeeping of those valuables, of which they prefer taking your money deposits to it. Linking this back to cryptocurrency wealth management and security, I've heard a few stories on banks keeping people's crypto and stuff, well, that's the worst thing ever. Crypto itself is decentralized, non regulated, but when you hand it over to banks, you place your finances back on regulations. It is only normal that people will do this, why? Millions to billions of dollars worth of Cryptocurrencies can't be safe in a software wallet. And when once it's stored on a drive, call it a hardware wallet, it won't be safe laying at home either, so putting it in a safe deposit box seems like the right way to go.

In a way, it seems pretty OK to keep your drives in these safes, but since banks won't be able to make a dime from safe keeping your hardware wallet with billions of dollars worth of Cryptocurrencies, they will make you assume all risks. The risks of these valuables are totally on you, regardless of its stay at the bank. So imagine banks being in possession of your wealth once again? It will be a good avenue for them to font up lies, report your valuables to be missing then pay you compensation for it, of which won't be that much considering the fact that you've assumed all risks of it from the very beginning. It may sound funny, but when once cryptocurrency totally goes haywire, banks will Capitalize on the nation's crypto wealth, it will be a goodbye to Fiat deposits and more people will definitely demand for safe deposit boxes for their crypto wealth, and right there, will be a perfect medium to rob the people once again, well, unless we wise up.

Don't store your valuables in banks, ever!

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2 years ago