Cryptocurrency a threat to traditional banking?
Blockchain organisation Ethereum have recently announced one of the first cryptocurrency debit cards. Banking institutions have begun to recognise the game-changing significance of cryptocurrencies and have stated their concern over it.
In 2018 the Bank of America commented that they consider this form of transaction “speculative” and “risky“. However, they also predict that “substantial expenditures” would have to be made in order to adapt financial systems in the wake of blockchain’s emergence into the mainstream.
At the start of 2018, there was a significant dive in the cryptocurrency market. Even blockchain-focused financial publication CryptoCompare considered this as a sign of unpredictable volatility This volatility threatened to undermine blockchain’s viability. However, the values of affected crypto coins have begun to steadily rise in a series of “bull runs” that have created renewed interest in digital coins.
Etheruem Live Chart
Bullish Sentiment
Each week, sites such as Crypto Daily with a vested interest in the success of crypto have predicted the prices of the top 10 cryptocurrencies to rise by significant percentages. The fall in market value of early 2018 has actually given the market a renewed interest in investment. Independent investors are buying heavily into cheaper coins in anticipation of price hikes not seen on the traditional stock markets.
The Bank of America refuses to embrace this new form of currency and has banned approximately 17,000 financial advisers from investing in cryptocurrency.
Their reluctance to embrace blockchain technology is understandable. The market is clearly volatile. The very system eliminates customer need for third-party intermediaries which banking institutions provide.
It remains to be seen if this new, unpredictable financial system can become a mainstream threat to stable banking corporations. In the meantime, smaller investors are taking advantage of the series of bull runs by buying cryptocurrency stock while it remains low in value. It remains to be seen if these investments will see a profit.
Speculation is high as to which coin (if any) will soon dramatically rise in value. Crypto Daily have made educated predictions, but this advice is not safe enough to rely upon. From the broad rise in coin values, it appears that investors are spreading their capital across multiple blockchain wallet systems.