There is no doubt that bitcoins will completely revolutionize the functioning of banks and therefore, people at the center of the economic and financial systems are worried about the changes that are happening around the world. Wall Street finds that bankers are attracted towards blockchain, but not bitcoins. Even though they do not know more about blockchain technology, they are interested in it. A lot of bankers love to adopt blockchain but hate bitcoin.
Many financial brokers and bankers were reluctant towards bitcoin in the initial stages. But many of them found the potential in this cryptocurrency and understood that they are going to be a game-changer in the financial market. Blockchain is completely incomplete without mentioning bitcoin with it.
Bitcoin is different for different people. While some people consider it as a digital currency, it is software for others. Several people consider bitcoins as a software program that helps people to transfer money securely over the internet without any intermediaries in between, like banks. Thus bitcoins will be replacing the traditional banks through a network of computers that has the software to verify and transfer money. The computers used are called miners and have a global ledger that stores transactions to verify, validate, and transfer money.
The main advantage of bitcoin, the global ledger where transactions are stored, is out of the control of third parties like banks and all transactions will be shared to all the computers connected to the network of Bitcoins. Thus there won’t be any financial giants to control the transaction system. Bitcoin controls the users who make use of the financial systems.
Even though many people will struggle to accept that bitcoins will change the traditional money transfer systems, it is true. Bitcoin is the most crucial innovation that will be recorded in the history of finance. Bitcoin will become the tool for anyone who needs software to revolutionize the way how traditional financial systems are working.
The reason why banks are interested in blockchain is that they can run the technology on their computers as software and control the transactions. But the matter with bitcoin is quite different. They are a big competition for the traditional banks as anyone who has a computer with a stable internet connection can carry out transactions without the interference of any brokers or banks.
If there is no bitcoin, it is useless for people to spend on computers that would use blockchain technology for transactions. Using blockchain technology without bitcoin will bring the same effect as that of traditional financial systems. Therefore, blockchains won’t be able to move to the next level with bitcoins.
Banks want to use blockchain in a way that allows them to maintain their central power. But they must understand that the technology is advancing at great speed that would disrupt their functioning. Blockchain along with bitcoins is building an independent self–sustaining financial system that is never seen before. It will redistribute money with the help of free markets.