The blockchain is becoming more and more popular. It has become a double-edged sword to the bank. On the side, its power is the ability to save billions of dollars in cash by reducing transaction costs and paperwork costs. On the other hand, blockchain can remove the third party in the transactions. Banks will never accept that. There are many people who still believe that making banking transactions is safer than blockchain because of the blockchain anonymous ability. So which one brings more benefits to the community? Take the freelance market as an example. Blockchain or Traditional bank?
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5 Answers
Maybe my answer can help you especially involving the blockchain technology and working freelance. I wrote a answer about the use of blockchain technology for freelance work and how this could help for avoid internet scams using multi-signature wallet or maybe some crypto a good smart contrack: Escrow System Alternatives or a Smart Contract For Working Secure. but I think few people understand my question and also my answer.
I am trying to use cryptos as payment method working freelance but nobody have it. Mostly clients use paypal, paypal take my commision, and I lose money exchange paypal to my local currency is the worst payment method. so 30$ of work become in 25$ in my country.
I never had a International account, Mastercard, Visa, Bank of America or any international bank account ( neither my fathers ) because my country and the banks demand too many requirements. Here only people with "real" jobs can have a Mastercard or international bank accounts not informal jobs neither freelance jobs that's the bank's requirement. I had to paid a Virtual Credit Card for finally can use paypal without paypal block my money I have this problem since years, only with cryptos I can save funds of inflations and move my money through internet.
I want to this technology arrives fast to the freelance market. I would like that my clients pay me with cryptos, low commissions and if is using a smart contract or invoices generated by the blockchain is better.
I still believe that the banking system is safe and I will continue to use it. In general, most bank users rarely lose money. While blockchain sounds more effective for transactions as it can reduce costs and transaction time, there are still many hackers trying to challenge themselves by attacking the money stored on the blockchain platform. Besides, anonymous functions provide opportunities for scams. If they can combine both, it will definitely bring about unexpected results. I know that's not an easy thing to do.
If we are talking about community benefits, I believe that crypto in blockchain is better than the bank. I frequently use internet transactions and it cost me a lot of money and I need advanced technology to help save more money and time. Blockchain won’t kill banks, because it is a technology that anyone can use and integrate into the product for advantage.
This question assumes that the banks are independent actors. In most countries, banks are private institutions that act as agents for the government in helping to manage the money supply and flow. For this reason, the government stands behind the currency and props up the banking system.
So, your question is really "which is better, a government backed system or one that allows value to be transferred apart from government control?"
The answer really depends on how trustworthy is the government. I have seen rumors that much of the rise in crypto currency prices has been due to people trying to move wealth out of certain countries where people didn't trust their government. Likewise, certain governments are clamping down hard on people using crypto currencies in order to control the money.
Crypto currencies have the potential to reduce the transaction costs. There are numerous efforts to bring block chain technologies into the banking system for that very reason. A block chain currency backed by the banking system might bring the best of both worlds.
In my opinion, your question is too early as we don't have the stability we need nor full integration of crypto into our financial system. It is coming, but it isn't here yet.
Blockchain is better for everyone when it works, except banks. When it doesn't work it's a nightmare.
In terms of international payments blockchain has serious drawbacks depending where you are located. Most of these are caused by banks and governments.
