Are the banks screwed as crypto embraces day-to-day utilities?
In comparison to the traditional banking system, there are a lot of things that are not done the same way, this ranges from the creation of value down to its distribution. With a fundamental aim to enhance day-to-day trade, lots of comments argue that crypto will end the centralized banking system.
I'd say that when we put it that way, we're wrong because crypto is a different technology, poised to revolutionize all things finance, but there's a higher chance that both systems will co-exist for a while, this is because the banks have far more purpose than being a money custodian. What is really happening is that crypto will create an impact in the currency market, while also changing major company practices with the aid of tokenization.
Putting money in the hands of the centralized banking system has proven not very ideal, many things factor in, centralization of value for that, management cost, transaction cost, and a whole lot more crazy things, this is one of the fields crypto makes a change.
Money needs to be free for it to make sense.
Centralized money never works, this is why we have a crumbling economic structure today. A major driving force stirs from the base building blocks, which happens to be the currency markets.
We get to weigh a lot of things to truly understand what potential free money represents. It all boils down to the trust-based system, this is however one thing the fiat economy is beginning to lose. Fact is, over the years, people had not really been paying attention to these currency markets, lots of things were viewed as a norm and many didn't understand why each year, a currency buying power kept declining, this is where the world began to price things differently.
We're making a major transition with cryptocurrency, developments are in numbers taking space each day, and the "we're still early" sentiments begin to draw closer to not so early era, however, this means more than what people usually picture.
These changes are hugely beneficial even in its days of normality. People tend to believe we're just going to build into an economy of surplus wealth and everything will just come crashing down, this is specifically why we find crypto investors asking what price is expected to be the Bitcoin selling zone on a long-term horizon, a very flawed way to look at things.
But it's not about the highest highs, there's really no logical reason for a straight crash, this is because we're dealing with a free market, individually traded. Most of what happens is fueled by developments, the only way things fade away is if developments seize, this of course isn't happening.
These are specifically the crucial pieces of the money market, something the fiat system specifically lacks. There are no real-time building structures to advance the trust-based system, hence a dying economy where people try to overprice goods and services to earn more to cover the effects of an increased cost of living.
The banking system is definitely screwed in a way that the currency market is their biggest business, take that away and they are all down to small-scale security setups.