Bringing Change to the World of Finance
Banks have existed since the late 1700s and have been the go-to financial institution for generations. But like how they made barter trading obsolete, banks are currently facing what could very well bring their end. Cryptocurrencies, through blockchain technology, are gradually taking control of the world of finance, ushering in the era of decentralization.
With the help of these virtual currencies, the grip that financial institutions and governments have over people’s money is weakening. In fact, people can now directly transact with one another with the only requirement being that they have a working cryptocurrency wallet. Well, while impressive, these are just the beginning. The rest of the revolution is yet to come.
Trading Made for All
There’s no denying that, even today, buying and selling shares isn’t as easy as it should be. To start trading, you need to open a brokerage account, which may require you to provide all sorts of personal information including your address, phone number, income, and net worth. You may also be asked to present other means of identification like your social security number.
Say you don’t have all that’s needed to open an account with a brokerage firm, or you simply don’t trust them enough to willingly give up such information. That means you wouldn’t be able to trade. In other words, you will be locked out of this opportunity regardless if you have the financial capacity and knowledge to take part in it.
In addition, having to do things through a brokerage translates to additional expenses and potential delays. This, of course, leads to reduced profits and missed opportunities. With the help of blockchain technology and its decentralized ledgers, the traders of tomorrow may finally get rid of these middlemen, buying and selling shares with minimal delay and cost.
Hope for Businesses
Blockchain won’t only affect finance in the context of stock trading. It will also transform the global business landscape as entrepreneurs and small corporations will have access to partners that they otherwise won’t be able to reach. Take, for example , businesses in Asia that wish to work with their counterparts in Africa.
Despite the advantages of doing business with one another, these firms used to have no choice but to ignore such opportunities due to the cost of remittance in Africa being among the highest in the world. But now, as digital exchange platforms that make use of both crypto and blockchain are starting to emerge, these companies can at last send and receive payments without the unnecessarily high price and complexity of traditional means.
These platforms likewise make it possible to effortlessly convert bitcoin and altcoins into conventional currencies. In a way, this allows business owners to choose to hold onto their cryptocurrency, only cashing it out once the time is right—meaning they can further increase their gains, assuming of course that they do make the right call.
Many More to Come
As the world becomes more and more familiar with cryptocurrencies and the technology they’re based on, new ways of harnessing their potential will surely be developed. Some may think it too optimistic, but it’s hard not to believe in a future where finance has become decentralized, transparent, seamless, and most importantly, accessible.