People trust banks or other financial institutions to manage and take a hold of their money. For years after years, this has always been the case. But what if people have the opportunity to manage their own money and monitor its ins, outs and flow all on their own time and space? Will they be up to it?
Cryptocurrencies are designed to perform digital exchanges on blockchain technology using strong cryptography and easily verifiable transfers, making financial transactions faster, more secure and without the need for financial institutions
Due, a company that “provides seamless payment solutions for businesses of all sizes”, stated that banks’ main responsibility is to store money and keep it safe. In the days when all currencies were solid, concrete and physical, it was perfect to store money in the bank and make revenue through the interest rate. However, in the world of people using cryptocurrencies, physical banks are not a priority anymore.
Financial institutions also practice monopoly. Since they are centralized, they make the rules that their customers follow. In the decentralized digital currency world, users are able to handle these by themselves. And since they are designed to cut these centralized middlemen, cryptocurrencies also provide a good platform to manage money without excessive and unnecessary fees.
Without the need for physical banks, cryptocurrencies are also accessible almost anytime and anywhere. By using cryptocurrencies, people do not need to be skeptical about trusting a corporate institution to take care of their money for they would be doing it themselves.
But cryptocurrency users hold a great liability. So the big question is, although it provides a great platform for money management, will people be ready to take responsibility on their own?