First, the rise and greater acceptance of cryptocurrencies do not lean only on the idea of facilitating transactions without a middle party for trust. Indeed, that’s would be a very narrow view of what cryptocurrencies can accomplish today.
There are several issues like security and privacy issues, there is the issue of lowering transaction cost using technology. As well as the risks of assets and their fluctuations and influence by central authorities to discuss, whenever you look keenly at blockchain and cryptocurrencies as a whole and compare them to centralized financial systems.
And today, a quick check with many cryptocurrency projects reveal that we have cryptocurrencies fusing more and more with technology and Internet of Things to break some of the barriers we never thought were possible. So cryptocurrencies today have moved further from the basic issue and argument of “having to eliminate a bank”. Thus, that of “breaking financial and technological barriers”. The debate simply surges!
Retracting a bit, blockchain cryptocurrencies have always relied on banks for their launching and the dependency is far from over. We know that banks will still serve as a central authority to many customers in the crypto world. As well as many blockchain-based technologies for several years from now. But the use of hard money and centralized systems do have their bad side.
Cryptocurrencies rely on decentralized systems where the transactions and information are verified by “an open public ledger,” trustless. But those systems add on more security, privacy, reduce the possibility of hacking in centralized systems. Since it extending technology applications to facilitate trading and information security. Therefore, moving further away from the idea of “replacing banks,” decentralized autonomous systems have brought benefits. Like, the argument is that, in future and due to their many advantages, they will be expected to increasingly serve as a store of value for the digital technology.
There is also the argument that blockchain, rather than creating or eliminating trust, it builds trust from the centralized financial institutions to technology. Trusting technology has its bad side and that can’t be overemphasizing the recent hacks on even the famous cryptocurrencies. The mysterious disappearance of some after their backing by investors and the many told and untold problems with decentralized governance systems.
Those above inconveniences will still make centralized financial systems attractive to many people. The temptation from robust decentralized autonomous cryptocurrency projects and their profits will be too hard to resist. So, while cryptocurrencies might not completely wipe out banks, they will certainly recruit much more people in the future. They have the potential to become mainstream in the financial realms.