Hi hivers, if you are looking for the information regarding "Finance and Crypto: Complementary or Competitors?" then you have landed in the right place. Since bitcoin was launched, and after the rise of bitcoin, we are seeing that crypto and traditional finance are against each other. When it comes to regulation, and people are most trusting towards it, it is traditional finance, and when it comes to security, transparency, and decentralization, then it is crypto. Now the question is whether they are competitors or will work together in the future?
Trillions of dollars are connected and managed in traditional finance because there are stock markets, banks, and financial institutions. These things represent stability and structure, and they are very old, so people blindly believe in traditional finance. The only reasons behind this blind trust are insurance protections, regulation, banks that are supported by the government, and consistency in services. But there are many problems with this system, and it needs to be updated because the system seems old and expired. There is a problem with borderless transactions because that is also slow for people who are living in remote areas and not connected with the bank, and unbanked, because they can't access the bank services, not only this there are high fees.
Out of frustration with the limitations of traditional finance and also the recession, crypto was born, which is why people see crypto and traditional finance as rivals. Crypto has big weapons like decentralization, quick cross-border payment anywhere in the world, transparency, and accessibility because you just need an internet connection and a smartphone to access it. However, there is a regulation issue due to the decentralized nature and also volatility, because this market is still new so volatility will happen.
Now the question is whether competition is needed? I think there is no competition because crypto is the future of finance, and the current finance system is outdated. I think there should be a way so that both systems can work together, that is why central banks launched CBDC, but wait, can you read the name? It's central means centralization, so how can we imagine crypto or blockchain without decentralization? CBDC is not like cryptocurrency; I don't think it gives the same benefit as crypto does.
So this is the information that you need to understand. Do you have something to say about it? If yes, then you can now i am signing off.
MESSAGE ME ON telegram(@faiz19711)
Posted Using INLEO
In a way, I think they can actually complement each other and not compete. Cryptocurrency also need a bit of regulation to scale and reach more adoption.
Yes, I know crypto is decentralised but at the same time look at Binance one of the biggest exchange out there with KYC and all. We have coinbase and others too doing fine. I know we have Dexes but do they actually pull the volume of this Centralised exchanges, who do people trust more Dexes or Cexes.
A bit of overseeing is needed for cryptocurrency so that the average individual can relaxingly buy Hive or Bitcoin and stay calm that there won't be a bad player that disappears with the fund and claim hack or something.
yes that can be good. bit of regulation can be good idea. now let's see what happens in future
They are different approach to finance, competitors not really now as you can't do exact the same things with both, probably more complementary as of today
Agree david :)
They are complementary, but as long as they understand that both are necessary to a certain extent. Well, in places where cryptocurrencies are accepted as a form of payment, there is not much to do but adapt to new technologies and the future.
yes there is only way and that is just accept the technology
Congratulations @faiz1971! You have completed the following achievement on the Hive blockchain And have been rewarded with New badge(s)
Your next target is to reach 19000 upvotes.
You can view your badges on your board and compare yourself to others in the Ranking
If you no longer want to receive notifications, reply to this comment with the word
STOP