Hello,welcoming all here in this community, discussing about crypto journey,blockchain,decentralization, web3 technology, and the exchanges on the system of digital tranfer.Quite exactly, I grew up learning a lot about it in the recent years.Being a beginner,I was quite amazed to know about the process of decentralization and how it works to make all the electronic transfers with safety and proper security.
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Today,I would want to discuss about some important and more genuine and real life events of monetary exchange and finance mechanism, one which is governed by the state bank and other that has no fixed central control,that we call as decentralization. I am no economist, but with my little knowledge want to have a discussion about it.
Core Difference Of Banks & Digital Wallet.
Now, each one of us wants to have our own banks to be opened and in the branch near our house where we live.Having a fixed deposit account is a privilege and only when we need some extra money to be spent in a project,then we feel the tendency of availing the money.
Now most of the banks we go offer us 2-3% of interest with the stock amount of 4000-5000 $ in the account. Now,if that much can be paid annually by the bank, then a question would be asked that, what actually the banks get in offer when they do make sure that clients pocket get filled.
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The system is quite easy on the process of loan and making some selective requisitions.Loans help the enterprises to grow,businesses to initiate or expand,making assets to help solve anybody’s cause more genuinely. Just in exchange of the small help, banks receive pay rise with credit and add the reciprocal profit to the revenue of the bank.Thats how the bank owners start to become multi -Millionaires within years!
But, what about the system of decentralization? Since there is no such leadersome authority to ger hold of the mainstream profit,it more of becomes like, players game.Exactly,all the players manipulate the game of monetizations, wihout having any referee to check or control, regulate or govern.I think,the idea got cleared.
What If Banks Start To Get Bankrupted ?
Now, its not new to see that,even by having a lot of security measures, some of the banks lost most of their money by falling in the hands of profit mongers and cheaters who evaded technically to pay back the debt to the bank.We all saw how can income taxes be taken care of and got hold of with ready corruption.
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Thats not the whole picture, even in some cases: banks money get stolen and robbed of by gangsters. If banks start to lose money or fail to provide back the promise they made to the clients, then people will start throwing brick to them and thus the banks will rapidly lose the peoples choice award and it would be given to a smart system "decentralization".
Your money is yours and all the financial freedom is in your hand, upto your choice how to expand the assets and what strategy would be followed to the cause of investments planning.In one side bank cannot protect your money, nor it can give you complete freedom on the exchanges and transfers at a time. So,why should people stick to the old concept of banking and solid storing of money?
Let me give you one example.When a brand new Iphone get available in the market, do you put aside the latest version and buy the old one? If no,then why sticking with banks where less freedom and less profit with less security attached with.You would demand a complete freedom for yourself, just like people want to be independent and free--- both politically and financially.
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The Next Gen Of Decentralization.
Now as blockchains getting more popularity day by day,it is obvious that the trend would be shifted some day.If top tech engineers like Elon Musk can invest billion dollar amount into the system of crypto and can increase the neat fluid value of bitcoin, altcoin and other crypto tokens,then that much can be anticipated that, tomorrow would bring more brighter prospect of crypto.
Looking at the peoples lives getting changed with the crypto assets, unemployed people who are getting in a new hope,investors finding new solutions to keep their money safe and in a projected line of growth, then its pretty sure that more change would be there.
Technology brings positive growth of life and considering the blockchain as the sophisticated version of monetary exchanges, then its quite understandable that the game would be on and woth added participation and engagement in it.Standing on the infancy of it, that crypto and blockchain go a long way in the future.
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Sometimes bank got bankrupt because of too much loan without paying back fast can course bankrupt to bank.
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Yeah,thats a normal nature of todays banks. Thats why these times, people seem to rely less to it.
Loan was one of the vital causes that made some of the influencial banks go bankrupt.
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That's true
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