Future of the Crypto-banking: what are the pros and cons?
The sonorous word about the crypto has been buzzling our ears for a couple of years now!
Nowadays, every tech-savvy user is cognizant of it; some use crypto in a business, while other prefer to engage in a long-time investment scheme.
The era, where crypto technologies have been poorly maintained and only available for a specific circle of people, has come to an end. More and more of large corporations are willing to develop and contribute into the steady growing market of cryptocurrencies, and their respective fields of work.
The latest (and on our opinion, the most interesting) development in the mentioned sphere is the crypto-banking industry. Skilled and talented developers, as well as masterful finance specialists seem to have flooded exchange and trade markets, bringing innovations, and turning routinely tasks into simplicity.
While ordinary bank may lack a handful of features, with which crypto-bank was equipped for months now, some traits may be inaccessible due to crypto limitations, when using the latter. Here, we would like to analyze and share some of our thoughts regarding the advantages and disadvantages of a crypto-banking — compared to a regular fiat banking.
Commissions and Speed
The most notable advantage, that makes up for utilization of crypto in banking systems, is the staggering low commission for a transaction and an all-time fastest transfer speeds, which both are highly beneficial to the finance market. This also means that a merchant or a virtual seller don’t have to charge you with an overpriced fee, when there’s a payment on due, ergo, lower prices, and minimal confusion.
Almost every banks practices a “currency exchange” fee, which, by example of PayPal, could reach to as high as 4.5% That’s at least 45 USD out of 1000 USD transfer! Crypto-banking on the other hand, gives you an opportunity to exchange between various cryptos with a commission as low as 0.1%, and conduct rapid peer-to-peer transfers for as low as 0.5%
Speed, with which your money will be transferred to point B depends heavily on what payment system you use. With VISA or MasterCard — it is generally 70 to 90 seconds, with specific transfer systems, count 40 seconds less. With cryptocurrency, however, that time decreases to a stunning 3 seconds, (utilizing the Ripple crypto) which can be quite crucial, when it comes to safe high-level money transfers, that must be held with a rapid transaction.
Dependencies and Withdrawal
Crypto, as a unit, stands for being independent from archaic and obsolete centralized economy, taking and letting the end-user to control every aspect of it’s structure. No strings could be pulled, in order to trap you in a pitfall of strange conditions. In short, your money would be more secure from outward risk and impact, if they were invested in crypto.
Withdrawal is also a major leap towards future, charging you as low as 0.01% for no matter how big the amount of money is (which is unarguably the best part about adopting crypto).
Nowadays, large bank ventures charge a small fee whenever you withdraw cash from an ATM or a terminal. They also try to charge you, when you purchase pre-taxed goods from a supermarket, or a tech-store, which leads to unnecessary expenses.
Payment abilities and Practical use
Despite the steady growth and development of crypto culture, it will never exceed or even approach the capitalization and widespread of fiat currencies: at least not in the near future of 3 — 5 years. That being said, not plenty of operations could be dealt with it, apart from crypto-exchange and high-level bank payments. The technology of crypto currency is still, a relatively fresh and unexplored topic for many to easily adopt and use.
Same applies to a crypto-bank, which may have undeniable advantages, still would be a low efficient solution for a consumer. It can drastically increase profits and productivity of a crypto-trader, or just a person, who finds themselves purchasing products from fields, where crypto is a must.
(On our opinion, this disadvantage could only be applied to consumer market, where people buy and sell products in fiat-only environment)
Customer Assistance, and Direct Cash Withdrawal
Large and Powerful Banking chains, for example, Morgan&Stout, Bank of America, Deutsche Bank, have proven themselves being a loyal and trustworthy financial units, with galore of ways to help and assist the clientele, and plenty of perks for existing cardholders.
For a crypto-bank, things may not turn that way around, as it is clear, that those types of banks are based and operated exclusively on the Internet. No face-to-face support, no comfortable lounge-zone, no water coolers. You would, certainly, have a fast and elegant app for your smart-device, that should help you arrange any type of included crypto-operation with ease, but it would not be a perfect choice for senior or challenged customers, who require special help from a person.
Direct ATM Cash withdrawal, however, should be in a working shape in the near future, as there have been conducted heavy research, as well as signing of important contracts between global payment systems. But for today, it works only with the high-commissioned and inefficient fashion, which can’t be comfortable utilized for everyday life.
So far, we have come to conclusion, that crypto-banking is an essential part of worldwide financial revolution, that is going in front of us. Giving the overall crypto-market some 3 to 5 years, we would certainly see it flourish, and make its way to every corner of advanced humankind.