Cryptocurrency Vs The traditional banking system

Cryptocurrency & Traditional banking system, two things entirely different but somehow solves the same purpose (one more than the other) in somewhat different ways. A cause for worry for some, a sign of hope for others.

It is true that we live in a world where;

• technology saves the day
• the world as we know is evolving in a fast pace and one of the controversial topics of discussion is Cryptocurrency Vs The traditional banking system.

Is crypto here to push the banking system to extinction? Is crypto evil as they say? Is crypto a bad thing to be involved in? Let’s take a look at this.

Traditional banking system

Origin: According to Wikipedia, The history of banking began with the first prototype banks which were the merchants of the world, who gave grain loans to farmers and traders who carried goods between cities. This was around 2000 BCE in Assyria, India and Sumeria. Later, in ancient Greece and during the Roman Empire, lenders based in temples gave loans, while accepting deposits and performing the change of money. Archaeology from this period in ancient China and India also shows evidence of money lending.

Earliest form of banking:

These are some of the earliest form of banking in some continents(& countries as well)

• Asia: In Asia the temples and palaces were known as places for keeping and storing gold but the people keeping their gold had to pay an exorbitant sum of one sixtieth of the total gold stored and it was also a place for lending and issuing of loans in the form of seed grain for planting with repayment from the harvest. These social agreements were documented in clay tablets, with an agreement on interest accrual.
• India: According to Wikipedia, In ancient India there are evidences of loans from the Vedic period (beginning 1750 BCE). Later during the Maurya dynasty (321 to 185 BCE), an instrument called adesha was in use, which was an order on a banker desiring him to pay the money of the note to a third person, which corresponds to the definition of a bill of exchange as we understand it today.
• China; According to Wikipedia, In ancient China, starting in the Qin Dynasty (221 to 206 BCE), Chinese currency developed with the introduction of standardized coins that allowed easier trade across China, and led to development of letters of credit. These letters were issued by merchants who acted in ways that today we would understand as banks.
• Egypt; Some scholars suggest that the Egyptian grain-banking system became so well-developed that it was comparable to major modern banks, both in terms of its number of branches and employees, and in terms of the total volume of transactions. During the rule of the Greek Ptolemies, the granaries were transformed into a network of banks centered in Alexandria, where the main accounts from all of the Egyptian regional grain-banks were recorded. This became the site of one of the earliest known government central banks, and may have reached its peak with the assistance of Greek bankers.
• Greece:According to Wikipedia rapezitica is the first source documenting banking. The speeches of Demosthenes contain numerous references to the issuing of credit (Millett p. 5). Xenophon is credited to have made the first suggestion of the creation of an organisation known in the modern definition as a joint-stock bank.
• Rome; Roman banking activities were a crucial presence within temples. For instance the minting of coins occurred within temples, during the time of the Empire, public deposits gradually ceased to be held in temples, and instead were held in private depositories.

Disadvantage of this forms of banking

The major disadvantage these earliest forms of banking had was the way and manner people in power/position could take the gold for themselves to their hearts content with no one knowing or stopping them. Although over the years, the traditional banking system has encountered changes with the advancement of technology in banking and finance. It is still evident that the banking sector is a centralized sector this being controlled by few persons, just like what happened in the 2007 - 2008 financial crisis that wrecked a whole lot of people around the world, causing many bank failures, including some of the world’s largest banks, and provoked much debate about bank regulation.

Cryptocurrency

The cryptocurrency was invented in 2008 by an unknown person or group of people using the name Satoshi Nakamoto. The currency began use in 2009 when its implementation was released as open-source software.

The first cryptocurrency made is Bitcoin is a decentralized digital currency, without a central bank or single administrator, that can be sent from user to user on the peer-to-peer bitcoin network without the need for intermediaries. Transactions are verified by network nodes through cryptography and recorded in a public distributed ledger called a blockchain.

Advantages of Cryptocurrency

• Transaction speed
• Transaction costs
• Accessibility
• Security
• Privacy
• Transparency
• Diversification
• Inflation protection

It is without a shadow of doubt that Cryptocurrency is here to stay and it is the new money way, and it has great and somewhat untapped value, As the current war between Ukraine - Russia has shown, Cryptocurrency has been the source of financial aid as the fiat currency is actually not valuable anymore..

So is Cryptocurrency here to stay? Most definitely

Is it evil? It isn’t

Is it controlled by few person? No it isn’t
Is it changing, breaking new grounds in diversification and security of assets? Yes it is

Is it overtaking/Overriding the laws of the traditional banking system? Yes it is

What is the best thing you can do? Read about it and try to be part of this life changing opportunity.

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