Cryptocurrency Vs The traditional banking system

  • 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.

Traditional banking system

Earliest form of banking:

  • 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

Cryptocurrency

Advantages of Cryptocurrency

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

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Andalynne

Andalynne

Avid reader, Blockchain Enthusiast, Content Creator, NFTs collection writer, Ambassador of God's Grace and Love..

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