All Financial Wisdom

Bitcoin Will Disrupt And TakeOver the Business of Banking

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The record companies could not imagine what they would be like now. They had money, strength, name, brand. They were on radio formulas, on television. They were pushing new talents. Muscle in the pure state.

And we started talking about the Internet. The wolf is coming, Little Red Riding Hood. “Ha, with the almost monopoly position I have. That’s just nonsense. It will be the Internet that will have to adapt to me, not the other way around.” the sector said then.

Then came Napster and MySpace, and came Spotify. Everything turned upside down. No statistics are needed. Think about the last time you bought a disc or turned on the TV to tune in to a music video channel. More likely, you searched for a song on Youtube or Google.

The reality is that more and more often there are more Internet businesses that accept payment in bitcoins. Banks have a problem.

The same happened with the press sector that, ironically, could not read the future. Internet? Who the hell is going to want to read the newspaper on the Internet? And on the mobile? Please do not make me laugh. Paf! Another reality smack with the open hand.

 

Now the sector that is in the peephole is that of the bank. BofA, Chase, BBVA…They say that the bank always wins, but not this time.

The internet is to blame for the talk around Bitcoin (and yes, myself included). Of virtual currency. Of blockchain.

“No one supports that. That’s a pyramid scheme.” detractors say. And when I talk to those who are detractors of the banking system, they tell me the same thing. “The stock market is also a sort of pyramid scheme.” Right.

The key is that Bitcoin, like many other crypto currencies, does not have backing of an official government. The euro, dollar, pound, yuan etc… have central banks backing them as well as regulatory and supervisory bodies that support the currency.

Is there a problem? For those outside the currency environment, yes. For those inside, no. They have accepted the currency. It is backed by them.

Virtual currency attacks at the root where banks hurt the most: in traditional money. If it does not move, it does not fluctuate. If it is not used, it has no value. New generations are growing with virtual currency. And on the Internet you can buy everything with it. For many, the dollar is no longer so necessary.

 

Adoption comes in waves. But as the media business will tell you, nothing can stand in the way of the Internet.

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