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Bitcoin Block chain Technology-A Banking Revolution

BitcoinBitcoin is a relatively new concept, which has taken the financial markets by storm. To start with the concept, Bitcoin is a new kind of money, providing an alternative mode of payment as opposed to paper currency. The idea entails the use of innovative digital currency as a medium of exchange between the buyer and the seller. Bitcoins are the digital coins that can be traded through the internet.
Blockchain appears to be the most pronounced innovation of Bitcoin. Being a public ledger of its kind, it helps in validating all the transactions that took place over the network. Statistics have shown an increase in the use of Bitcoin through the blockchain technology as a preferred medium of exchange for many products and services.
After having discussed the concept of bitcoin technology, it is left to be seen that how this new digital currency fares well at the foreign exchanges, an important financial institution in any economy. The forex traders view bitcoin as a speculative investment for the individuals that want a guard against the uncertainties and weaknesses of the global fiat currencies. The foreign exchange traders consider bitcoin as digital floating exchange pegged to US dollar; however, no physical asset is available on which to set the price. The use of bitcoin in foreign exchange market presents unique challenges and opportunities to the foreign exchange traders. It is because of this reason that many of the forex traders have introduced bitcoin trading as part of the available Forex services. The development of the bitcoin trading turning out to be a multi billion industry, allows the sale and purchase of this digital currency across various exchanges. Thus, forex traders see a lot of growth potential in this first decentralized digital currency.
The Bitcoin blockchain technology, after being enormously battered up by the financial institutions, since its inception in 2009, has surely come a long way. Specifically, the invention of blockchain technology, in wake of Bitcoins, has not only been successful in attracting the attention of the banking industry, but, the industry seems to be fascinated by the concept. A deep digging into the concept altered the view of many of the financial analysts and economists, who started to see Bitcoin blockchain technology as an alternative transactional option, rather than a threat to the conventional banking system. It is because of this reason that banks view bitcoin blockchain technology having the potential of being the new shared payment and transfer system, using existing currencies and securities. In wake of years of research, the financial researchers have listed some of the top-notch reasons dictating how bitcoin blockchain technology will revolutionize banking system.
Banks maintain a record of all transactions in a central authority to establish ownership and clear transactions. Bitcoins, on the other hand, uses blockchain technology that works through distributed ledger technology, abolishing the need for any such central authority. Hence, the use of bitcoin blockchain technology by the banking sector eliminates the prerequisite of keeping such central records, requiring added time and resources.
Another important factor that can bring substantial revolutionary changes is in the area of payment transfers across national borders. The international money transfer system is characterized with slack movements and costing heavy financial resources. Thereof, the use of bitcoin blockchain technology allows for the faster execution phenomenon, along with bringing considerable cost cuts for the banks and users.
According to a Paper for Fintech 2.0, the use of blockchain technology will help revolutionizing the banking sector, as it aids in minimizing the infrastructural costs of a bank up to $ 15 to 20 billion, by the end of 2020, in lieu of international transfers, securities trading and regulatory compliance.
The use of blockchain technology by the banks to make large business to business transfers can help in lowering cost and the use of decentralized transaction based systems eliminate the presence of any errors in traditional banking environment.
Lastly, since the financial customers, all over the globe, are more and more prone towards adopting e commerce and fast and secure electronic payment alternatives, the use of blockchain leads to further inroads into the bank’s dominance, thus revolutionizing the industry by large margins.
Bitcoin blockchain technology faces a lot of challenges, in lieu of its complete adoption by the institutions; however, the unconditional interest in the concept will soon revolutionize the financial ambiance of the world around us.

About Emaad Qureshi