Thomas C. Gaidukov

Cryptocurrency and the Incompatibility with the Current Banking System (eBook, ePUB)

• Format: ePub

Produktbeschreibung

A Reality Check

Cryptocurrencies are a threat to the banks, governments and lenders. "Why?" You ask. "Didn't the crash of 2007 teach us that banks were Too Big To Fall (TBTF)?" Everyone knows the answer. Cryptocurrencies are a threat that can destabilise and bring down the entire financial system. Cryptocurrencies bypass banks, governments and lenders to provide a decentralised and unregulated 'unbank' ecosystem.

Cryptocurrencies can't be frozen by a bank, which means they can't be artificially limited. And when you try to remove money on an exchange you will find it gone because cryptocurrency transactions don't require third-party checks.

But how do cryptocurrencies fit into our existing banking system? Cryptocurrency is not a financial instrument, so it doesn't fit in with traditional banking systems for matching funds with borrowers, or for intermediaries like brokers or dealers in securities. Cryptocurrency offers solutions to all of these issues.

Cryptocurrencies are a threat to the banks because they don't fit in with their existing model. Banks monitor and store data on all our activity, but they can't spy on our transactions because cryptocurrency transactions don't go through third-party financial services.

Who sets exchange rates? The government through the Central Bank.

Cryptocurrencies don't need financial institutions or hard money like precious metals, so they bypass the established model of how interest rates are set and how prices are set. But cryptocurrencies don't have that vulnerability. To understand how incompatible cryptocurrencies and fiat currencies are, we'll first need to understand what money is and how the governments print it out of thin air.

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Produktdetails

• Verlag: Thomas Corlett Gaidukov
• Erscheinungstermin: 1. August 2021
• Englisch
• ISBN-13: 9798201420178
• Artikelnr.: 62376634