Cryptocurrency vs Traditional Banking

What is a Traditional Bank?

Traditional banking is used to describe banks with a local banking license and a physical location.

Main drawbacks of the Traditional Bank?

• Banks charge additional fees and taxes when there are transactions. For instance, during international remittances, the sending and receiving banks typically impose very high transaction fees and taxes. These transactions also take a long time because of slow protocols, especially when dealing with large amounts of cash.

• Financial services and bank transactions are subject to biases because they rely on account numbers and names. The financial service issuing officer may purposefully stall the transactions in the event of a dispute with the representatives of a particular bank.

• Many mobile banking apps can be compromised by skilled technicians. Some people consequently lose sizable sums of money from their accounts. The systems are also vulnerable to fraud and financial theft. Loss of hard-earned money could result from these occurrences.

vs

Cryptocurrency

A type of digital currency where records are kept and transactions are verified by a decentralized system using cryptography as opposed to a central authority.

The Benefits of Cryptocurrencies Over Traditional Banking Systems

• In contrast to banks, cryptocurrencies are totally independent of outside influences. Due to the decentralized nature, there are fewer human interactions and therefore no biases. They are more dependable and secure because transactions involve anonymous ID numbers, making it difficult to tamper with them.

• Cryptocurrencies, unlike banks, use automated systems that don't necessitate a lot of human interaction. Consequently, they are available at any time of day, including on weekends and holidays.

• Additionally, smart contracts can function within the blockchain networks of cryptocurrencies. These smart contracts are made to transmit commands to computers and process them with a minimum of human involvement.

References

https://www.entrepreneur.com/article/399503#:~:text=Cryptocurrencies%20are%20completely%20free%20of,anonymous%20ID%20numbers%20in%20transactions.