POSSIBLE FUTURE OF CRYPTOCURRENCIES


With RMB bank announcing it’s withdrawal from services to crypto asset company bank accounts, what’s the contingency should this move by one bank snowball into a move by more. One bank should not be a cause for concern, it should rather serve as an indicator as to how the financial climate may be changing.
Without centralized banks, how can an Exchange, exchange virtual currency for legal tender? If you have say £500,000.00 worth of bitcoin in your wallet, without a centralized bank:

1. How does one withdraw the funds?

2. If the resource that backs the cryptocurrency is actually legal tender, how then will the exchange pay you without access to cash?

3. The £500,000.00 is worthless unless you can trade  peer to peer. Most commercial stores do not accept cryptocurrency as a form of payment due to the risks and volatility involved. Example, There is only one GBP and  one USD however, there are many cryptocurrencies.

Now consider if the government were to mine it’s own version of a cryptocurrency backed by all the mainstream banks and by law which is well within its power to do, add to that a cashless society which is where we are inevitably heading toward given the surge in digital spending.

What happens to the value of all the non centralized cryptocurrencies? 

What is the contingency?

So are cryptocurrencies a trade only option and if so, how long if ever, before the people realize that the Emperor has no clothes?

On the other hand, the industry has shown considerable resilience in the face of strong criticism and doubt with reputable entrepreneurs advocating BTC’s potential to  maximize wealth and with cryptocurrency exchanges ever increasing in number. Who knows what the long term future of cryptocurrencies will be.

Jump on board or be left behind? 




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