Episode Highlights:

  • 00:02 – Advice You Receive From This Video
  • 00:11 – With The Banks Eventually Disappear With This Crypto Currency Boom
  • 00:34 – Traditional Ways Of Lending Money
  • 01:07 – Using Crypto Currency Platform To Lend Money
  • 01:54 – Can Crypto Currency Displace Banks
  • 02:12 – Various Banks Views On Bitcoin
  • 04:18 – What Would It Take For Bitcoin To Replace Banks
  • 06:18 – Can Bitcoin Replace Banks In The Long-Term
  • 07:42 – What Is Happening Currently In The Retail Space And Banks
  • 09:16 – The Effect Of Bitcoin On Money Transfer

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Hey guys what’s up, it’s Dan from Crypto Camacho.

00:02 – Advice You Receive From This Video

Today I want to talk about something quite interesting to me, it’s about banks. It’s about banks and Bitcoin, banks and crypto currencies.

00:11 – With The Banks Eventually Disappear With This Crypto Currency Boom

Do you guys think that banks will eventually disappear? Do you think that they will go away eventually? With this crypto currency boom, how long do you think banks will stick around? I have thought about this topic quite a bit and I have read about this topic quite a bit. And the straight and said that I have for you is that I don’t think that banks are immediately going to go away. However, I do think that banks are going to fundamentally transform the way that they operate today.

00:34 – Traditional Ways Of Lending Money

Traditionally banks have been institutions of lending money, lending monetary or fiat currencies to different people throughout the ages and this goes back hundreds if not thousands of years with different types of money being used to transact between different people in different types of societies. Today is no different, we use dollars, we use yen and rubles, whatever the currency may be. We use fiat currencies to trade and exchange of goods, to exchange values between countries, between individuals and so forth.

01:07 – Using Crypto Currency Platform To Lend Money

WhatBitcoin and other crypto currencies are doing now, they are replacing those traditional fiat currencies that are really backed by nothing, they are replacing those with a much more secure way not only to store money or store value but actually exchange value in a highly digitized world like we are in today. We are no longer in the days of barter where we have to trade shells to get bread or we have to trade wheat to get metals or whatnot. We have money and we could exchange money for whatever goods and services we want. And so Bitcoin is really kind of turning this monetary system on its head. I mean, everywhere you look Bitcoin is popping up and is kinda creeping into the edges of the monetary system kinda wherever you look.

01:54 – Can Crypto Currency Displace Banks

But what would it really take to displace banks, to actually replace banks and actually cause banks to disappear over time? I think it is a very intriguing idea and I think in the long term banks very well may disappear but I don’t think that is good to happen for anytime coming in the near term. I’d love to know your thoughts in this, but just take a look at this.

02:12 – Various Banks Views On Bitcoin

Let’s think about this now. Recently Jamie Diamond from Chase, J.P. Morgan Chase bank, he said that Bitcoin was a fraud. This is maybe a month ago. Now, he has since backtracked on that. He is saying people are stupid to invest in Bitcoin and so forth and so on. But now, his own company J.P. Morgan Chase is actually starting to get into. There are a set of banks today that are far crypto currencies and then there is a set of banks that are essentially against are opposed to crypto currency. And that J.P. Morgan Chase is one of those that has been traditionally opposed to Bitcoin but now they are coming around and starting to become more for Bitcoin. USB bank is another bank that is for bitcoin. Fidelity, another bank that is heavily starting to invest in Bitcoin and block chain technology. But then there are other banks, the Bank of China, Russian banks and so forth initially said that they would back crypto currencies and now they’re saying they won’t. Now they’re flipping again saying that they might embrace crypto currencies as long as they make their own crypto currency.

So I think banks are really at the point where they just frankly don’t know what to do. They do not know how to handle Bitcoin, they do not know how to handle crypto currencies because they can see the writing on the wall. They can see the threat of Bitcoin and other crypto currencies to the monetary system as a whole. Although they see this as a threat because eventually Bitcoin can replace these fiat currencies and it is actually starting to displace that now. If you look at the crypto currency ban in China, how they ban the exchanges, they banned ICOs; is because they’re worried. It’s because they are worried that there would be a significant financial impact on their monetary system and they don’t want it to disrupt the current world order. The current financial order of their country, of their society.

Banks in the US are starting to wake up to this as well. Russian banks are we can up to this as well. So clearly, banks are worried about crypto currency, about a Bitcoin and the effect on the impact that it is having on mainstream society and the mainstream financial institutions.

04:18 – What Would It Take For Bitcoin To Replace Banks

But now let’s take a minute and think about what would it really take for Bitcoin to really replace or displace, disrupt banks. Currently in the US alone there is a $16.9 trillion economic system in place. This includes everything that the Fed does, this includes everything that the financial sector does. Think of all the folks on Wall Street, think of the stock exchange, NASDAQ and so forth. Think of all the financial services that the US does and other countries. It’s a behemoth. It’s a beast. The financial system is enormous. And for bit kinda displaced the monetary system and make a banks disappear, it would essentially have to replace everything that the traditional financial system is doing today. Everything that banks do, everything that hedge funds do, everything that investment bankers do, everything that all the financial services sector does, all the mortgage industry, all these pieces are part of the financial sector. Don’t be fooled, this stuff is starting to develop in crypto world, crypto land, in the land of Bitcoin; this stuff is starting to develop. I’ve seen ICOs for real estate to allow people in countries like Ukraine and South America are remote parts of Africa to start buying and selling real estate based on block chain technology. So this stuff is happening now. We’re seeing our evolution in the social media space with Steem It for example, platforms coming up and being built to compensate people for their value that they provide to the community, for providing content, for creating videos, for creating different forms of value for people. There are now getting paid back directly by users that consume their content, so that is kind of being displaced as well.

Bitcoin is starting to impact the investment world, hedge funds, investment bankers, people are starting to take notice that Bitcoin’s price now, is just at about $6000. I think it is about $5700 at the time of this recording but it is starting to happen.

06:18 – Can Bitcoin Replace Banks In The Long-Term

Canbitcoin replace banks in the long-term? In the long run I think that yes it can ultimately replace banks but I don’t think banks are going to go away completely. I don’t think they’re going to disappear completely. I think what would happen is that banks will either adopt and latch on to block chain technology and incorporated into their current operations, their current systems and processes that they have in place, they will essentially bring block chain into the overall architecture of their system, of their banks and they would incorporate it into that system to where they would make that system much more efficient. I don’t think that banks are going to go away but that means banks are going to become more efficient, they’re going to become more profitable, they’re going to become quicker, they’re going to become easier to manage. It’s going to require less people to manage a bank. The brick-and-mortar stores, though is I think likely will go away in the future. That’s already kinda happening now where most millennial’s and most people are doing everything strictly on online banking. They don’t ever going to a banking institution like a Wells Fargo or Chase or whatnot. I think brick-and-mortars will definitely go away. Like full out they will go away. Maybe there will be a kiosk here and there and something like that or professional services bank where you can go. But I think fundamentally banks will change. I think fundamentally banks are going to transform and they would need to adopt block chain technology and other crypto currency technologies that come out or they will die.

07:42 – What Is Happening Currently In The Retail Space And Banks

Look at what is happening to retail space? I remember good guys, I remember Circuit City, even Toys “R” Us is going out of business. All the records, teller records, amoeba records; all of these different type of retail brick-and-mortar stores are going away. They’re disappearing. They’re essentially going out of business because online retailers are disrupting them. Online and digital technologies are overtaking these retailers. And really, if these retailers don’t adopt these new technologies and jump on the bandwagon, they’re essentially going to go away. And that’s why we’re seeing Amazon rises so high, that’s why we’re seeing companies like that, like jet.com, like Amazon.com really become the kingpins of online or retail transactions nowadays and they’re putting everybody is out of business.

With the exception of maybe Walmart, and even Walmart is very much putting a lot of money and a lot of their eggs in the online space because everything is shifting. I think the same things that happen in the financial world with a block chain and with other crypto currency technologies. Banks will need to get on board, they would need to jump on the bandwagon or they will go out of business, they will cease to exist and they will disappear. Does that mean that banks are going to go away entirely? No. I think they’re going to be some smart banks, not Jamie diamond from Chase; that guy is a complete idiot, look at what he has written about Bitcoin and it being a fraud. You see what I mean. But no, I don’t think that banks are going to go away completely. I think some banks are going to go away, banks that don’t adopt a block chain, banks that don’t adopt a Bitcoin, banks that do not see the future potential in this technology will wither and they will die.

09:16 – The Effect Of Bitcoin On Money Transfer

so I am bullish on banks remaining forever but I am also making a prediction that banks are going to fundamentally transform, completely from the ground up there going to transform the way they service customers, the way they keep track of their books and their ledgers, the way they transmit or transfer money across systems, across country to individual people. Look at Ripple, look at Monaro, these are ways to transfer very very small amounts of money incrementally to people anywhere in the world within mere seconds is a transaction. And the backbones of these companies are being built now and I think there’s a huge amount of potential for these companies to replace typical wires. When you wire something from a Western Union, you wire a transaction it will cost you maybe about $30 or $40. Monaro, Ripple, even bitcoin I doing these things for fractions on the dollar, pennies on the dollar and so it will cost you a few cents are a few dollars to transfer large amounts of money versus a large amount of money. So I think the potential is very great there. I’d be very very interested to see what your take is on this and how using that Bitcoin or other crypto currencies are going to disrupt, displays are eventually replace all banking and all banks entirely.

Do you think that banks are going to disappear? Do you think that banks are going to remain around forever, in the short term, medium term, they long-term? What do you think is what happened to banks? What do you think is going to happen to these financial institutions that really run all world today? They run all world, they run our businesses. I think that this stuff is all very much temporary and I think that things are going to dramatically change in the next decade. Dramatically he went to see a big change on the banks. Let me know if you agree with this or disagree with this. I’d love your thoughts, it’s a big topic, a lot of room for exploration. I want to know what you think because where there is chaos, where there is disruption, there is huge huge opportunities. And I think in this world of crypto currencies we’ve never ever seen a bigger opportunity then we see now. Do the 90s, the late 90s when the Internet boom was in full flight, huge enormous opportunity. The mortgage opportunity are the real estate opportunity in the early 2000’s and mid-2000’s, huge opportunity. Crypto currencies is no different, although the opportunities probably tenfold what it has been for the traditional real estate markets are the Internet boom. It is massive. I think just literally yesterday, I was looking, the market cap for Bitcoin alone is bigger than Goldman Sachs, one of the biggest financial institutions in the world. Bitcoin is bigger than that already and mass adoption hasn’t even happened yet. When mass adoption happens, things are going to really take off, bitcoin is going to surge and it is going to fly the sky. If you guys haven’t got your first Bitcoins, I highly recommend you do. One of the easiest places to start is on coin base. I want talk about that here because I already made a tutorial about that. I will put it in the show notes if you’re interested in seeing it.

Anyway let me know your thoughts about banks disappearing. I really really want to know what you think. Otherwise, I hope you enjoy this video. Hopefully it was interesting to you. Until next time, I am Dan from Crypto Camacho, visit me at cryptocamacho.com for more and see this full post on Steem It. I will talk to you guys later and I hope you enjoyed it.