ARE BANKS OUR FRIENDS OR NOT?

FRIEND, NOT FRIEND …

The digitalization of the world that we are living in has been going on for some time. That’s a fact. There is one segment that has been doing nothing to catch up.

There is one segment that seems to have been left behind in this process: Finance. The ”Why?” is the most exciting question. The answer is upsetting: The bank sector is hindering progress on purpose because it is not in their interest to lose their commissions, it is not in their interest that transactions take place directly between two parties as a result of digitalization. Obviously it would (and will) mean that banks lose their control and their intermediary role. But the thing is this is inevitable and development is unstoppable.

The use of a new technology was vital to make it possible for two business partners to send and receive payment with only a click and avoiding bank control and limitations, not to mention avoiding inexplicable bank fees. This technology is the blockchain technology. In recent years several financial products have been launched that are based on blockchain technology. The first such product was Bitcoin. When Bitcoin came out, banks regarded the phenomenon insignificant. Well, things have changed. Now major financial players like JP Morgan are fiercely campaigning against Bitcoin. JP Morgan’s head Jamie Dimon went as far as to say on September 13th 2017 that Bitcoin was created for drug dealers, murderers and people who live in countries like North Korea. Interestingly, by then in Japan you could use Bitcoin to purchase any products or services. Anti-Bitcoin campaigns mean one thing, in fact: The banks and financial institutions of the world regard Bitcoin as a competitor and therefore as a source of danger to them.

And to top it all: As soon as Jamie Dimon published his ”Bitcoin scam” opinion, and as a result, affected negatively Bitcoin’s market value for a short period temporarily, his bank, JP Morgan bought 19,000 Bitcoins. On that day they paid 57 million dollars for those 19,000 Bitcoins. On the day of writing this article it is worth more than 140 million dollars. No comment.

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