Question

Please write down your thoughts after reading the paragraphs ie. agree or disagree and why? (Min 5 sentences 150 words + )

As we all know we are in the age and dawn of new technology From the way we do medicine to how we bank is changing drastically before our eyes and this gives it users a sense of self-sufficiency cuttingout many “ middlemen” our modern banks are using but is this a bad thing absolutely not! As … said in the video people are beginning to trust companies more than the government and can you balme them? We have years worth of evidence that the government is known to do some shady things with our money. For example, the  Great Depression, money that many people put into most of the banks disappeared from there accounts unfortunately Also we seem to not have come to an agreement on what our tax money should be spent on first! So handling our own hard earn money seems to be working

Since the video has been put out cryptocurrency such as bitcoin as been growing and the only problem we seem to run into is how to regulate it. At this rate banks may go out of style with the younger generation unless they think fast and find someway to incorporate cryptocurrencies but even by then the government may find a way to regulate so it can benefit them. With our new age of technology traditionally banks with dissolve, that is bank buildings will not be needed but I do have a feeling big banks will try very hard to incorporate cryptocurrency.So the names will still be house hold ones however they will have a drastic change in how they bank !

Answer 1

As you rightly mentioned, after Great Depression and Lehman Crisis, people do not trust any bank or any intermediary with their money. As cryptocurrency is gaining popularity , people have started getting curious about it. But the use of cryptocurrency is still limited and it is getting treated as an investment rather than substitute of actual currency.

People have already started using electronic banking so much that hardly anyone goes to the branch. This gives power to people and they make their own decisions on how to invest and where to invest.

Household name of Cryptocurrency is Bitcoin. If you see the price history and movement of Bitcoin, it has been very volatile. In december 20147, itreached the peak of US$ 17,549.67, but it quickly came down to US$ 6,732.02 in 9 months.

Apart from the regulatry issues related to cryptocurrency, it is very important to also take into consideration the volatility. If on one day value of your 1 bitcoin is US$ 17,549.67 and on other day it is US$ 6,732.02, your purchasing power decreases substantially.

Hence, I believe that the cryptocurrency should be treated as an investment asset or vehicle but I disagree that the banks will try to incorporate cryptocurrency since the volatility of normal currency is still contained as compared to Cryptocurrency.