Although still in its infancy, Bitcoin and other cryptocurrencies are taking not insignificant market share of the bread and butter of banking, money transfers that is.
Many industries have an anchor services, around which they sell up other, higher margin services and products.
Money transfers are the anchor service of banking. Accounts also. Once banks lock an individual or a firm with a deposit account and money transfers, they then sell up credits, wealth management, investment banking services.
Bitcoin and cryptocurrencies firms are actually currently offering bank accounts in the way of Bitcoin wallets and money transfers via Bitcoin and other currencies.
All this is a challenge for establishment banks, of course.
The speed at which banking will be transformed will depend a lot on whether regulators, central banks, mainly the Federal Reserve try to interfere or control progress.
Individuals and firms require services that save them time, money and effort.
And Bitcoin and cryptocurrencies seem to be doing exactly that, be it with a great room for improvement.
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