The rise of bitcoin has seen banks scrambling to implement blockchain technology into their current system. The underlining tech may truly be revolutionary, but thats not where the banking ends. I have posted a blog before referring to where the banks got it wrong. Banks and bitcoin is at war, so as it seems. The idea presented by satoshi nakamoto in my personal opinion was more on decentralization which was backed by a truly remarkable software in the form of bitcoin/blockchain that we see today.
Banking & Bitcoin:
A few things that have had confused me earlier or maybe I misinterpreted, was that bitcoin is a replacement of banks. The thing I have now come to realize is that bitcoin is really not the replacement of banking. But infact is a replacement for the current fiat currency as we have come to know it. Fiat as we know is governed and controlled by countries its accepted in. That is also why it holds value and is constantly exchanged back and forth with bitcoin. Why I say this is because I believe banking has so many more aspects to it then we as tech enthusiasts forget to see or realize.
Banks offer banking. Yes they are controlled and centralized but arent all the services that are being built on bitcoin the same? We see banks as a place to hold our money, isnt that what bitcoin wallet services such as bitgo or coinbase or mobile wallets doing the same? with the blockchain becoming bigger and bigger its harder to run the full bitcoin qt clients.
Then we look at services such as btcjam and bitfinex which offering loans and buying btc on leverage opportunities. Does that not fall into the space of a loan by a bank? I think they are very similar in nature. Banks now offer you running finance, or loans on interest where as these companies are doing the same.
Remittance is a hot topic in bitcoin. Bitcoin remittance has been talked about, and service have been built upon it. There are just too many to list here with each one operating in their requisite country of operation. While all try to take bitcoin out of the forefront they are built on buying and selling btc for consumers. This model has seen some success but not on a worldwide grand scale as of yet. If bitcoin remittance is broken down into its basics it basically offering what banks do with wire transfers to your loved ones in any country.
One more aspect that I would like to talk about here is escrow service, I guess you can compare that to Letter of credit as the banks call it. Basically its a guarantee that once a service is tendered the liability of payment lies in the hand of a bank (third party). If we consider a bank a third party then there are many escrow agents working as these third parties to make this happen.
I believe bitcoin is a replacement for currency and not banking. Banks need to understand this and so do the crypto followers. The services that were being offered by banks once are now being offered by individuals who are mimicking the services of banking, one sector at a time. While its not a bad thing, I believe that banking is being revolutionized with the coming of bitcoin and it will be in the best interests of banks to realize that now then later.
In 2015 we saw numerous banks turning to blockchain the underlining technology of bitcoin to drive customer base away from btc and improve their own system in the process. An example was laid out where it was stated that Bank Of America alone uses more electricity then the entire bitcoin network combined. It was popular believe that the “beauty of bitcoin lies in blockchain”, I for one was sold on this. But the more you understand bitcoin the more you realize thats not the case, and the more you fall in love with the whole concept of bitcoin.
Many might disagree with me on this statement. While I am not saying that blockchain and bitcoin are revolutionary, all I am saying is that its not just the tech that makes bitcoin or btc special, its the underlining principle of the bitcoin that makes it the most disruptive tech in the fintech space.
The idea as purposed by satoshi nakamoto was loosely based on on torrent software where you would share your bitcoin via peer to peer system where you would not require central auditing or confirming authority. Now lets think about this for a minute. Decentralization and the open source nature of bitcoin is what make it so special. An example is the recent development disagreement by the core developers where 2 developers purposed a fork of bitcoin XT. That saw the prices of bitcoin plunge to lows of around $150. While many thought that proposal was destroying bitcoin, I believed it was making btc stronger by displaying that no one has control over bitcoin. In the end it will be the people who will decide what is good for the network and not any one entity.
The banking sector was of the belief that its the blockchain tech that drives bitcoin, and without understanding the true nature of why decentralization is important they jumped on the blockchain wagon releasing their own chains and coins in the process. I think bitcoin and banks can live in harmony, how you may ask is very hard to answer. For one I think banks can use bitcoin as a settlement product within their networks. Think of bitcoin as Mastercard or Visacard. When the concept was brought forward banks went a head started incorporating these into their systems rather then coming up with their own individual cards. There is alot to cover of how btc and bank can live in peace then this one article, but the idea can be be implemented in ways that banks haven’t imagined yet. I think time will only improve our understanding of what bitcoin is and how it will shape the future of fintech.
Idea of online earning is not an old one. We have seen many websites launched that are now selling “adpacks” or “advertisement upgrades” promising you to earn by working online. While there are many of these that make you invest upfront there are few that are completely free. The reason I wanted to write about this is because many people call us and ask how do we make money online.
Earning online, or earning bitcoin or btc is not a simple task. I tell people you have to work hard and the best way to earn especially bitcoins in Pakistan is to go to sites like fiver or my personal favorite xbtfreelancer (well they pay in bitcoin ;)) is the way to go. These are freelancing websites that offer you payments for your skills. Pakistan is now the 3rd largest freelancing producer in the world. And with recent news coming out about how freelancers are working to earn online in Pakistan the standings will only improve while providing job opportunities.
To add to this I have seen many people who do not have the skill set to work on these sites or find it very hard to compete against the set players in the field. For the later (while I dont promote these often I am telling people about this so they can give them a try) I suggest looking to something called ads viewing or clicking. These websites are pretty straight forward all you have to do is signup click on view ads or my advertisements and just click on ads and watch the ad for a few seconds. The ad window should be active for getting credited for the ad. These sites pay in multitude of payment methods with bitcoin being one of them. I would strongly suggest against buying any sort of upgrades etc from these websites and I dont run any of them. I have just been testing out a few sites such as ads4btc (video)and adfiver. You can also go on something like ifaucet and earn through faucets.
Please take note that I dont own or know about these websites. But I am testing these out just to let people know if they actually payout. I also recommend that dont buy and upgrades from these sites instead there are many sites offering this free and you can simply signup on multiple sites rather then buying adpacks or upgrades etc.