Cryptocurrencies, Bitcoin primarily, were also created to give people access to a better monetary system. The idea of relying 100% on them, however, still remains a utopia for many. Often, those who believe in Bitcoin as a technology wonder what a bank can offer that a cryptocurrency cannot. Indeed, Bitcoiners are perfectly aware of the possibilities of cryptocurrencies: in their eyes it seems almost impossible that there is still someone who wishes to hold Fiat coins. So let's see if there really is a service or something in general that a bank can give and a cryptocurrency cannot.
Safety
The first thing we all thought about before getting to know cryptocurrencies is "are they safe?". One wonders, in fact, if an intangible currency, which is not guaranteed by a physical entity, is reliable. The risks could be many: from the value that fluctuates to not knowing if a wallet is really unassailable by a hacker. There are no people who can give us their word about security like a bank manager would. There is "only" technology. It is an innovative technology that must be known to be understood. The blockchain is immutable, secure and transparent and has never allowed anyone to rewrite a single transaction since its existence. Conversely, bank robberies have been in the news for as long as banks have existed.
Investment and annuity services
Who has never entered the bank and received an investment proposal? "This investment is safe", "With this you will earn 5% per annum". These are basically ways in which the bank manages other people's money, giving customers a meager income that barely covers investment and capital insurance costs. In the world of cryptocurrencies, however, there are far more profitable annuity services, such as Celsius Network or BlockFi, which make over 8% APY on stablecoins. Furthermore, there are no investment or other expenses and the capital can be written off immediately and without losses. If you want to risk a little more, DeFi also offers APYs of 50% or more.
Deposit and loans
When you need a loan, you turn to the bank for liquidity to spend. This then applies a variable fee (from 2 to 10%) until the full repayment of the borrowed sum. Furthermore, it must be remembered that the granting is not automatic, but is subject to approval by the bank. In the crypto world, however, the operation is different: there is nobody to approve the loan but an impartial algorithm. Once a collateral has been deposited (which can be in the form of different currencies) it is possible to borrow a certain percentage. Basically, if a person holds Bitcoin and wants to have liquidity without having to sell it, he can deposit it on Celsius Network, BlockFi or even Binance and have cash in exchange. Meanwhile, the deposited Bitcoins (in the case of Celsius and BlockFi) accrue an interest of around 6%.
Final thoughts
Sometimes it is useful to look at it in reverse, there are many more advantages offered by cryptocurrencies than those of banks. Just think of the possibility of transferring money without someone's permission, without paying exaggerated taxes and above all in a safe way. Cryptocurrencies are here to replace banks and Fiat money. This process has already happened when banknotes replaced gold as a trading currency and also when credit cards replaced banknotes. In the history of payments, a better way always replaces an older and more obsolete one. The important thing is to have an open mind and be able to accept it.
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