Litecoin Vs banks

As we all know, the last few years have witnessed major changes in global economy. With the advent of decentralization, a new form of asset came into being- one that has the potential to replace liquid assets. While banks continue to remain at the core of the financial system, there’s potential threat of these being toppled from a position of imminent power and authority. Big banks such as the Bank of America and J.P. Morgan Chase & Co. have already accepted the fact that cryptocurrencies have to be incorporated by the banking system so as to maintain the status quo. No doubt, cryptocurrencies such as Litecoin discards the need for banking transactions. Neither do you need to open a bank account, nor do you need to pay hefty account fees. Thanks to the Blockchain technology, your Litecoin cannot be hacked by a third party unlike your bank account.

The long-standing debate regarding Litecoin’s association with the banks has come a long way. Many banks have already started to explore the possibility of incorporating the Blockchain technology to ensure speedy transactions at low costs.

Why Litecoin is better than Traditional Banking ?

On a surface level, banks may seem like a good old option for traditionalists. Global banks have a very good customer base, which far exceeds the recent popularity of Litecoin. Only a few handful are using Litecoin at the moment and the question still remains- can this new cryptocurrency take over the dominance of fiat currencies and become ‘the thing’ in the mainstream global market? There are myriad possibilities that this digital asset has to offer to the consumers and only time will tell if it can replace the traditional banking system in the near future.

  • The bank wire transfer system is now replaced by a Blockchain transfer that enables you to make transactions at near-zero cost. The transactions are instantaneous and takes only 2.5 minutes unlike the official 3-5 business days that the banking system adheres by. It would be nothing less than a boon if the banks opt for a similar upgrade so as to streamline the transaction process and make it smoother and hassle-free.
  • With Litecoin, you do not have to ‘wait’ for the transaction to get processed. Also, the transaction fee is almost nil when compared to transaction charges levied by banks. While Litecoin is a public coin and not completely anonymous, it nonetheless ensures a certain level of privacy for its users. The pseudonymous transactions on Litecoin are user-friendly as and when compared to banking transactions.
  • The fact that Litecoin operates on a decentralized network increases its appeal all the more. No one body can control or manipulate its functioning, unlike banks which are centralized institutions controlled by the government of the state.