Financial services companies that ignore Bitcoin look set to suffer the consequences
Some companies in the financial services sector may adapt to the increasing use of Bitcoin
as a financial medium. But it seems that many are going to fall victim to its reign, David Zeiler in Money Morning US
Just two months ago, an analyst of Wedbush Securities, Gil Luria, said that the digital currency “will disrupt payments markets and other trust-based markets within the next few years and for decades to follow”.
Luria goes on to say Bitcoin could have a major impact on the US economy. Currently 20% of the US’s gross domestic product comes from these sectors. That amounts to a staggering $3.4 trillion.
It won’t take long until the mass of benefits that come from using Bitcoin are realised. The fees are small. Personal information is secure. And Bitcoin is decentralised.
Bitcoin has the clout to affect companies like MasterCard, Western Union and a whole host of other companies associated with the processing of payments.
If these companies don’t embrace Bitcoin, they look likely to fall victim to its success.
The Bitcoin train is already picking up speed
You just have to look at the number of Bitcoin wallets there are to see how the digital currency’s popularity is swelling. In June last year, there were only 765,039. Fast forward a year and its 5.33 million!
Venture capitalists have ploughed $200.7 million in the 12 months to the end of June. That’s up from $17.1 million over the same period last year.
The number of sellers accepting Bitcoin has doubled over the past six months. And this includes South Africa. Just last week, PayFast, announced that its 30,000 merchants can now accept Bitcoin as payment
The wave of Bitcoin use looks set to continue. If businesses in the financial sectors don’t embrace Bitcoin now, they could see their use in the industry die out.
So there you have it, why Bitcoin could change the financial landscape forever.
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