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Darrell Duffy: “Cryptocurrencies Will Destroy Banks in Ten Years”



Emeritus Professor of Finance at the Higher School of Business shared his opinion about what threat the crypto industry poses to the existing world banking system and how digital payments are better than traditional financial transactions. Taking into account all the features of the new payment solutions, digital assets can put a banking system in a disadvantaged position.

How Many People Use Bitcoin Today?

Wondering what the scale of the Bitcoin customer base is? It is difficult to do the precise calculation, but there are some data that allow making a rough estimate.

  • The Chainalysis report proved that active Bitcoin users account for almost a third of the total number of owners of digital gold. If you are one of them and looking for a best way to sell bitcoin, then it is time for you the check website. Apart from the advanced instruments for efficient trading, you will also find recent industry news and other insightful publications.
  • According to Statista, there are about thirty-two million Bitcoin wallets in the world. Interestingly, most Bitcoin users have more than one wallet and use several addresses, which ensures greater confidentiality when making transactions.
  • Research run by SurveyMonkey showed that over 50% of Americans know what Bitcoin is, and about 5% own digital currency. This means that about 16 million US residents have invested in digital monetary assets.
  • Coinbase is one of the most popular exchanges; it is believed to have over thirteen million active users. Now this means that the number of Bitcoin users varies from 13 to 32 million.
  • The volume of bitcoin trading on the p2p exchange LocalBitcoins indicates that the massive distribution of this cryptocurrency is growing in economically unstable countries in South America. You’ll have to watch out for cryptocurrency swing trade signals.
  • Africa is also showing rapid momentum as young Africans seek to make profitable investments and secure their future.
  • As per eToro analyst’s Mati Greenspan statement, the number of new users in SA trading Bitcoins through eToro has grown by 671% from Jan to the end of Nov last year (compared with the same period in 2018). This result exceeds the total growth by 574%.
  • According to information from Google Trends, “the three African countries – Ghana, SA, and Nigeria – are some of the top countries with the high search volume with the “Bitcoin” keyword.”

Due to the lack of common data and objective difficulties in determining the audience of Bitcoin users worldwide, it can be assumed that there are about 25 million crypto owners.

How Does It Relate to the Banking System?

Cryptocurrencies could ruin the business model of banks over the next decade due to low-interest rates on deposits, as Stanford Business reports.

“New payment systems will cause more competition. If consumers have faster payment methods and sellers can instantly access sales revenue without a bank, no one will keep money in bank accounts that pay extremely low interest on deposits,” the professor explained the statement.

Duffy added that banks have a large income; they pay a small interest on deposits and charge large fees from credit cards. Digital payment systems are free from such shortcomings. Just to support the below statement, we would like to share a fact with you. On October 15, the amount of $933 million was transferred to the Bitcoin network. The commission for the transfer was less than $4. Sounds impressive, agree?

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