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The rise of Bitcoin doesn’t mean the end of banks. Here’s why
Article

The rise of Bitcoin doesn’t mean the end of banks. Here’s why


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Editorial Rating

8

Qualities

  • Overview
  • Visionary
  • Hot Topic

Recommendation

As bitcoin and other cryptocurrencies gain more acceptance, many wonder if the blockchain technology behind it will usurp the role of banks. According to professors Dirk Baur and Niels Van Quaquebeke, the answer is a resounding no. By applying historical context to the bitcoin craze, the authors shed light on why the currency may be unworkable in the long term without a governing central authority. getAbstract recommends this thought-provoking article to bankers, investors and anyone interested in the future of bitcoin and blockchain.

Take-Aways

  • Despite the increasing prominence of bitcoin, banks will undoubtedly continue to play a central role in the global monetary system for many years to come. 
  • Bitcoin relies on blockchain technology, which allows one party to send payments to another without going through a financial institution. 
  • History shows that only a few cases exist in which a currency operated successfully without the guidance of a central authority. 

About the Authors

Dirk Baur is a professor at the University of Western Australia. Niels Van Quaquebeke is a professor at the Kühne Logistics University in Hamburg, Germany.