Bitcoin is a digital currency that has no physical form. It can be transferred online without using an intermediary like a bank. The Bitcoin network is maintained by the computers of all the people who use it, not by traditional institutions like banks or governments. Bitcoins are created by having your computer solve Banking Structure.
Bitcoin is an alternative currency that has been gaining traction. Its mechanism of operation is that each time a bitcoin transaction takes place, the network records it in a public ledger called blockchain. This ensures transparency and prevents counterfeit bitcoins. The digital currency is not tied to any country or central bank so transactions are borderless and can be completed in minutes rather than days.
There is a good chance that if bitcoin succeeds it will change the banking structure. Banks and financial institutions will be forced to evolve their business models to accommodate this new currency. It may also disrupt the way some third-parties do their jobs such as money transferring services, credit card companies, and online retailers.
Bitcoin, the cryptocurrency used for making transactions, is all about eliminating banks. It may not be a practical option if you live in the United States or Europe, but it does make sense in countries like Venezuela where many people lost their life’s savings when their country’s currency was devalued. Bitcoin has also gained popularity in other developing areas because of its low transaction fees and lack of interference from any third party.
The banking structure that we have today is very different than the one that was in place 100 years ago. The increased cost of production has led to a larger number of people working at the top of the pyramid, rather than the bottom. With the invention of Bitcoin, it’s now possible for anyone to become an un-banked person. This means that they don’t need to depend on banks or any centralized institution for their safety or security.
This blog post talks about the banking structure. The author says that it’s based on fractional-reserve banking, where banks are allowed to loan out loans that are more than the amount of money deposited.