The banking system and crypto world I will say are both sides of a coin. The disadvantage one poses to have is of great advantage to the other and vice versa that's why it's kinda difficult for me to choose between them, probably when I'm done laying my points, I will be able to make my choice in the end.
THE BANKING SYSTEM
We all know how the banking system work, so I won't bother explaining. But I will be driving through some points that I feel are either of great advantage or disadvantage to the users. Let me start with the disadvantages.
LIMITATIONS OF GOVERNMENT POLICY.
Before I continue, please forgive the lecturing tone I'm already using and will be using throughout this post, (it's school exam that cause it 😂) my brain is currently on a cruise in the lecturing tone.
Back to the discuss. Government policies have greatly affected the banking system and will always continue to do so, whether it's the normal banking system or electronic banking system otherwise known as e-banking (like OPAY, KUDA, MONIE POINT... In Nigeria.) This is because all banks are registered under a central bank, and thus use its license to operate. And since the government is in charge of the central bank, any policy issued by the government (good or bad) is implemented by the central bank and further implemented by other banks as any bank that goes against the central bank's order might cease to exist. There is a lot to this, but I wouldn't want to make this post too lengthy, so I will stop here for this point.
BANKING BUSINESS POLICY
The bank is a business, thus they ain't saving your money for free, they don't also render customer services for free as they have staffs to pay also. With this in mind, it is only natural that they create policies that will see them make profit by charging customers for a few services like ATM usage, transfer fees, maintenance fees and what have you.
Apart from the fees mentioned above, banks also create policies that help them trade internationally with their customers. The policies also give the bank authority to freeze a person's account if they notice suspicion about that account. There will always be a need to check and recheck the activities of their customers, and the government uses them also as a means to reach out to the grassroots customers. Banking policies are so much that it's easy to get frustrated knowing the bank and government have more access to your money than you do. Task is often charged by banks in many countries, so you see if the government feels they need 1,000 naira from Nigerian citizens, the banks will be there to do their bidding.
BANKS ARE ALWAYS THE LAST RESORT
Now enough of the disadvantages, the banking system isn't all that bad, as it also serves as a last resort for anybody at all. No matter how much of a big crypto trader you are, not everything can be purchased in crypto (at least not in Nigeria; probably later in the future.) The need for cash will always require transferring money to an account so it serves as a last resort.
A GREAT SAVING MECHANISM
Now many might not agree with this, but I think banks are still the best saving mechanism if you only want to use them as a means to save your liquid assets. There's no need to worry about the rise and fall of a currency (if you are not using it internationally) probably you might only have to worry about the cost of things within the country, and if you are only focused on savings, you will be earning a certain percentage per annum depending on your savings account.
ACTIVELY MONITORING TRANSACTIONS
I remember some time ago when my bank account was hacked through my bank card, and some money was withdrawn without my permission. My bank froze my account after noticing some unusual activities in my account, and when I noticed it, they were able to help me recover my money even though it took a lot of time and process, but at least I recovered my money hehe...
Now I think this compensates for the bank having control over your money, else how will I be able to have gotten my money back. Although these things have several processes involved, but I think the need for a bank at this current time can never be overemphasized.
THE CRYPTO SYSTEM
Going forward, crypto wallets have been able to amend many excesses people suffer from Banks, especially as regards investment. I have used both and noticed some advantages and disadvantages in them, so for crypto, let me also start with the disadvantages.
DECENTRALIZED BUT LONELY
Oh yes, this is what I will call it. Now that you have full access to your funds, and can accumulate as many funds as you wish to hold, it's also your business if anything happens to those funds, the highest you can probably do is trace the account it went to, but then how do you know the real identity of the person stealing your funds. It could be a family member and you will never get to find out because it's like a dark web in space where you can only see user IDs without seeing the users.
INVESTMENT YES, SAVINGS NO
If we say government policies affect the banking system, we can also say whales involvement affects the cryptosystem. This makes crypto a safe haven for investments but it could become hell if you only plan on savings. I remember a friend of mine who nearly committed suicide when he bought a coin at the beginning of the bearish market for 100,000 naira, and in less than a month, he was seeing 2,000 naira in his wallet.
When I use my crypto wallets, I prefer investing to saving, if I want to do both, I will rather invest in a physical asset than a digital asset. At least my land will not go down in value like a crypto coin would 😂. Even if we decide to talk about some stablecoins like the USDT and BNB😂 I wouldn't still put my trust in them as long as their stability is relying upon liquidity... I don't know in full detail how the whole stability works, so for me though reliable a bit, it's still a coin that can fall.
Knowing how the cryptosystem works, I need not explain the details, because I think for everything else it's of great advantage and the banking and cryptosystem are necessary for specific individual benefits. I prefer crypto as an investment plan, and the banking system as a more short-term secured saving plan. I will rather use physical assets as a more long-term savings plan, as it can turn into a great investment strategy.
