The concept of cryptocurrencies initiated about 12 years ago, and this has earned massive value in the market. This gives an open challenge to the share market and provides far more profits than the share market. When it was initiated, it had started with just a few cents, but now its value is about thousands of dollars. A large number of users are getting engaged with it on a daily basis as there is an increase in awareness among the people of the profits earned by cryptocurrencies, especially Bitcoin.
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The news has been reported that hundreds of US banks are going to deal with the cryptocurrencies like Bitcoin, and the use of Bitcoins or any other cryptocurrency can easily be able to use ok and handle the cryptocurrencies from their bank accounts. It is a very burning topic on various news channels. This scheme is done in the collaboration of NYDIG and the Fintech company.
Benefits of handling cryptocurrencies by bank
- As we discussed earlier, 100 years of banks can be able to handle Bitcoins or any other cryptocurrency. It will become very beneficial for the user to handle everything in a single place. He does not need to switch between the different applications or the websites for handling.
- Even this is also seen that there are third party applications that were used to handle the cryptocurrencies that were charging lots of transaction charges from the user, and the user has first to initiate the transaction from the bank.
- Then the money goes to the application then it goes to the cryptocurrency platform. The third-party applications will be automatically removed, and a person can easily handle the cryptocurrencies from his bank account.
- As we all know that cryptocurrency is a platform that is famous for providing huge profits in such a small period of time with lots of advantages, but if these things are going to happen, it might affect the users.
Demerits of the scheme
- As we know that there are benefits of something, there are also some of the demerits of the same thing. In the same way, in this scheme, if the banks will be able to regulate the transactions of the cryptocurrencies, they will easily get track of the transaction made by the user.
- The cryptocurrency platform is majorly known for the purpose of privacy. It helps to maintain the privacy of the user by keeping all the transactions private, including the personal information of the user and the receiver.
- But now, if the bank account gets linked to the cryptocurrency account, the user will not be able to create privacy with the banks or the government.
- Every transaction will become transparent with the government, and they will easily come to know about the investments you had made in the cryptocurrencies. It will give huge losses to the persons who are maintaining small businesses.
- There is another division linking the cryptocurrency with the bank account. If the cryptocurrency account gets linked with the bank account, then the government can easily get track of the profits, returns, investment, transfer activities etc.
- Then obviously, after getting all the track of the information, the government will demand the tax from the user. And the user will have no option either to pay the taxes.
Conclusion
Here at the end, we have read almost everything about the scheme which is proposed by the agency of creating a link of the cryptography account with the bank account of the person. It becomes very easy for the person to handle everything at the same time, even at the same place. Some people feel that everything should be in a single place so that it can be handled very easily because it becomes inconvenient for them to handle everything at different places and to switch to these places regularly.
Even the scheme also decreases the privacy of the user as most of the users are engaged with the cryptocurrency platform for majorly two reasons. The first reason is that it provides huge returns on investment and the second reason is that it provides privacy for each and every transaction which takes place along with the privacy of the user and the receiver.