What Bitcoin’s rise means for traditional finance

Bitcoin is back in the spotlight in 2024, edging closer to the US$100,000 milestone while reigniting questions about what it could mean for traditional finance.

The surge comes on the heels of Donald Trump’s presidential win in November, with his administration expected to usher in a more crypto-friendly regulatory environment. Optimism is further bolstered by key pro-crypto appointments in his administration, signaling potential clarity and support for digital assets.

Another major catalyst for Bitcoin’s meteoric rise has been the further legitimization of Bitcoin Exchange-Traded Funds (ETFs) in the US, with one notable example being Nasdaq finally listing options on BlackRock’s iShares Bitcoin Trust (IBIT). Furthermore, companies that have adopted a Bitcoin reserve strategy, like MicroStrategy, are skyrocketing in value.

The challenge for traditional finance

Bitcoin’s rise is shaking up the traditional financial system. Banks, which have long dominated the flow of money, now face a growing trend of investors and consumers bypassing intermediaries through cryptocurrencies. Transaction fees, currency exchanges, and even central bank policies are being challenged by the borderless and decentralized nature of Bitcoin.

Central banks may be among those feeling the heat. As more people move wealth into Bitcoin, these institutions risk losing their grip on monetary policy. This trend, if sustained, could force central banks to rethink how they interact with the economy in a world where decentralized assets dominate.

Not all of traditional finance sees Bitcoin as a threat. Some institutions are embracing the shift, with major firms offering crypto custody services and actively participating in the blockchain ecosystem. Central bank digital currencies (CBDCs) are also emerging as a counterbalance, blending the efficiency of digital currencies with state-backed stability.

Cash in or cash out?

Tune in to the GEN!USLIVE Podcast for a deeper discussion around Bitcoin’s impact on global finance. On November 26, 2024, at 10 am EST Genius Group CEO Roger Hamilton will chat live with Simon Dixon, author of the first-ever book on Bitcoin. Whether you’re an investor looking for insights or just curious about the crypto revolution, learn how Bitcoin is reshaping financial systems and what it could mean for you.

Share this Post:

Accessibility Toolbar