Now this is more of a speculative question I have. But surely what we have seen for the past few years and what becomes clearer every year are two things:

Cryptocurrency exchanges like Binance and Coinbase are growing to become real financial powerhouses. Both of them have impressive year on year growths. Coinbase from $16 million in 2016 to $923 million in 2017. With an impressive $380 million in profit. And in 2018 that figure went up and passed the billion mark and landed at $1.3 billion in annual revenue.



That is a rise of more than 81x from 2016 to 2018 in annual revenue increase.

And Binance who for example boosted an impressive net profit of about $446 million for the year of 2018. For a company that launched in July 2017 that is very impressive (Binance’s profit).

And then we have traditional banks that have been around for centuries some of them. All with established processes and a network of friends in media and government. And banks are standing there on the sidelines looking envious to the numbers that companies like Binance and Coinbase shows.



In a time when banks are struggling to understand new technologies and the changing user behaviours that is ready to pounce at them at any given chance. What can they do to survive? Ok, well not survive. That’s a bit over the top. But rather stay on top with unbelievable returns and profit margins?

Well they need to take the fight to cryptocurrencies or keep taking the fight against cryptocurrencies. And with the help of their old friends in media and government this looks at times favourably for banks.

Cryptocurrencies will continue to be fought by several parties, trying to undermine the technology and the legality of it. But there is today little questioning that cryptos are here to stay.

The main question will be who will profit from it the most in the future? Crypto powerhouses like Binance and Coinbase? The ones who has the knowledge about the market and the users?

Or the banks that has capital and revenue beyond what Binance and Coinbase can boast with. And a vast network of contacts, relationships and favours to cash in on.

Because can they really live happily together? And both share customers to profit on?

In recent Reuters reports we could read that EU will be taking a “tough line on digital currencies like Facebook’s Libra” (Reuters). And now Libra is in EU’s spotlight. But surely any focus on Libra, and regulating it will have future effects on other cryptocurrencies.

And the exchanges that facilitates much of the daily trades for them?



We have for a few years been waiting to see what governments will do about cryptocurrencies. For a long time they either refused to even acknowledge crypto, or they dismissed it as fad that would soon fall out of favour again.



But now with the likes of Facebook’s entry on the crypto market there is little point to continue with that approach. Both for banks and governments.



Add to that we have read about China’s continued push and investment in the underlying technology blockchain (Wired) and even their change of hearts towards cryptocurrencies. With a much more welcoming mindset (New York Times) today than in the past few years.



So this is not a subject that we can expect will fade away. But it will continue to take the focus for governments and future regulation discussions. Both in Europe, but also in the U.S and surely also in Asia and Africa. Where the technology, blockchain has for a long time been touted as the innovation that could bring financial inclusion to millions that are in desperate need.

(Brendan Church – Unsplash https://unsplash.com/photos/g1mf-OX6WlU)



So what effects will this have on crypto trading and investment? Today much of it is done on new digital cryptocurrency exchanges. But surely the millions in profit that Binance and others are bringing in will at some point be in the hands of the banks. But a question will be, how much? The markets of cryptocurrencies are are still a young and sort of underground area.



Banks advancements in the crypto space will make it easier

Even if the banks themselves might not be pioneers when it comes to UX and user-friendliness. But it can easily become a domino effect, with added competition helps to improve the whole industry. Making buying and selling cryptocurrencies as easy as buying a cup of coffee (get our tips for investing easily in crypto at this source).



Where it can be at times overwhelming or just too complex for non-techies. So cryptocurrency exchanges have work to do themselves before they can even think about taking on the banks at their centre stages.

What do you think? Let us know.



Per Englund – Founder of Go CryptoWise a cryptocurrency and tech fan that want to see better and smarter products and services that make our lives better and easier