Tech analyst Lisa Ellis has informed her clients that Bitcoin use is increasing and disruptive to traditional financial systems like Visa.

Ever since its inception, Bitcoin has been mocked by those operating in the world of traditional finance. The world’s foremost cryptocurrency has been declared dead hundreds of times, but it has persisted and thrived. A number of old school financial giants are now getting involved in the cryptocurrency ecosystem, and one analyst notes the growing adoption and evolution of BTC, saying cryptocurrency will become increasingly disruptive to traditional financial systems like Visa, Mastercard, and PayPal.

Growth of Bitcoin Acknowledged

Lisa Ellis is an analyst with MoffettNathanson, and she is taking BTC and its virtual brethren seriously. She sent a note to clients asking, “Why would I ever buy coffee with bitcoin?” She answered that question by saying such a scenario could happen, “as ludicrous as it may sound.”

She notes that Bitcoin is at a disadvantage now against payment systems like Visa, Mastercard, and PayPal, but the gap between them is narrowing. Ellis points to the growth of the Lightning Network, as well as crypto being used in lieu of fiat in countries like Venezuela that suffer from hyperinflation.

Ellis also notes that the core idea behind cryptocurrency is disruptive to traditional financial systems, saying:

Cryptocurrency systems (e.g. bitcoin, ethereum, ripple) are potentially disruptive to private payment systems. Their core design characteristics—which are aimed at enabling ‘freedom of money’—are in direct contrast to the characteristics of most traditional, private payment systems.

The Need to Embrace Crypto and Blockchain

Ellis tells her clients that current financial systems need to embrace the new technologies, especially in regards to cross-border payments. She notes that systems like Ripple and Veem are using crypto in order to gain larger and larger chunks of the cross-border payment market for both businesses and individuals.

While Ellis says Bitcoin and other cryptocurrencies can be disruptive to systems like Visa, Mastercard, and PayPal, she does not believe that crypto will replace them entirely. She’s more of the opinion that crypto will actually commoditize such traditional systems instead. She believes that traditional institutions can benefit from using blockchain and cryptocurrencies, such as creating new revenue streams.

The reality is that while Bitcoin will continue to be disruptive, traditional financial systems will look to adapt cryptocurrency and blockchain to their needs. They will seek to take full advantage of the new technology, especially as use cases continue to grow. This can be seen by JPMorgan launching its own cryptocurrency – the JP Coin. Banks and other institutions will look to beat crypto by joining it and using it for their own ends.

Do you agree with Lisa Ellis? Let us know in the comments below.

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