Financial markets all over the world are faced with daily turmoil, and the compounding worries about European banks are only adding more fuel to the fire. Big banks have not been healthy for several years now, and things have not improved by much since the 2007 financial crisis. A combination of bank stocks crashing hard and looming worries about some banks defaulting on their debts will herald a new era of recession. Bitcoin seems to be among the only ways out, and embracing the popular digital currency is slowly becoming a necessity.

Also read: Bitcoin Used in Card Clone Scheme in India

Why You Need To Worry About European Banks

People living both inside out and outside of the European Union should take this time to start worrying about the banks located in this part of the world. Even though the US Dollar is still the global currency – for now at least – the ripple effect of a collapsing European economy will affect every corner of the world.

Right now, various banks are seeing their trading value decline, as their stocks are crashing hard on the markets. But that is only part of the worry, as there is a growing concern regarding several banks not being able to pay off their current debts. If this were to be the case, these European banks would have to default on debts, pushing the global economy back into recession. Plus, the ever-so-low oil prices are not helping matters much either.

The biggest risk factor in the European banking industry is none other than Deutsche Bank, as their cost to insure debt has nearly doubled over the past three months. Credit Suisse is another institution on the watch list right now, as their cost to insure has been on track to double as well. With costs going up for these banks, and revenue going down, something will have to change sooner rather than later.

Speaking of revenue going down, Deutsche Bank has lost close to half of its value in three months, which goes to show how volatile the market is right now. As a result, of this situation, every bank in the European region is looking far less attractive. When a bank’s viability is being questioned, investors will look elsewhere for a safe haven.

Keeping in mind how the recent financial crisis of 2007-2008 is still hanging above everybody’s heads, it is safe to say there is a lot of fear to be found in traditional finance right now. Investors are very eager to liquidate assets at the slightest hint of a decline in value, creating very high volatility in stock markets around the world. It only takes one or two investors to start a domino effect and wreak havoc on the economy.

Even though most of the bigger banks are a lot healthier right now than they were in 2007-2008, there is still plenty of reason to worry. Despite there being no signs of a collapse just yet, the current situation can not be maintained for much longer. The time of listening to financial experts is over, and people need to start drawing their own conclusions.

Take Charge Of Your Financial Situation With Bitcoin

Anyone who is even remotely serious about taking control of their money in the [near] future should start looking into alternative forms of finance. The FinTech sector offers some appealing alternatives, although most of these companies are using the same legacy system used by banks rights now. Whether or not that will be a good thing, remains in question for now.

Bitcoin, on the other hand, is providing people all over the world with a financial alternative that operates outside of the banks and governments. With a limited supply of Bitcoin to be available at its peak, there is no better time than now to get involved in the world of digital currency. No one is saying people should invest their life savings into Bitcoin right away, though.

What sets Bitcoin apart from traditional finance is how the digital currency has the potential to increase in value over time. Don’t expect to get rich overnight, though, as Bitcoin is a long-term investment by all means. Unlike its more traditional counterparts, Bitcoin is maintaining its value throughout these turbulent times.

Source: CNN Money