Bitcoin, the flagship cryptocurrency, was designed with the intention of disrupting the conventional financial system. Recently, renowned Clinical Psychologist Jordan Peterson made an interesting suggestion that customers should consider abandoning traditional banks and embracing Bitcoin. Peterson’s statement was prompted by a news report stating that Macquarie Bank, one of Australia’s largest banks, plans to transition to a digital-only banking system by November 2024. This shift would involve phasing out cash, cheque, and phone payment services. Peterson questioned whether Bitcoin could offer a solution to the growing concerns surrounding the banking industry.
Macquarie Bank’s decision has faced significant criticism as it may exclude certain customer groups. This move sheds light on one of the problems that cryptocurrencies like Bitcoin aim to address – giving customers more control over their finances. Financial institutions should not have excessive control over people’s money, dictating how it should be spent. Banks can easily implement policies that do not favor or create difficulties for specific customer groups.
According to Macquarie Bank, digital transactions offer a “safer, quicker, and more convenient way to bank.” However, cryptocurrency advocates argue against this claim. In response to Peterson’s tweet, supporters of Bitcoin pointed out that alternative networks like the Bitcoin Lightning Network, XRP Ledger, and Bitcoin Cash provide better alternatives to traditional banks’ digital systems.
Concerns about Bitcoin
Critics, including Republican presidential candidate Aaron Day, express reservations about replacing banks with Bitcoin. Day argues that the traditional banking system can perform between 50,000 and 100,000 transactions per second (TPS), whereas Bitcoin has a TPS of only seven. Additionally, Day highlights that the Central Bank Digital Currency (CBDC) pilot in the US can handle 1.7 million TPS. These statistics underscore the necessity for further research and consideration before fully embracing Bitcoin as a replacement for banking systems.
Responding to the concerns raised, proponents of cryptocurrencies, specifically Bitcoin, emphasize the role of the Lightning Network in addressing scalability. The Lightning Network can facilitate up to 1 million TPS, surpassing the transaction capabilities of the traditional banking system. This solution provides a faster alternative while utilizing the security features inherent in the Bitcoin blockchain.
Blockchain technology, upon which cryptocurrencies operate, offers enhanced security and transparency compared to the traditional banking system. As the Bitcoin community celebrates Jordan Peterson mentioning Bitcoin on his platform, this acknowledgement may indicate a growing wave of support for Bitcoin as a disruptive force in the financial industry. Peterson’s large follower base, with 4.6 million followers on X (formerly Twitter), amplifies his influence and potentially opens up new possibilities for wider cryptocurrency adoption.
The suggestion of abandoning traditional banks in favor of Bitcoin is a thought-provoking concept that challenges the status quo of the financial system. While concerns regarding transaction speed and scalability persist, the Lightning Network offers a promising solution. The inherent security and transparency of blockchain technology further bolster Bitcoin’s potential to redefine the banking industry. As discussions surrounding cryptocurrencies continue to gain momentum, the role of influential figures like Jordan Peterson in the adoption and evolution of Bitcoin cannot be understated. While the journey toward embracing Bitcoin as a replacement for the current banking system is still ongoing, these discussions push the boundaries of financial innovation and pave the way for future advancements in the industry.