People are going bankless to gain more control over their finances and have more freedom overall. Decentralized Finance (DeFi) is a multi-billion-dollar movement, undergirded by blockchain that may end up changing the way we bank and could lead to a bankless society. Going bankless has its pros and cons, but some people might want to go bankless for the advantages it offers including:
- Control over their own funds
- Increased privacy and security
- Lower fees and quicker transactions
- Access to new financial services and investments
- Avoidance of traditional banking systems and centralized institutions
- Support for decentralized, peer-to-peer financial systems.
How does it work?
Bankless banking works by utilizing decentralized technology, like blockchain and smart contracts, to securely store and transfer funds, and execute financial transactions without intermediaries. This can include using decentralized exchanges to trade cryptocurrencies, or using decentralized finance (DeFi) applications to access financial services such as loans, insurance, and investments. Bankless banking also involves the use of digital wallets to store and manage assets, and sometimes biometric identification to secure and authenticate transactions. The key idea behind bankless banking is to create a more open, transparent, and accessible financial system that empowers individuals to have greater control over their own funds and financial lives.
What are disadvantages of going bankless?
Obviously, going bankless is a personal decition, but there are always some hardships. Going bankless has some disadvantages, including:
- Complexity. Decentralized technology can be difficult for many people to understand and use, especially for those who are not familiar with cryptocurrencies or computer systems.
- Lack of Regulation. Decentralized systems are not regulated, meaning that there are fewer consumer protections in place compared to traditional banking.
- Volatility. Digital currencies and decentralized financial products are often subject to high price volatility, making it difficult to predict the value of investments over time.
- Security Risks. Decentralized systems can be vulnerable to hacking and other security threats, and there is a risk of losing funds if the wallet or private key is compromised.
- Limited Functionality. Decentralized systems are still in their early stages of development and may not offer the same level of functionality or convenience as traditional banking systems.
- Limited Acceptance. Not all merchants and businesses accept cryptocurrencies or digital assets, making it difficult to use them in everyday transactions.
- Technical Support. There may be limited technical support available for decentralized systems, making it difficult to resolve issues or access assistance if needed.
How many people are bankless?
It is difficult to determine the exact number of people who are bankless, as this is a relatively new and evolving phenomenon. However, the adoption of decentralized technologies, such as blockchain and digital currencies, has been growing rapidly in recent years, and the trend towards bankless banking is expected to continue. According to some estimates, there are currently tens of millions of people around the world using cryptocurrencies, and the number is growing. Additionally, the increasing popularity of decentralized finance (DeFi) applications suggests that an increasing number of people are exploring bankless banking options.
Going bankless means to operate outside of traditional banking systems, so to know if that is for you or not. You need to evaluate your lifestyle and how you are using and spending money - are you dependent on one currency and if it's possible to live comfortably without relying on the traditional banking system.
Going bankless doesn't have to mean that you are not eligible to use cards or rely only on crypto payments. Tripple Card offers connecting your DeFi wallet and instant exchange and off-ramp. So you can cash out your assets at your convenience.