Bank failures are often evidence of a weakening economy, but they can also be the product of embezzlement, business decisions or failed investments and projects.
In any of these cases, it becomes evident that the economy of a nation is weakening and provisions must be made to correct the flaws in the economy, whatever the origin.
In this regard, the situation in the United States, where some banks have been forced to close operations and admit the collapse of their businesses, is already known by many.
I honestly do not know what is happening in the United States, what is certain is that when this happens many citizens lose their funds entrusted to a group of entrepreneurs who, in addition to working with those funds to finance their own projects and those of other people, end up defrauding the people who entrust them with their funds.
For these reasons cryptocurrencies based on Bockchain technology are created, seeking to replace or become a better alternative to the traditional economic system due to its decentralized nature and the possibility for people to have full control of their own funds.
Even though Blockchain technology in my opinion is still the best alternative to the traditional economy, we cannot lose sight of facts such as the bankruptcy of some exchanges and crypto projects where many people have lost money. Although cryptocurrencies still have a long way to go, I think they are getting stronger towards the future and the bankruptcy of traditional banks positions them as the best exchange alternative.
In any case, people will continue to look for ways to invest and make their funds yield, companies that can safeguard their capital in a safe way, but also fraudsters will continue to proliferate, predators who seek to steal other people's funds through deception.
Let me know what you think!
I think we just have to do our due diligent, and at the moment there is not much technology or strategy to help us invest without risk. There will always be risk in it, even if it is said top be backed by the government money.
Hello friend, thank you for your comment. I totally agree, every investment has its risk and we are prone to lose at any time.
When you talk about bank issues, then I think I have a very long story to tell considering the lack of availability in my country now.
Fir almost 5 months now the bank and ATM's have not dispensed cash...indeed the cashless society is real in my country...lol
Greetings @barryjennifer , thank you for being here and sharing your experience. It is unfortunate what happens in some of our countries in terms of economy, the financial crisis in some countries condemn people to have unhappy lives due to hunger and other shortages, and everything in many cases is due to the interest and ambition of small groups of power.