24 July 2014 / Money Morning – A tsunami of disruption – courtesy of Bitcoin – is headed directly for several sectors of the financial services industry.
Some of these companies may adapt to a world in which the digital currency plays a major role, but most are likely to become Bitcoin market victims – companies that will struggle and possibly disappear altogether.
In a research report released at the end of May, Wedbush Securities analyst Gil Luria said “Bitcoin-related technologies will disrupt payments markets and other trust-based markets within the next few years and for decades to follow.”
This could have a tremendous impact on the U.S. economy, Luria said, as 20% of the nation’s gross domestic product (GDP) “is generated by industries whose main function is as a trusted third party,” such as banks, insurance carriers, and real estate-related companies.
In dollar terms, that’s an eye-popping $3.4 trillion.
And while it won’t happen overnight, the changes will be felt far and wide. Likening Bitcoin to other revolutionary technologies like the Mobile Wave of smartphones and tablets and social media, Luria predicts “the disruption from Bitcoin will take longer than expected but have an even more profound impact than anticipated.”…… Read more
