London based financial firm, Revolut, offered its inbuilt feature of the trading in cryptocurrency to its all 7 million users. This challenger bank, widely known for its inclination and support of cryptocurrency, already has a special feature to buy and sell bitcoin and other cryptocurrencies; however, this feature was only available to its Gold customers. In the wake of the ongoing crisis caused by the global outbreak of Coronavirus, this UK based bank has extended this special feature to its all customers. Revolut has taken this decision to eliminate the dependency in fiat as the economy of most of the countries is in trouble due to lockdowns of many retail businesses and industries.
Bitcoin: An alternative to Fiat
This finTech firm had planned to extend its cryptocurrency trading platform to standard users later this year; however, due to financial upheaval triggered by a coronavirus, it was implemented earlier than its planned time. Revolut argued that bitcoin could be a viable alternative to the fiat and hence in such time when most of the countries are heading towards quantitative easing to hold the decline of their economies. Moreover, on the contrary to fiat, bitcoin has a limited supply; hence it could be a better option over fiat that has an unlimited supply.
The governments of major economies now resort to quantitative easing to pump enormous money in the market during any financial crisis. However, this has a terrible impact on economies in the long term as the massive amount of money in the market lead to high inflation. Unlike fiat, Bitcoin or other digital currencies have a limited stock, and that can not be changed in any situation. Therefore it makes Bitcoin immune from many drawbacks of conventional fiat currency, and Revolut providing the feature of the trading in cryptocurrency in its banking application can help many customers to invest a fraction of their savings in cryptocurrencies.
Drawbacks of Cryptocurrency Trading on Revolut
Although Revolut is one such banking firm that offers their customers a cryptocurrency trading platform, there is some catch that makes it different from a normal cryptocurrency exchange. Revolut ecosystem does not allow its customers to move any bought cryptocurrency to your own wallet. It can move into the Revolut ecosystems only. This cripples users from saving the cryptocurrency to their own wallet for the long term. Moreover, the cost cryptocurrencies available at the Revolut platform are considerably high in comparison to their spot price. Despite the fact that Revolut has some limitations, it enables its huge customer base to connect with the crypto world without opening any additional account instantly.