Over the past few years, digital assets have thrived. Yes, the market is in the midst of its latest bearish cycle, but a broader perspective shows scores of promising developments. Bitcoin in particular has officially,
- lured in institutional investors and service providers
- shown promise as a store of value / hedge asset (adopted in many treasury reserves)
- shown signs of functioning as a currency (Lightning Network growth and adoption)
- been adopted by nations (El Salvador, Central African Republic)
Beyond Bitcoin, we have also seen the rise of entirely new subsets within the sector. Namely,
- Decentralized Finance (DeFi)
- Digital Securities
- Non-Fungible Tokens (NFTs)
The list goes on and on, and when looking at these achievements (along with past market highs) it is easy to get excited over what is to come in the next few years, overlooking our continued need/reliance for traditional finance. If looking for a reality check, and to temper expectations, you don’t need to search far beyond the current market slump.
Just last week, Canada’s crop of major banks each released their latest earnings reports – highlighting that despite how far digital assets have come, they still have a mountain to climb before freeing us of our reliance upon traditional finance.
Canadian Banks Performing Better than Expected
As it stands, much of the world is currently experiencing a high state of inflation – with Canada being no different. However, despite operating under what would seem like difficult conditions, big banks within the nation continue to post numbers higher than anticipated.
As Canada’s big banks released second quarter earnings reports this past week, one after the other each announced better than expected earnings, which mostly resulted dividend hikes.
Essentially, during a time when inflation is out of control, housing markets reaching new heights, and fuel prices through the roof, traditional finance remains as lucrative and resilient as ever.
