Banks won’t exist in ten years unless they change their business model | CryptoSlate

CryptoSlate

The issues plaguing the financial world―whether centralized finance, insurance, lending or other assets — all come back to human error. For instance, why can’t a dispensary put cash in a bank? Because of bad human judgment. These rules and regulations make zero practical sense.

The blockchain ecosystem takes the human element out of the equation. Now the technology governs because Satoshi Nakamoto was smart enough to realize that someone has to remove people from the decision process.

How To Get Free Crypto  

In decentralized finance, I don’t need approval from a bank if I want to borrow or lend money. 

I just need to meet certain, automated criteria. There’s no prejudice. There’s no judgment against somebody because of age or some fictitious scoring system that can be gamed. It doesn’t matter what race, gender, or sexual persuasion you are. If you meet the criteria in DeFi, the transaction will be completed. If not, it won’t. 

Satoshi was smart enough to see the need to remove people from the equation. Big banks will reject your account application upfront or wait for their compliance department to deny it, which then causes your money to be placed on hold, beginning a long process of getting out your money. People smartened up. They realized you need to take people out of the equation, because, generally, they make asinine decisions. 

Decentralized finance is the future. Unless these banks make a lot of very big changes to their business model in short order, they won’t exist. Chase Bank. Bank of America. Wells Fargo. I don’t care how big they are. These banks won’t exist in ten years if they don’t fix the issues that are wrong that cryptocurrency fixes. 

Decentralized finance will spur forth world-changing innovations. Why would I go put money in a bank and earn a tenth of a percent interest or a quarter of a percent interest when I could instead put a million dollars on deposit into a staking system or a yield farming system and earn up to 15%. There is no reason to place money into a bank so they can make 6% on mortgages and 8% on car loans off your money, where nobody benefits besides the bank itself. 

Coinbase Banner  

That’s the biggest thing that’s going to change over the next few years: you’ll see fewer people putting their money in banks and instead into these decentralized finance ecosystems.

They’ll smarten up and say, I’m going to not only put this on deposit and earn money, but I’m going to borrow money against this DeFi platform in lending, and instead of paying capital gains taxes on my profits, because I had a taxable event by selling, I’m never going to sell.

I’m going to borrow against my stash and pay a small amount of interest, which is probably going to be beaten by my appreciation in my staking earnings. So you’ll be able to borrow money against these without paying taxes.

It eliminates almost all of the traditional finance concerns that people have, which is putting money in the bank and not getting a return and then having to pay these enormous tax bills when they make a profitable investment.

FreeBitcoin Banner  

Guest post by Branden Hampton from Grow.House

Not only is Branden the CCO of Grow.House but he is also known for being one of the largest independent social media publishers in the world. He has more than 31 million followers across all the social media platforms that he manages and owns on Twitter, Instagram, and Facebook. Some of his highest monetizing brands include: @marijuana (Twitter and Instagram), @Fitness (Instagram) @FLTNESS (Twitter), @BeautifulSkin (Twitter), and @noteboook (Twitter and Instagram). Hampton is followed by celebrities, sports stars, musicians, and some of the most prominent names in the entertainment industry including Kim Kardashian, Jennifer Lopez, Rihanna, Chris Brown, and many more. His clients include poker pro Phil Ivey, Playmate of the Year Sara Jean Underwood, rapper/producer Mally Mall and numerous others who are under protection of confidentiality.

Learn more →

Get an edge on the cryptoasset market

Access more crypto insights and context in every article as a paid member of CryptoSlate Edge.

On-chain analysis

Price snapshots

More context

Join now for $19/month Explore all benefits

Like what you see? Subscribe for updates.

Go to Source
Author: Branden Hampton


Recommended Crypto Services, Products and Strategies:

The first thing any crypto investor needs is is a reliable and secure Crypto Wallet.  Whether you’re looking for an online wallet, hardware wallet, desktop or mobile wallet, Crypto Renegade provides you with all the Best Crypto Wallets in each category.

Best Crypto Wallets Banner

When you’re ready to buy more crypto, or exchange your coins for others, Crypto Renegade’s list of the Best Crypto Exchanges has you covered.  The Crypto Exchanges recommended here offer everything from simplicity and convenience to advanced trading platforms and profit sharing. 

Best Crypto Exchanges Banner

If you want to learn more about the methods and tools that can be used to find Great Crypto Projects, then be sure to check out Crypto Renegade’s strategy for How To Find The Best Cryptocurrency.

Crypto Strategy Banner

For those people that don’t have any money to invest right now, or just want to understand the technology a bit more, you’ll definitely want to check out Crypto Renegade’s Free Crypto Strategy and start collecting Free Coins today!

Free Crypto Banner

What do you think about cryptocurrency? Do you have any questions about it? Be sure to leave a comment below.

This site uses Akismet to reduce spam. Learn how your comment data is processed.