The Rise of Crypto Banking
As 2017 was the year of initial coin offering, 2020 and 2021 belong to decentralized funding, especially in cryptocurrencies. When skeptics first come across the word «cryptocurrency,» their first thought is, «what’s wrong with the current system?» Why do we need an encryption asset, and why a crypto bank? If you’ve ever had similar thoughts, please read on.
What is the problem with the current system?
From time to time, the governments have controlled the currency so that it can only be described as negligent. We saw this in 2007-2008 when the largest banking institutions were overthrown, and the economic crisis was precise because of this cruelty. Taxpayers around the world had to intervene. Despite a sharp decline (about $ 1.2 trillion), nothing was learnt, and institutions continued to function without meaningful control. This gave rise to the famous «too big to fail» idea, as certain banks, corporations, or sometimes entire industries were seen as so vital to the survival of our economy that it would be acceptable to save them when our hard-earned cash would fail.
National agencies and institutions continue to override people’s money. The point is, the currency you love so much, is not worth the paper it is printed on. Venezuela, Zimbabwe, and Argentina are some recent examples, but we can see that self-developed economies like Germany are no exception if we look closer.
Even the United States and Indian governments are not used to gambling with paper money these days. Quantitative easing, demonization, and other similar measures are other reasons to distrust people’s money in a government.
It is very important to understand that the current monetary system works by the concept of trust. Although it has faithfully served its purpose for about 3,000 years, now it is time for modernization. It’s time for a distributed system that you don’t need to trust. Of course, if you are knowledgeable about cryptocurrency, you already know this story, the Bitcoin White Paper, which gave the world just that. Peer-to-peer, distributed, and untrustworthy currency forms based on highly secure blockchain technology.
The venture capitalist Chamat Palihapitiya calls Bitcoin (BTC) «the best protection against the traditional financial infrastructure» and is pushing for the purchase of cryptocurrency. «It doesn’t matter whether you support the public finances and the money or not. This is the jewelry insurance that is under your mattress».
In other words, even if you support public finances, you won’t look foolish if the guidelines continue to fail. Companies like Tesla have already invested heavily in Bitcoin as their liquidity fund, and several organizations are following the trend.
It’s time for more updates. It’s time to start a cryptocurrency.
Why do you need banking with a cryptocurrency?
As Bitcoin and other cryptocurrencies have made their way towards mass integration, many built-in limitations have had to be addressed. But as the saying goes, «Rome wasn’t built in a day,» and the transition from a 3,000 year-old system will take time. People understand the potential of cryptocurrencies, have bought them and kept them alive – a term commonly referred to as HODL in cryptography today (although the term comes from a 2013 bug). The popular Vault encryption platform like Hodler Bank has emerged to address some common issues that Hodler faces.
Holding was probably the best strategy for 2018 as people started realizing Bitcoin’s future potential. In the future, they would only buy Bitcoin without worrying about market prices. Despite its market value, Bitcoin is not very valuable (as it is not designed to sell and benefit from price increases but is likely to be used globally or nationally).
Not only are your investments unused and illiquid (yes, you can sell your position, but that doesn’t mean anything), but you cannot use them for trading until the cryptocurrency has been managed and approved.
You need a state-of-the-art platform that may help you exchange your traditional currency against cryptocurrencies and vice versa. Such platforms are decentralized, and you can hold or exchange the currencies whenever you anticipate a major change in price.