We Are All Banks Now

in LeoFinance10 days ago

Cryptocurrency is changing a lot of things in a short period of time. While we see regulators, mainstream institutions, and a host of other parts of the established financial system trying to catch up, the industry itself is forging ahead.

For this reason, we are seeing development that is going to usurp a lot of industries, disrupting and even destroying companies in the process. This is what the Internet does and the Internet came to money.

Decentralized Finance is getting a lot of attention, not all of it positive. In spite of the negative actions on behalf of some players, there is an incredible mechanism being established. This is truly going to revolutionize people's interaction with the financial world.


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To start, DeFi has the goal of providing financial services to everyone on the planet. Anyone with an Internet connection will be able to engage in these services, receiving much needed financial access. The present system leaves out billions of people.

Second, and more important, everyone who is involved in cryptocurrency will end up being a bank. DeFi is going to allow anyone to not only utilize banking services but also provide them. As more features and functionality is added to the industry, we are going to see this expand to include everyone.

At present, liquidity pools are a popular option for people to gain a return on their tokens. Essentially, this is performing the service of market maker, something that is typically relegated to the major banking institutions. Basically, when there is a lack of liquidity, they step in to offer it.

With DeFi, for currency swaps, pools are funded by individuals who stake their tokens. Since they are paired, the pool will fluctuate back and forth between the tokens as the market dictates. As demand for one increases, the supply of the other ends up moving into the pool. Market dynamics will usually produce a reversal at some point. Over time, the pools will remain fair steady even though the numbers of tokens are fluctuating.

We also see people acquiring wealth as time goes by. Through a variety of mechanisms, the amount of crypto people are holding is growing. Each day, existing projects offer out more tokens. This is enhancing the holdings of each individual who is involved.

This is vital because, as the world of DeFi expands, we are going to see many more options for people regarding their tokens. We are still early in the game yet collateralization is an area that has enormous potential. Hence, we will see the time when millions of people take their assets and collateralize them. This opens up an entirely new arena of "lending".

What is fascinating about all of this is the fact that we see the power of what many can do. With banks, it is only a few players involved, each putting up enormous sums of money.

DeFi produces a completely different perspective. Instead of a few large institutions, it is made up over individuals putting up whatever fits in their financial range. There are people involved with only a few dollars while others are in for millions. Either way, all are participating and producing returns.

We simply do not see this in the present financial system. Regulators, in the United States, work hard to protect the wealthy. While some might take exception with that statement, it is the case. The only way this is not true is if the regulators things that the general public are completely idiots, a point that might be hard to dispute.

Either way, the financial system is tiered. The juicy stuff is only available to "accredited investors". This means people with a lot of money. The rest of us, we are left to pick up the pieces. Sure there are markets to enter and fine returns to be made. The big money, however, was already taken off the table.


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People in cryptocurrency are realizing what those involved with Wall Street knew for years. Money is nothing more than a game. It is a mirage that people get emotionally attached to yet is not real.

Individuals now have the ability to create their own currency. People discuss the idea of the Fed generating money "out of thin air". Well, the crypto industry does the same thing. Thus, we are on equal footing with any central bank.

At the same time, the derivative market is estimated to be worth more than a quadrillion dollars. This is nothing more than financial products which Wall Street made based upon other products out there and sold them, thus pulling in more money. The basic value of this is backed by nothing. It is truly a market driven asset.

The Archegos Capital Management Crisis was a prime example of this. That fund used swaps to leverage positions, sometimes up to 500%. It owned none of the underlying stock. Thus, anything in their portfolio had no backing.

And people have the audacity to claim that cryptocurrency has no intrinsic value. Look at most of the stuff Wall Street related firms trade in.

Simply by owning a cryptocurrency wallet, one eliminated the need for the most basic of banking services. Banks, for most people, provide a place to send, receive, and store money. That is exactly what a crypto wallet does. Therefore, the need for a bank is being reduced as more of people's wealth is held in crypto.

The discussion of CBDCs often overlooks this simple point. Once they are released, the need for banks plummets. If a country implements an across the board CBDC, the "bank" will be the wallet itself. This alone shows that CBDCs are not for bankers but, rather governments (politicians and bureaucrats).

Of course, the difference there is who has access to the wallet. With a CBDC, the government will enjoy full access. That is not the case with cryptocurrency. Whatever you have in your wallet, is protected by your key. Hence the saying, "not your key, not your crypto".

As we can see, the entire world of finance is changing before our eyes. The fact that millions can now get involved and enjoy as well as provide basic banking services is revolutionary. This will only grow as more development takes place.

Ultimately, most of the planet will be involved in both aspects of this. This will see us all being banks in some form or another.

The difference is that we do not have someone scalping out money every step of the way like we do now.

In my mind, this is a major step forward towards freedom.


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I claim the rights to 1st National Bank of DICK... ey

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You claimed it first. You are the head banking DICK...ey.

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I like how crypto is expanding but I definitely want it to be more decentralized. I want stores to slowly move from a fiat based system to a crypto based system but I think it will require more time. This is mainly because fiat is still king when it comes to normal lives and purchasing of goods. So I hope more payment systems like HivePay who allow people to pay with crypto become more used.

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Decentralization is a process so it is a daily think. People want to snap their fingers and go boom, from totally centralized to decentralized.

This is a grinding process.

Over time, it is happening.

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You mentioned that the bank is primary used to save, send and receive money. For me, the save option is off. I only use my bank when I need fiat but that could easily change. I may never have to use fiat directly given that various payment platforms like Visa, PayPal accepting crypto. Soon we will bypass those middlemen and deal p2p. This is one of the many steps towards financial freedom.

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With the negative interest rate, saving using banks is not an option anymore. 2

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Well that is good you made that transition but most did not.

We now have a lot of people still stuck in the same old system. However, we have a new option since an alternative is being created.

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When I started out last year with hive , I could only boast of hive as the only crypto holding I had, but fast forward till date I can say I'm invested in cub, in hive, Leo and also have some Eth and BTC even if it's not much. The tide is changing, I can't even keep count, DeFi is bringing more opportunities

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That is a wonderful story of how things expand. We are seeing so much being generated in terms of opportunities, that people cannot help but to succeed.

It is wonderful that you are now involved in so much. You were only Hive but now you are into a number of other things. And as your stake in CUB grows, there will be some other things you can get involved with over time I would imagine.

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It's amazing how that happened in a space of one year, I expect more opportuinities to Open up as well and it would be great to have more finace to build and keep building

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That is how fast a pace things are moving at. We are seeing things emerging very quickly.

It is going to be a lot different a year from now. This is simply how things are working.

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The present system leaves out billions of people.

I am one of those angry billions seeking for decentralization everything possible.

We are all banks now, the bank in my pocket all sounds good to me. As long as no grubby fingers can touch my cryptos I'm happy!

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As long as no grubby fingers can touch my cryptos I'm happy!

That is the benefit to crypto. They cannot stick their grubby paws into what you have, not without your permission at least.

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Decentralized Finance is getting a lot of attention, not all of it positive

its certainly getting more attention and mixed reaction including positive and negative but the percentage of positive is high. With crypto, things have gone to the next level and people are moving away from traditional things.

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The Internet did not get the best reviews in the early days. It was known for catering to porn, druggies, and gun runners.

So while there was nefarious activities, we see the fact that the Internet is now used by billions, and not all of it for negative ends.

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@taskmaster4450le yeah that is true,the beauty of it all,each person can decided on how they want to use the internet,whether for positive impacts or negative impacts....while some are using the internet to make millions,some are just using the internet to watch porn and wasting their time....

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We can opt to spend out time as we see fit.

Some will use it to make themselves a fortune, others will have regret.

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That's a good point! 💰 😎 👏

This is so cool @taskmaster4450, The more I get to know about crypto the more I understand the flaws of current banking systems and Fiat. They are holding too much power until now. Crypto and Blockchain remove the parasites (banks & govt.) 🪱 out of the system. Giving everyone a direct access to lucrative financial opportunities.

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We need to get the parasites out o the system. It means we need to keep pushing things forward in a way that gets things decentralized.

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Yes sir. Decentralization is the key here to move away to a better system.

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I was never going to imagine that I was going to become a banker, imagine how far we are reaching thanks to hive especially since it allowed us to enter a world where only the wealthy could at first.
Yes, the juicy DEFI rates are for everyone and that is why the battle in these next few years will be difficult against the entire system that is coming, hopefully it will not be so complicated and there will be persecutions in the process.
Well, if we know that money is not so real, it is rather pure debt and the interesting thing is that we will spend the rest of our lives paying for something that we never enjoy, perhaps or that we pay more than three times its value.
Yes, the case of Archegos seemed laughable, that is, using users' money to play finance and then I simply declared bankruptcy and nothing happens who goes to jail, that's why nobody,
For that there is the prudent investor manual, which dictates the guidelines but I do not know to what extent this can be called prudence.
thanks for the memory of not your key not your crypto I have some outside that maybe I should move inside.

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You didnt imagine it but you have a bank on your phone or computer.

In it, you can do what banks do for most of the people out there.

Welcome to the new world.

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Don't even tell me last week I could have arbitrated with a coin called ** drep ** between binance and gate.io but as my bench in the palm of my hand has a super cruising speed like a carriage pulled by a horse while the Chinese over there in binance go in super sonic Jet as they think I am, when I arrive they had already swept everything in a blink jaaaaaaaaaaaaa
I need a more powerful bank in my palm so maybe luck will smile on me and take advantage of some opportunities that present themselves or maybe as a friend said this morning we are not prepared for the coming fortune to take big profits less to take big losses, maybe we will ruin it like Those who have won the jackpot in the lottery and have ended up bankrupt due to lack of education, but I think we are going well, moving slowly so small losses don't hurt so much.
Best regard.

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we have become the very thing we swore to destroy :))) ( I'm joking of course)

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LOL but there is a grain to truth to it.

Hopefully we behave in a manner much better than what we see the institutions.

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I think people behave nicely only when they are incentivized to do so

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. Money is nothing more than a game

For sure, predict, buy , sell , lost and profit. It is the real game of life.

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When you stop being emotionally charged with money, clarity sets in. We can see the opportunities appearing before us.

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One thing is sure in crypto: middlemen have their days numbered.

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I would agree with that. Things are ending for them, in a rapid way.

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I had a post a while back about the jobs we don't get paid for and banking was one of them. However, banking using the bank app and managing my crypto portfolio is very different. In crypto you need to learn a lot if you want to grow your account and not make it thinner. But that's the beauty of it, I love it.

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We can make our bags larger by simply taking activity. This is the key. As long as we are active, our wallets grow in size and then we can apply that to other opportunities which can make it grow even more.

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Such a truthful article, one could say visionary, but I think it's describing a process which started already. Upvoted, reblogged, and happy to see such insight and perspective. I will walk after you and watch you like a baby is after her father :) I feel so "crypto innocent", candid, not stupid, though :)

The path to success is no great secret.

It is rather simple, albeit not easy.

Just keep forging ahead and you will have success on here.

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Thank you so much for your encouragement. Since I'm in Hive, I wonder daily how can I reach more engagement, more users, families, alliances, and so on...But I'll do it alone for now and always appreciate those who stand by me with positive, uplifting words.
Thank you so much, @taskmaster4450le !

This is for sure really disruptive to the status quo. I am still trying to wrap my head around the whole DeFi thing, but your explanation here of the components is one of the clearest I have read in a while. I really appreciate that.

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Just convert things piece by piece. We will see more options rolling out that allows us to engage in financial services without the need for the centralized establishment.

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I need to get some of my soft goals met so I can start moving some more funds into cub.

You are active on here so you should be able to get there.

It all keeps adding up.

So just keep the process going.

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Bang, I did it again... I just rehived your post!
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Interesante tu post, saludos desde Venezuela y es compartido.

Everyone's gotta do their own research and pick their currency. Ofc if anyone wants to be lazy and eat McDonald's everyday that's a choice too.

Another somewhat helpful and very inspiring post! Viva la Revolution! Being new to the cryptosphere the biggest issue I'm struggling with is liquidity and gas fees. So far none of the "how to's" I have found have been the least bit useful. Thanks to folks like yourself I'm starting to get a good handle on how to earn crypto (and hopefully have a positive impact in the world at the same time) but as for how to actually 'use' what I can earn it is a slow slog through a dark swamp. Thanks for all your work, it brings a little light for which I for one am grateful.