Take the power back and be your own bank with cryptocurrency

One of the most powerful concepts, which once understood, will help convince people to begin using cryptocurrency is that you can be your own bank.

Using banks: great for them, terrible for us

Take a moment to think about how ridiculous the voluntary arrangement you have with your bank is. You entrust your hard-earned money with your bank by depositing it with them. Thanks to the fractional reserve system (the biggest scam in human history) your bank holds a small fraction of what you deposit and turns around and lends it out to others who need credit for a massive profit in the form of interest, which you get no cut of.

Your bank also imposes limits on what you can deposit and withdraw for your own “safety”, which can be immensely inconvenient depending on your situation. Other negatives include travel limitations for your “safety” and a host of fees including but not limited to monthly maintenance, overdrafts, international payments, ATM, card replacement, early withdrawal, etc.

Bank runs and capital controls

With all these negatives out of the way, I’d like to focus on the biggest risk and most terrifying possibility for any bank account holder – the “bank run”. A lot of the people i’ve personally talked to about the concept of “be your own bank” seem to be under the impression that bank runs are a thing of the past.Bank Run

Well-developed central banking systems and deposit insurance have no protections against a bank run. In fact, if all the deposits in U.S. banks were simultaneously requested to be withdrawn, it would take an estimated 20+ years for the U.S. just to print all this digital money that doesn’t actually exist as paper currency.

And for those who may be under the impression that bank runs and capital controls are a thing of the past, you need to think no further back than to the latest 3 examples, all within the past 5 years.

  1. Cyprus in 2013
  2. Greece in 2015
  3. India in 2016

US and other economic superpowers not immune

It’s important to note that more developed countries like the U.S. are in no way immune to this. The fact of the matter stands that when people want physical cash, banks will have a huge problem and they will be absolutely unable to facilitate even a small portion of these withdrawals.

Why is Bitcoin better?

Reviewing all the negatives about using banks sheds a bright light on the stark contrast between using banks and using bitcoin.

Bitcoin shares none of the negatives of bank accounts and at the same time incentivizes users much better to “deposit” (or hold) bitcoin. Bitcoin provides users with security. Sending and receiving bitcoin is easy and has no limits or extra fees aside from the transaction fees used to compensate miners for securing the network.

Bitcoin’s value is also very attractive in the middle of this low to negative interest rate environment. While interest rates are at historic lows, Bitcoin’s likelihood to continue growing increasing in price over time is much more attractive than interest payments that don’t even match the inflation rate. 

Bitcoin is also extremely portable. It’s easy to store on anything from hardware wallets to paper wallets, and even brain wallets. Yes, with the advent of bitcoin we have for the first time in human history the ability to store our wealth in our brains. Simply memorize your private key and hope that you don’t suffer from amnesia down the line (pro-tip: always back up your private key somewhere!).

Power to the people: BYOB (Be Your Own Bank)

Banks are worried about Bitcoin because it’s a serious threat to their current power structure. For a number of reasons, Bitcoin and other cryptocurrencies could make them entirely obsolete. Since Bitcoin has no liabilities or debts associated with it, it’s truly yours when you hold it. This type of asset is known as a “bearer instrument”.

There can never be a run on the “bitcoin bank”. Therefore, the biggest risk (a bank run – which is highly likely to happen again) is entirely absent from bitcoin. This is a huge reason that Bitcoin is superior. This is also why you should seriously consider BYOB’ing with Bitcoin and cryptocurrency. Be Your Own Bank!

Printing your own money is optional

Another major factor in favor of being your own bank with crypto is the ability to “print” (otherwise known as “mine”) your own coins.

Bitcoin and other major cryptocurrencies have a limited supply and pre-defined parameters for issuing the bitcoin currency which is created through mining. Unlike central banks, where a small centralized group of bankers entirely controls the issuance of the currency, the bitcoin code was written to continue issuing the precious cryptocurrency to miners until 2140.

Although Bitcoin mining is very competitive at this point and requires serious start-up costs, expensive mining equipment, and high energy expenditures, there are many other options for “money printing” in the cryptocurrency world. A couple of these options include GPU mining and holding PoS coins in wallets.

Summing up the benefits of Bitcoin over banks

Bitcoin has all the benefits of banking and more without the risk of capital controls. This is the main reason Bitcoin has grown so much in recent years, and continues siphoning value out of national currencies. All this is being done with Bitcoin’s main use case as a store of value and speculative investment vehicle. It has yet to reach any level of mass adoption to be excited about.

If you ask me, it’s a no-brainer to use Bitcoin and other cryptocurrencies over traditional banks. Either A) you hold your wealth in an institution that might never allow you to withdraw it when you need it the most and lose value in the form of inflation, or B) you hold your wealth in cryptocurrencies and benefit from better incentives and almost certainly increase the value of your holdings in comparison with fiat currency.

The choice is yours. Hold On for Dear Life.

R.I.P. Banking System: Bitcoin Art on the streets of Paris

French artist Ludo hit the streets of Paris, France with a thought-provoking new piece of Bitcoin Art. It features a blooming Bitcoin flower rising above the tombstones of four major fiat currencies: US dollar, British pound, Japanese yen, and the Euro.

RIP Banking System - Ludo Paris

The mural is titled “R.I.P. Banking System” and is surely one of the most impactful pieces of bitcoin art to date.

A Thought-Provoking Image

For the vast majority of the global population, it’s difficult (some may say “crazy”) to imagine a world where government regulated fiat currencies are overturned for a decentralized and unregulated cryptocurrency.

The truth is, this is VERY possible.

Many of us crypto HODLers understand the long-term implications of blockchain technology and can see the “writing on the wall” so to speak for the fiat-based banking system.

Bitcoin and other cryptocurrencies have the potential to absorb the capital from all fiat currencies, financial securities, hard assets, and any form of value, really. I am not stating this WILL happen, but it definitely CAN happen, and to some extent, it will.

RIP Banking System - Ludo Paris

USD, the Fiat Martyr?

A closer look at this bitcoin art piece shows a crucifix for the US dollar, while showing R.I.P. for the other 3 currencies. What can this possibly mean? I have a couple theories:

  1. USD, the top fiat reserve currency is symbolized as a crucified martyr. As evil as the US Dollar and private bankers behind it are, it has paved the way for the rise of crypto through the cypher punk movement.
  2. Since USD used to be a legitimate currency backed by gold, the idea of a legitimate USD has already been crucified, and as the debt-based version died, it will always be held in higher esteem for what it once was.

The idea of a global currency has been around for 30+ years. In 1988, the Economist magazine cover (owned by the same Rothschilds who own much of the banking system) shows an interesting, and timely prediction for exisiting fiat currencies:

Economist 1988 Cover
Economist 1988 Cover

Rise of the Phoenix – The Cryptonati?

The Economist cover, along with other signals in the mainstream media are enough to get the conspiracy theorists in a frenzy over what’s to come.

Rise of the PHOENIX - NWO
Rise of the Phoenix

The cause for concern is valid. If this was planned by the same global elite controlling current financial systems, what’s really going to change?

Power to the People

The decentralized nature of cryptocurrencies and blockchain technology will make it harder for  small group to control global finance and economic policies. Without the debt-based, fractional (fictional) reserve monetary system, our wealth is more easily preserved, protected from inflation and money printing schemes, and resistant to censorship.

Long live Bitcoin and the cryptocurrency markets. Our day in the sun is yet to some. We have a bright future ahead, and we hope to see more of these thought-provoking bitcoin art pieces in the near future. Buy yourself some bitcoin and Hold on for dear life.

Links to support this blog
  • Don’t have any crypto yet? Buy $100 and get $10 for free: Coinbase
  • Best exchange for trading alt-coins: Binance
  • Trade alt-coins and make commissions: Kucoin

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