Slowly, the downfall of the banks is getting real. However, I do not necessarily see the signs of this in large financial institutions or auditing companies. No, I recognize it looking at the commercial banks next door!
In today's Sunday Thoughts episode, I want to share my concerns about the banking sector.
I will also show you why I think the next Bullrun is much closer than we think and why any attempt to scale is obsolete.
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The other day I visited a bank branch again. Even though I do not like to go there and see blockchain technologies as superior, the rest of the world is still stuck in this system. In the end, I have almost no choice but to have a bank account because otherwise, this would make many things in my daily life much more difficult.
Anyway, when I got to the bank, I could hardly stop myself from laughing out loud! Because my bank now advertises gold in its branches. They want to sell gold to their customers because gold is a "hedge" against inflation.
How ridiculous is that? A bank, which is itself in the money business, suggests that the money they deposit for their customers is not safe? Apart from that, the gold prices are so high that this seems like a dubious business. The whole thing seemed like a bad joke to me, but this should not be the last time on this day that the bank made me prick my ears.
When I arrived at the bank counter, I pointed out to the bank employee that the cash deposit machine was not working. I had previously tried to deposit money into my account, but it did not work. The bank employee explained to me that this was not possible with my card. Why? Because I am not in my home town! My account is at a big bank that has branches all over Germany.
However, I was not in the "right" branch for my account, but these branches are from the same financial institution. So, it would be like buying vouchers from a McDonalds in a city, but only being able to redeem them in that branch, even though the branches in the other cities have the same offer and the same vouchers.
For me, this meant that I could not simply deposit money into my account but first had to pay an administration fee. Moreover, this fee was very expensive! I had to pay 20€ to deposit my own money into my account, from which the bank profits anyway. In relation to this, the recent gas prices at Ethereum appeared cheap to me again! Nevertheless, instead of getting upset, I was laughing inside. Because I realized that the banks are in their final stage of existence.
In the meantime, low interest rates are no longer sufficient to keep these banks' entire apparatus alive. So, the customers have to pay more and more money to deposit their money at a bank. At the same time, banks are urgently advising their customers to buy gold because they fear inflation.
It has never been this obvious how badly the banking sector is doing.
While the banks are on the verge of collapse, the blockchain sector is developing, monetary policy, or the way we handle money, is becoming more and more digital.
However, what is the banks’ answer to this digital movement?
Online banking. Apps that are not even user-friendly and whose facilities require a bank employee. In short, the answer to a faster and more digital financial world by the banks is inefficient apps for smartphones. Wow!
Incidentally, people's money is being devalued due to the “Cantillon Effect” as central banks continue to print money on a large scale. Also, more and more companies will fall victim to the Corona crisis. Nevertheless, some companies and banks are supported by the state with freshly printed money because they are "too big to fail".
So, we find ourselves in a planned economy that cannot react to tragedies like the Corona crisis. Meanwhile, the banks cannot go with the spirit of the times, and in general, the central banks devalue our money.
In plain language, this all means: We are facing significant changes!
In my opinion, these changes will first be gradual and then sudden. In other words: exponential. Therefore, I do not believe the crypto prices can be predicted with common models. Because if there is one thing, I have learned in 2020, it is how quickly and drastically things can change.
I think that similar and drastic developments will take place in the crypto market. Because if the old financial system, which is entirely ailing, continues to develop so badly, people will inevitably deal more and more with crypto-currencies and invest in the market. New ATHs would be imminent.
Nevertheless, when could this be? I do not know exactly, and I don’t want to shout out exact numbers. However, I believe, because of the crumbling private banks and devaluation of our money, that 2021 will be the year of the crypto-assets. Whether it will be in spring, summer, or autumn, nobody can tell; but I believe that 2021 will be the year of the bull run, contrary to many experts' forecasts.
I firmly believe that we should look more at the overall economic situation than at statistics and predictions tailored to Bitcoin. Because one thing is sure: if one black swan event occurred, the prediction models would be obsolete.
Especially in such turbulent times as now, we should be keeping an eye on this!
All information presented above is for educational purposes only and should not be taken as investment advice.