Ahoy matey! It’s BeeCeeBee and if ever you find and read this short article then you've probably already heard about this thing called Cryptocurrencies. You might have already invested or you might be thinking about it. Well, after reading this, you might want to give this article a thumbs up and follow me here on Reddit and on Twitter.
I think we're at a defining moment in the financial system. A lot of people have said the revolution has occurred. I'm not so sure that's it's occurred yet, but it has the potential to be there.
Today, banks are really at the heart of the financial system. Without banks, it would be very difficult to make payments, be very difficult to create credit. It'd be very difficult to create money.
*Recently, we've seen a lot of technological disruptors enter financial services. So, examples would include, not only digital currencies like Bitcoin, but also peer-to-peer lenders, crowdsource funding, and a whole variety of other innovations that people are coming up with as ways to not use deposits to fund lending. So, Bitcoin is this unusual creature because we're not exactly sure who created it or exactly when it was created. It's really a series of protocols about how one person or entity can make a transaction with another. Banks are classic intermediaries. They're there between two people who are making payments. What Bitcoin allows is for that intermediary to no longer have to be there. If the central bank in your country is behaving badly, then you wanna try to find some alternative. So, like in Argentina, when the central bank is creating a lot of inflation and making it very difficult to make payments and putting on all sorts of controls, Bitcoin is a terrific alternative.
In some other countries, like here in Thailand, the central banks aren't behaving that badly. And so, it doesn't provide that important of an alternative, but it does put a discipline on central banks. If they behave badly, there's this easy alternative for people to turn to. It so far hasn't really taken off as a unit of account, medium of exchange, store of value, the classic things we associate with money, but it has the potential to do so.*
One of the potentially revolutionary aspects of all this innovation is that banks shouldn't think of themselves as financial institutions, but really data analytics companies. And so, anyone who might have the data to be able to do credit analysis and who might also have access to financing, like a Google or Amazon, who can issue debt in the public markets, could now provide credit and could now do credit scoring and figure out who should be getting credit and who shouldn't on a profitable basis. And so, it's quite possible that some very large tech firm could use information about the kinds of things that you purchase, the kinds of things that you do searches for, even your location, to draw out a lot more information to a lender to say, “Hey, this person is a good credit.” The question is, (1)- How much value is in that additional information? And (2)- How much are we willing to give up on our privacy to say, “Okay, I'm gonna give you that information, so, I can try to get a better, effective credit score and so, more access to credit.”
And so, I think this is a real call to arms for banks to rethink the way they operate. That they really should be data analytics firms who happen to be providing finance, because it's going to be that firms that have a lot of data about people are gonna be entering finance, and banks better be prepared for that. Otherwise, banks may not be around for very long.
Today, as I see it, decentralized networks are widely employed in a variety of industries. Especially with today's technology, such as the blockchain, now on web 3.0 as they call it, and all things related to cryptocurrencies. One good example of a blockchain that I’ve known so far from cryptonians, writers, and members of the community, is the Telos Network. One of the decentralized networks, global economy, and app ecosystem that is driven by its scalable smart contract blockchain and TLOS coin. It offers fee-free transactions and quick, scalable distributed applications (dapp). So, In many circumstances, Tlos has even been seen as a decentralized finance mechanism that will be prevalent in the future and may displace the usage of cards or cash in certain situations.
The thing that conventional financial experts love about cryptocurrency is that, as a technology, it addresses all of these problems. It enables money to be transferred over the internet. It gives you the ability to program money. It establishes digital property rights. It brings efficiency and the ability to disrupt a sector that is now one of the least efficient in the world.
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Anyway, If you want to review Telos and want to know why It is one of my favorite cryptos, just hit this link to their website: TELOS.NET
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