Liquidity Crises Is Proof That The Banking System Has Made No Major Developments Over The Years
It's surprising to note that the fact that the financial system is the biggest fraud there is, is an unpopular take. They roll back default system products with redefined templates and deceptive interest rates to lure individuals to think there's an actual value-generating mechanism.
The governments, the banking system, and other associates do not understand what it means to build or put up a structure that allows the flow of value to be consistent or at least sustainable, we can plainly measure this via the inevitable death sentence of fiat currencies. And the banking system overview? How many years long since there was any actual new product focusing on incentivizing people?
The Unintentional Holders
When we look at the vast majority we see a world where ignorance keeps a lot of people in the dark away from embracing infrastructures that actually enable the building of wealth. The system is so poorly structured that the vast majority believe the bank is the end station for money in its original state.
This ideology is the reason for the unintentional holders of fiat currencies. In the cryptocurrency space, we have the vast majority understanding of why there’s a need to hold just as much as many may have short-term investment goals. This is on a basic level a healthy practice and it keeps the market alive with day in day out trading volumes, and guess what’s more? The exchange mediums get to extract value from this and grow their own ecosystem, a win for everyone.
That said, with fiat and the traditional banking system, we see the populated users that do not realize that money that doesn’t regenerate income or has structures designed to do that needs to be dumped. The Euro would be worth nothing just as the dollar would, but as technology will have it, these narratives and the education fields are about to change and this will greatly shape the world of finance.
The Absence Of Development
Company-based developments? Of course not, we’ve observed major advancement in the industry, I mean the constant push to make transaction mediums smooth and yet centralized is one example, but crypto is proof that keeping intermediaries away is the closest bet to the ease of financial operations.
Customer-based developments? = 0
And this is frankly where the problem is!
With fiat currencies holding their reign, the world is moving towards an era where a million dollars would be nearly nothing. This is because the agenda of the financial institutions is to trap away most of the value and inflate the little left so as to trap more, it’s an operation on repeat so if the currencies lose value, they can create more, and the citizens lose, and the stay balance.
This brings us to the fact that frankly, the reported net value of these sections are all shits, on a free-hand estimate they are all relatively worth the same as years back considering factors like inflation eating up the value of units, so while companies earn more units, the value drops and it means nothing much overall!
Liquidity Crisis Is The Effect Of No Market Products
Much like any company losing customers, the banking sector is running into liquidity crises that are yet to be observed, the reason being that they are market products to incentive users in an inflated economy.
The banking sector at a glance - Savings, Loans, and what more?
In case the point isn’t quite clear, the banking sector has no user incentives services, there are practically 0 currently and this is a major reason the system will suffer following the adoption of cryptocurrency and blockchain technology.
It is frankly funny how a system really has zero first-layer products to target long-term value commitments. When you look at the cryptocurrency space you see users locking up a shit ton of value for an extended period of time, and true constant field developments, more lock-up periods may be observed due to user incentivization. They aren’t real value regenerating products when it comes to the banking system, but there’s a ton with cryptocurrencies.
We see this play out with Polycub just as Defi with HBD came into play. You can’t expect to retain value if there aren’t customer-based developments that incentivize them, this ultimately promotes retention, and frankly speaking, the banking sector needs to wake up or we may see the sector collapse as generational wealth exits to grow in the cryptocurrency ecosystem.
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