TradFi - More Than The Erosion Of Trust
You Can Take That To The Bank!
A bank is an institution that will lend you money, provided you can prove that you don’t need it. I have known people with assets and investments who have been refused a loan before. It sounds like a contradiction to my opening sentence, doesn’t it? However, banks seem to live in a world of their own. What they really want to see is income.
Banks are generally unfazed by your assets. They want to see your income and your age. Provided, these two aspects are acceptable, they are happy to lend to you. Obviously, you will have to be in the clear in regard to your credit score. Otherwise known as not being blacklisted, or under debt review. What does this tell you? Well, it’s a little dark.
A bank is happy to lend to someone who has a constant flow of disposable income, even if they have zero investments or other assets. In other words, the person has the makings of a slave. They have no alternative means. Essentially, the little such a person owns, is now actually at the bank’s disposal, in the event that they should default. Essentially, a form of slavery.
Why would a bank turn away a loan applicant who has assets well in excess of the desired loan amount? Simply because banks are not in the business of lending, but rather enslavement. Such a person is not a candidate because they don’t have the makings of a slave. Debt is designed to be ongoing. Once a person is caught up in the currents of debt, they seldom escape.
This is what banks want… someone that will work their entire life, while simultaneously financing interest. Caught up in an ocean rip without the strength (financial means) to escape. Welcome to the wonderful world of banking. Even with these questionable undertones, people have placed unquestionable faith and trust in banking institutions… until now, that is.
The Emperor Has No Clothes
Could there be a more apt idiom? However, the cracks are embarrassingly beginning to show and the little boy is about to state the obvious. The little boy in the story represents a level of honesty, only a child could possess. In our story, the little boy is Bitcoin, an honest and transparent form of money. As trust begins to erode in TradFi, Bitcoin is simultaneously gaining the affection of the crowd.
Ironically, much points to an attack on Cryptocurrencies as being the straw that broke the camel’s back. the antifragility of this asset is almost unbelievable. How does an asset/money that has zero government or alternative financial backing continue to take on the financial giants and governments of the world? The erosion of trust within the TradFi realm creates another concerning issue.
Erosion reveals what lies beneath the service, and in the case of the banking sector, Its questionable practices and flaws are coming to light. If I were to mention all the fines paid by different banks over time for money laundering, price fixing, and manipulation many would be shocked. Once the ground gives way, what lies beneath comes to light.
Conclusion
There are those who are now beginning to give some thought to their capital in the bank. Everything we have seen take place is exactly why Bitcoin was created. It’s an escape from impending destruction. Operation Choke Point 2.0 is far more likely to be proven true in the not-too-distant future than it is to be proven a conspiracy theory. Until next time, keep the faith!
Disclaimer
First of all, I am not a financial advisor. All information provided on this website is strictly my own opinion and not financial advice. I do make use of affiliate links. Purchasing or interacting with any third-party company could result in me receiving a commission. In some instances, utilizing an affiliate link can also result in a bonus or discount.
This article was first published on Sapphire Crypto.