Banks Are Becoming Redundant: The Threat of Crypto and Blockchain
Hedge fund manager Mark Yusko argues that banks are becoming obsolete due to the advent of blockchain and the rise of cryptocurrencies. In an interview, Yusko revealed that banks take $7 trillion out of the system annually, emphasizing that this amounts to a significant portion of the GDP.
- Banks have paid more in fines for criminal acts than the entire market cap of Bitcoin.
- Crypto and blockchain technology threaten the existence of banks as intermediaries.
- The collapse of FTX may have been orchestrated to create controversy and provide an opportunity for regulators to attack the crypto industry.
- The banking industry is allegedly colluding with regulators to maintain control over the money-printing process.
- Yusko predicts a prolonged battle between banks and the crypto industry before governments recognize the advantages of crypto and blockchain.
The Incumbent vs. the Newcomer: A Historical Perspective
Yusko draws parallels between the suppression of cars by the horse and buggy industry in the late 19th century and the current resistance against crypto. He highlights the collusion between the horse and buggy system and regulators, who imposed onerous rules on cars for 30 years until progress prevailed.
The Imposition of Central Bank Digital Currencies (CBDCs)
Yusko argues that the banking industry is attempting to impose central bank digital currencies on citizens to suppress crypto. He criticizes the control that CBDCs would give central banks over individuals’ money, citing the chilling remarks of Agustin Carstens, the Head of the Bank for International Settlements.
Hot Take
The rise of crypto and blockchain technology poses a significant threat to the banking industry. While banks continue to fight against these emerging technologies, it is only a matter of time before the advantages of crypto and blockchain are recognized and given government support. The battle between banks and the crypto industry will likely continue for a few more years, but the potential for a decentralized and trustless financial system is too compelling to be ignored.
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