Connect with us

Blogs

Banking Royal Commission: Giving Up On Banks

Published

on

banking royal commission
READ LATER - DOWNLOAD THIS POST AS PDF

The Australian banking royal commission was established in December 2017. Commission intended to examine the practices of financial service providers such as banks and car finance companies. It has been investigating four major banks in Australia, among others. The commission discovered many cases of malpractice.

Many Australians became distrustful since the report went public. In his comment, an economist and Blockchain Innovation Hub’s researcher Brendan Markey-Towler said this is especially problematic in Australia because almost every payment is connected to the bank. The controversy resulted in a rising number of Australians who wanted to find an alternative way to manage their own finances.

Many people seem to be happy with Mr. Crabs solution to hide all their riches under their mattresses. If that’s not really an option for you, consider cryptocurrency, peer-to-peer lending and credit unions.

So what are the options?

Dr. Markey-Towler said that technological advancement offered some alternatives. His only advice was to be smart and careful. Every choice has its advantages and flaws so everyone should choose something that suits them best.

ASIC Moneysmart’s executive Laura Higgins agrees with Markey-Towler. She declared that young people are searching for innovative ways to manage their finances. She also finds refreshing and “inspiring” that young people are looking further than traditional ways when it comes to finances. Some of the alternatives are cryptocurrency, peer-to-peer lending, and credit unions.

Cryptocurrency

Dr. Markey-Tower said he believes that in the not-so-distant future we will be able to pay our usual morning coffee, for example, with a Bitcoin.

He explained that many people mistake the terms of blockchain and cryptocurrency. Cryptocurrency is actually based on the blockchain technology. According to his words, everyone in one network has a certain amount of purchasing power. When you want to transfer that purchasing power, you use that network’s related currency. And blockchain works like a bank record, tracking the amount of everyone’s purchasing power on that network.

Dr. Markey-Tower claimed that the regulations are the only thing slowing down the process of cryptocurrency becoming widely used every day. Laura Higgins agreed and added that the exchange platforms in cryptocurrency business need better regulations. Therefore, the risk is still high but will keep stabilizing as we progress further.

Peer-to-peer Lending

Instead of lending money from the bank, you may lend directly from a peer. Dr. Markey-Town stated that platforms that connect a borrower directly to a lender have recently been in demand. Laura Higgins added that ASIC regulates this matter and mostly requires licenses. Even though it seems the lenders are in favor, Higgins highlighted that this way borrowers may find a lower interest rate.

You should always ensure a few things if you’re having a peer lender for your business. The lender needs to have an Australian Financial Services License so you could be protected by law. Also, always check twice the “small letters in the bottom” and ask about the interest rate. That way you’ll protect yourself from many potential risks, for example, from an exorbitant interest rate.

Credit Unions

Higgins suggested that credit unions may be a good choice since they are as safe as banks. Customer-owned banks have different responsibilities than shareholder-owned. Since 2015, there were 4 million clients in 93 customer-owned banks. They included credit unions, building societies and mutual.

There were have been some bad experiences with credit unions due to acquisitions. Clients who exclusively want a customer-owned bank can be disappointed if the small bank merges a couple of times. Then it becomes a big one that they intended to avoid.

In the end, Laura Higgins advised always to check your financial plans now and then. Maybe they don’t suit you any more or there’s a better option somewhere else.

For the latest cryptocurrency news, join our Telegram!

Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and/or its affiliates, employees, writers, and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. Please conduct your own thorough research before investing in any cryptocurrency and read our full disclaimer.

Image courtesy of Pexels

Blogs

Reasons Why You Are Much Safer When Crypto Trading on Dexes

Published

on

DEXes
READ LATER - DOWNLOAD THIS POST AS PDF

While many cryptocurrencies aim to bring the change to the world by bringing full decentralization, one aspect of the crypto space still remains mostly centralized, and that is the way they are exchanged. Most crypto exchanges are centralized companies, where traders and investors need to deposit their coins for safekeeping. This is a risky way to handle the funds, as exchanges remain susceptible to hacks and theft, as many realized recently, after the hack of the world’s largest exchange by trading volume, Binance.

During the hack, around 7,000 BTC (over $40 million) was taken, and sent to multiple wallets, never to be seen again — for now, at least. The hack also came as quite a shock, as Binance was known for its efficiency, security, and high levels of confidence. It also made people realize that their coins are not really theirs if they need to rely on third parties, such as exchanges, to keep them safe. As a result, many are now turning away from centralized exchanges, and are heading towards decentralized ones — also known as DEXes.

Here are some reasons why you might want to consider doing the same.

1. True ownership of your coins

The crypto community has a saying: “not your keys, not your coins.” The saying is now more relevant than ever, but it does not apply on DEXes. Decentralized exchanges

Continue Reading

Blogs

Crypto Billionaire Predicts Massive Price Growth by 2021

Published

on

crypto billionaire
READ LATER - DOWNLOAD THIS POST AS PDF

Crypto prices are once again going up, and Bitcoin has just passed a major resistance level at $6,000. With a situation like that, it is not surprising that everyone in the crypto community is looking forward to the future, wondering what to expect in years to come. Many experts have already given their predictions, some more optimistic than others, but almost all bullish.

Crypto billionaire Mike Novogratz has always been very supportive of cryptocurrencies, and very bullish on Bitcoin. He recently stated that he sees the coins’ prices triple in the following 18 months, meaning that Bitcoin’s return to $20,000 might not be far away, according to him.

He noted that Bitcoin is back to $6,000 after its price hit as low as $3,100 only a few months ago. These days, Novogratz does not believe Bitcoin will return to such lows unless there is a devastating exchange hack or a major shift in regulations. Of course, there was a big hack that had the potential to damage the coin’s price, only days ago. The world’s largest crypto exchange by trading volume, Binance, saw a significant security breach which resulted in a theft of 7,000 BTC.

However, so far, the coin did not react negatively to this incident. While Novogratz believed that such an event would shatter the new confidence in BTC, it simply did not happen. However, he…

Continue Reading

Altcoins

TokenRoll (TKR) Platform Will Take Online Casinos to the Next Level

Published

on

TokenRoll
READ LATER - DOWNLOAD THIS POST AS PDF

Corporate executives are turning to blockchain technology more than ever in an attempt to revolutionize the business world.  Although blockchain is still a relatively new concept, that hasn’t stopped more and more companies from jumping on the bandwagon.  This hot new technology has quickly gained a reputation for providing greater transparency, enhanced security, improved traceability, increased efficiency, and low costs.  One industry that could certainly benefit from decentralization is the online gambling market, specifically, online casinos.  TokenRoll (TKR) has developed a platform that appears to offer a promising alternative to centralized casinos.

Problems with Centralized Casinos

The primary reason why blockchain technology is being implemented so quickly is because it solves a lot of the problems typically associated with the traditional business model.  And online casinos are no different.  It still needs to be said that centralized casinos have proven that there is a great demand for online gambling.  The market is growing faster than anyone could have predicted, and future opportunities appear very promising and lucrative.  But industries are continually evolving and this one is no different.

A few of the problems facing centralized casinos include the following:

  • Little to no transparency
  • Consumer lack of confidence
  • Privacy concerns
  • 48-72 hour wait time for withdrawals

These are four monumental issues that need to be addressed quickly given the global growth of the market.  Casinos need to…

Continue Reading

Elite