What Is Bankless?

In the Bankless Podcast Friends and Cryptocurrency aficionados Ryan Sean Adams and David Hoffman have set out to revolutionise the way that we think about the future of money and Banking.

While the idea of being Bankless is not new, it is more relevant today than ever. Many savvy investors and traders are already preparing for ways to insulate themselves against the effects of the next financial crisis, and for them going Bankless is certainly going to be at the top of the list.

Here at DefensiveTrading.com we preach again and again the merits of keeping your capital safe. If you also agree that this is the first and most important step in trading and investing, then this post is certainly for you.

For those who aren’t too sure as to what all the hubbub is about, read on. It just might save you more than you think.

OK, What Is Bankless?

Bankless is a term that describes the self-sovereign process of self-managing your finances through the use of the infrastructure of Cryptocurrencies, specifically Bitcoin and Ethereum.

This idea is a completely revolutionary concept which encourages independent financial control and freeing yourself from the traditional ‘financial system’ in which all actions need to be requested to and approved by an institution, such as a Bank or Brokerage.

The Goal of being Bankless is to alleviate any control that institutions such as Central Banks and the Monetary Policy of a Nation State have over people and their finances.

A [Bankless] revolution where everyone gets access to the global money system—no bank required.

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Hang On Bankless… What’s The Problem With Central Banks?

The concerns that have arisen regarding Central Banks and Monetary Policy have become widely known and accepted in recent years. Since the advent of the internet, there has been less and less room to hide behind tradition and apparent authority.

This was accentuated severely during the most recent Global Financial Crisis, when the financial world crashed and Governments chose to bail-out failing financial institutions, such as banks, with Taxpayer money; and Central Banks chose to print money hand over fist and slash interest rates.

As time has progressed since this fateful period in our history, something happened to change everything forever. The Bitcoin Whitepaper was released, disrupting the way we think about transparency forever. Since this time and with the years that have ensued, the average person has become more and more knowledgeable about Blockchain, crypto and Peer to Peer systems.

It no longer seems to make any sense to have the financial future of millions of people decided by 12 unelected individuals who are experimenting with everyone’s lives by applying economic modeling theories and making decisions about them behind closed doors.

What is bankless?

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Blame It All On Inflation

We have all heard of inflation but it hasn’t seemed to have affected us in the west for a good while. Well, look again.

There is traditional inflation which we tend to see spiral out of control in developing or ‘third world’ economies, however, we also see it in the developed world due to something called the Cantillon Effect. This means that first world economies are also affected by inflation, but in an indirect way.

For example, though the currency of a developed country may seem stable in relation to the likes of Argentina, for example, in the west the inflation we experience is simply related to asset classes that are artificially inflated.

One only need look at the inflated prices we see in the stock market and housing market since quantitative easing monetary programs have been implemented in the west.

The money that has been printed has not filtered down into the hands of the everyday person, because it has been siphoned off into these asset classes by the people who have first access to it, such as banks.

The separation of church and state seems rudimentary in this day and age, but consider that in actual fact, the separation of money and state is as important to the future of democracy, if now more important.

How Is The Bankless Use of Cryptocurrencies Any Different?

This can be summarised through two key words. Democracy and Transparency.

The essence of Cryptocurrency protocols is that they are decentralised peer to peer transactions that are publicly published and unchangeable. This means that anyone, who chooses to, can see and scrutinise the transactions openly.

According to Ryan and David at Bankless, they see this shift as being inevitable and foreseeable. They explain in detail that in this global world, the process of each Nation-state or jurisdiction having its own sovereign currency is now defunct. The way that we live our lives now, there is one internet, one world connected and we all crave the ease and affordability of using a smaller group of currencies that are not affected by our jurisdiction.

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How Can I Go Bankless?

According to Ryan and David in the first episode of the Bankless Podcast, this is already a realistic option.

“Anyone with an internet connection, and Ether [ethereum] address, and some Ethereum and Bitcoin already has access to a global money system in which they can transfer money, lend money, borrow money and invest all without a bank.”

This means that they cannot have their funds disrupted by any government, company or payment provider – ever.

In the first episode of the Bankless podcast, they explain that there are only two cryptocurrencies that people a) believe in, and b) have a realistic use; and they are Bitcoin and Ethereum.

The reasons for this is that firstly, Bitcoin doesn’t inflate due to being hard-capped currency, and, secondly it it digital and hence accessible to everyone everywhere. Bitcoin was also the first of all the Cryptocurrencies and was adopted at the earliest stage.

Secondly, Ethereum, it is similar to Bitcoin in that it has scarcity, however, due to being Turing Complete and can therefore run software.

The Bankless team envision the Bankless revolution existing as a parallel financial system to the current traditional monetary system, until there is a overwhelming need for people to flood to the Bankless system.

For those wanting to start off in their Bankless transfer sooner rather than later, the process it easy and it doesn’t require actually purchasing any cryptocurrency just yet. It is a slow and steady process to transferring over to a Bankless status but will make current volatility of pricing in Cryptocurrencies less concerning.

This is done simply by setting up an address where you are able to receive funds. If you start your bankless journey by simply accepting funds, as opposed to actively seeking to transfer fiat money to cryptocurrency, then you will not run the risk of being beaten up by the volatility of the market as it currently is.

As the Bankless founders state, the Bankless and Cryptocurrency revolution is still in its infancy and is still very much in a phase of growth which will then be followed by a period of stabilisation. It is during this second phase that the Bankless revolution will be widely accepted as the preferred method of financial interaction.

It is also predicted as with all revolutions, it will be a be a bottom up revolution. Meaning that it will start by the small every-day users at grass roots level and then work its way up the economic system ultimately reaching, and toppling those at the top.

We hope you have enjoyed this post, What Is Bankless? As always, if you have any questions, we would love to hear from you in the comments box below. Happy trading!

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