Could STEEMIT become a BANK? ....YES, why not..!!
STEEMIT BANK? .....why not..!!
Credit: @officialfuzzy
I woke up this morning to this reply from @officialfuzzy to a recent blog and it got me thinking..!!
Could STEEMIT become a BANK? ....YES, why not..!!
Before I explain why, I just wanted to confirm a few things.
What is MONEY?
MONEY is a tangible, easily transported ASSET, that stores VALUE and is exchangeable for goods and services.
What is CURRENCY?
CURRENCY is a form of exchange where the item used has no store of VALUE.
In simple terms the different between MONEY and CURRENCY is that MONEY stores its VALUE over a period of time where as CURRENCY is purely a means to exchange at a particular point in time.
The term MONEY is commonly used as people are conditioned to believe that it has a store of VALUE when in fact over a long period as the “MONEY” is supported by DEBT by definition it WILL REVERT eventually back to ZERO..!!
Bananas could be used as CURRENCY if you wanted to as they could be used for an exchange for say a Goat.
100 Bananas = 1 Goat
However Bananas could never be used as MONEY as they do not STORE VALUE over time..!!
Therefore taking this principle on, the DOLLAR CURRENCY is commonly used as it is used with confidence that you can draw it from a BANK and it will not lose VALUE by the time you wish to exchange it for goods and services.
The problem arises though that if this confidence was lost the VALUE would EVAPORATE..!!
All CURRENCIES used today are backed by NOTHING accept DEBT..!!
As this DEBT grows the risk of a DEFAULT becomes increasing possible and it is this scenario that would result in the CURRENCY to be worth less.
We are witnessing GLOBAL CURRENCY DEVALUATION on an unprecedented scale and this is purely due to the sheer size of DEBT that is now growing at an alarming pace.
As more and more Fiat CURRENCIES take on more and more DEBT, this will put huge pressure on these CURRENCIES to maintain VALUE.
Step in Crypto CURRENCIES..!!
Unlike Fiat CURRENCIES, Crypto CURRENCIES have NO DEBT..!!
STEEMIT takes this principle to a complete new level and actually backs their Crypto CURRENCY with VALIDATED and VERIFIED CONTENT.
As time passes and STEEM proves to hold its VALUE as a CURRENCY it will automatically be deemed MONEY..!!
Should the confidence build in STEEM as a store of VALUE then why should STEEMIT not become a BANK..!!
This therefore takes us nicely back to the reply I had from @officialfuzzy this morning.
Could STEEMIT become a CO-OPERATIVE BANK..?? ......YES, why not..!!
Thanks for reading.
Stephen
I like the direction your mind doth travel!
Thanks. Stephen
This is (part of) the reason virtualgrowth is here...
Thanks for the comment and support. Stephen
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Currently the interest rate on STEEM Power (Inflation Rate of STEEM) is far greater than the interest rate of any banks in the area.
As the price of STEEM stabilizes it could easily be a kind of repository for funds.
Steem on and Happy Thanksgiving,
Mike
"As the price of STEEM stabilizes it could easily be a kind of repository for funds." Nailed it in one..!! Happy Thanksgiving. Stephen
Yes...Why not? Voted and followed. :)
Thanks I appreciate the support. Following. Stephen
Shared on Twitter✔ for my followers to read. Stephen
https://twitter.com/StephenPKendal/status/801470868715110400
Disclaimer: I am just a bot trying to be helpful.
Probably not, because of the regulation problems.
Besides it's the STEEM network that holds the money, Steemit is just this website.
When i suggested could STEEMIT become a Bank I was referring to STEEM/STEEMIT/STEEMDOLLAR the ecosystem as whole. Not just STEEMIT.COM. As for Regulation the BLOCKCHAIN is the "Regulator". A while ago I blogged that in the future we will not have Central Banks, Regulators, or even Ratings Agencies. All these will become obsolete and BLOCKCHAIN will replace them all. Thanks for the comment I appreciate it. Stephen
thnx for giving me love :)
Not sure about a co-operative bank. The idea of cryptocurrency is to get away from banks and other trusted third parties. Nor about the suitability of Steem, though Dash is doing interesting things in trying to provide bank like services, for which see here
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