A plague that causes an upper respiratory infection has had a significant impact on the economy. The global quarantine contributed to the drastic surge in unemployment in a slew of countries. But there is a saying that, in every storm, every cloud has a silver lining. The ongoing crisis has also had a positive effect on the world.
Conservatism in many European countries for too long has relied on the traditional financial system. Today it has been questioned. The reason: the pandemic has forced Europeans to switch to cashless payments and cryptocurrency, an electronic analog of money in cash. While it looks like coronavirus infections’ slowing down, the one question on everyone’s lips: is there room in a post-pandemic world for crypto? Let’s figure it out together.
The first thing we want to focus on is by mentioning that COVID-19 had only worsened inequality between bank account holders and those who have no access to banking services. It identified gaps in our financial infrastructure. Despite the difficult situation people found themselves in, they still needed to send money to someone living abroad. As a result, demand for money transfers continues to grow. As a result, many of us turned to work with cryptocurrencies.
Digital currency exchanges allow customers to transfer funds, make payments, and exchange cryptocurrencies. But here comes a but. It’s expensive, inconvenient, and unsafe for some users. So the emergence of specialized services that allow you to make payments in decentralized digital money was not a question of “whether” but of “when”. When crypto banks came into play, many fans in the world of virtual currencies had their “I told you so” moment.
These banks bring together in one place the ease of the traditional world with the new decentralized economy. They are kind of a bridge between the known and unknown. You can manage your digital finances with an excellent user experience.The banks have some elements in common with traditional crypto exchanges. They duplicate their functions: they help you transfer, exchange, convert, and cash out money. But, unlike them, they offer a lower commission, as well as additional functionality: cashback, withdrawal cards, p2p lending, deposits, deferred payment, guarantees, letter of credit, etc. Now and then they try to invest in traditional and cryptocurrency tools and markets.
The Hidden Power of Crypto Banks
Magic internet money has a long way to go before banks start showing a supportive attitude towards it. Therefore, the market badly needs investment banks that are friendly to crypto projects. The thing is, in addition to loans, crypto banks can make the leasing of equipment for miners.
Clients of crypto banks can pay with digital currencies with minimal headaches, convert them into fiat, and vice versa.
In order for the acceptance of cryptocurrencies to cease to be just a PR stunt, companies should create the appropriate infrastructure: crypto-acquiring, payment services for online stores, loyalty programs, integration with software for POS terminals, acceptance of contactless payments, and, of course, cashback. Crypto banks can take over all this.
Anyone who dealt with tokens knew that users can get a reward for the performance of any actions. For example, if you voted for an article or posted a publication, you received a little something. Such phenomena clearly demonstrate that the current digital industry is slowly shifting from apps to dAPPS.
Let’s make sure we are on the same page here first. Here’s the simplest explanation with no metaphors or hyperbole. DAPPS are decentralized, transparent, and more resistant to attack applications. They are built on blockchain. The revolutionary technology is consistently touted as the eighth wonder of the world, and this is true. It ensures a higher level of data security, as well as transparency for all users.
The very concept of decentralized applications has not been clearly defined. Nevertheless, there are main parameters that the majority of distributed internet apps have:
Open source code that allows the community to look for fraudsters, bugs, etc.
Token generation within the product ecosystem;
Juicy rewards. Users get rewarded tokens for certain actions;
The generation of tokens must be carried out in accordance with one of the algorithms that act as proof that the participants contribute to the functioning of the application. For example, PoW or PoS.
Last but certainly not least is decentralization, ensuring data security and transparency.
BTC as a Safe Haven Asset
Cryptocurrency has all chances to become a store of value in the context of increasing inflation. BTC, a coin with a stellar reputation, has a limited issue and decentralized network. This is the exact opposite of centrally-controlled fiat. Bitcoin is not a currency for the government. it’s a global currency for the people.
Higher US dollar inflation will almost always lead to skyrocketing in the value of digital gold in the long run. Now, even biggies like Tesla are interested in the prospects of BTC for the next few years. We remind you that an American electric vehicle and clean energy company invested $1.5 billion in bitcoins not so long ago. The company also plans to start accepting BTC as a mean of payment for its products in the near future. What is more, interest in the 6th largest currency in the world grows on Wall Street.
The grand takeaway here? While our financial system is failing us, cryptocurrency is providing solutions to all the problems we are facing in our monetary system. Even though the high-yielding alternative asset class is very promising, there are several major hurdles that need to be overcome before it can reach a wider audience. Of course, the revolution will not happen overnight. But one thing is clear right now: crypto will become a part of our everyday post-pandemic life.