A new model for a new era

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The main use of cryptocurrency has been as a replacement for traditional fiat currency. Printed on the Bitcoin genesis block was a message about how the banks were bailed out after the market crash, a clear indication of the intent of this new technology. A similar message was repeated in 2020, although fewer people are aware of this later reference to money printing.

While the use cases have expanded significantly, this still remains a central goal of cryptocurrencies and NFTs. It provides wealth generation mechanisms unmatched in the classical investment industry and has provided all classes of investors with a means to create long-lasting wealth. It also offers opportunities for microfinanceto fund banks without banks and to help those in emerging markets gain a financial foothold.

All of this happens outside of the controlled, centralized, legacy banking sector, which often prevented the many from acquiring wealth and allowed the few to hold onto it.

The Problems of Centralized Banking

The problems associated with the traditional banking model are far too many to list in one article. But it is clear that it promotes the centralization of wealth and enables a few key figures to have not only financial power, but also considerable political power. All this centralization of power can lead to a devastating solution like war. The banking system and the political system of governance are inexorably intertwined.

Equally troubling is that banks are the ones responsible for determining whether or not you will get a mortgage, and at what price. Yet they are known for it customers switch to higher rates to make more profit while deceiving their customers. They determine all kinds of loans. Accounts may be frozen for activities that violate their terms and conditions. Redlining is a policy in which lenders identify minority groups who are more likely to default on loans and mortgages. People of certain ethnic backgrounds get worse rates, almost a form of institutional racism.

Fiat interest rates are now effectively negative when all fees are accounted for. If you pay $10 a month to save your money and earn $0.50 in interest, you’re still paying for the privilege of having an account (although it may not be offered as a negative interest rate). At one time, those who deposited money into a fiat bank account were rewarded, as is the case in all organic systems of economic investment such as cryptocurrency.

It is difficult to create an account and there are piles of red tape associated with all kinds of financial activities, which are closely linked to the old banking industry. The costs and fees are extremely high compared to the offer. Even if you get rich, it will be very slow, and you will pay a high price for every dollar you make.

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Create lasting wealth with Web3 solutions

A number of innovative Web3 projects provide mechanisms that allow people to safely invest in cryptocurrencies in a shorter amount of time and build sustainable wealth for the future. Right now, although crypto markets are rising year after year, most of the investments are made by guesswork. There are no reliable statistics to judge what makes a coin or project with strong long-term viability.

New projects like Defy trends offer a solution by assigning a score to each coin based on a number of reliable metrics, including social sentiment, on-chain data, off-chain data and deep web analytics. This is exactly what individuals and companies need so that they can build diverse portfolios of strong Web3 companies and projects. It provides advanced traders and novice investors with a framework to objectively analyze token value.

This will help generate wealth in the long run and can also help conserve currency. Tools like these perform due diligence so that investors are not scammed, which is all too common in the crypto markets. The first lesson in preserving wealth is to learn to hold it and then grow it safely. Traders and investors need help in correctly interpreting the crypto markets to preserve and grow wealth over the long term.

Other companies like Circle and CoinsPaid help existing businesses make a seamless transition to cryptocurrency in a cost-effective manner. They provide businesses with a quick way to access cryptocurrency while preserving existing processes so that there is no disruption to the business. All customers will receive a crypto payment processor under their own brand out of the box within a month. It allows instant payment in over 30 cryptocurrencies and offers a built-in exchange for 20 fiat currencies. This is the power of the blockchain at work.

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Extensive Opportunities for Wealth

Web3 companies like this one play an important role in making the transition from legacy banking to modern cryptocurrency. Red tape is avoided, efficiency is improved, transfers are fast and immutable, and cross-border payments are effortless when using distributed ledger technology.

But the benefits extend beyond this, to completely new investment paradigms. The real estate market, currently saturated by a small number of wealthy elites, is reopening in a different way. There are VR enhanced metaverses where you can buy your own “space” and sell NFTs with it. The music industry is also being redefined with concerts that can be attended virtually, with recording artists paid in crypto.

The NFT market has already exploded, with one collection selling for $69 million, despite being just pieces of digital art. There are also multiple options in decentralized finance, such as yield farming and cross-chain liquid staking, invented by ankr† These can be compared to financial derivatives in the crypto market. Any financial tool in the legacy banking industry can be put on a blockchain quite easily and streamlined for optimal results.

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Retain Property of Earned Wealth

The new model of Web3 investments not only reopens access to existing markets. It creates entirely new paradigms and new ways of generating and preserving wealth.

Perhaps the greatest benefit is that Web3 allows you to keep the wealth you have already earned. No one can access your crypto wallet except you, unlike a bank account, you only have a “right” to access it.

In traditional banking, your currency will be eaten or actually stolen by charges, fees, inflation, taxes, and the many other creative ways centralized finance takes over and confiscates your property. I call this the poor tax. The money we have to pay when we have no money. There is no point. It seems that society should not be able to function this way. But there is hope.

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