Shifting Banks Debt Cycle To Passive Income Cycle
We know that banks make their money in the margin between the rate they borrow and the rate in which they loan. In the age of the baby boomers, banks had an endless cash flow to lend because they incentivized customers via generous interest rates to keep the majority of their money in a savings account. This was highly effective because by keeping the funds in a savings account, customers saw a cycle of compound interest, watching their money make money. Because banks have not been responsible enough with the money they borrowed over the years, ultimately resulting in the dramatic lowering of interest rates on savings accounts. It can be argued that this shift in interest rates has resulted in a millennial society who do not see any benefit in holding money in a savings account with dwindling interest rates.
Where did we go wrong and how can we fix it?
By putting all our trust into highly centralized third parties i.e banks, these institutions grew into giant inefficient machines. In order to compensate, legislatures frantically slapped regulation after regulation further confusing the whole system. This is why in the wake of the 2008 financial crisis, we see individuals like Satoshi Nakamoto creating Bitcoin as a revolt to the highly centralized and regulated financial world we see today.
Since the inception of Bitcoin, we have seen a trendy growth in the adoption of blockchain technology and cryptocurrency. It has undoubtedly been plagued by various issues including scalability, but we can break down the periods of development to show that these are just growing pains. The period between 2009-2016 we see primarily Bitcoin-related market solutions. 2016 and forward we can classify as more of a new era, with the momentum of the exploration of use cases, expansion of the proof of concepts and more recently, the commercial deployment.
BNC finds itself harnessing all factors of the new era with our application “Ubanker”. By joining the BNC network users combine to create a beneficial ecosystem that will cater to an array of global users. These users will include private individuals, financial institutions, exchange platforms, e-commerce platforms, payment service providers, e-money wallet operators and more. Utilizing cutting-edge blockchain technology, BNC has developed a unique Proof-of-Stake (PoS) protocol that allows users to enjoy a passive income generation vehicle with zero exposure to the volatile crypto market and unrivaled interest. In addition, BNC provides most of today’s financial instruments in a new decentralized solution, assembled on our blockchain and accessible through an easy to use application.
No longer are the days where big banks lure you in only to use your hard earned money to boost their profits. It’s time to get back to the days when your cash is making money for you.