Can the early success of major crypto exchanges propel them to winning the broader consumer finance market?submitted by mickhagen to genesisblockhq [link] [comments]
This is the first part of Crypto Banking Wars — a new series that examines what crypto-native company is most likely to become the bank of the future. Who is best positioned to reach mainstream adoption in consumer finance?
While crypto allows the world to get rid of banks, a bank will still very much be necessary for this powerful technology to reach the masses. We believe a crypto-native company, like Genesis Block, will become the bank of the future.
In an earlier series, Crypto-Powered, we laid out arguments for why crypto-native companies have a huge edge in the market. When you consider both the broad spectrum of financial use-cases and the enormous value unlocked through these DeFi protocols, you can see just how big of an unfair advantage blockchain tech becomes for companies who truly understand and leverage it. Traditional banks and fintech unicorns simply won’t be able to keep up.
The power players of consumer finance in the 21st century will be crypto-native companies who build with blockchain technology at their core.The crypto landscape is still nascent. We’re still very much in the fragmented, unbundled phase of the industry lifecycle. Beyond what Genesis Block is doing, there are signs of other companies slowly starting to bundle financial services into what could be an all-in-one bank replacement.
So the key question that this series hopes to answer:
Which crypto-native company will successfully become the bank of the future?We obviously think Genesis Block is well-positioned to win. But we certainly aren’t the only game in town. In this series, we’ll be doing an analysis of who is most capable of thwarting our efforts. We’ll look at categories like crypto exchanges, crypto wallets, centralized lending & borrowing services, and crypto debit card companies. Each category will have its own dedicated post.
Today we’re analyzing big crypto exchanges. The two companies we’ll focus on today are Coinbase (biggest American exchange) and Binance (biggest global exchange). They are the top two exchanges in terms of Bitcoin trading volume. They are in pole position to winning this market — they have a huge existing userbase and strong financial resources.
Will Coinbase or Binance become the bank of the future? Can their early success propel them to winning the broader consumer finance market? Is their growth too far ahead for anyone else to catch up? Let’s dive in.
BinanceThe most formidable exchange on the global stage is Binance (Crunchbase). All signs suggest they have significantly more users and a stronger balance sheet than Coinbase. No other exchange is executing as aggressively and relentlessly as Binance is. The cadence at which they are shipping and launching new products is nothing short of impressive. As Tushar Jain from Multicoin argues, Binance is Blitzscaling.
Here are some of the products that they’ve launched in the last 18 months. Only a few are announced but still pre-launch.
Can they create a cohesive & united product experience?
Binance WeaknessesBinance is strong, but they do have a few major weaknesses that could slow them down.
Binance Wrap UpI don’t believe Binance is likely to succeed with a homegrown product aimed at the consumer finance market. Their current product — which is focused heavily on professional traders and speculators — is unlikely to become the bank of the future. If they wanted to enter the broader consumer market, I believe it’s much more likely that they will acquire a company that is getting early traction. They are not afraid to make acquisitions (Trust, JEX, WazirX, DappReview, BxB, CoinMarketCap, Swipe).
However, never count CZ out. He is a hustler. Binance is executing so aggressively and relentlessly that they will always be on the shortlist of major contenders.
CoinbaseThe crypto-native company that I believe is more likely to become the bank of the future is Coinbase (crunchbase). Their dominance in America could serve as a springboard to winning the West (Binance has a stronger foothold in Asia). Coinbase has more than 30M users. Their exchange business is a money-printing machine. They have a solid reputation as it relates to compliance and working with regulators. Their CEO is a longtime member of the crypto community. They are rumored to be going public soon.
Coinbase StrengthsLet’s look at what makes them strong and a likely contender for winning the broader consumer finance market.
Coinbase WeaknessesLet’s now look at some things that could hold them back.
Coinbase Wrap UpAt Genesis Block, we‘re proud to be working with Coinbase. They are a fantastic company. However, I don’t believe that they’ll succeed in building their own product for the broader consumer finance market. While they have incredible design, there are no signs that they are focused on or capable of internally building this type of product.
Similar to Binance, I think it’s far more likely that Coinbase acquires a promising young startup with strong growth.
Honorable MentionsOther US-based exchanges worth mentioning are Kraken, Gemini, and Bittrex. So far we’ve seen very few signs that any of them will aggressively attack broader consumer finance. Most are going in the way of Binance — listing more assets and adding more pro tools like margin and futures trading. And many, like Coinbase, are trying to attract more institutional customers. For example, Gemini with their custody product.
Wrap UpCoinbase and Binance have huge war chests and massive reach. For that alone, they should always be considered threats to Genesis Block. However, their products are very, very different than the product we’re building. And their approach is very different as well. They are trying to educate and onboard people into crypto. At Genesis Block, we believe the masses shouldn’t need to know or care about it. We did an entire series about this, Spreading Crypto.
Most everyone needs banking — whether it be to borrow, spend, invest, earn interest, etc. Not everyone needs a crypto exchange. For non-crypto consumers (the mass market), the differences between a bank and a crypto exchange are immense. Companies like Binance and Coinbase make a lot of money on their crypto exchange business. It would be really difficult, gutsy, and risky for any of them to completely change their narrative, messaging, and product to focus on the broader consumer market. I don’t believe they would ever risk biting the hand that feeds them.
In summary, as it relates to a digital bank aimed at the mass market, I believe both Coinbase and Binance are much more likely to acquire a startup in this space than they are to build it themselves. And I think they would want to keep the brand/product distinct and separate from their core crypto exchange business.
So back to the original question, is Coinbase and Binance a threat to Genesis Block? Not really. Not today. But they could be, and for that, we want to stay close to them.
Other Ways to Consume Today's Episode:
Download the app. We're a digital bank that's powered by crypto: https://genesisblock.com/download
But according to a Bitcoin Core developer, there is no reason to be concerned — at least not at the moment. No one can hack your Bitcoin wallet… yet. One of the beauties of Bitcoin is that if you are the only one that knows a private key, you are the only one with access to the BTC attached to that key. Just think of the phrase “not your ... Bitcoin uses a key pair to sell (or "take", depending on how you look at it) Bitcoin funds. One key is the public key, also known as the address, that specifies where funds are or are being transferred to or from. Anyone can "send" funds to any address using just their public key/"address". The public key/"address" is public information and anyone can know it. In fact, every public key ... “One of our private key holders is currently cooperating with a public security bureau in investigations where required. We have been out of touch with the concerned private key holder. As such, the associated authorization could not be completed.” OKEx did not provide further details as to who the “private key holder” was, their connection to its business, or the nature of the ... Note: Leaving all of your bitcoin and crypto holdings on exchanges exposes you to highly varying degrees of safety, security, privacy, and control over your funds and information as most exchanges are in custody of your private key. Perform your own due diligence and choose a wallet where you will keep your bitcoin before selecting an exchange ... Digital money that’s instant, private, and free from bank fees. Download our official wallet app and start using Bitcoin today. Read news, start mining, and buy BTC or BCH. Hackers Are Shuffling Binance’s Stolen Bitcoin “[Changpeng Zhao] if you reveal your private keys for the hacked coins… you can decentralized-ly at zero cost to you coordinate a reorg to undo ... Binance DigiByte Listing. Binance is currently the second-largest exchange on the Brave New Coin Exchanges tracking page with a daily recorded trading volume of just over US$1.6 Billion. Bitcoin Diamond on Binance. EXCHANGE. Close. 32. Posted by. u/forkedtoungue. 1 year ago. Archived . Bitcoin Diamond on Binance. EXCHANGE. Any one know what kind of shady ass shit is going on with that shady ass coin BCD on Binance and Kucoin? it should’ve been delisted a long time ago IMO and some type of crime is underway and it makes everyone look bad. 42 comments. share. save hide report ... Der aktuelle Bitcoin-Kurs (14,879.64 $) im Live-Chart in EUR, USD & CHF im Überblick Bitcoin-Rechner Verfolge den aktuellen Kursverlauf live! I've only got Level 1 verification on Binance, so all I've done is verify my email and all that, but haven't submitted any official documents. So what am I restricted to do with only Level 1 verification? Can I still do all of the essentials?: deposit, withdraw, buy, sell? On Binance it says "24h Withdrawal Limit：2BTC" for Level 1. Is that it? If that's the only restriction, and I only trade ...
[index]          
👇🏻Support the channel by using my affiliate links below👇🏻 Exchanges I'm using: Coinbase FIAT https://www.coinbase.com/join/59398125002bcc03276297d6 Bin... Today I take a look at Billfodl – a backup for your crypto private keys, made out of steel. Designed to protect from the elements and provide peace of mind in the event of flood, fire and more ... bitcoin private key finder download, get private key from bitcoin address bitcoin private key finder 2018, bitcoin private key with balance, bitcoin private key scanner, bitcoin private key brute ... Jaxx Wallet How to Export Your Private Keys Tutorial. In this video, I show you how to export your private keys from your Jaxx Wallet. Please remember to alw... The same applies to the storage of Bitcoin in most online wallets. The only way to really own your Bitcoin is to keep the key private for you. When you create a wallet with a software wallet, for ... - Binance Exchange - One of the best exchanges to trade on! Amazing customer growth, security, and support! https://binance.crackingcryptocurrenc... - Coinbase - Looking to purchase your first ... How to send receive bitcoin in bitcoin core wallet. In this tutorial we are looking at how you can send and receive bitcoin easily. I will show you how to use bitcoin core to send and receive bitcoin. Bitcoin at rest depends on public key cryptography for proof of ownership. The "law of the private key" simply says that whoever owns the private key or even a copy of the private key has 100% ... My videos are about Bitcoin, Ethereum, Blockchain and crypto currencies in general, to avoid scam, rip-off and fraud especially in mining. I'm talking about how you can invest wisely and do it ... Trade Ethereum on Binance: https://www.binance.com/?ref=10051338 Chat with us on Discord: https://discord.gg/9w7BxMn Follow me on Steemit: http://www.steemit...