Good bye banks. Hello new financial system!

The structures that we all grew up with are in the process of disappearing. Our financial system, healthcare system and educational system—just to name a few—are being dismantled and transformed. New systems are being created. That means, we have more choices available to us.

Let’s take the financial system—banking, as a case in point.

We have the traditional banking system, and then we have cryptocurrencies and new, emerging financial apps being built on the Ethereum blockchain. In 2020, the number of decentralized financial (aka Defi) apps built on that blockchain have been sky rocketing.

A few of these financial apps are referred to as crypto banks because they offer a full range of services—you can buy/sell crypto, earn high interest on crypto, get low interest loans using crypto as collateral and send money anywhere in the world.

Old Banking System

The current banking system does not pay interest on your savings to help you achieve financial freedom. Today, banks are paying around 0.5% interest on savings accounts, on average, while they earn double digit returns on our deposits. What’s wrong with that picture?

Then while they make billions on our deposits, they charge highway robbery interest rates of 24% on credit cards. How can that help us? It doesn’t!

Banks’ overdraft fees are another example of how banks profit from our deposits, and then charge us fees for using their services. In 2019, large US banks took $12 billion in overdraft fees out of their customers’ accounts.

They’re making billions with our deposits, but paying us 0.5% on our hard earned money. The good news is that we now have choices that are alternatives to banks.

Banks are dinosaurs, soon to be extinct. Good bye banks. Hello new financial systems.

New Financial System

People are waking up to discover that alternatives are available to them.

The alternatives are based on new technology–blockchains and smart contracts. Don’t’ worry. You don’t need to understand the technology in order to benefit from the new financial services that are revolutionizing finance. We don’t know all the details of how phone systems work, yet we use phones every day.

Just know that you have choices that can help you achieve financial freedom faster than using the old systems.

In this post, I want to focus on one financial app that I have personally used.

I’ve researched a lot of financial applications/platforms, and I’ve discovered one that stands apart. The app is Celsius Network.

Four Benefits of Using the Celsius App

1. You can earn high interest rates on Bitcoin and other cryptocurrencies, including stable coins (i.e., crypto currencies that are pegged to a currency like the U.S. dollar). So if you have crypto at an exchange, like Coinbase, you can transfer your crypto to Celsius Network and start earning interest rates FAR above what any bank pays & above what crypto exchanges are paying.

2. You can borrow cash using your Bitcoin or other crypto as collateral (as low as 1% loans as of the date of this post). No fees and no lockups. Want to get rid of your 24% credit card? Consider taking out a loan with Celsius.

3. You can buy Bitcoin and many other cryptocurrencies via bank transfers. (This is a new feature, and I have not yet tried it).

4. You can send and pay using your crypto. Or you can just hodl and keep earning on your savings.

Download the app here. Once you install the app, you’ll see the range of interest rates you can earn on different crypto currencies. Today, stable coins offer the highest interest rates—double digit returns. And, your interest gets compounded.

Each Monday, like clockwork, I get an email from Celsius Network reporting the interest I’ve earned on my savings. Nice way to start the week! I am actually making money on my savings! Who would of thought?

When is the last time your bank emailed you to inform you how much interest they are paying you on your money?

This is not investment advice.  Just know that hedge funds & many high-net worth individuals are diversifying their portfolios away from dollar-denominated assets.  They are hedging against future hyper-inflation to protect their assets.  Know you have options and take inspired action.