What is crypto finance?

Crypto finance is a global payment system, similar to the global digital bridge connecting humans (and maybe soon robots) in a booming global digital ecosystem valued at 400.34 billion USD in 2021 with an expected growth rate of 23.6% over the next seven years.

Crypto Finance
Crypto finance - global payment system

Crypto finance is a global payment system, similar to the global digital bridge connecting humans

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Crypto finance is the greatest evolution of money and finance since the Bretton Woods System 1945-1971AD

Crypto finance also entails digital identity and supply chain solutions for businesses, governments, and NGOs 

So, the financial system is on the cusp of the next greatest evolution since the last 50 years, as we seek for a better more efficient system. The payment system has evolved from a barter system (900BC) to Cowry Shells (1200BC) to Minted Coins (700 BC) to a Gold Standard (1870-1930) AD, then a Bretton Wood System (1945-1971) AD. 

What comes after a fiat system is cryptocurrencies, the tokens represent a piece of the Ethereum blockchain network favored by app developers who are building this thriving global digital ecosystem.

Digital Identity

Crypto finance also entails digital identity and supply chain solutions for businesses, governments, and NGOs 

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So as humans progress from barter to bits so too their belief system of value changes

It is no longer ethical, or fashionable and in most places legal to breed animals, mink, fox, rabbits, dogs, and cats for their Fur. US Dog and Cat Protection Act of 2000 make it illegal to trade in dog and cat fur.

Could environmentalism change people’s beliefs about precious metals? Just leave the shiny rock in the ground.

So as more and more of human activity becomes digitalized, humans existing in harmony with the environment, the utility that builds the digital ecosystem, the secure blockchain network, becomes valuable because of scarcity and limited network capacity. Ethereum gas prices, the cost of a token for developers to build an application on the secure Ethereum blockchain network is high because demand for the network is high .

“crypto finance is also fueling a crypto banking industry” – Wealth Training Company

In this current digital age, another aspect of crypto finance is for investors to identifying this new store of value

Moreover, crypto finance is also providing investors with income through interest. For example, Bitcoin is now offering 3% on a deposit of 2.5 Bitcoins, which is also cementing its position as a store of value. 

But another string to crypto finance is collateral

Put simply, crypto-backed loans are now a reality. Various providers are allowing cryptocurrency investors to borrow against their crypto. Blockfi, a wealth management platform for crypto investors, extends loans in US dollars backed by three cryptocurrencies, BTC, ETH, and LTC.

So crypto finance is also fueling a crypto banking industry

A central bank digital currency CBDC could also complement crypto finance and a booming global digital ecosystem.

With global satellite internet soon covering every square meter of the globe, CBDC could then be the missing link that connects over two billion unbanked people, thereby unlocking the economic potential of a forgotten untapped market.

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