The Missing Puzzle .:. Who Needs Banks When We Have Crypto?

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If you are in crypto for some time and you are spending everyday significant time exploring all new possibilities, you probably think that things are moving slowly... I have the same feeling, especially when I have to wait for all those awesome new perks that the LEOFinance team announced to implement on their platforms... Yes, I said platforms, as all new tweaks will be implemented to PolyCUB, later on, CUBDefi, and finally, to all new platforms that will be (probably) launched on different blockchains...


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So, is really everything moving slowly in crypto? I suppose that the best thing is to ZOOM OUT a little bit... Like we should do every time when the markets are going downwards (as they are moving now)... I saw an interesting tweet today where two guys were arguing about "are we in a bear market or not?"... At first sight, I was on the side of the guy that said that we ARE in the bear market, but when the other guy said that we should ZOOM OUT, I got his point and noticed that we are still doing pretty good... Look at HIVE price if you don't believe me... It's around 85 cents and we were there 6 months ago... At the beginning of 2021 (just a year ago!), we were at 11 cents!!! Don't believe me? Check out the screenshot above from Coingecko!

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Back to the slowly moving things in crypto... From my point of view, the most important thing that happened to crypto in the last 2 to 3 years is the creation of (additional) stablecoins! We had some of them before, like USDT (Tether) or HBD, but the real explosion of different stablecoins happened just recently...


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If you read some of my previous posts you probably know my opinion about stablecoins and you are probably asking yourself if I have changed my opinion? Well, I stated many times that I will not keep my focus on the accumulation of stablecoins, but I will try to have them in my portfolio in a certain percentage (around 5-10%)...

My primary plan was to have some stablecoins that I have liquidity for my living costs in the bear markets... But, after researching a bit, I will maybe raise a bit more of my stablecoins stash... Why? The idea is to use part of it for RL needs and the other part for BUYING CRYPTO when prices are down! I have to admit that I have forgotten about that when I was "designing" my portfolio...


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Now, we are finally getting to the point of this post! But firstly, we had to clarify again the basics of stablecoins... They are just a representation of a fiat currency on the blockchain... They try to stay pegged to the fiat currency and that's it... So, they aren't a cryptocurrency like other popular ones like BTC, ETH, HIVE, etc... But... They are a missing piece of the puzzle for leaving the traditional banking system, and you know my point of view about banks... 😀

So, before stablecoins, I had to have some fiat currency in the bank for "black days" to survive or to buy crypto when prices go down and it's on sale... Now, I don't have to leave blockchain at ALL! I keep my "fiat" money on the blockchain in HBD, UST, USDC, etc, without touching my bank account...

And all this is just the beginning... At this moment you can do almost everything that you can do with traditional banking, thanks to smart contracts and blockchain tech! Do you know that you can even ask for a crypto-backed real estate loan?

I know that I'm repeating myself, but it's time to take control of your finances into your OWN HANDS! Control of money is power, and we need our power back as without it we are just worms and slaves of elites...

DISCLAIMER: This isn't financial advice and these are just my thoughts about this topic... Do your own research and make your own decisions...

Thank you for your valuable time,

~ph~

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If you want to support my witness, you can do it by voting for @ph1102.ctp here https://tribaldex.com/witnesses, or just scan the QR code down below...

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Don't forget to follow, reblog, and browse my Hivepage to stay connected with all the great stuff!

You can also find me on LEO Finance .:. Twitter .:. LBRY

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42 comments
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As a whole, ypu could say we are in a bear market but looking at the price of Hive itself, I still feel like it's performing well.

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I'm in crypto actively since early 2017, and what we have now isn't even close to what we had in 2018... That was devastating... Yes, prices are going down, but we are still doing OK...

!WINE

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It's definitely moving too slow! but at least it's moving. !LOL

Now, I don't have to leave blockchain at ALL! I keep my "fiat" money on the blockchain in HBD, UST, USDC

Same here. This is one of the more significant improvements if we were to zoom out when I just got into crypto. Knowing I have some stablecoins for bear markets or hard times is a real good feeling.

!WINE
!LUV
!hivebits

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Crypto has banked the unbanked! 🚀

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Yeah! It's not that crypto has to have all the stuff like banks, but it's nice to see many of them improved!!!

!PIZZA

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It's never wrong to have more cash on hand. There are always opportunities in the market and having it there means you can jump in without messing up your own portfolio.

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Exactly! Earlier, I would use the fiat money that I kept on the side for RL stuff to purchase crypto on discounts, but it's much better to have additional funds for that need!

!WINE

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I'm asking again.... who needs the bank when we have crypto?

Nobody! In Nigeria, banks have been banned from cryptocurrency related transactions. Guess what? Since then (A year now), Nigeria has the highest Bitcoin active traders in Africa. The numbers keeps going up everyday.

Sometimes I forget the banks even exist lol

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Man, I would love to have bought some of that sweet juicy hive at 11 cents... damn!

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Now is the right moment to create a plan when to buy HIVE again... It's hard to spot the bottom and pull the trigger when we are down... Create a plan and when you hit the price of what you have in mind, do it! :)

!PIZZA

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Thanks for advice. I'm currently DCAing, but if the price goes super attractive, I'm ready to move

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I guess it's a good thing that we still have time to accumulate more HIVE at current levels before it becomes more expensive hehe!

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Yes 5-10% is a bit low. I'll have to check how much I have tomorrow when I do my monthly report. The problem for me is Splinterlands. This is an ecosystem of its own and it has everything: liquid, illiquid, fungible, non-fungible, stable-ish by design, volatile. And Splinterlands is a BIG part of my crypto holdings. If I include it in the overall picture, my holdings of stablecoins isn't high enough. Even without Splinterlands, I need to push more into them to be at around 25-30%.

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I'm not that big in Splinterlands, but I didn't count those assets either... It's too much work... hehehe... But, if I would count SL and some other assets, my stablecoins % would be even worse...
Darn, you have pointed out an important thing! I will have to re-evaluate my calculations...

!LUV

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I include everything. Hive-Engine, diesel pools, even Rising Star and dCity. I haven't included Exode, I have a few cards there too, lol.

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Things are definitely down-ish on a short-term timeframe, but not on a medium-term timeframe.

My personal plan is to shift out of a high-risk, high interest investments by taking the interest gained and pushing it back down into lower interest, lower risk things.

Polycub - shift to stable stable pool
Cub - shift cub earned into a stable containing pool or put back onto HIVE to get more HIVE/LEO (maybe not -- if the pHIVE comes to fruition soon I won't even have to leave Polycub for that).

Speaking of banking, my goal for stables is to pool enough for 3-6 months living as an emergency fund. It is not quite as liquid as recommended by traditional finance for this but pretty close....and it gets much better interest.

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My personal plan is to shift out of a high-risk, high interest investments by taking the interest gained and pushing it back down into lower interest, lower risk things.

Huh... I think it's maybe a bit late to do that at this moment as if the clock turns around and we go up, those high-risk will go more up... Anyways, it's easy to be smart in theory, but I did a similar move like you just 2-3 days ago... lol... I know that I shouldn't do that, but I did with 2-3 suspicious tokens :)

Speaking of banking, my goal for stables is to pool enough for 3-6 months living as an emergency fund. It is not quite as liquid as recommended by traditional finance for this but pretty close....and it gets much better interest.

It's not hard to get better interest when banks are giving ZERO... :)

!PIZZA

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Ha! You are probably right because whenever I feel convicted to do something, it is often the wrong thing or the right thing at the wrong time.

Having said that I have a few reasons besides the crytpo "downturn" for doing so.

  1. I wiped out LEO and HIVE to get my largish positions in CUB and PolyCUB -- I want them back

  2. Did I mention I have a large position in PolyCUB/CUB :-) I am overweighted from a risk aspect -- pretty severely. I do believe that PolyCUB especially is a strong win-win bet, but I am feeling a little overextended. All said and done I could get rich off of PolyCUB if it moons, but I could make my way with hard work on LEO/HIVE if defi goes toes up (I honestly don't think it will happen but like i said getting security feels). Haha. Oh yeah I am also heavy into psyberx :-)

  3. Due to several things going on in my work/home life, I am feeling a strong need to have liquid savings to live off of if needed. Don't know that I will need them, but I have never felt more that that is a possibility in a long while.

And yes, you are right about interest. I see pHBD-USDC for example as a relatively liquid yet eye-popping interest bearing account well suited for savings.

I do think that interest on that pool will go down inevitably. Either the witnesses will drop interest on HBD someday, pHBD pool will drop interest say when some whale comes along and moons their own coin by vote, or both. In any case the interest will probably still be better than a bank or most stocks, so I feel it is a good place to have rainy day money set aside (great since I am focusing on rainy day -- at least until I'm not).

Blah, blah blah. Mostly I just want to diversify to multiple streams. Not feeling as froggy as I have the last year. I may be saying shoulda, coulda, woulda, in six months, but it won't be the first or last time :-)

I do not plan to touch the stack I already have in CUB/pCUB, just redeploy the earnings for a while into something more conservative (can't believe I am calling 20%+ conservative, but I am).

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I wiped out LEO and HIVE to get my largish positions in CUB and PolyCUB -- I want them back

I have to admit that I was pretty pumped up back in November when the LEO guys said that they will launch Polycub... I bought a bunch of MATIC then, and it was around 2.5$ if I remember well... Yes, I was naive to think that it will be launched in a couple of days/weeks, so my MATIC went down... Anyways, I digress... I do believe in LEO guys, but lately, I see a lot of plans changing (I know that we should adapt, but still) and that looks a bit amateur in the eyes of investors...

So after my wLEO and CUB experience, I went into Polycub hard, but I have invested most of my assets into "non-pcub" pools, except xPoly where I invested part of my early "profits"...
I still think that the whole Polycub project (and token) would go in a different direction if bonds have been released earlier (when planned... a month ago..)... But, I didn't pull out my tokens from the pools where I hold them... The LEO ideas are great, but without fruition, they are just numbers written on paper...

Due to several things going on in my work/home life, I am feeling a strong need to have liquid savings to live off of if needed.

I was there in 2018 and I completely get you... It was very painful to see my portfolio plummeting without having any liquid funds (didn't want to sell my crypto for cheap)... After surviving that, I said to myself that I will not put myself in the same position anymore... So, I had a plan to sell some of my bags on top (who could know where it is... lol) and keep them in stables, or invested in stable pools...

I did execute my strategy, but maybe only 40-50% that I wanted (the top wasn't exactly where I painted it... lol...), so I got short a bit... In any case, I'm in a much better position than I was in 2018!
So, I don't know what to tell you, but try to keep your head above the water and prepare a new plan for the next top... ;)

Personally, I'm done with crypto selling for now... Until we don't go up, I will HODL...

Have a great weekend and thanks for your comments! Nice chat!

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I am not a good bottom caller, but i do believe we are near a short term bottom. In BTC at least. Probably also in many of the alts.

HIVE may be close to bottom LEO almost definitely is.

CUB/pCUB I have no earthly idea. I would have guessed 0.2 for pCUB, but there you go. It will have scarcity going for it and if khal gets out multiple XXX/pCUB pools that should help greatly also.

CUB will probably also flounder until pCUB stuff moves over there. I will hold it anyway for airdrops.

Great weekend to you also :-)

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