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
Your employer offers you to get a part of you salary in either BTC or USDT. The payment will be made twice a month in equal shares. Your salary stays fixed in US dollars (so you don't just get a share of your salary tied to BTC) and the Bitcoin conversion rate will be calculated at the moment of payout (using the rate from, say, Binance). What would you choose? Bitcoin Halving: 2020 BTC Mining Block Reward Chart History: 2: Bitcoin’e Yatırım Yapılmalı Mıdır : 2: Bitcoin boom may be environmental disaster Ford: 2: ING Bank предложит своим клиентам сервис для хранения биткоинов: 2: Click here to check out this sweet Bitcoin faucet: 2: Things You Could Pay Using Your Bitcoins: 2: Bitcoin Trading ... bitcoin mining rig wikipedia - A mining rig is a computer system used for mining bitcoins.The rig might be a dedicated miner where it was procured, built and operated specifically for mining or it could otherwise be a computer that fills other needs, such as performing as a gaming system, and is used to mine only on a part-time basis. - USB Bitcoin mining was only profitable when Bitcoin was ... As you can see there are numerous types of Bitcoin scams, and I’ve only covered the main ones. The important thing to remember is this: Bitcoin transactions are irreversible. So check as much as you need to make sure you’re sending money to someone you trust. Once the money is sent, there’s not much you can do about it. Sep 15, 2019 - Explore Oscar P's board "Bitcoin mining hardware" on Pinterest. See more ideas about Bitcoin, Bitcoin mining, Bitcoin mining hardware. Around 400,000 years ago, aliens arrived on earth. Lots of gold was needed to fix their spacecrafts. Gold is rare but very, very good at reflecting radiation. The first thing they noticed were primates hanging on trees. “There,” they said, “look there.” And they pointed to an animal that displayed great manual dexterity. “Wow!” said … On May 12th Bitcoin’s mining reward — the pace at which the supply of Bitcoin is increased — will for the third time be “halved” (falling from 12.5 to 6.25 Bitcoins per block of ... In order to be a crypto miner, you need both special hardware and mining software. Without them, you won’t be able to connect your Bitcoin miners to the blockchain, or to the pool, if you are part of a Bitcoin mining pool.. Here we take a look and give you our recommendation on the best cryptocurrency mining software. The Return of Bitcoin Mining: 1: Binance CEO bullish on bitcoin in 2020: 1: MY RESULTS WITH BITCOIN BANK AFTER 7 DAYS : 1: About Bitcoin Wallet: 1: افضل 3 مواقع لربح عملة البتكوين بسرعة bitcoin leitcoin ethereum 2020: 1: Invest in Cryptocurrency Bitcoin Mining amp Easy Way to Trade Bitcoin: 1: Bitcoin Tekrardan 10000 Doların Üstünde: 1: Cours du Bitcoinfr: 1 ... Pool fee The main consideration is the fees, which vary according to which model of payment distribution the mining pool is operating and determines which party is assuming the risk — the miners or the mining pool operator. How do mining companies make money? Hashing 24 was built by professionals to offer a service for those who want to get involved in Bitcoin mining. Cloud mining and ASIC ...
[index]          
SUBSCRIBE if you enjoy these type of videos! Thanks for watching! MY WEBSITE: http://www.TheCryptoviser.com TWITTER: https://twitter.com/TheCryptoviser -----... Bitcoin Giveaway and Halving, Binance 比特币 Trading News with CZ Binance Worldwide 1,715 watching Live now Skycoin Lead Developer Interview Blockchance 2018 - Duration: 21:10. Mining Pool [Activate Mining Pool with 50 PLT Coins and Get 1 PLT Coin Per Day as Reward for One Year] Marketplace [Buy & Sell Goods or Services in Exchange of PLT Coin] Exchange [Trade it On ... If you are looking for a tutorial for crypto trading you have come to the right place. In this video, I will show you how to trade crypto on KuCoin. Don’t have a KuCoin account? Register here ... SUBSCRIBE if you enjoy these type of videos! Thanks for watching! MY WEBSITE: http://www.TheCryptoviser.com TWITTER: https://twitter.com/TheCryptoviser -----... The best moments from The Pomp Podcast with CZ, Founder of Binance, the largest cryptocurrency exchange in the world by volume. In this video, CZ and Anthony... SUBSCRIBE if you enjoy these type of videos! Thanks for watching! MY WEBSITE: http://www.TheCryptoviser.com TWITTER: https://twitter.com/TheCryptoviser -----... SUBSCRIBE if you enjoy these type of videos! Thanks for watching! MY ... CARDANO Weekly Stats & 736 Stake Pools; BITCOIN, Stocks , Debt, & The Fed; LITECOIN ATM Expansion - Duration: 26:26. The ... MinerGate Mining - Monero CPU/GPU mining minergate website: https://minergate.com MinerGate has 2 types of miners: GUI and console. They are available on Windows (32 and 64 bit), Mac and Ubuntu.