Episode Highlights:
- 00:01 – Introduction
- 00:14 – Bank Of America Admits That Cryptocurrency Is Legitimate And A Competitor
- 02:11 – Regulators Have To Adapt To The Changing Banking Models
- 04:25 – Banks Buy Cryptocurrency Exchanges
- 05:17 – Bitcoin May Reduce The Banks’ Profit Margin
- 05:53 – Bitcoin And Blockchain Are Here To Stay
- 07:24 – Goldman Sachs Endorses Bitcoin
- 08:49 – Ending
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Transcription:
00:01 INTRODUCTION
Hey, what’s up guys, it’d Dan again from crypto Camacho, and today I am having a great day because things are happening, things are happening, things are happening guys. Today I want to give you a quick update,
00:14 BANK OF AMERICA ADMITS THAT CRYPTOCURRENCY IS LEGITIMATE AND A COMPETITOR
I read in the news today, I read this: Bank of America, our inability to adapt could see a failure to compete with crypto! It’s happening guys, it is happening. Big banks are finally starting to admit that Bitcoin and other cryptocurrencies pose a threat to their existing legacy business models, traditional banking that is. Bank of America is one of the oldest and longest standing financial banks, financial institutions, in the United States, if not the world, and they are admitting that their inability to adapt could see a failure to compete with crypto. They are starting to admit that crypto is now getting so big that they are seeing threats to their business model, threats to their business, threats to the traditional ways of doing finance, and banking are being threatened because of cryptocurrency and Bitcoin. What could be more exciting than that guys? Everything we’ve been talking about, everything that you’ve been reading about, everything that Satoshi Nakamoto has been promoting in his whitepaper and everything else is starting to happen. It’s only early 2018, it’s February 2018 and things are already starting to happen. Let’s dig into this just a little bit more, OK? Bank of America has admitted to US regulators it may be unable to compete with the growing use of cryptocurrency. In its annual report to the Security and Exchange Commission, the SEC, this week, filed on February 22nd, the major U.S. bank, for the first time, highlights cryptocurrency as an area that may cause it substantial expenditure as it tries to remain competitive. Our inability to adapt our products and services to evolving industry standards and consumer preferences could harm our business, Bank of America states in the filing.
02:11 REGULATORS HAVE TO ADAPT TO THE CHANGING BANKING MODELS
That is crazy guys, as banks worldwide eye the cryptocurrency phenomenon, direct interaction remains low, the lack of uptake formed a central reason why European Central Bank confirmed it had opted for a hands-off approach to legislating the area earlier this month. So what’s happening guys, is banks now are starting to see the threats, they’re starting to see the writing on the wall that crypto is starting to impede or encroach on their businesses and so they’re starting to now talk to the SEC, they’re starting to talk to government institutions, to warn them, to tell them that hey, this is real, this is, you know, something big is going on and it’s actually threatening our business models. This exact same thing happened in the Internet boom in the 90’s, the exact same thing guys. Big companies started popping up, it started threatening other businesses business models, retail-it comes to mind, e-commerce put tons of retail businesses completely out of business. The same thing is happening now but for money and the banking industry, it’s happening, it’s happening slowly but it’s happening surely, the speed is starting to pick up and as mass adoption of cryptocurrency accelerates, you’re going to see stories like this popping up in the news more and more and more, and as this happens more and more often what you’re also going to see is US regulators starting to come down a bit harder on cryptocurrencies as they start to threaten these financial institutions, which really are the backbone of the American or US economy, and so, of course, the governments aren’t going to allow cryptocurrencies and Bitcoin to completely overtake the economy because what would that mean? That would mean the demise and the doom of the U.S. dollar, they’re never going to let that happen so they’re going to regulate, regulate, regulate until they either can stop it, which I don’t believe that they ultimately can stop it, or until they’re able to get their fingers into all of the little nooks and crannies in the cryptocurrency space through regulation, through force, through government impediment if you will, that’s what’s going to happen, that is what’s happening now, the SEC and other governmental institutions are starting to put together regulatory measures to address all of these concerns and that’s actually happening right before our eyes.
04:25 BANKS BUY CRYPTOCURRENCY EXCHANGES
So let’s look a little bit more as banks worldwide, I’ve already read that, while Bank of America has sought to innovate in the sphere, receiving a patent course proposed cryptocurrency exchange system in December 2017, it has come in for criticism more recently after blocking its clients from credit card purchases of cryptocurrency, so that’s very interesting in and of itself. So, Bank of America in December of 2017 actually was thinking about creating a cryptocurrency exchange and guess what just happened? Today Goldman Sachs actually announced that they…not Goldman Sachs, sorry, a company backed and invested by Goldman Sachs and other financial institutions, announced today that they’re going to be buying the cryptocurrency exchange Poloniex. So, this actually just happened with another big major financial institution, Goldman Sachs, just happened. Bank of America was thinking of doing the same, to ease in there, trying to get their fingers in there, to not make themselves obsolete.
05:17 BITCOIN MAY REDUCE THE BANKS’ PROFIT MARGIN
As the report to the SEC continues, the institution’s keen awareness of the threat posed to its core business offering by competitors becomes clear. The competitive landscape may be impacted by the growth of non-depository institutions that offer products that were traditionally banking products, as well as new, innovative products, Bank of America forecast. This can reduce our net interest margin and revenues from our fee-based products and services, in addition, the widespread adoption of new technologies including Internet services, cryptocurrencies and payment systems, could require substantial expenditures to modify or adapt our existing products and services.
05:53 BITCOIN AND BLOCKCHAIN ARE HERE TO STAY
Lastly, the bank also pointed to staffer retention failures and increasing competition in the financial services industry and to be detrimental to its prospects. So the banks are scared Jamie Dimon of Chase very recently said Bitcoin was a fraud, then he backtracked on that, he was trying to make it go down, he was trying to squash out whatever momentum Bitcoin already had, it’s not working banks, it’s not working Jamie Dimon, it’s not working Bank of America, it’s not working any of your financial institutions! Get a clue, get a clue, this is happening, it’s going to continue to snowball and snowball and snowball and so I couldn’t be happier, this is everything that we have wanted and it’s coming to fruition. If you’re not convinced to invest in cryptocurrency now, you need to, I mean there’s nothing else I can say, this is happening all the time, I’m going to be you know continuously reporting on this in my videos as we move forward but I want to tell you again, this is the writing on the wall, that this is happening, this is big, it’s not going away. Bitcoin is not going away, Blockchain is not going away, no matter what you hear in the mainstream media about Bitcoin being a fraud, Bitcoin going to zero, it’s not going to happen, it’s not and these are examples of why it’s not going to happen, I mean if banks like this are scared of Bitcoin, there’s substance to Bitcoin, there’s substance to blockchain, there is substance to cryptocurrency, it is not a fraud, it is not a fad, it is not a trend, it’s a long term and very, very, very disruptive technological innovation that has happened.
07:24 GOLDMAN SACHS ENDORSES BITCOIN
Guys, I hope this was useful, I hope you can see what I see with this, one other piece I want to point out, Bitcoin just got a huge vote of confidence from Wall Street giant Goldman Sachs and this talks about how Goldman Sachs is also now endorsing cryptocurrency and saying that it could become a viable currency in `the financial system, and just to read that “our working assumption is that long run cryptocurrency returns should be equal to growth in global real output, a number that is low digits…digital currency should be thought of as low-zero return or hedge like assets like gold and other metals, that is not necessarily true, but if you back up a little bit, in recent decades the U.S. dollar has served its purpose relatively well, yes by printing money, Goldman Sachs strategists…but in those countries and corners of the financial system, where the traditional services of money are more inadequately supplied, Bitcoin and cryptocurrency more generally, may offer viable alternatives. So Goldman Sachs is basically saying that cryptocurrencies can offer a viable alternative for US dollar currencies, for fiat currencies, they’re saying it right here in this article, and even though they’re pointing it to regions of the world like Africa and third world parts of the world, you know, they’re admitting that it could become a global currency to serve these regions and what’s to stop it from serving other regions, right? That’s what I would ask.
08:49 ENDING
so, you know I’m Dan from cryptocamacho.com, please subscribe to this video if you haven’t yet, if you thought this was interesting, please tell me why I would love to know your thoughts and feedback about this. The writing is on the wall for the banks and I hope you can see this as well. Thanks for tuning in guys and I’ll see you next time.
