Intro by Vince Lanci
via the Soren K. Group at
Marketslant.com
The Next Revolution is already Happening
Over the past few weeks, I've had the pleasure of meeting the next
revolutionaries in the democratization of money. This was while looking to
understand better the guts of the blockchain tech and how it differed from
crypto to crypto. I had the pleasure of meeting with and speaking
to several people involved with Bitshares and those involved at
the periphery with Arisebank. During that time, by coincidence,
Arisebank was in the process of doing the deal described in the headline. And
I was able to look through the glass at this event where people were ,to my
eye, looking to facilitate the transition from intellectual ideas to
applications in reality. That is what Capitalism is in part about. Providing
a service that fills a need and makes it easier which gets you paid.
Not making a dollar and being apathetic if the service actually helped
someone. Free market capitalism allows for new ideas to make it (or not) on
their own merits. That is what I saw. The potential for self-clearing
markets to reassert themselves and for money to get to where it is
needed most without incumbent toll booth operators throttling ideas fortheri
own benefit.
I saw people who will make a bundle of money by adding value to a system
in need of overhaul. i spoke wit ha few on a guarantee of anonymity. One key
person said to me in response ot me pointed question that blockchain is
the beginning, Bitcoin may be the early pioneer, but like the Palm pilot, it
was replaced by better tech. Why wed yourself to Blockchain?:
"Look, the tech is evolving, and we are already looking at how
Quantum computing will make different types of tech more palatable than
blockchain. I agree with you. In a few years at most, something better will
come along. And that is a good thing. Because the goal here is to use these
new tools to remove the friction in all things that prevents ideas from
getting their chance to make it or not on their own merits. If you ( he was
addressing me directly here) have an idea that will make a market more
efficient and serve the greater good, I want to hear about it. Because now, I
can help you get it into "production" much easier because of
what we can do."
My response was: Sure, I feel intermediaries in general that do not add value
need to be removed. Frankly, I feel Precious metals producers' have
been victims of their own ignorance for years. As a result they are captive
clients to intermediaries who tell them when to hedge in order to maintain
their credit line. Meanwhile those same firms that manage the producer's
banking, LOC, ISDAs, and production hedging are making money not just from
those services, but on the prop-side of being able to benefit from the
natural sell order flow captive producers provide. This is too much friction
from production to user. It's like a poorly connected pipeline slows
waterflow"
His response was simple:
"Exactly. And we are already working with someone who is working on
solving that problem right now. You should connect with them. "
And in 24 hours I was involved in a pressure cooker with a couple geniuses
having conceptual discussions on how to use the available tech to make more
precious metals distribution from producer to end user more efficient. The
point is, the man quoted above was all about making it happen. And it
likely will if the people I'm now talking with and learning from get their
wish. i hope to be sharing more on this topic soon. Moving on to the event at
hand today.
Better Money Needs a Better Banking Model
If money is the life blood of capitalism, then banks are the valves that
control the flow of that blood. In this way, traditional banks can sometimes
make errors in allocation of investment capital, errors in custodial trust,
and due to their centralized “gatekeeper” status have a Fed sponsored
franchise that can be a deterrent to efficient, free markets. If you had
the time to listen to my podcast yesterday on this topic you can see
where I was coming from in light of today's events.
This is actually why crypto currencies are vulnerable. They are not
regarded as money officially, like Gold is not anymore either . They are
also in the process of being regulated via futures listing and “crackdowns”
to protect us so we are told; also what happened to precious metals.
There are many of them, and this fragmentation itself has risk that comes
with its promise of economic freedom. Many will not make it. And they exist
outside the banking network.
But what happens if a crypto (or all crypto currencies) gets access
to the circulatory system itself? What happens when a
cryptocurrency, due to Blockchain’s distributed ledger accounting tech,
obviates the need for those custodial trustee valves that exist
like manned toll booths when ez pass exist? They unionize in a panic to
protect their jobs. That is what happens. And that has begun.
To digress a second, we actually pay to get access to our money now.
Cash Remember the advent of the ATM? It was heralded as a cost
reducer for banks and a convenience for the client. Now, it is a profit
center where people frequently are charged to get their money. This is
basically cash trading at a discount to digital cash. You are paying the
bank money to use your money in private transactions . But Quick-Pay, in
which they monitor all cash use and collect data from, is free; for
now.
Supply Side Scalability is No Longer a Viable Business Model in
a World Without Scarcity. Demand Side's Network Effect Model Is
Banking’s centralized method of “service” which at one time was
necessary for orderly and counter-party trustworthiness in markets, has
either outlived itself or become easily abused in its use. The trust resided
in the person who did the custodial duties. Their supply
side-market structure based on scalability, key to the industrial
revolution, is no longer the most efficient. Scarcity is not the problem
anymore. Distribution is. And that means another business model applies more
efficiently. It is the demand side market structure model based on
the network effect. And to implement that, we need a
better way of mitigating counterparty trust that removes the human
element and bottleneck that comes along with its centralized systems.
Traditional brick and mortar centralized Banking, like every industry
before it, is jeopardized by the most important concept behind the current
disruptive technological movement: decentralization. The problem with
decentralization for banking until the advent of Crypto and blockchain
tech is: it was not compatible with mitigating counterparty
risk. Therefore a centralized authority was needed. Distributed ledger
accounting tech removes the need for a central custodial trustee to
protect you from counter-party risk. This is what tech geeks say when they
refer to a "trustless" transaction. They mean; there is no
need for a human to verify the authenticity of the deal. The trust is
verified at its DNA level so to speak.
The Bank Teller's Revenge
When they fired the tellers it was a good thing for everyone but the
tellers. What happens when the credit officers are not needed in a few years?
What happens when those technologies that banks use to lower costs actually
replace their revenue streams like Letters of Credit, banking fees
and other overpriced franchises? White collar people get
fired, that's what happens. Credit lawyers alongside operations
managers. The corporation will triage every extremity it has to, to continue
to perpetuate its own incumbent authority and existence. It could get very
weird. Call it the Teller's Revenge if it plays out as it could.
The replacement is not crypto per-se; it is Crypto , Gold, Fiat, or
anything that people agree is money but in a decentralized system where perfect
money (whatever that may be) can exist in a perfect banking system. One that
does not need to violate privacy to ensure custodial trust anymore.
Centralized Clearing will be less needed like centralized execution was
obviated before it by things like Globex. Electronic trading platforms
removed the need for Central Limit Order Books (CLOBberred Clients) in
commodities. CLOBs were comprised of resting orders entrusted by clients and
handled by their bankers who traded both principle and agency. This was how
the Gold , Silver and LiBor Fixes were run, and we now know how that worked
out.
Specifically, a decentralized crypto-exchange that operates network
across the borders of nation states on combination
with decentralized bank with FDIC approval? Globalism without
centralization, organically better for all and a remover of walls for the
flow of free capital would be possible. Enter Arisebank in
partnership with Bitshares..
- Vince Lanci
contact Vince at vlanci@echobay.com
Cryptocurrency Bank AriseBank To Acquire FDIC-Insured Bank; Partners With
BitShares.
Written by Michael
Taggart at Huffington
post
 
Arise Bank offers a myriad of services to consumers looking for a banking
alternative.
Dallas, TX —- AriseBank announced that they have reached an agreement with
an FDIC insured bank, that has been operating in the United States for over a
century, that they will acquire them before the end of the year. This comes
on the heels of their record ICO launch, where AriseBank plans to raise one
billion dollars, which would end up being a record in the ICO investment
space.
“We are very excited to be at the forefront of history today. We feel like
this was going to happen eventually and wanted to get the process started for
the industry as a whole. There are certain people who may disagree with this
move but, it has to happen eventually. The bank we are acquiring has hundreds
of banking partnerships across the world and many certifications and licenses
that make sense when it comes to interacting with our decentralized
cryptocurrency platform”, said Jared Rice Sr., a co-founder and current CEO
of AriseBank.
Arise Bank is the worlds first decentralized bank.
With this acquisition, AriseBank,
the world’s first decentralized cryptocurrency bank, now has the full
financial capabilities of traditional banking coupled with the power and
platform of real-time crypto-banking including a global network of ATM’s,
debit cards and an AI trading platform.
“The world’s first federally compliant, decentralized bank invites
visionary strategic partners from all countries”, said Eddy Taylor a
BitShares partner and a current advisor to AriseBank. “Arise features will
include quantum computer-safe operating systems, multi-crypto debit cards, cell
to satellite global outreach and much more”, he said.
Also included in the acquisition is a 25-year old investment bank that
Arise plans on converting to a crypto-investment house for consumers around
the world. “We plan on growing investor confidence outside of our
decentralized platform, which will enable many other outside services in
areas like real estate, among many others on a global scale.
Bitshares DEX is the worlds first decentralized cryptocurrency exchange.
This acquisition is happening concurrently with the announcement of a
strategic partnership with BitShares, the world’s busiest financial
blockchain as seen on blocktivity.info.
AriseBank, the first decentralized bank is teaming with BitShares, the first
decentralized exchange to provide a comprehensive platform for real-time
delivery of incorruptible financial products and services.
BitShares (BTS), with a market cap of
$680M, is also a smart coin factory with hundreds of innovative financial
products and compliant ICO offerings. It currently holds the record for over
one million blockchain transactions per day dwarfing the performance of
Bitcoin and all other blockchain networks. BitShares has in turn, teamed with
the United Precious Metals Association (UPMA) to bring real-time metal-backed
digital currencies into the mainstream.
Gold and Silver can be used as legal tender in many states in the US, and
other countries around the world.
The combined strengths of a conventional bank + decentralized bank +
decentralized exchange + smart coin factory + gold depository + enterprise
integrator makes the first full service alternative financial system to offer
honest money and a level the playing field for all mankind.
For more information contact:
Eddy Taylor (310) 940-2404 or
visit SovereignHero.com.
John 469-71-ARISE or visit AriseBank.com
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