Saturday, 6 April 2013

Old Banks v New Banks

April 2013

Old Banks (Mediated and centralised) v New Banks (Disinter-mediated and decentralised)

Old banks are stuck with toxic assets, large overheads, toxic corrupt management, legacy systems that have been built up over 100 years and are not built for the internet.

New banks have clean balance sheets, low overheads, highly skilled management, systems designed for the internet where entire payment  system has been built in the last 24 months that makes the current banking legacy system and that of visa credit card systems  and paypal redundant.

A vision for a new bank is where the bank guarantees the safe keeping of new money such as bit coin, provides a platform for p to p lending with customers of the bank bidding to take on the loans.

New banks will emerge using crypto currencies and social networks where trust is crowd sourced and money is divided into fractions of a cent or a penny and security and safe storage of crypto currency people will be prepared to pay for.

New banks can make money sending and storing a fraction of a penny from one person to another where  old banks simply cant operate at this nano level.

The mobile will become the ATM, the wallet and money will be kept safe  with guarantees for those that want to give out their identity to a fully licensed bank , for those that do not they will have to risk third party providers who provide anonymous services and are anonymous themselves with no guarantees your bitcoins will not be stolen.

Currently these are the steps

1. Research, Research, Research - Spend a few weeks reading up on bitcoin before you do anything
2. Wallet- Create a bitcoin wallet ( with a third party  you most trust) Locate  your first bitcoin address  which will look something like this 1BeSCnW8XLqSxTy9LxL7eJCDu7ygrPDJYf.
3. Exchange - Buy a small amount of bit coin  to start with ( again  from a trusted unregulated  third party)

Remember do not put all your eggs in one basket.

Soon there will be an option to open a bitcoin account with a regulated bank, who can also store an unlimited amount of  bitcoin and exchange an unlimited amount of bitcoin.

Forget the exchange rate hype, and the attacks on third party interfaces which do not have the same high standards of bitcoin itself " bugs tend to be attracted to the light"  as far as a  payment system  is concerned bitcoin  is a perfect match for the internet, the mobile and any other electronic device.

Jonathan de Rin -Founder of CSC

CSC Bank (A new universal p to p bank available to 6 billion mobile phones with transfer fees a fraction of old banks, credit card companies or even online payment systems)


"bitcoin and similar crypto currencies will be the most disruptive technology since the invention of the internet itself with the maths  creating billions of p to p 100% trusted banking relationships overnight " 


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