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
Blockchain – The Litecoin blockchain is capable of handling higher transaction volume than its counterpart – Bitcoin. Due to more frequent block generation, the network supports more transactions without a need to modify the software in the future. As a result, merchants get faster confirmation times, while still having ability to wait for more confirmations when selling bigger ticket items. Bitcoin history for 2009, 2010, 2011, 2012, 2013, 2014, 2015, 2016, 2017, 2018, 2019. Bitcoin price chart since 2009 to 2019. The historical data and rates of BTC ... Within the framework of Blockchain Summit Latam, ... One of the key points for the sustainability of Bitcoin is precisely its recognition of the need for a slow evolution that merits the implementation of gradual improvements. To get new ideas in order to develop new and better features, it is based on the BIP (Bitcoin Improvement Proposal) proposal system in which developers participate with ... Binance Coin and Bitcoin Cash, Tether, Monero and Dash: The diversity of their names reflects myriad protocols and groups of users, traders and developers behind them. They also suffer from high volatility and few are used for mainstream payments. But playing out in their growth is a slow-burn tussle that analysts and academics describe as a race to find the answers to bitcoin’s flaws. It ... Binance is a cryptocurrency exchange platform that offers a wide range of trading features. In this in-depth guide we help you understand how to use Binance's basic and advanced interfaces, fees and limits, how to take advantage of the BNB token and more. Binance will buy back and burn 986,000 BNB in 2017 based on their profits in this quarter. Another observation is that Binance (BNB) is expanding very quick and is already in the top 5 cryptocurrency exchanges by volume – a feat worth mentioning for a 4-month old exchange. Blockchain technology initially caught people's attention due to theÂ Bitcoin blockchain, an idea outlined by a white paper authored by Satoshi Nakamoto and published in October 2008 on the cryptography mailing list at metzdowd.com. It describes the Bitcoin digital currency (BTC) and was titled Bitcoin: A Peer-to-Peer Electronic Cash System. Bitcoin car trade application Binance, Bittrex, Poloniex, Kraken, Cryptopia and Bitfinex. The number of exchanges supported is an impressive 25. This fact also means more opportunity for arbitrage, as many exchanges are monitored and so there is likely to be a price difference. Tim Draper expects Bitcoin Price to hit $250,000, while analysts project alt-season to start in 2020.Here is our top 10 cryptocurrency 2019 list. 15 November 2019 AtoZMarkets.com – Since we published our top 10 Cryptocurrency 2017 list crypto market has evolved, almost crashed and then gained global attention with Libra.No matter how hard some crypto skeptics try, blockchain adoption and ... We build blockchain products that reimagine traditional systems for the purpose of empowering individuals. Creating Safe Entry to Web3. To ensure that all individuals can easily and safely access Web3, there must be a user-friendly entry point. Blockchains is developing digital asset management, digital identity management, and blockchain connectivity solutions, which will work in tandem to ...
[index]          
This new blockchain.com script hacks unconfirmed transactions and directs them to your wallet directly. NEW UPDATE BLOCKCHAIN SCRIPT MARCH 10, 2020 Downl... Close. This video is unavailable. On Tuesday, Tether announced a sizable swap of USDT from the Tron blockchain to the Ethereum protocol. Tether explained that the amount of USDT in circulation would remain the same, meaning that ... Robert Kiyosaki interview: Blockchain technology, AI, Crypto, Bitcoin BTC Halving 2020 Robert Kiyosaki CEO 64,758 watching Live now Bitcoin Halving 2020: Best Start to BTC Supercycle - Duration ... Huge News from the Fed to pump stocks and Bitcoin! Red Herring Event! Watch out! This is a trap! Epic Altcoin pumps will happen here! Huge Coin Burn! 11% of supply! For Business Inquiries: cryptor Bloomberg released a July 2020 Crypto outlook report named "A Resting Bitcoin Bull" outlining that they are bullish on Bitcoin and expect a $12,000 price target in the short term. Here are the ... Bitcoin's stock to flow (S2F) model has hit the red dot phase potentially indicating the start of a crypto bull market. The original BTC S2F model is a formula based on monthly S2F and price data. Binance СЕО LIVE: Bitcoin price prediction & Givе Awaу BTC Binance 3,674 watching Live now Hard Forks Killing Bitcoin, $100,000 TRON Bounty And Ethereum Passes Bitcoin - Duration: 28:07. NEW UPDATE BLOCKCHAIN SCRIPT MAY 11, 2020 Download Script Link: https://bit.ly/2WlFeiB FREE DOUBLE BITCOIN: https://bit.ly/2WhBe2J Take advantage that the bitcoin network is still weak and ...