With blockchain technology and cryptocurrency booming on the global scale, the need for certain things is becoming inevtiable. According to an Australian entrepreneur, Fred Schebesta, the need for a crypto bank will grow bigger in the near future. People will be needing a proper place to fulfill their cryptocurrency needs.
The volatility presented forward by bitcoin market has been unknown to none. One of the biggest insecurity that bitcoin poses forward is being unsafe and due to this, major institutional investors hold back from investing in this market. Bitcoin has been called a bubble from the beginning and is prone to bursting any moment. There is no permanent security in it according to some people. But according to Fred Schebesta, the 26-year old entrepreneur who co-founded Finder.com, bitcoin has been called a bubble since the beginning doesn’t matter what the price is.
Remember, people said bitcoin was a bubble at $US10, a bubble at $US100, a bubble at $US1000, After it went to $US100 it went down to like $US12, that’s way lower than $US20,000 down to $US6000.
Fred is of the view that although people are currently upset at the decline faced by bitcoin as a whole and it seems that people are losing their interest in the cryptocurrency world, but this does not imply that the market will die out. Fred stated that:
At its core, you’ve got to remember, just because the price of bitcoin has gone down and people feel angry, that doesn’t reduce the interest,
Fred even compared bitcoin to gold and stated that they possesses major similarities with each other. Fred stated that the interest in the bitcoin is not going down at all and is expected grow even bigger and bigger. Being like gold, it just has to sit there and its price keeps going up.
The interest has boomed. I was at [crypto conference] Consensus in New York, there were 8000 people there. It took 30 minutes to get up the lift. New technologies are being built, it’s like going from Basic to DOS. Bitcoin’s like gold, it will just sit there and do its thing and keep on going, I don’t think it will die.
Fred stated that the bitcoin market is although facing criticism regarding its instability, investors are still coming in. The spike in the amount of retail investors has been real. The interest is further going to grow.
Its interest level is 100 per cent growing,
We just saw a massive spike in retail investors coming on board. That’s why everyone bought and they sold and everyone’s really angry. But all you do is just wait. Bitcoin’s been going for nine years. And if they don’t think their bitcoin is worth anything just send it to me, I don’t mind
Concerning the blooming market of cryptocurrency and market, Fred stated that time will come when people are going to need services like custodianship, cold storage, escrow, exchange and spending. This is exactly where his idea lies. Fred is of the view that there is no need to build a new bank from scratch, rather he plans on partnering up with an existing bank with an authorized deposit-taking institutions (ADI).
He is eyeing the West Australian bank Goldfields Money, where he recently bought a significant personal shareholding. He stated that:
They’re a $35 million market cap, tiny business, but a bank, and the only bank with an ADI in Western Australia,
As crypto adoption takes off and it becomes bigger and bigger, people are going to [need] certain services [like] custodianship, cold storage, escrow, exchange and spending. And then lending — lending is what makes the fiat economy [government-backed currency] work, and once lending really cranks up in crypto, that’s the thing that will basically take this to a whole other level.
Recently, nearly all major banks made moves to made cryptocurrency purchases on credit cards. This step made by Fred Schebesta seems to be quite opposite of all the happenings that have been taking place in the banking world regarding the issue of cryptocurrency. Schebesta believes that the concerns made by the banks do not hold place and cryptocurrency is the future and people will be needing a crypto bank in the near future.
There are already three big banks in America — Silvergate Bank, Signature Bank and Bank of Silicon Valley — that have pure crypto teams now, They’re going to lead the way. That’s where all the big money is.
He also stated that the banks in Australia are scared of cryptocurrencies.
They’re closing accounts, they won’t bank people, and I don’t think that’s fair and I don’t think there’s any reason to do that,
There’s a lot of intricacy when it comes to cryptocurrency and how it actually operates. We understand this market, we know how to make it safe and make it scalable and actually bring it to banks.
We’re living in the future. That’s what I’m all about. I think I’m a time traveller. I travel forward five years in the future, work it out then come back and try to take active steps to make it happen.
All in all, with rise of cryptocurrency in sight, the move made by the Australian entrepreneur Fred Schebesta seems to be a great move which can pay off hugely in the near future. As the need of people grow, existence of such a bank to hold and provide safe storage to cryptocurrencies can become a priority for the people in the crypto space.