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
Bitcoin Full Node Earnings ... Bitcoin Cash Price Spiked Hf Supported By Bitcoin Com Binance Next Beranda. Langganan: Postingan (Atom) Mengenai Saya. Byron Mantle Lihat profil lengkapku. Arsip Blog 2019 (1095) November (163) How To Buy Bitcoin With Ripple; Free Bitcoin Spinner Download Apk; How To Use Bitcoin Machine Video; How To Copy Your Bitcoin Address; How To Get Free Bitcoin Into My ... Microstrategy CEO Personally Owns $240 Million in Bitcoin — Company's BTC Profit Eclipses Other Earnings. Following a $425 million bitcoin purchase by his billion-dollar company, Microstrategy ... 8/10 (14 votes) - Download Binance Android Free. Binance lets you follow movements in Bitcoin and other major cryptocurrency markets, as well as allowing you to buy and sell straight from your Android. If you have assets in the form of crypto-currency, it is important to keep a very close eye on... Xapo had obtained $5.5 billion of assets under custody that reflects to around 700,000 Bitcoin which now got acquired by Coinbase. When looking at these numbers, it would more make sense if Xapo ... The pandemic of Coronavirus (COVID-19) has influenced each part of life comprehensively. This has brought along some changes in Xapo is an intuitive and secure Bitcoin wallet system that operates online for storing profits from xapo faucet list . The Xapo Wallet provides a way to manage your funds when you want and where you want.. The Xapo Wallet operates through a mobile app and online and includes the ability to transfer funds to and from the Xapo Vault. cryptocurrency Bitcoin now pays No Disabled in: 06.09.2017 10:44 there were failures at payment or it was disabled in rotator Yes In the database 1430 d. Pays every 00:30 h. Microstrategy CEO Personally Owns $240 Million in Bitcoin — Company's BTC Profit Eclipses Other Earnings. Following a $425 million bitcoin purchase by his billion-dollar company, Microstrategy ...
[index]          
Bitcoin Analysis & Bitcoin News Today: Facebook coin news, according to a report, Facebook will launch its stable coin Libra this month. Also, Binance might launch a stable coin soon. And, I'll ... CryptoTrading (BITCOIN) at Binance Beginners Guide Tagalog - Duration: 21:50. Joejo Tutorials PH 26,847 views. 21:50. Make a Living in 1 Hour a Day Trading the 3 Bar Play!! - Duration: 34:34 ... Earnings Binance [07.31.20] - Ethereum 2020 rallies as Bitcoin consolidates Віnаnсе Nеws. Loading... Unsubscribe from Віnаnсе Nеws? Cancel Unsubscribe. Working... Subscribe Subscribed ... Earnings Binance [07.31.20] - Ethereum rallies as Bitcoin Rally, BTC Buy Signal consolidates Віnаncе [Ехсhаngе] Loading... Unsubscribe from Віnаncе [Ехсhаngе]? Cancel Unsubscribe ... How To Deposit On Binance, you must have a bitcoin or etherium wallet to deposit into Binance, your wallet can be luno, xapo, blockchain, etc. Click on this ... Binance para iniciantes - veja como usar essa exchange de Bitcoin! Tutorial 2019/2020 - Link: https://cryptotchaps.com/link/binance • Binance: https://crypto... Join Binance - https://goo.gl/7rjYVq #trading #cryptotrading #earnbitcoins In this video i would like to share 7 simple step for success in crypto trading which can help you to earn big profits ... 3 criptomoedas somam 90% do volume total em negociações em 2020 / XAPO irá cancelar cartão de Débito - Duration: 16:25. NEW TECNO Investimentos Digitais 61 views New Binance announced last week that they launched Binance Lending. A new platform added to the binance website on which retail investors like you and me can lend their money to Binance, which lends ... Xapo CEO: A Bitcoin Could Be Worth $1M in 10 Years - Duration: 5:03. ... Binance - Bitcoin Einzahlen, andere Coins kaufen & auf das Wallet senden! - Duration: 14:53. Walter Matuschek 3,940 views ...