Why Exist Cryptocurrencies At All? – The Cryptocurrency Consultant – Medium

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Number 2: Account management costs fees

Current accounts without costs are a sales argument that almost every direct bank has to offer nowadays. But why are there any fees at all for someone managing your money for you?

The banks argue with service. These are things that mainly happen offline:

  • Depositing and withdrawing banknotes (or coin-operated machines)
    statements of account
  • “Added value” in the form of Dispogrenzen
  • Personal consultation in the branch office

Honestly, these are things that will disappear completely soon anyway.

Of course, employees of the bank have to be paid. But I myself only use online banking. I haven’t visited a counter with employees for ages. When was the last time I visited you?

I always receive my account statements by post and don’t need them. They disappear immediately into the closet or paper shredder and that probably because I’m too lazy to check “online statements”.

I almost never deposit money in cash. When I was 10, I last made coin rolls with enthusiasm. There are certainly still people who use these services. But this group is getting smaller and smaller. Other countries are leading the way.

In the USA you pay with credit card at the baker. In Germany (still) unthinkable. In general, you hardly need any cash in the USA.

The same is true of neighbors in the Netherlands, where cash is increasingly denied. A bouquet of flowers on the market, a ticket on the train, parking in the city centre — everything is possible with Maestro, a credit card or app. In China you can pay cashless with your mobile phone in many supermarkets.

In a few years cash will have disappeared, as well as far-reaching demand for services. The bank will then only manage virtual numbers. A bank’s profits are generated elsewhere when the fees for accounts are no longer a main source of income. How do I know?

I didn’t work at any bank, but I can add up one and one. A few days ago I received an interesting flyer from the local savings bank. I don’t usually read it. But the subheading made me curious.

“If you get a discount on the base price of your account for using products at your savings bank.”

This is where a few marketing tricks come together.

  • Discount principle — you can save and that in a playful system *fun fun fun*.
  • Premium Status — you become a Platinum Member at a certain number of points. Status!
  • Added value promise — you have with the other products in any case an advantage

What’s the savings bank doing here? It tells you that you have to pay the contribution to your account anyway, but you can reduce it by more service.

The real goal is to sell financial products that bring much more commission.

In case you didn’t know: Your bank does not put your money in a safe and locks it. It uses it to make profits on the stock market. It lends it to get interest. In short: the banks work with your money. If the bank goes bankrupt, nobody knows if you still have your money.

Now the solution: The basic idea of Bitcoin is to make banks superfluous. There is no one but you who manages your money. A wallet is free. You won’t be offered any other products you may not need. A transaction is only executed by you.

Conclusion: Banks try to justify the fees for accounts in order to sell you more products. Most of the time you don’t even notice that. There are direct banks that offer you only one account. But even there you have to reckon with advertising. Your feeling of security is deceptive. You trust the bank. Trust has probably not been disappointed so far. But you don’t have control. When you create a Bitcoin Wallet, you don’t have to accept these disadvantages.

The banks are in a very bad light in this example. But they will move themselves into the right light again. If banks don’t develop further, people will rightly start using the alternatives.

Photo by David Shares on Unsplash

Number 3: No control! about your pension plan

When investing, you probably think long-term and your pension also plays a role. The general news, however, is full of inflation reports and ever decreasing pension notices.

You’ll be scared to death. Do I have to live in poverty in my old age? Do I get anything from the state at all when I’ve worked through 50 years or more? All these are frequently asked questions in connection with the topic.

Then a shining knight on a white horse comes along in the form of a financial and insurance consultant and enlightens you properly. The industry sells you securities for money. A savings plan, in one form or another, can be found in every suitcase.

You may have heard the following arguments during a consultation:

  • Inflation leads to the devaluation of FIAT money
  • You have to save for old age
  • 3 possible ways: pension fund (state), occupational pension (subsidies from your employer) and private pension (financial products)
  • Private provision offers the best chances of being well positioned in the long term

I don’t want to dive further into the financial system at this point. It is only important to me that you understand that consultants and banks tell you the same thing.

The argumentation is not wrong either.

Since money can simply be printed and infinitely multiplied, it becomes less and less worthwhile. The consultants are right on that point. I also agree that you shouldn’t put your money under your pillow. You have to invest it in things that are stable in value or even grow. These are called real assets and include stocks, commodities and other investments.

A simple investment is a fund. There, various tangible assets are bundled and you can invest part of your salary each month.


I got a little excited about the classic banks and insurance companies. The goal of crypto currencies is not to destroy these companies, but to force the world to better solutions.

There are also intelligent people in banking and finance who are interested in more than just your money. I have the hope that the financial sector will soon work more with the advantages of crypto currencies. At some point the market will be so big that it can no longer be ignored.

In the discussion over jobs and improvement of the quality of life by crypto currencies I could go now fully into it. But it is better to shift back a gear. I only brought the examples to shake you up a bit.

My expectation is not that you will change your complete world view through the three examples. But maybe you can see which alternatives and improvements crypto currencies already offer you today.

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