How the new emerging blockchains will destroy traditional banking and finance business models?

The internet drove the cost of transferring information to near zero. This destroyed the business models of traditional media and retail businesses.

The blockchain drives the cost of transferring value to near zero. This will destroy the business models of traditional finance and banking businesses.

Example: Traditional banks term deposits average less than 5% in the Cook Islands and less than 2% in New Zealand. The average interest for HEX stakes ( is around 40% (for an average stake length of 5.5 years).

How does a traditional bank compete with that? It can’t.

A screenshot of HEX’s main website

Just look at the cost structure of a traditional bank. Traditional banks have to the pay the cost of staff salaries, building rentals, utility bills etc. that are needed to run the business. They are also licensed to a single jurisdiction which limits their customer base.

HEX on the other hand is an autonomous smart contract running on the Ethereum network as code. It’s customer base is global because it isn’t limited by jurisdictional boundaries due to it’s decentralised nature. When the Pulsechain launches and HEX is forked over, the cost of transacting on the Pulsechain will be fractions of a cent (i.e. near zero cost). There are no staff to pay, no rent to pay, no utility bills to pay etc. because HEX is code running on a bunch of servers.

The market size for all deposits is about 17 trillion in the United States alone. About 2 trillion of that is Certificate of Deposit’s (aka Term Deposits) based on 2019 estimates.

Mid-tier banks gain deposit share as money center rivals hold back on  growth | S&P Global Market Intelligence

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