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
Coinbase also allows you to purchase Bitcoin directly from them via a credit card which is useful if you are in a hurry, but watch out for the hefty fees with this method. European and UK customers can save up to 4% on fees by depositing money via bank transfer. Xapo is a newcomer on the crypto exchange block. Their Bitcoin services are pretty simple for new users, but it’s worth noting you ... Binance: 3.5%. Wirex: 3-4%. Coinbase: 4%. Other Simplex (bitcoin.com, Xapo, Changelly): 5%. Einstein Exchange (largest Canadian exchange): 10%. Indacoin (various exchanges): 12-20%-----TL;DR: Crypto exchange card fees are high for a reason and a lot of exchanges don't accept cards for the same reason. Anyone claiming otherwise has no idea what ... Xapo also offers a Bitcoin debit card that is associated with your Bitcoin wallet, allowing you to spend Bitcoin easier than most other services. In this Xapo review, we’ll be diving into their company and examining their reputation to see if they’re worth the hype, or if you’d be better off with another exchange . Bitcoin debit cards help bridge the Bitcoin world with traditional finance and you can either buy Bitcoins with your debit card or load a debit card with bitcoins to then spend bitcoins at almost any credit card accepting merchant. Overview - Table of Contents Cryptopay VISA Debit Card SpectroCoin Debit Card Uquid Debit Card Bitpay VISA Debit Card Xapo Debit Card Coinbase Shift Card Bitwala ... Bitcoin isn’t just a cryptocurrency, it’s an opportunity to democratize money and empower people everywhere. We make it easy and safe to buy, manage and store your bitcoins. For everything that #MattersMost. Xapo isn’t just an app, it’s a mission to help everyone in the world live a better life. It’s about breaking down barriers and opening new doors—it’s for everything that ... 1.Does Bitcoin Have a Debit Card? No, it doesn’t. Bitcoin isn’t controlled by anyone so it can’t issue its own debit card.However, you can get a 3rd party prepaid debit card which you can load with Bitcoin and then buy almost anything.. While not many businesses accept payments in Bitcoin (yet), most accept debit cards. With a Bitcoin debit card, merchants get paid in their own currency ... The group’s main service is facilitating the buying and selling of bitcoin via bank account, credit and debit card. Like Binance, Coinbase has its own stablecoin, USD coin (USDC). The ... Binance & Binance Card Review; Lijst van Bitcoin debit card betaal en bewaaroplossingen: ... De Xapo Bitcoin Debit Card wordt vaak over gesproken vooral omdat Xapo bekend staat voor het ontwikkelen van zeer veilige online Bitcoin wallets. De Xapo Bitcoin Wallet staat bekend als de Fort Knox van de Bitcoin wallets. Xapo investeert veel in de beveiliging van de Bitcoin wallets. De Xapo Debit ... To make Bitcoin more widespread, through a similar interface, essentially a Visa card. It is a debit card that is funded with Bitcoin. I was lucky enough to get an early access card and take it for a spin myself. I talked to Ted Rogers, the Chief Strategy Officer over at Xapo regarding Xapo as a company and a little bit about them.
[index]          
Get a lifetime 10% fee discount when trading crypto on Binance: https://www.binance.com/en/register?ref=FOC8JZJ8 How to Buy Bitcoin with Credit Card / Debit ... Binance has announced the launch of its crypto debit card in Europe and the United Kingdom, according to an announcement today. Dubbed Binance Card, it will let the exchange’s users spend their ... Wondering how to buy Crypto with a credit card on Binance? Deposit bitcoin or another cryptocurrency in your account in less than 30 minutes. I show you how ... !!👨💻 SET UP A BINANCE US ACCOUNT 👩💻 !! https://www.binance.us/?ref=35000644 Binance US now allows you to use a Debit card to make purchases ... [ Sign Up to Binance for Free and Help Support the Channel ] https://www.binance.com/?ref=11093903 #Binance #Tutorial #Bitcoin How to Use Binance! https://ww... Find out How To Buy Bitcoin On Binance With Debit Card Fast? 🔶 Binance: http://theappsworld.com/link/binance (5% discount on fees!) Subscribe: https://www.yo... 🍋🍓 Ahora puedes tener tu tarjeta de Binance para comprar con bitcoin o con criptomonedas gracias a Binance Card. 🏅 Binance → https://www.binance.com/?ref ... Binance register link: https://www.binance.com/?ref=12695653 Coinbase register link: https://www.coinbase.com/join/569e63ed705bf25f2500020d (On Coinbase you ... http://bitcoin-informant.de/2020/09/17/972-xrp-verkaufsdruck-10000-bitcoin-atms-weltweit-bitcoin-visa-card-binance Hey Informanten, willkommen zur Bitcoin-In...