Australian Tech Entrepreneur Plans "Crypto-Bank" Launch
Fred Schebesta, a 26 year-old entrepreneur, believes that interest in cryptocurrency is growing and will eventually need an institution to hold on to their crypto needs. But is this necessary with cold storage?
During an interview with news.com.au, Mr. Schebesta said he “didn’t care” whether Bitcoin was a bubble or not. He claims that “people have been calling Bitcoin a bubble when it was worth $10, $100 and even $1,000.” Because of the volatility of Bitcoin and every single other cryptocurrency known to existence, public interest in these currencies shifts negatively when prices go down, and heighten when they go up. This was demonstrated in 2017’s crypto-boom, when Ethereum was no longer worth $1 and became worth hundreds, if not every coin, most sky rocketed in price during Spring and Summer, causing public interest in this “practically free money” (it’s not free money) to heighten, which led to computer components shortage throughout the rest of the year, and still affected us early into 2018. I bet two years ago you didn’t know what an Ethereum was, now did you?
Schebesta continued to claim, just like many other crypto advocates, that Bitcoin specifically bears similarities to gold. He also wants provide services like “…custodianship, cold storage, escrow, exchange and spending.”, and believes this can all be done within 18 months. Additionally with those services, there would be crypto-lending, and it’s exactly what it sounds like; a loan from the bank. Schebesta believes he has a multi-billion dollar idea, and he has already bought shares in Goldfields Money because it is the only bank in Western Australia with an ADI, which stands for an ‘authorised deposit-taking institution’, license. He also took notice that Australian banks are, like many other banks, scared of cryptocurrencies. But eventually, people will realize the importance of cryptocurrencies after facing issues with traditional financial institutions. Why? Because in the crypto-world, there are no credit scores and other negative financial issues a person could face.
I believe Mr. Schebesta has a great idea and could most definitely become a reality. However, there are obvious downsides to this. How are you supposed to regulate something that’s decentralized, and, well, can’t be regulated? It’s like the U.S government wanting people to show their cryptocurrency holdings at the border, you can’t immediately prove that a person holds cryptocurrency, and if you can, you cannot find out how much that person has. Unlike banks, you don’t need a social security number, a date of birth, a full name, street address, birth certificate, etc, etc. to make a Bitcoin wallet. You go online, generate the address, and now you have a wallet, and you can do this as many times as you want and send your currency to multiple different wallets to try and make it “untraceable”. While Schebesta’s idea is great and could become a reality, I do not think it could be possible in the near future, and if it is, then the currency has to be centralized, which destroys the entire purpose of the idea of cryptocurrencies themselves.
What are you thoughts on Fred Schebesta’s idea? Do you think this is possible with the current state of cryptocurrency? Let us know in the comments!