Setting Up A Cash & Savings System Independent Of The Banking System

B1HC...QpyA

23 Feb 2024

Trust & The Golden Rule
Whether it comes to saving or investing, diversification is always at the top of the list. Choosing to allocate the majority of your wealth to a single entity or investment is extremely risky, especially in today’s world. One of the smarter ways to diversify is outside of the traditional system. In a world where banking services can be limited, halted, and even shut down, it makes sense to have a backup plan.
Ideally, a couple of backup plans are the way to go. One can never be too safe. Trust in the existing financial system, as well as government structuring and capabilities, are fast eroding. What we have seen unfold in the past three years, in regard to policies and other global events is unparalleled. It appears as if common sense is no longer that common, and many recently incorporated policies and decisions reflect just that.
We have seen the collapse of numerous banking entities, along with financial censorship, most notably in regard to the Canadian truckers. Over the weekend I watched RFK’s address at Bitcoin 2023. He cited this particular event as his aha moment, in regard to Bitcoin. It was this failure of governance, as well as the violation of the constitution that encouraged him toward the idea of Bitcoin.
The Beauty Of A Crypto Cash System
Setting up your own little infrastructure that enables you to save and spend your money without trusting an entity has numerous benefits. Firstly, a financial collapse where services are halted or paused has little to no effect on you, provided you have set up a Crypto alternative. Secondly, Crypto can operate independently via certain apps and services outside of the more traditional realm.
At the same time, Crypto can re-enter the traditional system. However, if the traditional system experiences a halt in services, capital cannot be removed and deployed into a Crypto alternative. Essentially, TradFi is a one-way street, and if the road is blocked… you are pretty much stuck! There is nothing you can do. A Crypto wallet however can continue operating via numerous apps and dApps.
Independently held capital can function independently, as well as under custodianship. However, capital under the control of a custodian is limited to transactions originating solely from that particular custodian. If it gets locked down for whatever reason… it’s game over, at least until services are resumed. This could be a day, a week, or even longer. I operate independently and then utilize banks for payments.
I have no desire to hold capital in a bank. The return is almost non-existent, and the “safe as money in the bank” narrative no longer really applies. Times are changing… and fast. Diversification and self-custody are becoming increasingly more attractive, and even expedient.
Final Thoughts
This is an idea that is far more than simply an option. I believe it's imperative, even if it’s rather minimal in relation to your existing practices. It’s at least a backup if an event unfolds that is likely to cripple or halt the ability to transact. We have seen some rather concerning events unfold over the past year or two. Situations often tend to escalate, prior to a period of calm, if we are ever to see that again, anytime soon.
Trusting the untrustworthy generally tends to end badly. I would much rather trust myself, and then choose to trust a “service” as required. In other words, I can load the accounts on the apps and dApps I use as I require. Essentially, this means that my capital remains with me… and is deployed only when necessary. These are obviously my own thoughts and preferred methods of operating. As They say, “Each man to his own”. See you in the next one!

Free Cardano

Disclaimer
First of all, I am not a financial advisor. All information provided on this website is strictly my own opinion and not financial advice. I do make use of affiliate links. Purchasing or interacting with any third-party company could result in me receiving a commission. In some instances, utilizing an affiliate link can also result in a bonus or discount.
This article was first published on Sapphire Crypto.