1. Best of both the worlds – in detail
Have you ever worried about your coins when their currently in a hot wallet? Does it break your sentiment when an exchange gets hacked? Worry no more! With crypto insurance against theft and hacks, you can keep your coins in the exchange of your choice and never worry, because even if they get stolen, your coins would be covered by insurance and you will get it back immediately. This enables you to keep your coins in the exchange of your choice and actually use them instead of going through the tedious process of locking them up in a cold storage, effectively making them unusable and getting them back online.
2. What’s lacking in banking today - Why try to replace the current banking sector?
The banking system as of today go out of their way to ensure their services are easy for us to use, we have to admit this. They don’t do a good job at keeping our data safe or with them. Equifax’s business model is to sell our data, when they aren’t being hacked, that is. All our financial data is unfortunately for sale. We trade of privacy for convenience.
We hate sellouts. We intend to facilitate the same amount of convenience, if not more, with the absolute commitment towards data privacy and security. We do this by being an end to end blockchain company – protecting your data by not having access to it in the first place. It would be encrypted and stored on the BOH chain.
3. Achieving Satoshi’s vision
Satoshi Nakamoto set out to make a world-wide currency acceptable by everyone. He set out to ensure money and payments are independent from the responsibility (try irresponsibility) of any Government in particular. He set out to achieve financial freedom for everyone. He set out to achieve a safe and transparent way for people to store and use their wealth without interference, because “experts” don’t really have your best interest in mind.
We’re the missing part of Satoshi’s vision because:
- Our payment solution works in every country – without restriction.
- Our solution is country independent.
- Our solution gives you a truly safe and transparent way to store your wealth without interference.
- Believe in crypto, but you need cash
Don’t want to sell your coin but have that unexpected payment? No problem! You can instantly avail a line of credit and pay it back when you can while still holding your crypto. There are multiple ways you can do this. If you need a line of credit against a credit card, you can use the overdraft option and just swipe your card. If you think you’ll need credit for three months or more, just use the p2p borrowing option and choose whether you’d like to directly borrow in FIAT or in a cryptocurrency of your choice – as simple as that.
4. The obsolesce of FIAT (Hyperinflation and cross border)
Government backed money has its pros and cons. If you have a government that puts its middle class first, everything’s great, you have nothing to worry about. But that’s not the case for most countries. A bad situation to be in is you don’t think your country is run well, something that has become quite common. Most FIAT currencies (USD, Euro, Sterling, Yen) aren’t backed by an asset, its just that we trust the government to not collapse or cause massive economic instability. Unfortunately, a few countries in the recent past have faced massive hyperinflation, completely devaluing their currency – forcing them to adopt a more stable currency. We saw massive bitcoin adoption strongly overlapped with the collapse of the Venezuelan (Venezuelan bolívar) and Argentinian (Peso) currencies.
Another advantage of having a cross border currency is that governments can’t restrict or control spending of their citizens. This is widely the case in countries with very powerful governments. Making a cross border payment can sometimes take days because of the restrictions and artificially built up restriction walls. Another advantage of this is that you don’t have to deal with your banks marked up exchange rates with high fees and bad conversion rates.
5. Crypto doesn’t work too differently from stocks/digital assets
The cool thing is, cryptocurrencies behave very similarly to publicly traded assets such as commodities and stocks with a higher bracket of volatility. They all follow the fundamental supply and demand curve, they all are partially fundamentally and sentimentally driven since they are bought by the same people at the end of the day. Hence, treating cryptocurrencies as a separate asset class opens up the potential to multiple financial instruments such as asset backed overdrafts, lending, insurance, swaps, options, futures and much more.
6. The missing piece in the bitcoin economy
While Satoshi Nakomoto’s vision is incredible and will be achieved once the network effect kicks in, banks and governments are trying their best to prevent this from happening. Many have partially or completely banned the use, mining or purchase of any cryptocurrency because of the threat it possesses to their power. This, unfortunately, has prevented cryptocurrencies to be usable in the real world (outside buying digital cats). All our efforts are to enable Satoshi’s vision to offer a truly decentralized banking solution today. Our overdraft system facilitates cross border payments, our p2p lending platform enables users to access the credit market in a few clicks and the insurance product covers the crypto space’s achilles heel - the vulnerability of the exchanges.
7. Why we’re the bank of the future:
Our roadmap starts with cryptoassets which transitions to all digitized asset classes. All of this would be facilitated and maintained on blockchain since its the centric technology of our company. Once we facilitate the suite of services that a typical bank does, we will replicate these to all digital assets. That’s how we’re truly positioned to be the bank of the future.
8. How we’re using the distributed ledger to our strengths
The major strengths of blockchain are:
- The fundamental safety of the data stored on it - which only increases with adoption
- The ability for the ledger to be maintained without the need for a central authority - handing the power back to the community.
9. How will this insurance instrument work?
We will be able to facilitate insurance of coins stored:
- In your Bank of Hodlers wallet
- In a reputed exchange that gives us REST API access
Once we verify the total amount of coins in the wallet, we would have a way for a user to pay monthly/yearly insurance fee for their coins. As simple as that. We will continuously audit the security of the exchanges to place them in risk brackets which would, in turn, determine their insurance fee. Once the insurance is purchased, we would ask the user to share an alternate(and safe) wallet address for us to deposit the claimed cryptocurrencies in case of theft.
10. How does borrowing, lending, payments work
Once we verify the net worth of your coins in terms of btc or USD, the entire suite of services would be usable. Note, that you need not transfer the coins to the new wallet address, you could even give us REST API access from your existing wallet. The offerings you can use are:
- The ability to facilitate payments through the credit card issued by us
- Access a line of credit that you may need for anywhere between 3 months to a year.
- You would like to make interest in the currency of your choice.
All of this would be doable on our intuitive website and apps that we will release very soon.
11. How are we a decentralized bank?
All of our services, databases and client information are going to be stored on blockchain - ensuring their data is protected. The peer to peer lending and insurance products are written on smart contracts and not tamperable. This ensures that we’re completely transparent and community driven by design. We are the bank for the people and by the people - we’re building a bank that’s designed to thrive on community engagement and happiness.
While blockchain was designed to redefine the banking sector as we know it, the blockchain companies and communities have a long way to go in order to make this a reality.
Has bitcoin achieved Satoshi’s vision to completely eradicate the need for a bank? We don’t think so.
We’re blockchain’s missing piece.
As we see it, there are a few gaps to fill before blockchain can be positioned to the disrupt banking sector.
After identifying these gaps, we believe that the first step towards achieving this is to create a platform to facilitate payments, credits, and insurance for crypto-assets. We want to later expand this to other digital assets and hence gradually change banking for the better.
Secure, swift, decentralized.
Banking for all. Democratizing payments. We believe that banking should be decentralized so that it is more accessible, transparent and secure. This can only happen if its truly designed by the community from ground up.
In the world we envision, a
Protect your hard-earned savings. Protect from hacks. All while being able to spend it, save it, grow it.
The money that you rightfully earned can finally be truly yours.
12. Why build a bank on blockchain
Banks are traditionally the middle men, controlling the flow of capital. When you want to lend, you lend to the bank at 1-5% per year. And when you need a line of credit, you borrow at 7-20% per year. Everything in the middle is retained by banks as “management fees” - funding their exquisite lifestyles.
The only reason people were willing to pay banks the huge fees was because there is a significant trust that the bank will pay your money back. They, along with the associated regulatory bodies that fall under their purview (The Federal Reserve, and its equivalent in every other)
The exact value add of the banks is what blockchain adds as well - trust in the system. Banks derive their trust from being associated with a central government and using the nation currency. Blockchain derives its trust from people adopting it - it’s the epitome of the economy of trust. This trust is far more reliable than the mandate of a government - just look at Venezuela, Argentina & Zimbabwe in the past
The primary services facilitated by banks such as:
- Safe storage of money
- Instantaneous and easy payments
- Means to grow unused capital
Can all be facilitated through smart contracts - effectively removing the need to be dependent on a centralized banking system. The decentralized bank is exactly what we’re building.
13. Why asset back crypto only? Why not other digital assets?
We intend to first facilitate the services - using cryptocurrencies as the underlying - because of:
- The wide acceptance of them across borders
- The ease of starting to do business using the above
The big picture is to move into other digital assets over time - hopefully in the next 12-15 months.
14. What’s the pain point of the market? And How are we solving it?
The major pain points for a cryptocurrency investor are:
- The price volatility associated with the coins
- The regulatory uncertainty associated with hodling and mining
- Risks associated to the exchanges or your wallets being compromised and you losing your entire savings.