The U.S. banking system is experiencing a severe crisis of confidence. However, trust is the essential building block in a functioning banking system. The danger of a chain reaction that would cause more and more banks to fail was looming. Even though the supervisory authorities reacted immediately and the state guaranteed customer funds, the closures led to major distortions on the global stock markets. Fortunately, policymakers learned from the mistakes of the first banking crisis and immediately provided liquidity. However, the new capital available is also just a loan. How long will this last ?
The bankruptcy of Silicon Valley Bank is particularly explosive. The institution had assets of $209 billion on its balance sheet at the end of 2022, making it the №16 bank in the U.S. banking industry. For now, efforts by policymakers and the Federal Reserve appear to be calming the situation. However, the fundamental problems in the banking system, most notably low capital adequacy of institutions and offensive accounting rules, remain. Critics such as the German economist Hans-Werner Sinn speak of casino capitalism in this context.
Don’t overestimate bailout funds
“Money is only really safe when it is no longer in the bank”. Savers should always bear this sentence in mind when making investment decisions. Overnight and time deposits are at risk. Within the European Union, these are protected up to 100,000 euros per customer and bank. However, no bailout fund in the world can absorb a collective run on bank accounts.
What happens when nothing works anymore? When you can no longer access your money. You can be sure that this scenario will not be announced in advance. From one day to the next, the banks close and the customer is left behind. Therefore, it is all the more important to have a part of his assets in crypto. Independent of banks. No matter if the money goes bust and maybe a new currency comes afterwards. You can always change your cryptos. Probably in such a crisis more and more companies will accept crypto currencies. With minebase you can create tokens. As we have mentioned several times, anyone can do this. The Minebase system will gradually stabilize through the CTP system. When no more bailout will work. With Minebase you can secure your values.
Here the presentation of Minebase:
