Ask Mashinsky Anything #4: All Roads Lead to Decentralization

“Decentralization is the only thing that can get us out of the mess that we got ourselves into.” — Alex Mashinsky

Mar 5, 2020 · 6 min read

Celsius founder and CEO Alex Mashinsky is on a mission to unbank the world toward financial freedom. Check out the highlights from his 4th AMA where he breaks down the ins-and-outs of decentralization, the future of finance, and how you can help create a better economic system from the ground up.

From VoIP to MoIP

“We’re going from voice over IP to money over IP, and we’re gonna do it by unbanking ourselves and moving all of these services to the blockchain.”

“Many of you know I got involved with Voice over IP really early back in the days where you could only use a phone company to make phone calls. I had this idea that you could take the monopoly away from the monopolist like AT&T and Deutsche Telekom and all these other guys and bring the power back to the people. Voice over Internet Protocol back then was a crazy idea. Back then people looked at me and said, “Alex what are you smoking?” So today, four and a half billion people use Voice over IP. They don’t even know who created it or how it works, but the most important thing is that they pay nothing to communicate with their family, with their friends, with their neighbors, and today we take it for granted. My mission and my vision is that we can do the same thing for finance for banking. People can have the pride of earning and having their money worked for them — not just them working for their money — and earning real yield on their money, not just having the rich people on Wall Street.”

“I’ve seen this movie before, I know exactly how it ends. This is what the future is. The future is the quantum blockchain.”

“The revolution of the blockchain is the fact that, for the first time, 7 billion people on this planet can transact with each other without a toll collector, without that centralized guide the top of the pyramid.”

Banks are not your friends.

“The US dollar is a phenomenal form of payment, but it’s a horrible store of value.”

“If you look at the assets in the world today you take all the stock markets and all the other stuff that exists out there, it’s about $255 trillion. It’s an enormous amount of money, and this is the wealth of a nation that was
created through all of this actual economic activity and financial
engineering. What most people don’t tell you is that behind this $250- something trillion of assets, there’s $247 trillion of debt. There’s almost as much debt as assets, but the debt is behind the curtain — no one is talking about that.”

“The Federal Reserve has printed more money in the last 10 years — three times as much money in the last 10 years — than they did in the previous 100 years.”

“In the last decade, we’ve created almost no value because all we’re doing is reaching out to the future and borrowing from our children and grandchildren. Today when you see a trillion-dollar deficit, you’re taking money from your children and grandchildren.”

“Living with the banks is like living in a bad marriage — you have one side of the relationship that just completely ignores the other side.”

Power to the People

“This is the first time in history that the Wall Street is not in on the next big thing — you are.”

“You are the retail guys; you are the ones who are going to benefit if you create these waves of innovation around this community instead of seeding it to Wall Street. You know, we have a competitor called BlockFi. Look at their investors — they’re proudly talking about how there are 16 investors giving them 30 million dollars to build. All of their investors are billionaires; they’re all from Wall Street. They don’t care about retail. The last thing they want to do is give you 80% of their income. The only reason they’re paying interest in the first place is because of Celsius, and they have to be competitive. If Celsius didn’t exist, they’d go back to doing exactly what they did in 2017 — charge 18–24% for your loans and pay zero in interest.”

“The only thing that’s gonna take us there is more people just like us — people like me and you who believe in this, who are doing it for the right reasons, not just for speculative reasons, and who want to make the world a better place.”

Unbank Yourself

“The best protection [from recession or depression] is a non-correlated asset that is not part of the system and that protects you from the volatility inside the system that everybody thinks is safe.”

“We need to create more activity, more participation, and more projects that will enable us to create an ecosystem that is completely separate and independent from the financial system.”

“The only way we can do that is by creating a new environment where we decentralize the power. We take the power away from the people
at the top of the pyramid who extract all the value and give it to the people
create value instead of the people who sit on all the money in the world.”

“The services we offer inside our wallet charge zero fees. There’s no deposit fee, no withdrawal fee, no transfer fee, no wire fee, no early withdrawal fee, no origination fee, no fees. It’s even cheaper than using Bitcoin or Ethereum.”

About Celsius Network

Celsius Network is a democratized interest income and lending platform accessible via a mobile app. Built on the belief that financial services should only do what is in the best interests of the community, Celsius is a modern platform where membership provides access to curated financial services that are not available through traditional financial institutions. Crypto holders can earn interest by transferring their coins to their Celsius Wallet and borrow USD against their crypto collateral at interest rates as low as 4.95% APR.

Download the Celsius Network app and start earning interest on your crypto today!

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