This is an Interview with German financial consultant and Youtuber Marc Friedrich, who also is passionate about Bitcoin and digital currencies. He has realized several book and also talks about the end of the monetary game with reasons for why our money-system is just not working anymore. The best selling author of The Biggest Crash of All Time will soon release his next book which is about Bitcoin being the next safe haven. Take a look and see if you agree with this master critical thinker.
Interview Date :9th April 2020
Bafin Regulations in Germany Allowing Crypto into Banks
Bafin is an abbreviation for The Federal Financial Supervisory Authority that brings together the supervision of banks and financial services providers, insurance undertakings and securities trading under one roof. It is like the national committee who is responsible for the laws over banking, financial instruments. They pass the laws that shall be guidelines which now allows banks to store cryptocurrencies as well as trade with it. It means that every bank in Germany is allowed to store and trade with cryptocurrencies if they want to. Moreover, we have very strong regional banks, so I think that if they store, trade and also sell cryptocurrency to their customers, they will have a new flow of income. So this is a big step for cryptocurrencies in Germany. I think that the first banks will start soon, due to their other businesses slowly breaking down. This is survival of the fittest, so the first banks who embrace this solution and trades with bitcoin, and even encourage their customers to buy and store bitcoin safely will win this race, and will survive the next burst of banking companies.
There is so much pressure on the banks and the government. They know that something has to change as people are getting more and more in touch with digital coins. They even know that the euro will collapse and so will other banks too not only in Germany but in China, Asia, the US. So, if they would not have created these regulations for cryptocurrency, they would fall behind in the international economy market, and we in Germany would lose the competition. So that’s why they did it.
Lack of income streams in Banks
Many banks said that we need new income streams. They are losing income streams because they have negative income rates, so we have to pay the European Central Bank (ECB). People go to online banks and everything is cheaper there, so the regional banks and the big banks need new income streams. I believe that’s how they came about it thinking that perhaps this “cryptocurrency thing” is something where we could earn money, where they would store the customer’s cryptocurrencies for a fee and even insurance them. If they stored cryptocurrency of their customers would get lost or hacked, or if there would be some bank robbery, there is room to create an insurance company that will insure it, and this can be another income stream. Everybody would go to the banks, and they would not need any lessons or lectures for how to deal with online wallets and scammers. Banks that people can actually go to, that are not virtual wallets only and are much safer. Thus the first bank that will offer a service like this will be in the forefront.
Strong Germany Exchange Role-Model
There is a very famous crypto exchange in Germany that has become the center for the people trading in Germany called Bitcoin.de. They have been active since 2011-12, so very long in the game. There are a few smaller ones but Bitcoin.de is like the bitcoin domain in Germany. On this market place, you can sell and buy bitcoin and other coins, and you can also store your bitcoin on their platform. 98% percent of the customer coins in this company is in cold storage, so only 2% is in hot wallets. Thus, even if they would get hacked, which they have never been, the hackers would only get 2 % of the hot wallet. Like in every other industry else, there are hackers out there that are trying everyday, but this company has never gotten hacked, but the hackers have been caught. Let’s suppose that they would get hacked, that 2% that hackers possibly could launder is insured with a big company, so nobody would lose anything. This is a very good example of how exchanges can be safe and active in the marketplace. So, as there are only a few exchanges here, there’s a lot of space for exchanges to be established in Germany.
Youtubers and Podcasts are doing a Great Job!
Youtubers have a lot of influence on people and on the crypto market. Many people get their information daily from youtube. I make youtube videos about crypto on my channel that are really successful and people like it. Others get their information from Telegram and other websites. Be aware that there is a lot of nonsense on youtube of course. Scammers launder people’s coins and assets. However, there is very good content as well. If you google Andreas Antonopoulos, Tuur Demeester or Bitgenstein’s Table, you will find great podcasts that are out there. Podcasts are amazing, and reflect the market and crypto in great easy language and detail.
Also, I am in the middle of writing my next book that is about bitcoin. I am the master of, not of disaster, but of translating complicated theories into normal languages, so everybody can understand. For example, how money in the monetary system works, and telling them that it is not you who owns the money in your bank account; it is actually the bank. That’s what I am putting out there so people can defend themselves, their money and their wealth. There is so much great content out there but all very nerdy, so I want to translate that nerdy content for people like you, me, the elderly and the 16 years who is probably a student who needs to understand what bitcoin is. This is also to get more mass adoption into this ecosystem, and I think that people really need to know more about cryptocurrency’s potential in general.
It’s funny-money, isn’t it?
How I got to know about bitcoin is a funny story which I actually wrote about in my last best-selling book. The first time I heard about bitcoin was in 2011 from a customer. As I am a financial consultant, I create mass customized plans for people, but that certain customer mentioned bitcoin. He asked “what do you think about bitcoin to diversify my portfolio”. I said “what is this internet money?” I told him that it is not going to work, it’s funny-money, and probably a scam so don’t invest in it. Back then, it was around 5 cents or so for 1 bitcoin, so thinking bank now it was maybe a bit cold advice from me then.
In 2013 when I was researching for my second book, I was looking for alternatives for the monetary system. Again, I crossed upon bitcoin. That’s when I thought I had to think again. I was wondering “how can this thing still be around after 2 years? perhaps there is something more to it”. So I printed out Satoshi Nakamoto’s white paper. I started reading it but not really. a while later, one day I came back from a big presentation I had before 1000 people, so the whole day I was feeling the rush of adrenaline and couldn’t even fall asleep that day. On my bed table, there was the white paper again, and at that moment I was too lazy to go and get something else to read. So I picked it up and started reading it, this time I really read through it. That white paper just changed my life and opened my eyes. Right there I woke up my wife and told her “this bitcoin thing is really great, this is amazing” So, the next day I started investing in bitcoin, and I read as much I could find about it back then, both in German and English. Since then, I have had bitcoin-fever.
Interviewer , Editor : Lina Kamada
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