In the legacy system exists various financial mechanisms. Some are more complex than others when it relates to modern monetary theory. Of course the crux of the system revolves around one thing: Debt.
Money is debt. The Federal Reserve Note is a debt based instrument. Suffice it say someone is in hock to someone else. It always seems that someone is always borrowing from someone else. Whether it is the consumer or the State.
Debt itself is not bad when used properly. Leverage can enhance gains and improve consumers way of life. It can also generate a healthy return for prudent savers deploying capital reserves.
However, debt upon debt itself can be very dangerous. Usurious interests rates and products that harm consumers can have severe consequences for people. Loans that can never be paid back can damage lives.
Now that is a brief description of the legacy system. Of course there are more intricacies pertaining to the way things work. However, for this write up I would like to focus on the new.
And the new is blockchain and how it pertains to modern finance. Specifically, Leo finance and this ecosystem that is being developed. Most of the old farts will discuss the legacy system and new products that are being built. The truth is the old system is something out of the 1980’s.
Bitcoin has shown the way to decentralized finance. Although the journey has been tough the proof is in the pudding. It still runs this day and works as designed. A true modern financial technology with no owners or middle man.
Now Leo finance and the Hive ecosystem is building on the modern financial technology theme. It is giving users the chance to earn crypto. Essentially, our user base is given the opportunity to create our own units of currency.
No central banks or calls to Citibank. Instead, Leo finance has become our own personal bank. Now when we want to create value users can write and curate. And no debt is being created.
The beauty of all of this is equity is being built daily. Equity that users can either spend or save. Or even invest in other tribes and repeat the process. Now that is truly how wealth is built.
In the future there may be some p2p lending that may occur on this platform. Now this is all speculation but once our user base builds up enough capital people will be wanting higher yield. Lending and borrowing may become common place in the future.
Thus the cycle will complete for our modern financial platform. Many users today may not see themselves as capital creators. But if you change your perspective that is basically what we are.
As the value of this system grows understand the various stages that will occur. I believe we may start the mania stage at some point this year. Many tech companies go through these transitions. Leo finance is no different.
So keep stacking and have fun. Don’t forget to enjoy the journey.
Posted Using LeoFinance Beta
Leo certainly is changing things for many people on here. Live are being improved right before our eyes.
Bitcoin opened up an entirely new arena and Leofinance looks like it is taking things to another level entirely.
It will be a fun ride the next couple years.
Posted Using LeoFinance Beta
Yes very fun. :) I think people in finance take things too seriously. I know money and the economy are serious stuff but Bitcoin was put here to change this perspective. “Coins” and “tokens” are choice phrases. Designed to bring fun into the lives of billions. At least that’s my opinion.
Posted Using LeoFinance Beta
At the same time, they will bring abundance to the lives of billions of people.
In my mind, this is the ultimate network effect, the biggest the world ever saw. Compared to what happened with Facebook and other social media, this is going to make them look like child's play.
We are looking at hundreds of trillions of dollars.
And that is a lot of cheese when you think about it.
Posted Using LeoFinance Beta
This is really wonderful!
I've seen more than once in this community someone sharing how Leo is helping them get by during tough times. It's like I usually say: I wish I got here sooner, but I'm so glad I'm here now.
Posted Using LeoFinance Beta
I think we are all here at the right time. Exciting times indeed.
Posted Using LeoFinance Beta
Taking into account how fiat money is losing more and more value, it is an excellent way to give value to our assets, and even more to offer a much desired refuge of value, so we can preserve this environment much more!
Posted Using LeoFinance Beta
The ecosystem is way ahead of the curve. Just give the market 6-9 months to catch up. Hopefully we see some fireworks.
Posted Using LeoFinance Beta
Image Source: gif created by @sgt-dan using GIMP software
Posted Using LeoFinance Beta
Leofinance DeFi, I am looking forward to it being a game changer.
Posted Using LeoFinance Beta
Very interesting piece. Leo is truly our bank. It provides us with a range of products that in turn grows our time and capital investment over time.
Moving forward I think in the coming years many of us will become financially free and even more, become venture capitalists investing in meaningful projects that will improve the Leo ecosystem. The future is bright for Leo
Posted Using LeoFinance Beta