Banks Are 3,200% More Expensive Than Crypto
Since Bitcoin (BTC) came into being, it has been lauded for being an alternative to the traditional financial system. Yet, those with a vested interest in this dinosaur-esque world have quickly rebutted these cries, noting that cryptocurrencies are not only slow, but are expensive, pro-anarchism, and accessible for bad actors, whether it be rogue states, terrorist groups, or cyber-criminals.
Jamie Dimon, the chief executive of JP Morgan, and Janet Yellen are just two Wall Street hotshots that have lambasted cryptocurrencies, quipping that their value proposition is limited, if not non-existent outright. But these critiques haven’t gone unnoticed, as the crypto ecosystem has done its best to combat harrowing hearsay from financial incumbents.
This nascent, yet strong community gained an ally on Wednesday, as Pat Chirchirillo, a financial advisor at McAdam Financial, took to Twitter effectively straight out of left field to laud cryptocurrencies, likely referencing Bitcoin.
In a tweet that has gained traction within the crypto community, Chirchirillo noted that Bank of America, preferably his financial institution of choice, charged him $10, for simply having made more than six transfers between his savings and chequing account within a month’s time. With Bitcoin, he noted, fees would have been a mere $0.3 total. After doing some napkin math, Chirchirillo determined that in this case, which isn’t out of the ordinary, the legacy banking system was 3,233% more expensive than cryptocurrencies… ouch.
Bank of America just charged 10 dollars because I made more than 6 transfers between savings and checking this month. 6 transfers with crypto would cost about 30 cents. That’s 3,233% more expensive
— Pat Chirchirillo (@PatChirchirillo) January 30, 2019
And with this in mind, Chirchirillo, a representative of traditional finance himself, surprisingly noted “long Bitcoin, short the banks,” echoing the quote popularized by anti-establishment figure Anthony Pompliano, the founder of Morgan Creek Digital Assets and a diehard industry commentator/researcher.
The advisor’s followers, along with key members of the crypto community, quickly lauded Chirchirillo for his advocacy for cryptocurrencies. Pompliano sent the McAdam representative three ‘peeping’ emojis. Watch out. Others bashed BoA, especially for its enamorment with charging client exorbitant fees for negligible tasks. And of course, the obligatory Ripple fan commented that if Chirchirillo made those same BoA transactions with XRP, fees would have been well under even $0.05.
Interestingly, some took some time to rebut the narrative that Chirchirillo was pushing, noting that he broke a certain regulation by sending so many transactions. Yet, the bottom line seems to have been that the traditional financial system is restrictive, and not conducive to freedom.
Financial Advisors Bullish On Bitcoin
Chirchirillo’s pro-crypto comment comes just days after Bitwise Asset Management, in collaboration with ETF Trends, revealed that a majority of American financial advisors are bullish on Bitcoin. In a company press release, it was claimed that Bitwise, a San Francisco-based crypto investment services provider, polled 150 financial advisors, which included subsets of financial planners, broker-dealers, and plain, old advisors, in December.
Per the post-mortem, a mere 9% of those polled are actively managing a crypto position in their clients’ portfolios. Yet, in spite of the seeming lack of demand and/or belief in BTC, a number of those surveyed were bullish on the cryptocurrency. 22% of the 150 noted that they plan to either commence investing their clients’ capital into cryptocurrencies or to bolster their already-existing holdings.
This willingness to foray is likely due to these advisors’ belief that the value of Bitcoin will swell in the years to come. In fact, 55% of those surveyed that believed that BTC would appreciate in value in the next five years, with predictions averaging out to $17,570. Although this is still below Bitcoin’s all-time high, the fact that bonafide investment advisors, and a hefty number at that, believe that the cryptocurrency market will grow is reassuring.
Title Image Courtesy of Mac Blades on Unsplash