If you are in the Crypto/Gold/Silver community you are well aware what the Fractional-Reserve banking system is. As a matter of fact, if you are in any of these alternative investments you may very well despise the current banking system (or at the very least distrust it.)

Before the Great Depression, there was a decade of boom known today as the Roaring 20's. If you have a well trained eye and the least bit of an imagination that loves to compare you can find many comparisons between the Roaring 20's and the recent economic bull run during the 2010's. Massive speculation in the stock market, the societal changes breaking away from traditional roles, and massive debt are just a few.

When the market started crashing in 1929, people moved quickly to sell their stocks. The ones who sold early were the lucky ones. This time in 2020, things are moving much slower due to government intervention. I still firmly believe that the collapse is still in its beginning stages. 

Once the market collapsed in 1929, people started the run on the banks! If you are unsure what a bank run is its when many account holders withdraw physical cash out of their bank account at the same time. The US Government, FDIC, and banks are in panic right now because this is still a very possible scenario. With many banks ensuring that your money is safer with them and banks across the USA putting withdraw limits and closing branch locations, they are trying to mitigate the threat. The FDIC even claims it has not lost 1 penny since its inception.. Truth is they have NEVER been put to the test. 

To stop the bank runs in 1929, the government ordered a bank holiday. Effectively, this ordered all banks be closed and not to do any business. In recent history Greece did a credit freeze and bank holiday. This Credit Freeze basically made all funds in your bank account unusable and you couldn't withdraw from ATMs. Credit freeze and bank holiday are the tools the government has at its disposal if worse comes to worse. 

With all that in mind you may believe bitcoin, gold, and silver to be the answers for these problem. In a way they are, but the underlying issue is you still need liquidity for these assets to keep up in price movement. Cash is liquidity and the next best thing to cash is Stable coins!

Now, many in the space are aware of what stable coins are. First that comes to mind is USDT. But the lack of transparency and the questionable practices of USDT do not make it a viable choice for this type of situation. There are, however, Many more trustable Stable coins in the market right now. The two most trustable ones are USDC and TUSD. With both of them in line with regulation and subject to transparent audits you can verify their funds from the comfort of your living room. 

With the banks scaring people with the threat of CV being able to live and transmit itself on cash, what better way to remove your cash from your account than a.... Digital Bank Run!

If you were to transfer your cash from your account to the blockchain, that is as good as having cash in your hand. Granted, you will need the private keys to an ETH address for both USDC and TUSD to truly have it as good as cash. 

In my next post, I will go step by step on how you can obtain USDC with No fees from exchanges!

Not Financial Advice, Just my own Opinion!