If you don’t already resent our current financial system, you should.
It siphons off trillions of dollars in fees, commissions, interest charges, and other frictional costs… for simply facilitating transactions between people like you and me.
Consider your checking account. It contains your money. All the bank does is keep track of the amounts coming and going. In the process, it skims a bit off the top here and there.
In the case of an overdraft or some other infraction, it takes even more.
Your savings account is even worse. The bank essentially holds a big pile of money.
It loans much of that money out to other people. Then it pays you a tiny fraction of the interest it collects while keeping most of the proceeds for itself.
I could keep going down the line for all the various financial products – mortgages, brokerages, insurance, credit cards, and on and on.
These companies have been generating absolute fortunes for centuries, mostly at the expense of their customers.
Fortunately, technology is finally tearing down the lopsided financial system once and for all.
In the process, it’s going to create an entirely new model – one that’s far more efficient, transparent, and fair.
If you understand what’s about to happen, you stand to make an absolute fortune from a handful of investments involved in this once-in-a-millennia transition.
Consider it sweet revenge… money you deserve after decades of getting pillaged by the current system.
But before I get into the details, let me give you a brief history lesson. It’ll show you why this enormous sea change can finally happen.
A Simple Equation Created Our Rigged Financial System
We can trace the origins of our modern financial system back to medieval and Renaissance Italy.
During the 1300s, banking families like the Bardis and Peruzzis quickly established vast amounts of wealth in Florence.
Of course, Medici is the name most people recognize immediately – both because of the family’s financial innovations as well as its cultural significance in other areas like religion, politics, and art.
From its founding in 1397, Giovanni de’ Medici’s Bank quickly grew to prominence as one of the largest financial institutions in the world.
And at the heart of that growth was a relatively simple “code” employed by Giovanni’s son Cosimo that still underpins much of the financial system to this day.
It’s called double-entry bookkeeping. While it was probably invented just before the Medici Bank was founded, Cosimo made it an integral part of the family business.
Here’s the equation: Assets = liabilities + equity.
This system of accounting allowed the Medici Bank to keep better track of its business dealings… to avoid errors… boost reliability… and attract larger and larger amounts of capital.
In a word, they built trust.
And a century after its founding, the Medici Bank had locations all the way to London. You might say the Medici Bank became the first global financial company.
Financial institutions mostly operate on that same model to this day.
They are the centralized depositories of information – who has what and where it’s going – allowing them to control the entire system and to siphon off massive amounts of money in the process.
And until very recently, there was no way to improve or circumvent that process…
Flipping the Medici Code
The modern banking system is built on that Medici innovation – a comprehensive ledger system that accurately tracks value as it moves around the world.
But blockchain technology takes the same idea and improves it.
Longtime readers know blockchain is Daily editor Teeka Tiwari’s No. 1 investment idea of the decade. (For a full recap of why, click here.)
At its core, blockchain is just a very secure way to store information.
But what sets it apart is that blockchain technology doesn’t need a centralized information keeper… It’s specifically designed to operate without one.
Blockchain networks can store data and verify it publicly. These networks are a permanent record of all transactions as they take place. And yet, it’s still possible to anonymize the information in ways that prevent fraud or other security breaches.
It’s the Medici system without the need for the Medicis…
And it’s powering a trend called decentralized finance (or “DeFi” for short) that we believe will completely disrupt the traditional financial sector.
You see, finance companies are the ultimate middlemen.
They borrow money cheaply from one set of investors and lend it to another at a fat profit…
Or they buy stock from one group of investors, then immediately sell it to another for the difference between the buy and sell prices.
It’s estimated the finance sector extracts over $9.28 trillion annually from the global economy. That’s more money than the utilities, communication services, and real estate sectors combined.
But DeFi replaces a high-cost middleman with a low-cost one.
It uses blockchain technology to prevent manipulation without relying on third parties.
Eventually, it’ll make banking, borrowing, lending, and investing more accessible and cheaper for billions of people.
That’s because blockchain apps – called decentralized apps or dApps – use cutting-edge technology like cryptography to prevent third-party tampering without relying on a middleman.
They allow users to trade billions of dollars in assets… and all without any human intervention.
There are dApps for banking services, gaming, stock prices, weather, and sports scores. But the difference is dApps are run on blockchains instead of over the internet.
These projects are springing up overnight and threaten to upend the business models of just about every traditional financial firm in the world.
And it’s my belief that eventually stocks, bonds, titles of ownership, music rights – everything of value – will have its ownership rights secured by a blockchain.
You’ll be able to exchange that value with a click of a mouse – just like when you send an email. Best of all, there won’t be any middleman standing in your way or taking a cut.
Teeka expects DeFi to evolve into a multitrillion-dollar financial system run for the people… by the people… and one that’s truly global and operates with complete transparency.
Undoing 500 Years of History
DeFi and dApps are already on their way to upending traditional finance while also creating life-changing opportunities for early investors…
So, if you want to learn more about this massive trend, you need to check out Teeka’s recent presentation.
In it, he explains how a long-term $30 trillion blockchain revolution is just getting started…
And Teeka believes it’ll be like buying Microsoft in the ‘80s… Amazon in the ‘90s… and bitcoin in 2010.
Any one of these could have made you a millionaire many times over, starting with very little… And that’s why he recently shared the details of his No. 1 investment in an exclusive interview. Click here to watch.
For five centuries, the global financial system has been in the hands of the elites – from the Medicis to the Morgans. And all their power came from centralized information and a few simple lines of “code.”
Now, the blockchain is poised to reverse the entire process – distributing the information and power equally all around the world. And as it plays out, we will all benefit from a faster, fairer, less fee-driven system.
While the transition is still in its infancy, progress is happening rapidly. So it’s critical that you get involved right now.
After all, the DeFi trend is undoing 500 years of history by removing middlemen from the equation.
That’s why we believe blockchain technology is the No. 1 investment of the decade. And it’s why you don’t want to miss out on this trend.
Analyst, Palm Beach Daily