The banks behind me are in TROUBLE.

Boxmining

11.0K views 465 4 years ago

Description

Hong Kong is a key Asian financial hub. It is an Asian base for many global financial services and institutions. However, in recent years, people are starting to question these institutions- where the...

Hong Kong is a key Asian financial hub. It is an Asian base for many global financial services and institutions. However, in recent years, people are starting to question these institutions- where their interests really lie and their ability to keep with the times. Furthermore, a recent incident involving one of Hong Kong’s top conveyancing law firms resulted in their bank accounts being frozen, leaving over 10,000 clients at risk of default on home loans and breach of their sale and purchase agreements. (Full news: https://www.scmp.com/news/hong-kong/law-and-crime/article/3115304/10000-clients-affected-hong-kong-law-society-shuts) Due to all these circumstances, the new generation gravitates toward Decentralised Finance (DeFi) over Traditional Finance, which is more efficient, permissionless, secured, fast and borderless. In this episode, we will drill into how DeFi works and the potential of it replacing the banks. #TraditionalFinance #Cryptocurrency #DecentralisedFinance ●▬▬▬▬▬▬▬Recommendations▬▬▬▬▬▬▬● Recommendation List: https://www.cryptoatlas.io/Boxmining 🌼Buy & Sell Bitcoin: https://join.swissborg.com/r/michaeOQZM 🔎Crypto Prices: https://www.coingecko.com/ 🔒Hardware Wallet: http://boxmining.co/ledger 👍🏻Brave Browser: http://boxmining.co/brave 📲Binance Exchange : http://boxmining.co/binance ●▬▬▬▬▬▬▬▬▬▬Community▬▬▬▬▬▬▬▬▬● Boxmining Official Website: https://www.boxmining.com/ Telegram Announcements: https://t.me/boxminingChannel Facebook Community: https://www.facebook.com/groups/CryptoSpartans/ ●▬▬▬▬▬▬▬▬▬▬▬Social▬▬▬▬▬▬▬▬▬▬▬● Instagram: https://www.instagram.com/boxmining/ Twitter: https://twitter.com/boxmining Facebook: https://www.facebook.com/boxmining Steemit: https://steemit.com/@boxmining ●▬▬▬▬▬▬▬▬▬▬Disclaimer▬▬▬▬▬▬▬▬● I'm not a professional financial adviser and you should always do your own research. I may hold the cryptocurrencies talked about in the video.

AI Analysis

Alright guys, we're outside in Tsim Sha Tsui, Hong Kong, where the city's financial heart meets its cultural side, offering some amazing views. Hong Kong's economy heavily relies on finance, but it's becoming clear that the traditional system has some serious flaws, highlighted by a recent incident involving a local law firm. This situation perfectly illustrates why many are now turning to Decentralized Finance (DeFi) as a more efficient, secure, and permissionless alternative to the old ways.

Here's a breakdown of the issues with traditional finance and how DeFi is stepping up to solve them:

* Hong Kong: A Financial Hub with Old Habits
* Hong Kong is largely based on finance, with iconic skyscrapers like the IFC and Bank of China dominating the skyline. It’s cool to be there, especially now that it's less crowded than usual, making it a great time to film.
* Despite its modern appearance, the traditional financial operations in Hong Kong are very old-fashioned, requiring endless forms and administration to get anything done. I just feel like if I was working a desk job down there, I wouldn't be happy; salaries are limited, the economy isn't doing great, and there's a lot of corruption. I used to envy those bankers, but honestly, crypto is way better.

* The Law Firm Fiasco: A Case Study in Traditional Finance Failure
* A very large law firm in Hong Kong recently got into trouble for "funny accounting" and is now under investigation. This isn't just an isolated incident; it really shows how broken things are in the traditional world.
* As a result, their bank accounts were completely frozen, which is a huge problem because those accounts held funds from their clients. This meant around 10,000 people trying to buy homes are now in deep trouble. They had already applied for loans, sent their money to the lawyers for escrow, and now can't access it.
* People are losing their apartments for no good reason, commenting that there's "no protection to clients at all" in this system. One woman was in tears because $800,000, including her deposit and stamp duty, was frozen.
* It's kind of ironic because lawyers often mock how Ethereum works, calling smart contracts "neither smart nor legally binding." Yet, an Ethereum smart contract could have 100% solved this entire problem by setting up a secure escrow system. Projects like TrustSwap already exist to guarantee payment only when certain conditions are met. Turns out, sometimes even "legally binding contracts" in the old system just don't work.

* The Shift Towards Decentralized Finance (DeFi)
* The issues in traditional finance highlight the need for a change, and DeFi is that change. It's about taking all the functions of traditional finance and putting them on the blockchain.
* DeFi is incredibly efficient, faster, and allows for the movement of much larger sums of money. Crucially, it's trustless and permissionless, meaning you don't need to rely on intermediaries like banks or law firms, and you don't need permission to use it.
* A huge advantage of DeFi is its immunity to political movements and restrictions. Unlike traditional systems where politically sensitive money faces restrictions, crypto offers far more freedom.
* During "DeFi Summer" in 2020, it was insane to see how much could be built overnight and how much money flowed into the space. Millions were moved in hours for yield farming, and platforms like YFI had over $100 million in value locked, while Uniswap boasted $2 billion in liquidity pools.
* You just click a button on a blockchain, and it's done, which is a stark contrast to the endless forms of traditional finance.
* DeFi is already seeing platforms for insurance, exchanges, and lending being built, which is really exciting. I used to think the comparison of blockchain to the invention of the internet was an exaggeration, but seeing it from the financial world's perspective, it totally makes sense now.
* I'm just incredibly thankful to be in crypto, part of something that's growing so rapidly, rather than stuck in the old, broken systems. There's just so much promise here, and it's thrilling to imagine what we can build and what parts of the traditional financial system we can replace.

Transcript

Alright guys, so we're outside and I had a few requests to record more videos outside so you know here we are. So where are we? We're in Tsim Sha Tsui in Hong Kong. So this is on the harbor side and you get some of the most amazing views here. So over here you can see across the harbor you see that central side that's basically the financial hub of Hong Kong. And on this side it's kind of interesting on this side we have the cultural side so that's the cultural center over there and there's a m...

Alright guys, so we're outside and I had a few requests to record more videos outside so you know here we are. So where are we? We're in Tsim Sha Tsui in Hong Kong. So this is on the harbor side and you get some of the most amazing views here. So over here you can see across the harbor you see that central side that's basically the financial hub of Hong Kong. And on this side it's kind of interesting on this side we have the cultural side so that's the cultural center over there and there's a museum over there's an art gallery and stuff so it kind of this is one of the most scenic areas in Hong Kong. Definitely recommend you guys visit it if you ever come here. And it's actually quite a cool time right now because as you can see behind me there's barely anyone. You know normally this will be flocked full of tourists but you know nowadays with the that virus that you know the annoying virus and all there's barely anything anyone here anymore. So it's pretty much a great time to be in Hong Kong and it's a great time to talk about Hong Kong too because kind of something that's very interesting about Hong Kong. I mean if you just saw see all the skyscrapers behind me is that Hong Kong's economy is very largely based on finance. And one interesting story that happened quite recently is a very embarrassing situation with a certain law firm and it relates to crypto because this problem could 100% be solved by an Ethereum smart contract. But as it turns out the traditional financial sector and also the way it works with lawyers it's created a big problem for around 10,000 people in Hong Kong trying to buy homes. And so what is the story and what is it blowing up? Why is it like Hong Kong freaking out about the story right now? So in Hong Kong the way it currently works right now is that if you want to buy a home you want to buy a property well you got to prove that you have funds and you got to send those funds normally to a lawyer first right. So the lawyer handling the case handling the property case well they will hold the funds in escrow for you. Usually that's an entire sum so usually what happens is you go to the bank you apply for your loan you send that to your lawyers and you you know you pray to god you know hopefully these lawyers they'll do the job properly. But recently what happened was that a very very big law firm here in Hong Kong they were discovered to have some funny accounting. I mean this always happens and this is something that's you know prior to crypto I didn't realize everything here like everything in this world is very broken right. So anyway so this law firm is now under investigation and unfortunately that also means that they their bank accounts are completely frozen. So because of that because they have their bank accounts are a mixture of funds it also led to the freezing of money from their clients. So now a lot of people are in a big trouble kind of like they were about to buy a house they already applied for the loan they got the money they sent to their lawyers and the lawyer said oh sorry uh yeah we're under investigation right now we we just have your money but we can't we'll draw it. So here we really have potential property buyers saying I've lost an apartment for no particular reason I saw a comment here that says in the future will people dare buy a flat through a law firm there's no protection to clients at all. We also have the usual dramatizing that says from Miss Chan who says she's in tears after eight hundred thousand dollars has been frozen including the deposit and her stamp duty. And it's kind of funny right because typically speaking these systems kind of work and a lot of lawyers you know typically they make fun of how Ethereum works because Ethereum you can technically write a smart contract that does it does exactly this right you can write an escrow contract I mean we've seen projects like trust swap where you can basically guarantee that if x is delivered you get the payment right this is actually very very easy to do on Ethereum but a lot of lawyers in the past they made fun of um Ethereum they're like oh these smart contracts are neither smart nor are they legally binding contracts but the funny thing here is that sometimes even legally binding contracts don't work so in this case right with these millions of dollars for each individual being escrowed by this law firm you know all those contracts are now broken because this law firm has their bank account suspended so anyway so that's a kind of a ridiculous story but I found it's kind of uh funny so I kind of feel it's always very funny like um also just to look at Hong Kong and see where we're at so you know Hong Kong has been very traditional you know those banks over there I mean if you actually just look to it let me just show you guys a little bit more close up to what's what's across over there so we got the big big building with a very tall one all right that looks like a razor so like a shaving razor that is the IFC the International Finance Center then we got this one in the middle of the screen here that building with the little crosses on it that's Bank of China then we have a lot of banks in the middle pretty much standard charter you can see that logo there HSBC I mean if you think about it the H in HSBC stands for Hong Kong right so a huge financial capital here um what am I talking about this well I kind of feel like it's funny to talk about and be here because you know we're so involved in decentralized finance right and the thing about decentralized finance is that yes um it's very new it's crazy but at the same time the amount of stuff that's being built here is absolutely insane so I feel like something that's happening now is we're kind of seeing that shift right like we basically are taking whatever they're doing over there and bring that onto the blockchain and it's more efficient it's faster you can move larger sums of money around it's trustless it's permissionless and it's immune to pretty much all the political movements around which is great right because you know back there with that system right now there's a lot of controversy over money that's being used for political reasons and there's a lot of restrictions that are just surfacing up on politically sensitive money right that's the easiest why I'm going to phrase it but read between the lines here so yeah it's kind of insane that crypto you have way more freedom on this too and something that you know we notice with DeFi is that when DeFi kind of reared its head um in 2020 so I was there for the whole of DeFi summer it's crazy how much um can be built overnight and how much money was placed in there right if you look at the whole yield farming stuff I mean millions were moved in hours right and to start to start farming and then the value locked I mean YFee's value locked is over 100 million right and then you got Uniswap which got two billion dollars of liquidity pools there it's insane so I feel like there's so much promise here I feel like um it's a little bit sad seeing you know Hong Kong relying so much on finance but at the same time it's kind of exciting to see what can be built in this space and what we can replace in the financial system so you know at the start of this I really didn't understand you know the value of everything here I mean a lot of people you know they saw and they gave the analogy that you know a blockchain is like the invention of the internet and I'm like wow you're just like exaggerating a little bit aren't you uh that's a little bit pushing it but it does make sense I mean if you think about it from the financial world's perspective you know Hong Kong it looks very new the buildings very look very old but the way they operate in Hong Kong is very very old-fashioned right you know because they've been running this for a long time like if you ever need to do anything Hong Kong like it's it's all administration filling out forms after forms after forms to make sure that the system works but when it's on a blockchain you just like click a button and it's done right and you can see insurance being built up you can see exchanges being built up you can see lending platforms being built up yeah it's I think it's actually a really cool time to be around I definitely uh I think like it's it's times like this when I make these videos I'm very thankful to be in crypto to be something that's growing like this rather than to have something like if I was like working down there right if I was working in central you know working at a desk job I don't think I'll be happy like I think you know you'll you'll see that you know your salary is limited you see that economy is not doing very well um there's just so much corruption going on yeah I'm just glad to be here so yeah that's my thoughts here like every time I kind of every every time I come here I always just wonder and just stare and just say look you know I'm glad because there was a time when I would really kind of envy the bankers back there you know like I would be I would think okay you know you know I want to be a VP of you know x bank or something like that and you know make tons of money but you know crypto is way better than that so anyways I hope you guys enjoyed this little scene outside hope the audio and the video works pretty well I'm trying a lot of new stuff here but yeah hopefully it works and I hope you guys like this segment and if you do make sure to smash the thumbs up and with that see you guys in the next video