NewsBTC
No Result
View All Result
  • Cryptocurrency News
    • Bitcoin News (BTC)
    • Ethereum News (ETH)
    • Ripple News (XRP)
    • Shiba Inu News (SHIB)
    • Cardano News (ADA)
    • Dogecoin News (DOGE)
    • Solana News (SOL)
    • Litecoin News (LTC)
    • Avalanche News (AVAX)
    • Polygon News (MATIC)
  • Crypto Prices
    • Binance Coin (BNB) Price
    • Bitcoin (BTC) Price
    • Cardano (ADA) Price
    • Chainlink (LINK) Price
    • Dogecoin (DOGE) Price
    • Ethereum (ETH) Price
    • Litecoin (LTC) Price
    • Polkadot (DOT) Price
  • Crypto Resources & Directory
  • All Crypto
  • Play GamesTry
  • CasinosTry
Breaking News: Bitcoin Price Slips Below $108,000: Peter Schiff Anticipates ‘Brutal’ Bear Market, CZ Responds
  • Cryptocurrency News
    • Bitcoin News (BTC)
    • Ethereum News (ETH)
    • Ripple News (XRP)
    • Shiba Inu News (SHIB)
    • Cardano News (ADA)
    • Dogecoin News (DOGE)
    • Solana News (SOL)
    • Litecoin News (LTC)
    • Avalanche News (AVAX)
    • Polygon News (MATIC)
  • Crypto Prices
    • Binance Coin (BNB) Price
    • Bitcoin (BTC) Price
    • Cardano (ADA) Price
    • Chainlink (LINK) Price
    • Dogecoin (DOGE) Price
    • Ethereum (ETH) Price
    • Litecoin (LTC) Price
    • Polkadot (DOT) Price
  • Crypto Resources & Directory
  • All Crypto
  • Play GamesTry
  • CasinosTry
Bitcoin News
No Result
View All Result
Breaking News: Bitcoin Price Slips Below $108,000: Peter Schiff Anticipates ‘Brutal’ Bear Market, CZ Responds

J.Christopher Flowers Says Majority of Bitcoin Startups Will Fail

Gautham
Gautham
5 years ago
2 mins read
j christopher flowers

Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality
Created by industry experts and meticulously reviewed
The highest standards in reporting and publishing
How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

The bitcoin community is hopeful for the digital currency to become the currency of choice across the world in the near future. However, it may not happen anytime soon. To start with, bitcoin has a long way to go both in terms of its adoption or the technical development. Even if it looks a bit farfetched, it will eventually get there.

An old school financial services investor, J. Christopher Flowers has a different take on it. According to him, the fintech revolution what we are seeing around us in the recent days is going to end badly for most startups. While speaking at the Super Return private equity conference held in Berlin, he mentioned that most of the alternative financial services startups are leveraging upon the power of bitcoin to offer their services to those who are not catered by the mainstream banking sector. This may lead to poor lending decisions which may lead to huge losses in the long run due to defaults.

While J. Christopher Flowers puts a lot of trust in the established conventional banking system, he seems to have omitted the fact that banks feel threatened by the growth of bitcoin industry. The banking industry is trying to counter the growth of bitcoin sector by incorporating the very technology used by bitcoin into their operations. Also, the banking sector is not a perfect model. It was proven in the last decade during the recession. Big banks, considered too big to fail either closed their doors or received bailout packages from the Federal Reserve.

In addition, J. Cristopher Flowers also stated that some of these fintech startups are going to be very successful while the rest will fail. He fails to mention anything new that is not already known. There are enough data already available which states that the failure rate is very high in the startup ecosystem. Only about 10 percent of the startups survive out of which 10 percent will be very successful. So, going by the statistics, there is a huge probability of a significant number of fintech startups to fail while a handful of them become highly successful. Referring to the recession, the banking sector has learnt from its mistakes and they are now being careful about the debt they accumulate.

Without a proper process to filter out bad debts, the bitcoin-based new age fintech startups will end up increasing bad loans. The weakening of Chinese yuan and uncertainty associated with the euro can potentially turn the whole scenario into something even worse.

The takeaway of his speech being, bitcoin-based fintech startups have to be more careful about lending and have a proper due diligence in place to minimize risks. Unthinking rapid expansion of such services may otherwise backfire causing huge losses. If bitcoin-based startups offering financial services has to make good on their promise and still make profits, they have to take some of J. Christopher Flowers’ points into consideration and take calculated risks.

Earlier last month, personal financial advisor Tony Robbins in his blog mentioned how bitcoin can be the answer to the financial liberation of mankind in today’s fiat dominated the global economy.

READ MORE: Tony Robbins: Governments Can’t Control Bitcoin

Ref: WSJ | Img: New York Times
Tweet123Share196ShareSend
Gautham
Gautham

Gautham

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

Related News

Crypto news

Crypto Bulls Beware: Friday Could Be Crucial — Here’s Why

A rare confluence of macro catalysts will put risk assets—and by extension crypto—on edge this Friday. The US Bureau of...

Jake Simmons 1 hour ago
Bitcoin

Bitcoin koers breekt Nasdaq correlatie – BTC koers verwachting Q4 2025

De bitcoin koers heeft een historisch moment bereikt. Voor het eerst in bijna drie jaar is de correlatie met de...

Lars Diederiksen 1 hour ago

La corsa rialzista di Dogecoin è finita? Una analista vede echi del 2021

Secondo Cantonese Cat, Dogecoin resta strutturalmente pronta per un’impennata di fine ciclo, in linea con gli schemi dei precedenti bull...

Orfeo Barone 2 hours ago
Load More

Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality
Created by industry experts and meticulously reviewed
The highest standards in reporting and publishing
How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

Related News

Vitalik Buterin décrypte gkr : ce que le nouveau protocole change pour Ethereum

evanss 32 minutes ago
Bitcoin : 3 facteurs annoncent un bull run vers 130 000 $ — repères techniques et macro

Bitcoin : 3 facteurs annoncent un bull run vers 130 000 $

evanss 1 hour ago

Bitcoin Hyper Best Crypto to Buy Now as Short Squeeze Brewing and U.S. Inflation Data Looms

Aaron Walker 1 hour ago

Premium Sponsors

Press Releases

  • 仮想通貨おすすめ:政府閉鎖で注目高まるCPI発表と次回利下げを巡るFRBの動き

    ...

    2 hours ago
  • ドージコイン 今後の価格予測:0.86ドル到達の可能性、次世代ミームトークンが10倍成長か

    ドージコイン...

    3 hours ago
  • リップル 今後 に注目:オプション市場の強気転換が示すBTC・ETHからXRP・SOLへの資金移動

    リップル 今後...

    3 hours ago
  • 新しい仮想通貨が急上昇:レイヤー2プレセールで2,500万ドル目前

    ...

    3 hours ago
  • コインベース市場回復前に注目すべき仮想通貨プレセール銘柄

    ...

    3 hours ago

Newsletter

About Us

NewsBTC is a cryptocurrency news service that covers bitcoin news today, technical analysis & forecasts for bitcoin price and other altcoins. Here at NewsBTC, we are dedicated to enlightening everyone about bitcoin and other cryptocurrencies.

We cover BTC news related to bitcoin exchanges, bitcoin mining and price forecasts for various cryptocurrencies.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

Company

  • About Us
  • Advertising
  • Contact Us
  • Privacy Center

Social

© 2025 NewsBTC. All Rights Reserved.

  • Cryptocurrency News
    • Bitcoin News (BTC)
    • Ethereum News (ETH)
    • Ripple News (XRP)
    • Shiba Inu News (SHIB)
    • Cardano News (ADA)
    • Dogecoin News (DOGE)
    • Solana News (SOL)
    • Litecoin News (LTC)
    • Avalanche News (AVAX)
    • Polygon News (MATIC)
  • Crypto Prices
    • Binance Coin (BNB) Price
    • Bitcoin (BTC) Price
    • Cardano (ADA) Price
    • Chainlink (LINK) Price
    • Dogecoin (DOGE) Price
    • Ethereum (ETH) Price
    • Litecoin (LTC) Price
    • Polkadot (DOT) Price
  • Crypto Resources & Directory
  • All Crypto
  • Play Games
  • Casinos
Advertise

© 2025 NewsBTC. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.