is Crypto backed lending dead?

is Crypto backed lending dead?

Long live crypto-backed lending

What is trust?

It is not a fickle being. And during times of turmoil in the market, everyone gets needy and extreme – people will do anything to make a bitcoin. This is why we need to cultivate trust in the bitcoin community and in the crypto community as a whole. It is something to be considered in all aspects of crypto. Trust is not only inherent in the crypto community, but in our political and economic community, as a whole, as well. Why doesn’t the United States want family in politics? Why doesn’t the U.S. have a one-party system like China? This is due to the need of decentralization and the need to distribute power to make correct decisions in everyone’s best interest. And this is due to human nature and the inherent nature of human equality. This is the solution that Valuete proposes and why Valuete is structured in this particular way. We adhere to the roots of decentralization and the roots that the United States political and economic system were built upon.

Fundamentals of bitcoin

Bitcoin relies on a trustless system. Trustless means that it is not needing to be able to rely one-hundred percent on any single entity but on the entity as a whole. It is also not needing to rely on any intermediary. For example, the loan protocols that have failed over the past couple of months are intermediaries in the loaning system. These loan protocols like Celsius, Blockfi, Babel and the latest one to halt deposits and withdrawals is Voyager are not small companies, they are worth hundreds of millions of dollars. So then, why did they fail? And why did hundreds of people lose money because of a single entity’s decision? This is because of lack of decentralization.

Political Centralization

Decentralization is what bitcoin was placed upon. It is the distribution of power throughout an entire system. A centralized system, in politics, is similar to a monarchy. This means that everyone is succumb to the will of the ruling party and this ruling party makes decisions for the entire populace. Something more decentralized and distributed would be a democracy. We have, of course, the executive branch, the judicial branch, and the legislative branch.

The executive branch executes the laws enacted by the legislative branch and the judicial branch reinforces these laws. The executive branch does not create, execute and reinforce the laws but there is a distribution of power and a sense of decentralization involved. This is how the current government of the United States is structured federally and locally, within each individual state. It is important because the general populace does not need to rely on a one-party system or the centralization of power in a single entity – such as the political party of China.

Economic Centralization

The economy of any given system is based on its political system and the political system is based on its economic system. Both are intertwined. This is why, in those countries with greater poverty and income inequality, we see a greater centralization of power. This is due to a need. Why is there so much income inequality and human inequality in our life? Because of a centralized economic system. The richest 1% own as much wealth as the bottom 50% of the entire world. This is because of large businesses and their influence over politics and the influence of money in our society.

Human nature is to care for oneself and one’s family. And, in a time when resources are scarce, and we live in an overpopulated regime, we are succumb to the decisions of those who have access to these resources and we are succumb to the decisions of the 1%. This is not fair because of the inherent nature of equality in all humans. We are all born equal. This is what the United States was based upon and goes back to its fundamentals.

It was based upon the need to get away from the English and the need to get away from a centralized monarchy that the British Monarchy was when it first began. This need led to the distribution of power and why it is written in the U.S. Constitution and the Bill of Rights. It is based on the inherent nature of humans all being equal, having the same rights, and having the same thought. The founders of the United States realized and knew that thus creating our current system.

Valuete’s Structural Solution

So, how do we fix our current centralized system? In comes bitcoin. This is what bitcoin is based upon and what blockchain technology is based upon. It is based upon a decentralized system and the distribution of money and power in our society. How do we get to becoming more decentralized and how do we come back to our fundamentals and adhere to what is right? By realizing that we need to take our trust a single system like the loan protocols that are currently in effect. Why trust these centralized companies when there is no need? We depend on these companies with our hard-earned money, but many people and even venture capital firms have lost millions depending on the sole decisions of centralized loan institutions like Celsius. In comes the solution that Valuete proposes.

This is why Valuete is different. It uses the division of power and allows the trust to be decentralized. This leads to a more trustless system, like what bitcoin was created for. We give the interested parties the choice to do with their money as they see fit. This comes in the form of a multi-signature intermediary wallet. The lender and the borrower both hold keys to this wallet so Valuete has no control over the deposits and withdrawals and the power is in the hands of the parties whose money it is. This creates a decentralized loan protocol and the decentralization of power to the entities that the money belongs to.

Valuete’s Technological Solution

But what about hacks? Aren’t centralized institutions more prone to them? Valuete has that covered too. Due to only one key being with Valuete, and two out of three keys being needed to unlock the wallet, Valuete is impervious to any 3rd party meddling. Also, with the key and funds being stored in cold storage, it is impossible to hack it and remove money from the wallet. This is a brilliant solution that Valuete proposes in its very essence.


We live in a centralized society that bitcoin and Valuete are trying to fix. We live in a society of political, economic, and technological centralization. This is why centralized loan protocols can make decisions for the borrowers and lenders on its system. And, furthermore, this is the system that Valuete aims to fix. We don’t want those headlines to exist anymore. Who wants to be succumb to the decisions of an entity making its decisions for itself? Nobody does. We want the freedom of choice.