No Banks

Monday, January 13, 2025

Today, as expected, Carole and I closed escrow on the sale of our personal residence. While staying at my grandmother’s house, we received word from our broker that the escrow company had wired approximately $1.3 million into our bank. Our plan all along was to reinvest these funds—$800,000 into our brokerage account for stocks and $400,000 into Coinbase for Bitcoin. At one point during the day, Bitcoin dropped to $89,000. I hoped to seize the opportunity by buying four Bitcoins at the lower price, advancing our goal of acquiring a total of 25 Bitcoins before the end of 2025.

Within hours, however, the bank blocked my outgoing wire transfers. I visited the branch to resolve the situation, providing all requested verification details. Despite the banker’s assurances that everything was in order, the fraud department repeatedly rejected my transfers. After wasting more than three hours in back-and-forth phone calls and verification steps, I returned home only to find more automated emails telling me that all wires had failed again.

Needing to act quickly, I resorted to purchasing Bitcoin via my Coinbase mobile app. It limited my transfers to no more than $100,000 every 24 hours. I managed to buy one Bitcoin at $94,587—missing the lower price I had hoped to lock in. 

Banking delays cost time and opportunities.

This experience reminded me of my days in prison, where I learned to navigate large bureaucracies that are often slow to adapt. I remember reading the works of sociologist Max Weber, who emphasized how bureaucracies, originally designed for efficiency, could become rigid and self-serving. Policies and procedures take precedence over the core mission, leaving customers stuck in endless red tape.

As we move into a more digital era, banks cling to outdated processes, jeopardizing their relevance. Crypto platforms and digital investment services offer near-instant transactions and lower fees. They don’t require standing in line, or making a dozen phone calls to “verify” information. Rather than continue battling these inefficiencies, I minimize my use of traditional banks—never keeping more than 5% of my equity in fiat accounts. 

Fortunately, the lessons I learned in prison helped me cope with these frustrations. As many mentors taught me, we must live in the world as it exists, even as we strategize for something better.


Self-Directed Learning Question

  • What steps can you take to reduce dependence on outdated systems, and how might embracing innovative technologies or strategies open more opportunities for you to reach your highest potential?