Bitcoin Forum

Though there are many problems of monitoring on Bitcoin, the root is to remove the centralized banks as entity. It is used widely as investment tool, or sometimes to hide the money of tax auditors, however, Bitcoin proclaim that its intention is to kick out the financial institution, and to purchase a car with a pocket cash to remove it. It deserves to remind that a simple electronic cash point to point edition will allow to pay online or send from one party to another directly without financial institution in these periods.
In historical period, financial institution has proved to not deserve to own any part of these kinds of transaction. They have destroyed many areas of economy and create unsustainable interest rate and made millions of sincere workers go bankrupt. The interest on replacement on financing is at its highest, and Bitcoin came out.
No matter if Bitcoin is the most important encryption currency, only time can tell. Whether things like Ripple will be accepted by more organizations does not matter, they aim to centralize valuable transaction further and create more widely breakdown point by this.

Yes.  Time to take medication.

Ripple is showing legacy banking how to survive in case the crypto movement gains popularity. The fact that Ripple is so openly welcomed here shows that all are in for the money only.

Bitcoin does not make banks unnecessary.

Bitcoin cannot provide loans.
Bitcoin cannot provide investments.
Bitcoin cannot provide estate security.

Bitcoin has it's place as an option to the intelligent investor.  But it will never replace a bank.

Don't speak so soon. There some newer cryptos out there which can do all those you mentioned. Perhaps a discussion for a different board.

Agree with all of this.
To be honest though I don't care if banks still run as long as bitcoin grows & we gain absolute mass mainstream adoption & it makes me a shit load of money.
Anybody else who is along for the ride, cool.

It's true that only time can tall what Bitcoin will be in the future. But, however we need to do something so the time will tell better future of Bitcoin ;)

We can Replace the loans model if the same efforts of decentralized due diligence and p2peer crowdfunding and an Equally held level of accountability for diligence with guaranteed minimum collateral and a convertible opt-out option - B-corps utilizing sidechains to allow users to work together can be possible.


Holding BTC is an investment - using and participating in the economies around cryptocurrency in and of themselves are investing in BTC and related technology


I would have to argue that 'neither do banks' have the power to protect your estate security any more than BTC would if properly secured - although the more I think about it, you're probably more correct - for now because it is much easier to secure regular funds as an average user than it is as a complex user who has things well figured out and trained.  (make a certain type of special decryption that requires humans as well as proof of death as well as proof of progeny and Bitcoin will supercede bank regulations involving beneficiaries)

that's the kinda of ideology that causes these things to stay in cycles rather than be used to create new systems

https://btcjam.com/
https://bitlendingclub.com/
https://www.bitbond.com/
https://btclend.org/

https://cryptostocks.com/
http://mpex.co/
http://www.bitpools.com


http://mashable.com/2010/10/11/social-media-after-death/
http://www.coindesk.com/how-block-chain-technology-is-working-to-transform-intellectual-property/

The money in banks is regulated while bitcoins are not and will probably never be regulated as the identity of a person is anonymous. It's more black money than white. The investment schemes of banks are much more reliable than bitcoins.

The above quoted websites may be genuine but it's true if any of those websites shut down overnight, the investors may not get their money back unlike the case with banks where you can claim at least the principle amount.

Fiat money is the same. The beauty of fiat money is behind whole escosystem including gov, financial institutions, banks, and merchants' support etc. Probably btcoin needs those kind of support as well to increase its adoption rate. But banks still pay an important role between fiat money and bitcoin. Ppl use banks' deposit to buy bitcoin, and vice versa.

/thread

some are unknown to me good catch

This is totally wrong. Everyone can provide a loan with bitcoin and there are already alot of sites that lend people through bitcoin like btcjam.com. Bitcoin will never replace it but it doesnt mean that bitcoin cant stay side by side with it.

that is the final goal, i think we are not really there yet, but in the end bitcoin should at least be on pair with fiat

and for someone bitcoin already did that apaprently, like for Elwar(read his thread)

I don't think bitcoin will remove the centralized banks and there will always be a need for them and their various services, but what bitcoin shows is its a viable and workable alternative. Bitcoin and the blockchain will undeniably influence society eventually but I don't think it will overthrow or drastically alter the banking system anytime soon.

I don't think it will happen in the near future. Banks are pivotal in our existing financial system. Fiat money can't live without the bank. No matter what happened, govs will support them. Banks will serve us as long as fiat money is circulating around us.

Banks are need for saving and borrowing. They are not needed for p2p money transfer. If we want instant transactions like what we have today when using a card, then a centralized entity like Visa or Master is required.

Unless bitcoin goes mainstream we still need banks to process all the fiat transactions, provide loans and stuff. And the whole thing actually revolves around debt and these are what keeps banks alive. Until then there is no harm if btc exist alongside fiat.

yeah, bitcoin will never replace bank, it is impossible, I just see bitcoin is good for international transfer, only international transfer is better than banks' transfer, much faster and anonymous. But the price is volatile, when btc is not volatile, btc may be used as a currency, or alternative, but never the alternatives of banks.

Bitcoin does make banks unnecessary.

Bitcoin users can provide loans. -> BTCjam for example
Bitcoin can provide investments. -> Colored coins
Bitcoin can provide estate security. -> same as above

 :)

Im all for being my own bank, I love the idea of being responsible and having my stuff distributed and secured in any way you like, but everyone is like this. A lot of people find comfort in not being in constant responsibility of all of your wealth which is understandable. Thats why stuff like Xapo is being created and if the don't fuck up it might be a success.

Bitcoin makes banks unnecessary?
We will still "need" someone to bribe political leaders, finance both sides of many wars, and promote chaos throughout the 'civilized' world.

I think people get the two types of banks mixed up. There's the central banks that issue the money and then the regular banks that give ordinary people loans and hold their savings etc. It could in theory get rid of the central banks because we don't need them to issue our money any more and others could be prohibited from creating it out of thin air themselves though loans etc. If they haven't got the cash or coins to make a loan then they can't load any money because if it's not on the blockchain then they don't own it.

Maybe not in its current form, however I believe this tech can evolve to support just that, using smart contracts and a decentralized model.

Yup, some people will not like being responsible. It's too stressful to keep track of all your wealth, do a lot of backups, and hope your house doesn't burn or you don't get stolen. Thats why some people like banks and trust them more than what they trust themselves.

Storing money in bank serve a purpose in society. Using the money to finance "productive" economic expansion being one. Mitigating the risk of having the money stolen or burn in your own house being another.

This is one of the main reason that banks are militant or unaccepting of BTC.
I know I've had atleast 1 bank account closed due to BTC use.
Had some asshole charge me back $400 interac e-transfer and had to spill the beans that I had been trading BTC with him..
Now my SIN and email are banned from the interac e-transfer system and I have to find other means to buy/sell BTC..

Absolutly sucks ass.

Lets say all ~21million the BTC have been mined by Bob.

Alice wants to purchase a house for 21million BTC.

Bob lends the 21million BTC at 5% PA for 25years.

How is the interest paid?

Price is a function of supply and demand. If there is only 21M btc in circulation, a house can't worth 21M BTC.

Bitcoin may change the bank, but hardly make the bank disappear.
There are still a lot of thing bitcoin can't do and bank can do, such as loan.

Hi everyone, new to bitcoin just going through the forums.

In the beginning they created banks to keep money and valuebles safe... Then they saw the opportunity to loan people money, from the money stored by other people, and they charged them interest for doing that. {It's not their money.. they doing it with your money} Then the "stored" money was not enough to cover the need, so the reserve banks started to print "Monopoly Money" ... and everything went south from there...

So will BTC take the same route? { 3rd parties like BTCJam take investment BTC to borrow to people, and when the investment capital runs out, they cook the books and they start to borrow BTC that does not exist }

In the end, we have the same problem we have with the banks. {Money being borrowed, that are only on fake 3rd party ledgers}

I am not sure that is what happens.
You see with banks, when you get a loan, wehether in cash or cheque, that money will end up back in the bank.
That is why they can exploit it.

With BTC, you cannot do that.
You cannot miraculously make Bitcoin appear in your bank.
You either got it to lend it out, or not.
 

this is a unrealistic scenario, it's like saying if someone hold all fiat currencies he can't pay the interest anymore, as long as there is no printing, so i think you are insinuating that because the supply of bitcoin is limited there can't be loan if such unrealistic situation appear? it does not work in that way....

I think what he is saying is, they do it off-chain. They keep a seperate ledger for Bitcoins that are not reflected on the blockchain.
It's like a company with two invoice books, one for the auditors and one that are not being audited.
In a way some exchanges followed the same principles.