Bitcoin Forum

I recently saw someone advising services like these to newbies who asked "where to invest" and I just wanted to know what are your views on such services which are now advertising themselves as Bitcoin Banks and offering interest to people to keep their coins with them?

I have yet to see anything like a real bank for bitcoin that's legitimate.  There was Bitcoin Savings and Trust (remember that?), but that's the only one I recall that was trying to do what big banks do, and it obviously turned out to be a scam and a half.  There may be advertisements and such on the Ponzi section of this forum but I don't know of any real opportunities and I'm not even sure if anything like that is going to or even can happen.  As it stands, btc's market cap is <10 billion and that's not a lot.

That's a good question. Judging by history and by history repeating itself over and over, there is no way I can Trust an exchange or any bitcoin financial service. I simply have to learn to live with that and be prepared for their wrong doings

The whole point of Bitcoin in my opinion is to get rid of the old model and replacing it with something better... if we apply the same old fiat model to Bitcoin, we will repeat the

same old mistakes made before. I will not trust any centralized institution with my money again, after what I have seen happening in Greece. You earn interest on your Bitcoin

investment by buying low and hoarding and selling high or spending it when the price is higher.  ::) ....We have seen what happens with companies who "keep" your coins.

if businesses are calling themselves "banks" they they need special BANKING licences.. this is over and above just money service business licences and normal financial regulations.. being a bank is the hardest thing anyone can ever legally attain... and requires a few billion dollars input to get a BANKING licence.

so anyone claiming to be a bank is a fraud..
try searching out their regulatory status
try searching out their background

investigate them and you will see they have holes

Well it was advised here (https://bitcointalk.org/index.php?topic=1322941.0) first but is removed probably due to referral links and now is here  (https://bitcointalk.org/index.php?topic=1324113.msg13522747#msg13522747) Archive! (https://archive.is/mpDpV)

And I don't know much about the site so I googled and turns out it was advertised right here on the forum (https://bitcointalk.org/index.php?topic=1092181.0;all) Archive! (https://archive.is/WDPcW), so just wondering how safe it is, maybe I should put some money into it myself?


Well, not exactly as banks but as "first savings account for Bitcoin (https://bitcointalk.org/index.php?topic=1092181.0;all)"

magnr is a scam and they fled already
bitbond and btcjam are slowly failing too

your best bet is just to hoard the bitcoins on your own private keys and wait for the deflationary nature of bitcoin to make the fiat value of them increase.

I thought they were unsafe too (https://bitcointalk.org/index.php?topic=1322941.msg13528380#msg13528380), maybe they shouldn't be advised as safe investment then. Especially not to newbies who are just entering into the Bitcoin world and are not aware of things are not what they seem.

LOL! Where to invest? It seems the tale of Pinocchio  :o :o

well there were a few total scams that actally used the term 'bank'
but thats another story best left in the past, and am glad some of those died already

now as for 'magnr', they are a scam and they fled already
bitbond and btcjam are slowly failing too

your best bet is just to hoard the bitcoins on your own private keys and wait for the deflationary nature of bitcoin to make the fiat value of them increase.

asking any stranger you have not met to play the markets for profits on your behalf.. even if they genuinely do play markets instead of running.. does not guarantee profits.
and if they do run.. good luck finding them to slap them with a wet fish (court order).

these parasites never ask for large amounts of $5k plus in bitcoin. they prefer the noobs who throw less than $500 of bitcoin. because they know when the scammer runs its not financially viable for the victim to raise thousands of dollars to take them to court just for a sub $500 loss..

so again dont trust people promising guaranteed profits
dont trust people who are not licenced but pretend to be financial businesses
dont trust people unless you KYC (Know Your CORPORATION) (yes i know C=customer.. but it works both ways)

you can say that coinbase is bitcoin bank and it is very safe, since they offer insurance and they are auto-regulated

xapo also offer insurance, any other is not safe enough

why don't they just keep it on their wallets after all, bitcoin's value will eventually go up. so theres no need for interest as they'd grow on their own.
bitcoin bank is probably just somehow like exchange sites that suddenly scam users by not alllowing them to withdraw.
If you'll be once again lured to this stuff, you're fooled twice.

The only legit ways I know to earn profit (non-fixed) on your BTC deposit are: investing in bankroll of dice sites (there are 3 that I personally find trusted to some degree) or provide auto-renewing loans for margin-traders (Poloniex allows this), but due to free market the interest is very low.

Since bitcoin is highly volatile, do you really need any banks for this?

I don't think so. Nowadays the so-called banks are easily robbing your money out of the thin air. (think about their high fees then you will understand what I am talking about)

Just follow this universal principle : Hold your coins in your wallet and sell them when the price reaches its peak.

So very true. Respect for you sir.


Yes but afaik they are not asking people to keep their coins with them by offering them interest. Or are they?

I do consider coinbase safe for buying/selling bitcoins but do they offer insurance for if there is loss of coins kept in their custody? Because banks do that.

Don't go near any service that calls itself a bitcoin bank. They are not regulated and go against almost everything that bitcoin stands for.

The nice thing about bitcoin is that we are not dependent on banks anymore if we don't want to. You are better of earning interest in other ways.

As safe as regular banks, you are just trusting them that they will not fuck up, which all eventually do, so I would keep my coins myself which is one of the main points of Bitcoin to begin with.

should you trust banks..

well CNN just said this warning for the actual regulated and licenced banks
http://money.cnn.com/2016/01/12/investing/markets-sell-everything-cataclysmic-year-rbs/

so if you cant trust institutional banks that cannot hide behind IP proxies and WHOIS-guards.. then you definitely should not trust untraceable services offering guaranteed profits... but only if you just leave funds with strangers and dont touch for .... ever

Hal Finney put stored his Bitcoins in paper wallets which he put into safety deposit boxes for his kids to inherit. That's safer than trusting some website that descries itself as a bank. It's not totally secure because safety deposit boxes in a bank might be opened by the government like when gold hoarding was made illegal in the USA.

I wouldnt really invest in them. They probably wont steal your Bitcoins, but i just like using my own wallet and not a third party bank.

My advise is to stay away from that kind of investments.Bitcoin was made to hold the money yourself without the need of a third party.
Hold your coins and how the price will develop.Pretty simple.

the intentions of these bitcoin banks might be good, but i don't want my coins to be held by a third party. my bitcoin core client is my bitcoin bank. i don't need anything else. i can take care of my own coins. and no, i am not willing to store my coins elsewhere for an interest rate. not worth it.

There are few bitcoin websites which are genuine and have been operating for a long time but it's true as well that they cannot be trusted the same as we trust banks. However, there is no harm in trusting an online bank which does have a license to operate like we trust PayPal and other online wallets. That's my opinion.

Yes, we have come a long way since MtGox and most financial institutions now have to adhere to strict operating regulations to function and to protect consumers. You have to make sure that these sites are properly regulated and audited, before you deposit any coins.

The same research you do on any other financial institutions apply to Bitcoin banks and investment websites. Things are only more complex with Bitcoin businesses, because chargeback are not possible with Bitcoin. You have to rely on the honesty of the recipient to get any refunds.

Keeping coins on an exchange or in these "banks" is giving someone else control over your coins. If you don't control the private key, you don't control your BTC. As evident by the number of these banks and exchanges that get "hacked", it is much safer to keep coins in your own wallets. Trezor isn't a bad option.

Personally I would advise people to stay away from these types of websites/companies unless it's a known company like Coinbase, Bitstamp etc offering the service. While HaoBTC does seem ok, I doubt anyone in their right mind would be willing to trust them with big amounts of Bitcoin.

In my opinion they are actually investment program or ponzi scheme who disguise as banks I have seen a lot of this kind of program from one investment forums,you should diligently do your research on who runs this kind of program you have a wallet you are a bank so you need not this of service anymore

I have never seen something like this. I would never trust a buffoon bank unless a big company made it.

I think staying there is an excellent way to lose your money, but this is no different than leaving your money in any wallet that isn't yours, it's the same as leaving your money in Cryptsy and then complaining that you lost it.

To me I do think that the bitcoin banks are very safe. We just witnessed a situations where the other ATMs were messed up but the bitcoin ones were left untampered with the security flaw. Bitcoin is safe and there is no cause of alarm, invest in it.

I wouldn't trust any bitcoin bank unless and until they are partnered with one of the leading banks like ICICI/HDFC and so on. If their license is suddenly withdrawn, here would be no way for bitcoin users like me to get the deposit back. When I dont trust PayPal, I can't trust any other wallet as well.

I actually would trust a service like Xapo (which is basically a Bitcoin Bank already existing) 1000 times more than any of the current conventional banks, specially if in the future conventional banks convert and pretend to "pull a Xapo" as well. I would rather trust the original that has been pro-Bitcoin since the beginnings when it was harsh and not as trendy.

why we need bitcoin banks? Bitcoin is decentralized and free. and one of the highlights of bitcoin is that money is always available, why put them in a bitcoin bank?

I haven't seen any legit bitcoin banks yet.
But then again why would you want to use a bank?
Isn't that why you're wanting to stay away from actual banks,
so that you don't have to depend on them?

I wouldn't trust these so called bitcoin banks.
Why would you turn to a bank when it's not needed to? Isn't that why you got into bitcoin in the first place?

Yeah there is no need to safe it in to the bank that is the point of bitcoin that we don't need banks.
With the banks you can't have control with your money is just better to safe it your pc or some online wallet.

there are no safe investment in bitcoin, i have see a lot of website with grand design, a lot of promise and then all of them turn out scam

so i suggest you to stay away from the so called "bitcoin bank"

You can never really trust any site unless you know their physical location of the office or company, and yeah never get carried away with the design of the site and promises.
I believe in bitcoin system. My wallet is my bank and my bitcoins are my investments.

I don't need any Bitcoins bank to make it safe. The block chain wallet which is a digital wallet really I like it very much is best for any transactions and safest way we can do trading when we do trust to each other.

Investing as the concept have nothing to do with the people who give money to the banks. The banks normally serve for savings (for whom who want to have more money/bitcoin using the amount have) and for investors who made the opposite of the savers (take money from the bank to create a business).

Naturally the money can be taken from the bank from everyone and not only for doing business but if is talked for investing the bank serve for giving money and for having money.

As for investments online these have nothing to do with the banks. I haven't heard any kind of bitcoin online bank who take bitcoin to everyone promising interest for them and give them to the others in order to have bigger interest from the lasts (which one must be so big that can do the bank to earn itself and pay the interests to the firsts).

I have heard and I am user (and earner of good profits) of sites which take your bitcoins, work with those and make profit for those and for the person who give money.

As for being secure no one can be never sure about investing online (every kind of investing). So who invest must know that exist the risk that one day the website may disappear and with it even the money/bitcoin invested on it. So invested doing all the possible analysis and deciding case by case. Anyhow there are factors which give much security (always having in mind that are online opportunities). I have three of those from which I am earning very good profits since three months. Who is interested to give a look pm me.

I mentioned it on the first page, see this:

https://bitcointalk.org/index.php?topic=1325006.msg13528854#msg13528854


Mind sharing it publicly? I am sure if there are any legit investment opportunities people will love to benefit from those.

---

A new "so called" bank, just popped up: https://bitcointalk.org/index.php?topic=1337408.0
https://archive.is/6mFFJ

Thank god people can see its a scam attempt right away.

---

Also found this: https://bitcoincryptobank.com/  ::)

i dont really trust a bitcoin bank..what is the benefit for us with this bitcoin banks?
i think with blockchain wallet i alrdy feel safe in transaction

Even I will not trust any bitcoin banks that is safe I can say. because its a digital money and we can keep it in our own wallet and the best wallet i can see is a block chain where we can save our bitcoins.

About the first part quoted by you and the links given by you in another thread I can tell that the first (for that what I was able to understand without registering on that site) is really a kind of online financial intermediary. But with high risk. A bank never can exist having as a field of its acting only a segment of the market like it is this case. To not mention the fact that this activity to which they are connected is very particular. They borrow money to the traders and this kind of activity is very risky. As for the remaining two, these have nothing to do with the banks. They only make possible the contact between two parties. Who want bitcoin to give and who want bitcoin to take. The site have any kind of responsibility about the lose of the invested bitcoin. Any bank in any mock of the world act in this way. And that is the most important the money at every bank are protected from the loss until big amounts from the State. In any kind of the above three no one who save or invest is protected from the loss of its savings or invested money.

As for the share of my opportunities I am clear in my post. Who is interested pm me. Not all but two of those are reflinks and reflinks are not allowed to be put openly. I had 10 days ban for this account and close of another (of my wife) only for a reflink published in one post. Anyhow I have an update. One of the above three opportunities only yesterday was disappeared (but I had my profits from that). Things this foreseen even in my previous post. But the other two continue to be ok. And have found another one which have almost two years online and give some particular warranties which made me to invest even in this.

Not one single one of them. Anyone who thinks otherwise is dumb as a post. And I don't trust any of the legit ones either like Coinbase or Xapo. All it takes is for you to violate one of their little rules, and it seems it happens to a lot of people when they don't know why, and you're out.

I wouldn't trust anybody with my coins.
The only coins i'm certain about are the ones on addresses where i'm the only one having access to my private key.

I don't use Xapo, i don't use blockchain wallet, i never keep more than a couple satoshi's on an exchange for longer than the time i need to deposit, exchange and withdraw.

If i ever have enough coins, i'll buy myself a HW wallet, that's the best bank IMHO  ;D

Bitcoin Banks are mostly a scam which is HYIP or Ponzi. With Bitcoin being anonymous, banks would have a hard time knowing which person to loan and thus having a unsustainable profit or huge loss. The closest to having normal bank interest is lending sites like loanbase and btcjam. Those aren't foolproof at all either.

The only true investments are: Investing in shares and casino.

I would not trust these banks either. However you say we should trust casino's
LOL they are the greatest scammers of them all.

Make sure to safe your bitcoins offline and don't invest in either casino's or banks. It's very risk.

Casino owners can take advantage by knowing the seed beforehand but if the owner is trusted enough, it isn't that likely to happen.

Trusting all casinos is definitely not an option. However, it is worth noting that investments in the casino has nearly guaranteed 1% profit in the very long run. I currently have some invested in them. Just remember not to invest what you can't afford to lose.

i think coinbase and xapo, can be seen as a legit bank, they even offer insurance, everything that is heavy regulated and cover your money is equal to a real "fiat bank"

Bitcoins banks are not regulated banks so they are in my opinion worst than real ones.
I don't understand why people have attraction to those scams for few percentages in return you are risking to lose everything..
If you like gamble shall go to BTC e and do trade there..

Well, I dont cal them bitcoin banks, rather than that I call them investment sites or people. Because bank means safety while with such invests the basic risk is safety itself. I think you must think 10 times before investing as such, especially in BTC because of its annonymous nature.

If your not holding your coins on your own computer then you have pretty much forfeited any right to see those coins again.

Because of the way bitcoin works i am not sure i could ever see myself trusting my bitcoin privkeys to anyone else, so i cant see how a banking system as wee know it could ever work with bitcoin.  Maybe if some third unrelated party where to back the transaction i could be convinced but i doubt even that would be enough.

Well thats all the users need to know that these are just Ponzis with a fancy scripts and graphics, it might be that you were able to get profits or that you bounced out prior to them running but a lot of people must have lost a lot of money when the one you mentioned above disappeared. Which is the whole point that they're not safe.

Until Bitcoin becomes FDIC insured, nothing will ever be safe. The nature of the coin at this point.

I will not use any "bitcoin bank". They are not safe, as they are not even backed by anything!
I will hold my own private keys and keep them safe.

Let's start by considering what we mean by a "bank" in relation to the bitcoin ?

- a place where you can safely store your bitcoin and possibly earn the interest ?
- an institution from which you can borrow bitcoins ?
- an intermediary where you can buy & sell bitcoins ?

In the bitcoin universe these activities are usually taken care of the wallet providers, the exchanges, and the P2P lending platforms.

I think Bitcoin banks are safe. But there are also risks associated with indeed. You can for instance be hacked.
I think the safest method is that you save it on your own computer.

Nowadays, the bitcoin "banks" are not regulated. Most of them a scam operators. If the proper bank adopts bitcoin and provide service based on it. I will use it.

Or the "bank" can state that it was "hacked" and then run away with your coins. There was one scammer in this forum, that officially admitted, that he just stole coins deposited for his sh*tty IPO :D
After all, honest thief is better than lying one ;)

If we really need banks we must have some mechanism to protect our btcs.
That's automatically need some kind of regulations and government guidance.
So how this can be good now?
Every government interference in this will cause centralization and monopol will be created.

If you are not the sole owner of your private key(s) then nothing is safe at all. I do not like these bitcoin banks & even if they are safe, insured etc they still destroy the whole purpose of bitcoin & what Satoshi wanted - decentralization.

Simple and effective law securing your private propoerty would be fine. There is no need to create legislation that will take control of any other aspect of cryptos, to defend you from thieves.

Can u pls list what kind of service u actually refer to?

Cause there are tons of simple ponzies which call themselves Bitcoin banks.

Why would bitcoin community support anything remotely resembling a bank?? Why give away what bitcoin has of most value, that is the independence for intermediators of financial transactions??

The safest place to store bitcoin is in a personal wallet....if saving is the goal...it's value is increasing in relation to the currency it was purchased with anyway, so there is no need to put it into a bank to collect interest.  The actual investment IS Bitcoin; put it away in cold storage and wait.  The safest place to invest bitcoin is a different creature all together...it's a wild, wild, frontier.

Could you provide some evidence to back up your claim regarding Magnr?

I have some BTC there and have had not difficulty getting it in and out.

All of the margin loans they do with my BTC (to generate interest) are recorded on the blockchain, unlike margin funding on an exchange.

Bitbond and BTCjam seem to have some problems (quality of borrower, screening, lack of secured collateral), but they aren't outright scams from what I have found.

I save all my coins in my personal wallet. I only store the coins in the exchanges temporally. It is much safer.

Not researched too much into them, but I'd stay clear and manage your own bitcoins.

When the HSBC or City Bank open business for bitcoin, I will save some of my bitcoins there to earn some interest.

i would never trust a third party to give my bitcoin to, so they can hold it for me even if they are called "BANK" and give all sorts of promise to keep it safe.

security aspect is number one,people must be so comfort and trust fully to that "banks" so they have no worry to invest so many bitcoin,and security must be have insurance ;D

i still won't trust any banks tho.. i'll just keep it on my wallet, much safer that way

can i have some example of what are these "so called" Bitcoin Banks? never heard about

These are services who offer you some interest rates of you loan out your Bitcoin to them.
That means you lose the control of your coins because you don't own the private key anymore.From this moment on it's all about trust.
I highly advice everyone to be very careful with such services.The risk of fraud is pretty high.
Bitcoin was not created to give control of your coins to a third party!!

As I have learned through this forum and several opinions, you are not "safe" as long as other person holds your coin and they are not in your wallet.

I wouldn't trust any bank for my coins, since the whole point of bitcoin protocol is precisely decentralization and not depending on third parties do conduct business or perform financial operations.

I will save the coins in my wallet. But I will use a bank if I need to borrow the bitcoin when I need them.

I shall not use those "banks". When the conventional banks accept bitcoin in their operation, I might use them.