Bitcoin Forum

Did anyone think at this? How would a bank work? How could you loan bitcoins and get interest for them in an economy with just 21 milion BTC limit?

Yes, a bitcoin bank would make money off of internal transfers transaction fees in my opinion, not on loans, future will tell :)

Check out ripple.

Many people seem to be worried about losing their wallets, so I could see a bank as a trusted party to store bitcoins.  They could also offer escrow services for people who wanted to enter into a transaction but did not trust each other.  The beauty of starting a bank is that you don't need anyone's permission.  ;D

A bitcoin bank does not make sense. A financial market in bitcoin will be more like investment funds, where you lend your bitcoins and they invest them and receive interest on your investments.

There will still be a need to loan emergency funds. The 1% interest rate will just be regarded as a very high interest rate. In return, the bank might keep some of your bitcoin stocks as collateral or something similar.

I see people paying a small amount to a bitcoin bank in return for it guaranteeing to look after their coins safely. Something of 1% per year perhaps.

Earning interest by depositing your bitcoins in a bank is going to be unlikely while their value is rising and while there is not a big enough bitcoin economy for lending to be particularly profitable.

MyBitcoin.com is a de facto bitcoin bank.  And it is clearly useful to many people.

Banks do not lend out money, they create it from nothing and back it with loan contracts. The rest is simply semantics.

Private holders of BTC would lend out their own BTC at an interest they believe the borrower could pay. They would do this totally at their own risk, if the borrower could not pay, the lender would lose his money, a simple feature missing from the current system.

Someone might attempt to hold a set of BTCs and promise interest on those and loan them out or extend credit based on a separate accounting system that they control. (This is how gold became paper money btw) Since Bitcoin is basically an accounting and payment system that is already very convenient, I don't see why anyone would want to use an external service. This would also be very unstable and risky for the operator to do in the long run if they were extending significantly more BTC credit than they had reserves for.

Actually there is a very good reason for Bitcoin-backed banks to exist, issuing their own digital cash currency, redeemable for bitcoins. Bitcoin itself cannot scale to have every single financial transaction in the world be broadcast to everyone and included in the block chain. There needs to be a secondary level of payment systems which is lighter weight and more efficient. Likewise, the time needed for Bitcoin transactions to finalize will be impractical for medium to large value purchases.

Bitcoin backed banks will solve these problems. They can work like banks did before nationalization of currency. Different banks can have different policies, some more aggressive, some more conservative. Some would be fractional reserve while others may be 100% Bitcoin backed. Interest rates may vary. Cash from some banks may trade at a discount to that from others.

George Selgin has worked out the theory of competitive free banking in detail, and he argues that such a system would be stable, inflation resistant and self-regulating.

I believe this will be the ultimate fate of Bitcoin, to be the "high-powered money" that serves as a reserve currency for banks that issue their own digital cash. Most Bitcoin transactions will occur between banks, to settle net transfers. Bitcoin transactions by private individuals will be as rare as... well, as Bitcoin based purchases are today.

Sir, why would my currency be anything other than bitcoin?

Mybitcoin is essentially like what you described, except it doesn't do the "own digital currency".

It doesn't need to, as most daily transactions will be handled by sites similar to Mybitcoin.com.  Everyone seems to follow this same learning curve.


Are you serious?  Have you ever bought a car from a dealer?  How long did it take for your credit report to be checked and your car loan approved?  Mine have always taken well over ten minutes, most about a half hour.  Delays are not unusual for large ticket purchases.  This is a non-issue.

sounds like a fractional reserve system, one of the fiat money pitfall bitcoin claims it can avoid.

no permission is needed, but you still need trust from your depositors, and trust is hard to come by.

Bitcoin provides for a choice, but some will still choose to keep their funds in familiar institutions.

There is nothing inherently wrong with banks. Its when they are centralised and become the government that the problem arises.

Can I and how can I reserve the name BitcoinBank in this community?

And how do I buy the .org or .com domain?

You ask the same question 3 months ago.

I checked my posts and it seems I didn't ask that :)

Very good point, I'm a little new so I was unaware that large transfers would take restrictively longer. I was aware transaction would eventually take longer, but not that it would be so long as to be prohibitive.

Wouldn't this then rather lead to competitive crypto-currencies overtaking Bitcoin in popularity if they are capable of solving this restriction?

Doubt it.  That's not a bug, but a feature. 

Okay, but a feature in that it simply takes longer or in that it incentivizes people to add transaction fees?

What I meant about purchases taking longer would be in the range of several hundred to several thousand dollars. Today you can go into Best Buy and get a new TV for $1000, put it on your VISA and walk out. For a Bitcoin transaction in this range, the seller would probably want to wait for 2 or 3 confirmations to be safe against double spending, which would take 20-30 minutes. That's pretty inconvenient.

You could walk in and pay for it with bitcoins and then leave. While waiting for the store to deliver it there would be plenty of time for the confirmations to get processed, and for you to be notified of any problems, without any real delay in the time between purchase and enjoyment of your new tv.

A little of both.  There are two different delays that you are addressing here, the delay of comfirmations and the delay getting into a crowded block.  Big ticket items, for which the seller would be unwilling to accept a valid transaction on faith, will require confirmations.  Your desire to get it over with will often compell you to add a smig of a fee to jump the line, ensuring that you get into the next block so that you can start counting confirmations to your seller's satisfaction.  I would expect this kind of thing to be common for anything more valuable than an average guy's net weekly paycheck, say a high end gaming computer or a car.  As far as the computer is concerned, you could offer your ID as evidence of who you are if you didn't wish to wait for other confirmations.  But if you desire to remain just another anonymous customer, then at least one confirmation is likely.  However, for most anything less than a week's paycheck, a vendor does not need to wait for even the transaction to get into a block, as it is possible that a bitcoin POS client would be able to rapidly check the validity of the transaction, and then check the transaction pool for any other possible double spends, ship the transaction out onto the network and wait a few seconds looking for double spends, and if it doesn't see any within about ten seconds, it's probably not going to.

For that matter, the same methods could be used for large ticket items, depending on the risk tolerance of the vendor, but an individual trying to sell his car person-to-person is going to insist on a confirmation or two.

That depends upon how anonymous you intend to be, in addition to the scenario I mentioned above, Bitcoin credit rating agencies could exist to serve the same function as they do now.

I understand that the current system does not allow for a near immediate secure update, but wouldn't a system that can, in addition to full security, provide a faster clearing time be preferable to bitcoin and end up supplanting it?

Only if it can do it with all the other advantages of Bitcoin, without adding in other issues.  This I consider unlikely.

I just posted on how you can be your own Bitcoin banker here:

http://bitcointalk.org/index.php?topic=2550.0

Well, that's something a bitcoin bank could be doing.

Forgive me if this is a silly question, but, isn't it possible for me to directly transfer bitcoins to someone I'm face to face with, without a transaction getting recorded in the block chain?

No, unless you're on a system that uses some sort of accounts and pools deposits.

Yes.  You could give someone a wallet.dat file.  Or you could transfer person-to-person using websites such as https://mtgox.com/ or https://www.mybitcoin.com/

Only if both of you are using the same online wallet provider.  Such as you both have accounts on Mybitcoin.com, and are both using those accounts in the transfer.  In such a situation, Mybitcoin.com becomes your trusted third party.

So, from what I understand, even if you give someone the private keys (a wallet.dat?), since you might still be keeping copies yourself, the recipient will still have to transfer the coins to his address through the network so that the network knows that he's the rightful owner. Hope this is correct.

Ah, and another use for banks could be scheduled payments and such.

yup

Only reason for a bank would be as a safe place to store my money. And MyBitCoin.com does that for free with an easy-on-the-eye user interface that is compatible with mobile phones.

Another reason for a bank is rapid resolution of transactions.

And maybe other services we didn't think of yet :)

Banks can offer a central authority for resolving bitcoin electronic checks.

I'm not sure how MyBitCoin's infrastructure works.

I mean if the BitCoins were on a database, and transactions between MyBitCoin users occured instantly and then were batch processed at the end of the day (ie. transfered into their relevant addresses) this would save processing time, and also provide insta-money.

Obviously it would be different for withdrawls etc.

It would be very much like transfering money from your HSBC bank account to your landlord who also has a HSBC account.

Unless th eprofit a bank makes is used to have a huge mega-cluster of computers to resolve the majority of transactions.

You got it partially right.

MyBitcoin and similar websites don't batch processing and send to addresses at the end of the day; they keep all BTC internal, until one of their users sends BTC to someone who is not on mybitcoin.com.

A BTC address or transaction on mybitcoin.com is simply an accounting notation in the mybitcoin database.  Transactions between two mybitcoin users never actually reach the bitcoin network.

So this means that there is just 1 wallet.dat and all the guys that have bitcoins in there are just on somekind of list that sais how much each has?

What a about a bitcoin bank? If it's purpose would be to secure people's wallets that means it should act like a bank values box. PGP encrypted and all. Or it would be better to have a single wallet.dat and a "list" that sais how much every person has?

Also, there must be a fee. 1% per year, for storage for the bitcoins. Payable on the first day. But how do you stop people from adding 1 BTC and then 10,000 BTC so they would pay just 1% of 1BTC? Taxing them for both operations is kinda unethical.

Correct.  The website's database store the balances for each user.


Encrypted data storage already exists in several forms; you should be using one or more of those, if you are running bitcoin.

jgarzik.

How does one use encryption to secure wallet and use at the same time?

is this impossible.

I am worried because when I remove my wallet.dat file and then encrypt it the BitCoin client won't be able to read it. If I move the wallet then when BitCoin runs, it will show me as 0 balance, so what happen when people send me money? Where does this money go because it isn't in my other encrypted wallet, right?

With an encrypted file system, your data is deciphered on the fly when you use it (after you entered your account password), but if someone steals your computer, he cannot simply plug the hard drive into another computer to read the data, because without your password, they are encrypted.

Software exists that will keep your bitcoin drive / filesystem encrypted always.  The only place it is not encrypted is RAM.

So I take it you use this software in MyBitCoin?

MyBitcoin is a website.  Presumably they secure their wallet with strong encryption, but I don't know.

There are two ways to use bitcoin:  (1) through a website, or (2) using the bitcoin software.

When using the bitcoin software, you should employ encryption.

If one encrypts their file, then the BitCoin client will not be able to read them, right? So you can only receive cash when you unencrypt your wallet?

It can be done automatically in such a way that the file is never stored in clear form on your disk. It is deciphered on the fly when the bitcoin client reads it, and the deciphered data is only stored in RAM for a short while.

You don't need to be online in order to receive a payment. The blockchain logs X bitcoins to address A, and that's it. To send them, then you need to sign your transaction with your private key.

How do I do that? Or does it do that currently?

The bitcoin client doesn't do it yet, but your operating system can do it. It depends on what you're using... I don't know about Windows, but my GNU/Linux offered to encrypt my home directory when I installed it.

I use Windows... i know, forgive me, I am evil :(

You can use TrueCrypt. TrueCrypt's method is even better than the method that Linux typically uses because the boot loader fits onto track 0, which makes installation more straightforward than creating an additional boot partition. TrueCrypt also supports hidden volumes (which you probably don't need, though they are useful in some cases).

http://www.truecrypt.org/docs/?s=system-encryption

Encrypting your home directory is always a good idea but one must be reminded that it's more likely that the attacker will come through your net connection than through your door (even for a bank, if you are not hosting it on a remote server). I would be happier if the wallet were encrypted on the filesystem. Then again, for the casual user, losing a password is maybe more likely than a stolen wallet so I guess it should be optional.

I own bitcoinbank.com

It's for sale.  Accepting bids.  I accept bitcoins ;-)

Yes, I have received offers for .eu and .org also. I'd buy both .com and .org, but so far I don't have project.

I'm not sure what a BitCoinBank could offer that MtGox and MyBitCoin already offer, which is instant transfer between each other, and spread security, ie. not keeping all your BitCoins in one basket (wallet.dat) The only other service I can think of is loaning BitCoins, or savings account, like an Investment Banker, both which introduce the evils of Fractional Reserve Banking.

They could let you upload a wallet file and spend from that. Then you could lock away your own copy as your own backup so you don't have to trust them solely. This could also allow someone to maintain the same addresses through a transition from holding themselves to letting the bank manage it, which might be useful for some business.

I don't understand how that would be useful. Once a coin is spent, it cannot be re-spent, right?

While the bank would have access to the funds, they couldn't move them without you being able to know that they did.  With eWallet providers today there's no way to audit that they really do have your bitcoins ("all of their deposits") held in reserve:
  https://en.bitcoin.it/wiki/EWallet (https://en.bitcoin.it/wiki/EWallet)

Having a local copy of that same wallet gives you only a little more control because if at any time you want to spend that wallet, you aren't dependent on that service and they cannot stop you from sending your bitcoins from your wallet under their control to somewhere else.

But you are correct -- having a local copy of your wallet won't help you whatsover if they disappear overnight after transferring the funds from all the customer wallets all at once

This is what I'd like BitcoinBank to do:

Services:
People deposit their bitcoins into accounts (login by username and maybe software token, if possible - even hardware).
Tax should be something 1% per year but i have no idea how to prevent people to add just 100 BTC when they open the account (tax 1BTC) and then add the next day another 10.000 BTC. One option could be to tax 1% per added bulk.
The wallet.dat holds all clients' bitcoins and the database hold sthe amount each is entitled to.
24-7 online banking for adding and withdrawing funds and payment intermediary.
Selling gold, silver, USD, EUR, GBP and other currencies on demand.
Selling virtual credit cards from multiple banks, in multiple currencies.
Escrow services.
Wallet-lock options. Allows transfer of less than the amount set up by the user per day/week etc. Also one idea i have is a amount-protected lock, you can't move funds from your account to another bitcoin address unless you remember the passsum, ie: 255.78 BTC (might be useful for paranoids that need more layers of security)
Credits, based on trust. Dunno how to implement this yet.
Investment fund. Dunno if to implement this and how.
Also I dream of having the bank physically, with safe deposit boxes, maybe even microcip cards and all :D


At least two servers on different, secure, locations. Encryption in case of theft.
IDS and IPS with good sysadmins
Tor and I2P anonimity.
Gold, silver, bitcoin, USD, EUR and GBP reserve (might add chinese Yuan too)
at least these bitcoinbank domains: .eu, .com. org, .net, .biz to avoid scams
SSL certificate and GnuPGP keys

This sounds like an interesting idea. I still don't believe a charge should be incurred on the depositor as I believe the cost of securing BitCoins is almost negligible, or at least something that can be recompensed with AdSense or something.

My suggestion was not to act as a backup but to have old address that you have set up (a static donation address, permanently associated with accounts etc) go automatically to the bitcoinbank. Plus if you lost contact with the site you could use your copy of the wallet to spend.

A BitCoin Bank would be a very simple concept. It would be a Safety Deposit Box system for the .dat file accounts. The bank won't know who the customers are or how much are in the deposit boxes. They just charge a fee for keeping the .dat files safe. A good bank would have mirrored backed up boxes across the world and even possible physical .dat files in the form of printed binary for emergency recovery. (ie. EMP pulse takes out all the electronics world wide or something of that nature). You could recover your physical printed binary file and start typing the data in anew to recover. It would be a pain but hey if there is a million buck in there I will type for you.

The second service provided would be a type of holding house. You pay for something, they take your money, tell seller to send product, when you receive it, they clear the transaction to the seller.  Trusted Man in the middle. A lawyer-less Escrow account in away. Of course a level of anonymity would be stripped for this to work. PGP keys could work for this. But the Keys Servers could be attacked to disrupt transactions. Unless a system of PGP P2P Keys for sending messages is accepted. The "Bank" would have to have the Public Keys for each transaction and be able to generate messages to each party involved. I guess the the "Bank" could set up its own on account opening and provide a unique private(sort of sense it would need to be given out) key to each account holder for communications.

Your idea of actually physically printing the value is quite a good one, actually. But rather than have the binary string, wouldn't it be better to have it in hex? Less space?

http://bitcointalk.org/index.php?topic=3941.0

The idea has been discussed since day one. You can put private keys in QR codes.

There is nothing inherently wrong with fractional reserve banking, provided the parties who enter into such an agreement understand the agreement, and assume the risk.

The problem is a state-sponsored fractional reserve system where bank notes are enforceable legal tender, deposits are insured by the Government, and banks are not allowed to fail. This creates all kinds of moral hazard, market distortions as well as inflation.

Fractional reserve banking as occurred during the decentralised "Free Banking" era in the US (1837 - 1864) - i.e. subject to proper competition and where the risks are assumed by those entering into contracts with each other, not third parties - is healthy and desirable. During the Free Banking era, bank notes were not enforceable tender, and often traded at a discount against Federal notes the further they traveled from the issuing bank.

One of the major benefits of FRB of this kind is the supply of credit not being limited by the available supply of money. If people are willing to accept a Bitcoin bank's "money" as payment it can also issue credit, which can fuel investment in the bitcoin economy. The important point is that banks which issue credit (e.g. money) improperly by lending to untrustworthy parties, businesses which aren't viable, or into property bubbles, go bust. This imposes discipline on the banks.

If bitcoin is successful this will almost certainly happen, and it will be beneficial for a number of reasons as stated by Hal and others.

Fractional reserve banking would be MUCH harder to do with bitcoins than physical currency, unless banks were allowed to print paper money "backed" by bitcoins. A bitcoin note system would work much like the old gold-backed bills. You could turn in a note for bitcoins at the bank, but if everyone did that all at once... Someone's getting stiffed.

Transactions within the bank would also be possible with "fake" bitcoins, especially if all the bitcoins are held in the bank's wallet, and accounts simply have balances.

The problems start hitting hard when you try to send actual bitcoins. If the bank extends itself far enough, and has enough clients, it may be possible wipe out it's coffers with a transaction or two from each client.

Bottom line, you CAN do fractional reserve banking with bitcoin, but it requires that every other bank and customer agree that your paper or digital notes are as good as the bitcoins they represent, in order to pull it off without any hitches. That requires state backing, and I doubt bitcoin's going to get that.

I don't understand the need for actual paper. If what you mean by "print paper money" is issue an electronic token representing a bitcoin, I don't think that's difficult to do. It's what mybitcoin.com does now - it is essentially a full-reserve bank with its own "money."


There are no "fake" bitcoins. There are just bank credits, redeemable for bitcoins by the bank on certain terms, or which can be used for payment or sold to third parties.

A bank could create as much credit as it wanted, or its depositors were prepared to tolerate, but it would quickly go bust if it abused this privilege.


True, but that is precisely why successful banks will need to be prudent. The problem with the banking system today is that the risk of failure is mitigated by government support, which creates moral hazard and reckless lending.


It doesn't require that everybody accept the banks' notes, just that there is enough demand for those notes.

They don't have to be "as good as bitcoins" - there's nothing to stop third parties buying up bank notes at a discount to their face value. The risk of the bank collapsing would be priced in.

I agree with you that it's risky - but the market will impose discipline on the banks, to stop them taking excessive risks, remove ones which do, and reward those that don't. Meanwhile depositors will be able to earn interest on their savings, and secure their wallets from theft.

Not disputing anything above. That said:


You can run a bank that will provide interest on savings and secure wallets from theft with a full reserve. I detailed this elsewhere (http://bitcointalk.org/index.php?topic=3508.msg50284#msg50284), and it turns out I was reinventing (https://secure.wikimedia.org/wikipedia/en/wiki/Credit_union) the wheel (https://secure.wikimedia.org/wikipedia/en/wiki/Mutual_savings_bank).

May I remark that this posting, made over 5 years ago, was incredibly far-sighted. He describes what we are hoping and working for today.

He did not foresee that second-layer payment systems could still be done in decentralized and anonymous fashion, as in Lightning Network or TumbleBit, but who knows, perhaps even that part of his message will come true if centralized systems that require trust turn out to be trustworthy and reliable enough and cheaper. Perhaps we already have those, like Coinbase or BitPay. I will be happy either way.

Did anyone think at this?
No I don't think of it :-\

Did anyone think at this?
Once the bank operate they are already connected on a regulated industry.

How could you loan bitcoins and get interest for them in an economy with just 21 milion BTC limit?
I'm not using any loan program in bitcoin, besides no reason for me to do that things. Because bitcoin already a bank for me.

You forget to add a few ugly things

For example, that the average life span of a bank during this "Free Banking era " in the US was around 3 years (if my memory serves me correct). Surely not a good thing, by any means. Further, since gold was used as money back then, to deal directly with it was not very handy, so people used depositary receipts they received when they put their gold into such banks. Obviously, banks ended up issuing more receipts than they had gold in their vaults, which inevitably led to bank runs and chain bank bankruptcies (the word bankruptcy itself seems to stem from banks, which is not surprising). Just in case, today's monetary systems have nothing to do with FRB

If bitcoin bank will issue loans in bitcoins at a favorable interest, then I do not mind using such service.
Just need to very accurately choose the time when to take a loan, and when to give

Maybe it possible, but what was the possible collateral you offer, if the Bitcoin bank give a high amount of loans with fair interest how they can assure that you paid it in time? I don't think so if it is possible for now but we still hoping that it will be happen in the future.

If they do like this then it is a good move, and people like to take bitcoin loan in the bank. But how they collect interest is matter, because the BTC price will increase and decrease so how they calculate the loan interest. And this business will work out in a real world? I think it is profitable for users and loss for Bank.

Let's assume that we can take loan in bitcoins from bank, first question is how do you plan to return that and in what time. I don't have salary in bitcoins, so I would need to payback that loan in my currency. With rise of btc price, my monthly rate can be higher each month and that can be real problem. How many of us here can afford loan in bitcoins?

Seems like none of you know what you are talking about not even back then in 2010 it doesn't make any sense to put your bitcoins in a bank while their value is increasing over time and it's wrong to assume anyone can start a bank unless they are using something very valuable as collateral like gold/ land which in turn requires a government involvement.

No body will trust you even a penny if you're not backed by government, after launching a bank then you need to deal with the fiat equivalent of bitcoins deposited and change the balance of clients accordingly when price goes up or drops and recalculate the interest rate base on fluctuations which would be a heavy duty but it's doable by using bots, and when people think more than they do by relying on others they'll see it's actually much more profitable if they just buy bitcoins off the market and hold as long as they would've waited to receive interests on their bank deposits.

And since bitcoin is not a physical currency and it's been secured by cryptography mechanism there is nowhere safer than your own wallet addresses if you are concerned about theft/ hack.

It has been explained many times already

And I explained it a few times as well. The real problem is not with you not being able to pay the debt. After all, no one is forcing you to borrow bitcoins (or any other money, for that matter) in the first place, and there are quite a few defaults even with fiat loans backed by crappy collateral (i.e. subprime mortgages). The true real problem is that borrowers will be inclined to intentionally default in case the Bitcoin price is set to rise exponentially since they would be able to buy what they pledged as collateral and still have some bitcoins left from the loan. In other words, it would be highly profitable to default

Yes, banks will never work at a loss. For sure they will take a large commission for such a loan and a high interest for its use. And this means that the profit will eventually be received only by the bank

Let me add something. It may lead to situation that borrower is no longer interested in collateral. He will be like- "Go nigga confiscate my house, I will buy a new one!"  ;D
However, the situation as mentioned by you may not arise if borrower takes loan for immediate consumption as in 80/100 cases occurs.

They're robbing the lender's money. It has touched 100% interest in my country and they are like a pirate of money in my mind. I might never be touched him in my life.

Bitcoin banks that make money from transfers internally,
How do you think and opinion?

There's no bitcoin banks for now, perhaps in future when the number of bitcoin in circulation is huge. Now I thinking only bitcoins bank we have is our Bitcoin wallets, where you store and save your bitcoins.

I don't think something like this would work at all, though I would think a Bitcoin bank would be operating like a real bank in pretty much every other nature when it comes to things.

It'd be operating like a business as a bank so it would allow for people to deposit money safely and then would use this money to loan out to be able to make profits for themselves. With these loans people would probably be going through stringent checks and also have some sort of collateral to ensure that people weren't going to be able to scam.

I think it would work in theory, but when put into practice it would require a ton of trusts from people to be able to have faith in the bank to not just run away with everyones money. It's tough but it'd be possible with a lot of security.

If you are talking about making a bitcoin bank which operate like the fiat bank, then I would say nobody will interested because it will be control and regulated by the government and to ask people to invest their coin into bitcoin bank will be very difficult because the bitcoin world is a world without identity so if the coin being scammed then there will be no chance to get it back, so it is not that easy to gain trust from the people, I rather to hold my coin by myself rather than put my coin in the bank, it will be more secure

I don't think that will be the case

People still open both deposit and checking accounts in regular banks though they, first, have to disclose all their personal data to the bank, and, second, they have to actually walk to the bank office to open an account in the bank. That said, if some banks just allow to deposit bitcoins to their already registered clients (obviously, the latter won't have to disclose their identity since this identity is already known to the bank), there will be enough "volunteers" to try out that service. And still more so if the bank would offer some interest on Bitcoin deposits

I think bitcoin bank will be tricky to operate. Have you seen how bitcoin prices rise and drop in the market? I mean it would be little trick if someone is buying at x price and after few months price for bitcoins is y then bank will have to pay more, so I'm not getting how that one can be tackled. Bitcoin works all in virtual market and exchanges and I think that is the place for bitcoin rather than bank. Also that will make it less decentralised currency.  :D

It has been thought by a lot if person to open a bitcoin, but the response is not too good, maybe because the people tired being controlled by the banking system, if we can think innovative way to build bitcoin bank which is different from fiat bank, then there will be a lot of people interested

Yes ,but thinking of that matter it would be hard not to govern or see who were the trusted ones who loans by not identifying a person who will loan or deposit bitcoins .So the point is we cant go with a bitcoin bank of being anonymous.

If the bitcoin network has been taking over by the government then they may create unified identifier to find the people only from the Government side. Therefore, It 's not much difficult to handle in the financial institutions and payment sectors. Actually, bitcoin bank options have been already introduced in Switzerland. Hope it will be implemented in all the countries.

I think you can use wallet to transactions with fellow users bitcoin users, it will be easier and more simple. Than using bitcoin banks that require a lot of verification?

If only in the future Bitcoin opens up to a bigger limit problems of this worry can be prevented. I'd have to start that web services with prepaid access are likely to game what you're expecting. In this case some banks actually do allow BTC exchange that'll bring new innovation to all users.

It sounds simple, but cryptocurrencies are still in early phases of development so it should take more time to see all of what is offered.

Can you explain me why would we need bitcoin bank? Bitcoin is a digital currency and payment network, why would we pay someone to do easy things for us?
I`m new in all this, but isn`t the point of bitcoin to be alternative to the current system?

I like the concept of orginizing a systematical bank that can manage bitcoin. But if we will dig deeper on the thing of legality of bitcoin is not rechable because its transaction is not visualized to reach by goverment. But if it will be a banking system like bitcoin which is not manipulated by government it is good for the users to not have a corruption on it. And wallet may be also need on it because wallet can serve as a tube of transaction between the users and bank.

I dont think that the idea of "Bitcoin Bank" is good, just because of one simple reason:
Banks are made to make the society poorer.

They do not help us to become wealthy. Indeed, they have a wide offer, for example we can have a money placement in bank, which will provide us an interest equal to somewhere between 3 and 5 percent every year.
That looks like an opportunity, but we all know that it is a good solution only for somebody who owns a big amount of cash, in such a situation it is really worth it.

But even with 50,000 $, you won't earn a lot thanks to that, even 5 % every year would be just 2500 USD every year!

Thats imposible to built a bitcoins bank without any law of the government .
We have a local wallet in my country and it is built with the laws of government which you can use to exchanges and cashout on that wallet with banks but it have a fees.

We don't need bitcoin bank, Remember the word of being your own bank. And it has given a lot of the meaning for us. We will never need bitcoin bank to keep or money especially crypto is in the grey area which will try to save your bitcoin on bitcoin bank is not a good decision.
They can be turned as scammer anytime.

As far as I know, we are the bank of our own bitcoin savings. And if there is someone will establish a bank, I won't entertain their
services anyway, because most bank I mean all banks are regulated industry and while bitcoin was not.

yes lovesybitz, we are our banks. You wallet is your bank account and you can have online and private wallet on your computer. What this means is that as bitcoin holders you can send, save and used your bitcoin with being control by any group of people and countries or financial system and regulations. Bitcoin is decentralized and that makes it different from other money system.

You mean if someone created a bitcoin bank.
I have the same idea that it will not work even if they put interest in it.
Not now, maybe someday if all bitcoin are mined.
As of now we are a growing industrt and that means a high profit also in demands that will increase the value.
Those who will be creating a bank will just profit for themselves. I dont even think they will be different with a website wallet. That is almost the bank of bitcoin.

I think this bitcoin bank is not a good idea for bitcoin because this can lead for centralization of bitcoin and the owner of the banks can control the bitcoins supply because banks means storage and if people will store their bitcoin to the banks then it will have a lot of bitcoins there and the owner can take advantage of that and use it to make profits.

Yes I`m aware of that, it`s something that I learned first about bitcoin and that`s why I was surprised when I saw this topic. I wanted explanation from the person that created this topic, I saw comments from people that support bitcoin bank idea, what I didn`t saw are valid arguments for that statment, and how that can be good for us users.

Probably the guy who posted this topic, had the idea of that bitcoin is much likely compared to gold because people save it for a long time and wait for the price to go up, and people who have a good amount of money have to option to turn it into gold so it could grow passively, and the only way they can store it is in the vault banks, and I think that is where the bitcoin bank comes from.

Well, I do not think that Bitcoin users will ever agree to Bitcoin banks. But why then change one to another we already have a banking activity for which people want to escape. If you create Bitcoin Bank to Bitcoin will lose all their advantages.

I think the idea of bitcoin bank would not be good for the development of the bitcoin, we all know that the presence of bitcoin can shift the bank thereby giving the freedom to do anything.

I don't believe that bitcoin bank can be a hindrance of freedom to do anything, because having bitcoin banking can be advantage with bitcoin to be more secured. When we talk about development of bitcoin shouldn't be limited to a certain point that banking system is not connected, because banking exchanges was now happening in the bitcoin economy, and I've observed a lot of profit that everybody has now experienced through cashing out from banks connected from blockchain exchange network.

If Bitcoin acquires a bank, then all users will lose their advantages. If there is an institution that controls the crypto currency, then on the one hand it is good only for the legal plan, all other advantages of Bitcoin users will lose.

A bitcoin bank is an idea that could work, but it doesn't have to be centralized. BTCJam services and similar already exist.

It will open a news form of payment for the general people and BTC will gain more knowlege and power in the world. It will owrk like with credit cards an account in BTC to pay anything.

@rickadone Your example doesn`t have sense, I`m reading for a week about ways how to keep bitcoins safe and I already know that for keeping bitcoins on a safe place you

don`t need banks, you can save them on many other ways

.
@00hash01 Bitcoin already have better transaction system, bitcoin already offer wallets where you can keep your coins safe, I still don`t understand what kind of purpose can bitcoin bank have, what can bitcoin bank offer to us?

but i do not think that this idea is going to work, because people want to make the  banking process more and more say, and i think bitcoin is the only option that can make to more convenient to use bitcoin for both online as well as online purpowes.

It's already possible to have a credit card-like service combined with Bitcoin. It's called a Bitcoin debit card -- you deposit BTC, and you'll then get the ability to pay basically everywhere in the world. If you have no more coins left, you can't buy anything. It's not based on debt as is the case with credit cards. Major benefit. If you're seriously interested in it, then look for services as BitPay, Xapo, Bit-X. They all offer Bitcoin related debit cards.

I hope soon there will be more competition so the charge will be lowered, I checked that kind of services but it seems very expensive to me. Well, as of the moment I don't really have much time to spend my money online since I used my funds for investing but I would love to see more of that kind progressing in the future. Bitcoin as payment system not as currency accepted by the bank, just to be clear..

The bitcoin bank idea is not impossible but the main key for it is a huge amount of money and the bitcoin is created by unknown person, so by the concept of that the bitcoin bank became impossible because the kinds of wallet to store it is created and by that the price of the bitcoin is became as one so it will be under that law of supply and demand, So for mme the bitcoin bank itself is a wallet but to make it one as a bank for me is impossible.

I think the idea of the existence of the bitcoin bank is good, with the presence of the bank then everything becomes legally so that the country will soon officially legalize bitcoin.

I would agreed in this matter, and I'm not in favor also in bitcoin bank because we are the bank of our own money through bitcoin.
If ever there is a bitcoin bank this is no longer a decentralize it is already a centralize system because its connected to banking system anymore.

I think this idea will inevitably come to reality, only a matter of time.  If we want btc to be a legal tender then i think there's not two ways about it.  It'll certainly be a great thing, i fear though that once regulations and governments get involved on a general scale, it may not be as much fun as it is now.

Right, our wallets are already used as our own bank. There are no difference with that. And why do you need a bitcoin bank when there's the usual bank to put all your savings? And I don't think the bank industry wouldn't that because imagine if a lot of people deposit a big chunk of bitcoin and then let's say after a month it's value tripled then those bitcoin bank would be bankrupt. I'm sure that an exchange in fiat for bitcoin will be an automatic features of those banks so sort of that things will  likely to happen.

Maybe if someone can make a real bitcoin bank it must have a lending feature so that the bitcoin deposited to their bank by the people can grow because of the lending feature of it. But in bitcoin we have no papers so it will be became impossible because the users can run. So by the conclusion of it the best option is the bitcoin wallet that we have right now.

I dont mind bitcoin bank too, I am well satisfied of the wallets we have the online and offline wallets. T!heir services is good enough for me, bank will just add up to our hassleness in life unlike what we have now just an email address and name are enough and also our anonymity will be erase to bitcoin's feature.

So you don't mind bitcoin banks but you think that banks will erase bitcoin anonymity.

How many times after how many "hacks" have people stated here that once you let a web wallet manage your bitcoins those are not yours anymore?
You like web wallets with no identification?
Then good luck proving that those were your bitcoins that got stolen and good luck getting them back.

You can't have anonymity with a wallet service /  bank and at the same time security.

i do not think that we will ever feel the need for bitcoin banks as the modern people wants change and therefore they are not going to accept any old and traditional way of banking  regarding bitcoin. i think that the wallet system is still the best for holding bitcoin.

HaHa . That is so much true buddy. I liked your correlation of bitcoin and its anonymity with wallet/bank services. That is very good assumption but when we put our money on those services we have our transaction confirmation isn't it? They can help us identify our money though. What about some services who provide us with few private keys without which the bitcoins can not be moved from our wallets. It provides security as well as proof of identity without any documents. However it is now ambiguous as some of them doesn't rely on private keys. Hope it will change the face of bitcoin soon by implementing some more identifier kind of widgets.  :D

Yeah I can imagine how are going to tell your story in court ..

Here is the tx...
Do you have proof this is your transaction?
I have the key from the address that sent the coins
Can you prove that this was a key you acquired yourself?
No but it is only one key...
Does anybody else has the key?
Well, I guess not because you see sha256 the universe possibility numbers.
Yeah , next case.

Has anyone got their money back from inputs.io? :D

To make bitcoin legal. Then there must be a third party that can make a bitcoin user can be controlled. Using bitcoin bank then the user can be in control and it will be a positive signal for the government.

I think this is a trial from the government. If with bitcoin bank the user can be under control by the bank. Then it will make the government sure to be able to legalize bitcoin or receive bitcoin

I think the existence of the idea bank is a nice, bitcoin distribution bitcoin will more quickly and automatically prices will skyrocket. I agree the idea of the existence of the bitcoin bank.

So why some other says that be your own bank? if we are going to entrust our bitcoin to them, because I also do believed that it does not make sense at all, because we are really the bank of our own bitcoin due to its decentralization not centralization which is the bank itself was like that. :-\

Oh my god, this is how we've turned out?
Wagging our tails to the government?

What happened to anonymity, to avoiding banks and freezing accounts , avoiding government control and liberty of choice?
How about we add inflation to bitcoin and just throw it in the trash.

We should also let the CIA and the NSA to deal with the whole Core Segwit debate.

The idea of a bank is opposite to the idea of bitcoin itself. This bank would be our wallet, our exchanger, debit and credit card. Everything will be centralized and belong to the bank including our money.

This topic has a thread before. Not even sure now why OP created another one. This has long been debated and no real winner has emerged, I think there are more people not in favor of this and those that are. This is really why there have been no real attempt to create a bitcoin bank that has surfaced since bitcoin's inception.

It doesnt really make sense on having bitcoin banks since there are lots of wallets to choose from and if theres a bank then what would be the purpose of those wallets on the market? Thats why they are being created so that we do have the full control of our money and if theres a bank then for sure no one would really chose to put their bitcoin on that one,considering on the tax or fee charged on storing on it there.

I think this is not quite so

Web wallets can pretty well cut it as Bitcoin banks. Indeed, if you consider as a bank only institutions that loan out money, then this is next to impossible with Bitcoin due to its devastating volatility. On the other hand, some of our regular banks aren't involved in loaning money either, especially banks established by large corporations specifically to process payments and nothing more. So this is not a prerequisite for a bank, at least, these days. Further, web wallets now issue payment cards which is what most fiat banks do. They don't pay interest but in today's perverted world, banks even demand you to pay for just keeping your money in the bank (welcome to negative interest rates). As you can see, there is not much which separates web wallets from what can be loosely called a bank nowadays

I believe that Bitcoin banks should not exist at all because it does not level the very concept of crypto currency and their capabilities. When I imagine what the current banking system is doing, I do not want to do the same with bitcoin.

I am agree that the idea of bitcoin bank has no sense. We all can be our own banks, just with such moment that we can't take credits in bitcoin on this sources where we hold our coins.

In my thinking, maybe to make bitcoin legal. By use of bitcoin bank, the handler can be restraint and it will be a assured signal for the government. It will make the administration sure to be able to autorize bitcoin/cryptocurrency or obtain bitcoin.

yeah idea of bitcoin bank is useless because bitcoin have already secured wallet and other system is already stable then we do not need any bank , and bank is just a wastage of time we can easily buy anything by bitcoin on internet so bitcoin is much more better than banks.

I think bitcoin bank is a very nice idea. If there’s bitcoin bank it may help all people who use bitcoin because it can help them to loan and to withdraw instantly.Laslty, i hope someday all banks in the world will accept bitcoin.

Bitcoin can replace the need for bank deposits and bank accounts.
It can overcome bank transactions...but..

If more and more people say that bitcoin is not a solution for micropayments, then you'll have to convert you bitcoins via a...upsie  Bank!
Also , there is no way people would be able to take loans via the current blockchain.
And good luck getting your money back from a  bad loan.

My indignation does not have a limit and I can not. It's possible to understand completely the whole point of Bitcoin Bank, but I'm completely sure that it will not differ much from those banks that exist now. Today the world financial system has taken a lot from cryptography and therefore they can work generally without Bitcoin. But for a simple Bitcoin user, a bank can only be a burden.

I personally don't like any entity having control over my coins, but there are enough people that see value in such initiatives. But the main thing is that current exchanges and wallet services are already some sort of a bank. You can earn interest over your coins, you can get loans, you can get a debit card, etc. That being said, there is already a bank that allows people to view their Coinbase balance within their banking environment -- it's a first step.

Me also don't like bitcoin bank. now we are using this bitcoin without any restrictions from our govt. Suppose if we have bitcoin bank then all transaction should be done by legally and every transaction we need to pay extra tax to govt. In my country, we are already paying up to 30% tax to govt. So we are not interested in paying extra tax again to this Bitcoin.

There are so many things I can not figure out about the idea of ​​creating Bitcoin Bank yet. And so many questions arise from this situation. But it seems to me that if Bitcoin Bank performed all its functions properly, then every Bitcoin user had legal support and that would be a guarantee of legalization of the crypto currency. But nevertheless, the banking system is always few people, including Bitcoin users

Having bitcoin bank is a good idea for me.Bitcoin bank will help all the businessman in their business and it may use it in there transaction because I think it has low fees. You can also save your bitcoin in bitcoin bank and you some people can loan in that bank. If there’s a bitcoin bank you save your bitcoin easily and you can sure that your bitcoin is totally safe no ones will try to stealth it.

No need to have literally "bank" because your account is already your bank and you are sure enough of what is happening to your every bitcoin because you are the one already managing it. Yeah in other sides it a good idea also but who needs it when you are already dealing with less hassle things right

Exactly, it seems people have forgotten that one of the key components of creating Bitcoin was to do away with a centralized system and so those suggesting Bitcoin banks are actually not acting in good faith with Bitcoin.

Bank is a money-saving tool that we have. Bitcoin is an electronic currency, I think the account we have is working pretty well in saving the bitcoin we have. If you think about banks in general. I think this can be done if bitcoin is really in use by everyone. But I do not think so. Because if we think about the bank literally, it will only complicate the way to the transaction. Maybe a 30-year-old bitcoin bank in the form of a literal will exist.

to me i am not in favour of bitcoin banks in fact my bitcoins are in my online wallet and i always found it as the easiest way of making money.

I don't get it, what would bitcoin bank offer you that you don't already have with your wallet? monthly interest? never understood the concept of a bitcoin bank. Also, we'd be probably paying 2 fees, banking fee and the transaction fee, maybe...

If someone establish a bank we should put in mind that it talks about money,  we need to trust in each other. Putting our account on dangers.

If Bitcoin will have it's own bank that would pertain to a World bank, remember the users of bitcoin are all over the world, how would it be possible to have a one bank for all bitcoin in addition to the fact that there is a limit number of bitcoin circulating the market, I think it's more convenient to have the wallet that we are having now, it's more useful and has no limitations, anyone can make transaction every time they want and in some instances it's very safe that you do not have to disclose much of your information unlike if there is a Bank we all know they are very strict in implementing policies.

The reason why people are happy with the decentralized system is because they do not trust banks.
Banks are centralized and they can access our information anytime which is very risky especially if you have a lot of money
as they can easily freeze your account if you cannot explain your wealth, in bitcoin there is nothing to explain so we do not need bank.

There are already bank problems in real currencies.
Checkout Deutche Bank status. If you deposit your coins to a bank probably you will be goxed asap.

That is a tricky question

First of all, why should anyone act in "good faith" toward Bitcoin? Something like that could be said (mostly hypothetically, anyway) in respect to early adopters who didn't buy their coins and who received them mostly for free. But if people bought the coins with their hard-earned money, it is somewhat hypocritical to demand that they should remain loyal to Bitcoin. Further, I don't think that Bitcoin "banks" would act toward Bitcoin centralization beyond and above the level of centralization already achieved by miners. In fact, more independent actors in the system (including banks) would make the system more decentralized, not the other way round

Having a bitcoin bank in itself is a good idea with the implementation which is going to run more like an escrow but in this case on a larger platform, however, how it will work out is where my concern is because the moment the discussion is on like this, then someone somewhere is already thinking of implementation. In the sense that we all have our individual wallets which is more like our banks, the encouragement to put money in another place to serve as bank is to get a form of return on such. What are what this institution will engage in to make the return available?

The idea of a bitcoin bank is certainly not a good idea because later if you want to create a wallet required complete verification of data and all transactions will depend on the bank.

If have Bitcoin Bank, it will not anonymous and privacy as the define cryptocurrency of Satoshi Nakamoto when create Bitcoin and Blockchain. I think the community of Bitcoin will disagree this issue if they want Bitcoin still running true to it's essence

Banks may eventually play a role and give the option for customers to have Bitcoin with them.  I'd assume mainstream folks that have trust in their banks would prefer this.  Sort of like an exchange but integrated with existing bank accounts.  The rest can use wallets with private keys.

Bitcoin does not need banks. He himself performs the functions of the bank. People can easily use it without intermediaries.
Banks will not be able to use bitcoin for their own purposes, they simply will not find customers for such services

Exactly, we can be a bank of our own and we don't need to trust our money to other people as there might be a big chance that it can be stolen.
This is the new trend in the future and from centralized to decentralized it will protect the interest of the people.

I dont think there will be a need for banks for bitcoin. We can keep it safely in our wallet and if we want to invest, no need banks. Transactions are done with out the help or connection with  banks.

I agree with this, i do not believe that Bitcoin needs a bank. One aspect of Bitcoin is being anonymous. We can trade, buy and sell Bitcoin without needing any security verification.

Also if all Bitcoin were mined and if we have a Bitcoin bank i am sure more people will lose their interest on Bitcoin and the value of it will definitely drop. Still remember that Bitcoins price are still dictated by the market or the public.

There IS a need for cryptobank. Savings, trading and investments are not the only services banks provide for people. We still can't pay with Bitcoin or any other coin at the supermarket, right? This the first need. There are other needs, but I think this one is enough already.

Anonymity is not the only aspect, and not the crucial one. Blockchain-based currencies aim to solve the problem of intervention of the central regulator.

Bitcoin (as well as other cryptos) is not fiat

In other words, you don't need banks to pay with bitcoins at the mall, and while you still can't pay with crypto for everyday goods directly in most cases (apart from using Bitcoin payment cards, obviously), this is not due to lack of Bitcoin banks. If anything, there are well-known web wallets which pretty well cut it as Bitcoin banks in respect to payments but this still doesn't change a thing. Though I agree (to a certain degree) that our regular banks accepting crypto would likely facilitate such payments thanks to wider knowledge and recognition of Bitcoin and other cryptocurrencies in the world

I bet a lot of people hate banks, and I hate them too. But the bitcoin ATMs seem to be banking. The important thing is that big boss do not affect our life :)

Bitcoin Bank, i think couldn't happen cause bitcoin base on blockchain & cryptocurremcy. Means no serial number like real currency, no limit transfer per-transaction, every address doesn't represent the person cause no one know who the owner hash address. If loan who can trace where from the transfered. Many issues can't make Bitcoin centralized on Bank. Even i still hoping someday bitcoin will become first cryptocurrency use on everyday needs.

Banks are for what? Considering that we do have lots of wallet which can be used to store up our bitcoin without the need of using those services.Its just a senseless thing to have a bitcoin bank.For what purpose? On securing giving you out some fix interest rate? Hell No. It would just still acts as traditional banks and they are making hell out of money from your bitcoins specially into its price inflations. Banks will only adopt blockchain technology for their future upgrades but i dont see a reason for bitcoins Banks to exist on the future.

Bitcoin Bank it quietly great idea for the future bitcoin and will save more bitcoin and grow your invest to double your bitcoin.

This is totally a defiance on the term decentralize. once someone controls it, specially the banks it will be a centralized currency.

I strongly agree if the bitcoin bank, lend to bitcoin with a fairly low interest even lead.

This is just a garbage! just imagine it a little bit, it would a completely dissaster! banks are just the opposites than bitcoin, and all the banks have been tried to avoid bitcoin at all costs, so it is not possible to happen, and just a bank of bitcoin, i dont know, i can not imagine how it will works or for what purposes it might be created.
Bitcoin is not centralized, and if you create a bank, this is just the opposite of why it has been created for..

Problem banks bitcoin is not only that it is a decentralized currency. The existing banking system may not be applicable to cryptocurrencies. It is completely adapted under Fiat. Banks can only organize the transit of cryptocurrency but it will not be interesting to users because the banks do not trust and all information about users will be available to the government.

Isn't bitcoin here to end the dominancy of banks? I think that a bad idea. :|

even if there will be a bank i will not let my bitcoin be on them ! why ? bitcoin is very cool on its way now! you can access in jusst a click you can sell if you think it will dump and buyy as many as you can if yoou know it will pump ! if there will be a bank it will be look as FIAT, bank will control it !

Why should we have a bank. Without bank, bitcoin is well secured in systems. All transactions are much faster. The transaction fees are very low. Every one has wallet, so its much safer at hand than bank.

Bitcoin bank will be really a very good thing it will make the lives of the owners of bitcoin much easier. The only thing which will decide this thing is the legalization of the bitcoin by the government. Only then it is possible to see any bitcoin bank in any country of this world. There is no way that there will be any bitcoin bank without the approval of government.

Who need banks if bitcoin is available and legalized in the region banks keep profit to themselves and simply return the original amount of investor and on the other hand bitcoin is just delivering all the profit to the investor and in future when cash will be none of use then banks will think to upgrade their system and they will start accepting bitcoin and that will be great.

Ripple do have some resembling feature as you stated here. But the question is IF such bank is formed....Who will be Administrating/manage this bank? Being decentralized nobody can control or regulate BTC transactions, So if there is no control there is to guarantee of re[payment of loans.

It seems to me that if Bitcoin Bank is created, each user will hold very strong control and this will completely affect all the advantages of the crypto currency. To date, the authorities and governments of countries in which Bitcoin is legalized can act in the same way, or they are already acting in this direction. But how will one bank differ from the existing banking system.

We're running away from the common institutions like banks just to make another bank in BTC area? No, strongly disagree with you

In my opinion bitcoin platform is the largest bank in existence without a real owner. What I mean is its not the bank that we think, like (the world bank) where they manage the accounts and they have the money, the platform of bitcoin is decentralized yet we have the trust to put our wealth in this system and true no need banks if you want to have a real investments because things that go on tax is not really yours.
Please read and understand the picture :
https://i.imgur.com/CNsXp5P.jpg

Credits: Google

It is so easy. A company may invent using smart contract that can serve as bank - like our bank today but using Bitcoin. With smart contract everything is possible and everything will be so easy. No need for third party to process your application. Everything will be computerized and done thru internet.

I`ve already written about it, guys from freezone.one will establish Fiat Crypto Bank, it`s not only for BTC but I think it could be interesting for u too.

Bitcoin bank, i think is a great idea, because as far as i know having a banks it has rules and regulations and i think it is more secure than having Bitcoin wallets to store our coins. In this kind of world, where innovations and changes with the aid of technolgy, it is very possible to happen to have Bitcoin bank. And when that time comes, im sure Bitcoin is already totally accepted in the community

Good idea if there is a bitcoin bank where we can borrow or save bitcoin and have official protection from government without need to cheated.

Yeah I think ripple is associating with some of the banks and that's why lts price is going high day by day.
There's no bitcoin banks for now, perhaps in future when the number of bitcoin in circulation is huge. Now I thinking only bitcoins bank we have is our Bitcoin wallets, where you store and save your bitcoins.

I think it does not matter if the bank owner is a trusted person like the government, but you know that bitcoin bank could have been made by a third party who might have absolutely no security for sure? I myself not concerned about bank bitcoin idea, but you should know that bitcoin banks will make decentralized and anonymous of bitcoin lost, and I prefer using wallets rather than bitcoin banks,,

It will be great revolution in bitcoin and will make bitcoin secure and high in demand and all people who are now using bitcoin will trust bitcoin and they will invest in bitcoin at this stage of life. Today almost all people are trusting bitcoin more than any other bank and money storing service so it is main reason why bitcoin bank won’t be popular because of bitcoin wallets that are available now.

I am also actually confused with the future of bitcoin, because of the limited number of bitcoins will bitcoin develop?

I dont think someone would make it considering a huge gamble toward the future loaners and this may not be in trend cause we have so many banks in the world. It would be so much risky to start with and for a 21 million BTC to be loaned? Why you must lend it to someone if you can save it for yourself and still profit.

When I wake up and read statements like this I have the urge to go back to sleep.
Even if I had a nightmare, even if it means being late to work ....everything is better than this.

So we need a bank to keep our bitcoins safe.
Because banks can' t be hacked right?
Banks can't start freezing your account.
Banks can't be ordered by the government to take whatever you own over 100k euros like they did in Cyprus.

Let's all get drunk and stupid and deposit our bitcoin in a bank.
What could go wrong? Apart from everything?!?!?

What I’m thinking is— with this volatile price, how is the bank (if ever there would be) going to carry out the loans and interests stuffs?. I don’t know how to say this but I’m very confused on this. But, I don’t think this is actually going to work, it’s just not possible, and bank is not dealing with crypto.

There will be no area of verification for the bank loan of bitcoin, unless you give your wallet to them and the password to guarantee that you will lay. Likewise, bitcoins price is unstable, so how can they measure the interest rate for that.

Bitcoin is anonymous while bank impose to implement the KYC system.
If there is a bitcoin bank we should be following the law on the banking system and it will already defeat the purpose why bitcoin was created.

Well, the fact that this coin is deflationary does not necessarily mean that you cannot get interest from it. However I would admit that the interest rate would need to be too high and not competitive with crappy fiat currencies.

Bitcoin is really a very sensitive issue because coin is generated because it does not want to go through 3rd party transactions and does not want anyone to be able to track those transactions. If the bitcoin bank exists then the bitcoin will also be managed as cash now, which inevitably causes investors to disagree.

The whole concept of blockchain, bitcoin and crypto currency is already a form of banking system in a decentralized way. This whole concept will probably not survive if put under traditional banking as we know it and considering the fact that traditional banks thrive under some form of regulation under the government they operate. I am trying to see how we can effectively marry the two.

many of us expect that there will be a bank for bitcoin which is called bitcoin bank but. it actually exist but not in that way many bank is now accepting bitcoins cause we all know that bitcoin was so popular in this world cause bitcoin increase its value every time. so just relax and wait for the new bank.

It will have after a couple of months or years, it will really happen when there is already a law connecting bitcoin and bank regulated by the central bank, hope that it will come soon with less transaction fee so that we are free to cash in/out anytime.

Yes, in my opinion there is a Bitcoin bank in the future if Bitcoin is well developed and there are many new investors, but because Bitcoin is currently banned in many parts of the world, Bitcoin Accepted as legal and widely used as a surety currency many governments will accept it and I believe there will be Bitcoin Bank....

The possibility of a bitcoin bank is not far fetched and I believe that there will be bitcoin banks established in the not so far future.although it will be hard and will take time to work out the kinks but they will surely implement it

It is not enough to write a bitcoin-bank and expect that others will argue on this topic. It is necessary to explain the essence of the topic in more detail. The forum already has a theme raised by the POV team, where this team wants to organize an ICO to create a similar bank for digital coins. They offer only to tell them certain information about your coins so that these coins in your wallet can be blocked for the duration of the agreement with their bank. For this, the bank undertakes to pay interest in coins. I wrote to them many times and asked about the material interest of the bank itself, where the bank will take profit, but did not wait for an answer. Therefore, I am very skeptical about the ideas of creating such banks.

Well i think that the decentralization wanted to create a system without involving any bank activity so i dont see why someone should make a bank , even if we talk about loans and so on. Bitcoin is not ment to be part of a Bank, it has to be free with his algorithm.

At present, bitcoin is at the top in the online business. In my opinion, a bank has become necessary for bitcoin. So, if there were bitcoin banks, then people could trade from the bank.

yes being decentralized means independent , so that it can work freely on its own without other institution or people controlling it. bitcoin does not need bank but we need banks for the local currency and fiats. We need banks in order to cash out or exchange our bitcoins. therfor banks were still pretty important and shouldnt be disregarded by any means.

Banks nowadays are also accepting and legalizing the use and adoption of bitcoin and any other cryptocurrencies. So i guess there is no need to create a specified bank for them.

Oh wow, old topic, myself I see sense in bitcoin bank only for safe holding there some of my coins, also will be cool if such "bank" would have deposit offer, with such unstable bitcoin price, % per year will be quite interesting. Another problem, that it will kill one of Bitcoin pluses  - anonymity.

Bitcoin can be produced on a regular basis if you work in a field or industry attached to Bitcoin use. Needs are gathered into one thing. It is time for rural communities to be accustomed to transacting through the use of bitcoin.

If bitcoin bank will issue loans in bitcoins at a favorable interest, then I do not mind using such service.
Just need to very accurately choose the time when to take a loan, and when to give. Bitcoin banks can also exist to escrow transactions of people in different countries in other to protect consumers from being scammed by an unknown criminal.

I think they would work just as he fiats banks excepting the factors that they would nopt give any interesets

They would give loans to people but with a surity of getting return withing the estimated time because else the price may fluctuate

I don't think that we need to think about it much because at this edge we are not limited with the bitcoin in Actual because see it like a normal thing in our daily life like , a thing which is available in access amount will have low value because everyone can get it easily and another side anything which is available in less amount will will have more value , so with the both of these we can take into consideration that bitcoin is in limit and valueof bitcoin will be high instead to increase the amount of the numbers of bitcoin , so here we should not see toward the limitof 21 million in bitcoin data algorithm .
And second thing it interest as in bank will be surely decided by the limit of the value increase because it will not be easy for banks to control bitcoin's rate but still they can control amount of profit as a interest for the lenders with Thier own rules .

We need to go through a lot of requirements first because we can take a loan.
There would be no more decentralization in the way, so I think there would be no bitcoin bank but only bank that will adopt with blockchain.

I was very happy to hear this. If in our country there is a bitcoin bank I find this really great. This will make me more commercially viable.

Bitcoin can indeed be a Bank. Because Bitcoin has helped many people in need. Especially for the affairs of investment assets. Although, the amount of Bitcoin is still very limited and there is only 21 million Bitcoin in the World. But I am sure that Bitcoin can be a good bank for its users.

They would just act as a center of storing and managing the issues of your portfolios by the aid of effective management boards

Yes there are banks - they allow you to store Bitcoins online and to do transactions from a mobile device (as it's impossible to do a real mobile BTC client because you need to carry the whole transaction chain in your pocket...), or change your bitcoins into other currencies. They're not called banks due to regulatory issues, in fact they'll probably go out of their way to claim they're NOT banks, but in practical terms they are.One of them was MtGox - and there you can see all the regulatory issues they're dodging... if a real bank had "lost" money belonging to their customers, the CEO would be in jail now (or the government would bail the bank out)..

I think bitcoin will be more like the gold reserve

I don't think bitcoin is meaningful, because each of us can protect our own bitcoin well.

In fact, BTC itself is decentralized, and it is unnecessary to make a bitcoin bank.

I don't think a bitcoin bank would work like thar it will definitely make money from transactions fees it will charge clients monthly or annually but it won't be able to make loans because every time a bank makes loans it creates more money and that is what drives inflation yet with the limited amount of bitcoin that is impossible.

i think bitcoin banks do not works as lending institution, maybe it will work best if it will be intended to store you bitcoins and earn interest to add up on your savings. if you will loan bitcoin, since bitcoin is volatile the principal amount could incur interest but hard to compute, unlike when you loan in dollars, the computation of interest is based on the current rate of dollars. and it is fixed.

I do not think there is a bitcoin bank, there is only a wallet of wallets to change into the currency of each country through banks, and banks will take fees or taxes in the process of exchange from bitcoin to conventional currency.

Bitcoin is proven to make it easy to buy bitcoin by bank transfer or bank account and without involving a 3rd party.

To date, the authorities and governments of countries in which Bitcoin is legalized can act in the same way, or they are already acting in this direction. But how will one bank differ from the existing banking system.

I was having a different opinion about this concepts but now, I am convinced with the idea of decentralization. It doesn't make any sense to keep money with someone else if the core concept of blockchain is all about decentralization. We can see that there are some decentralized exchanges coming up but those are still in the basic phase of development so we might see something that would be similar to the banking system without centralization.

BTC market has many holes, high risk, if set up a BTC may business failure, I think so, the BTC price fluctuations over time, increasing in the future. Currently no one dares to raise capital by BTC.

BitCoin Bank is a very simple concept. This will be the Safety Deposit Box system for the .dat file account. The bank will not know who the customer is or how much in the storage box. They only charge a fee to keep the file secure .dat. A good bank will look at supported boxes around the world and even physical .dat files in the form of binary prints for emergency recovery. (eg, pulse EMP takes all the vast electronic world or something of that nature). You can recover your physical print binary file and start typing data in new to restore. It would be very inconvenient but hey if there is a million dollars in there I will type for you.

Bitcoin is a bank. This is useful for almost everyone and it is beneficial for everyone.