Bitcoin Forum

Apart from the corona if you look at other world affairs banks going bankrupt is common, in countries like India due to waiver of bad loan banks are losing it's reputation and had to be merged with other banks and set a limit for withdrawal, same goes with Lebanon as well. As per one of the source the banks in Lebanon have only 1/4th the about deposited by civilians which is enforcing them to set a weekly limit for withdrawal until they find a way out. If this continues then people will stop trusting banks and turn towards crypto as a form of digital banks.

Kindly share your opinions?

I'm not familiar with Lebanon, but government have bailout plans to help out, like the US stimulus bill of record proportions. It's supposedly a relief package so probably the government of Lebanon might go that route, or worst print more money. And yes, this could also create more demand to bitcoin and the rest of the crypto, and with unlimited cash, we might see people going to hedge it against BTC, so I expect the demand grow higher with this kind of bailouts from governments around the world.

As far as trusting banks, the institutions have been with us for centuries, and most crypto enthusiast doesn't trust them anyways.

Sure, eventually. You have to consider how hard it is to break established cultural norms though. Banking goes back at least to 1,500-2,000 BC (4,000 years ago). It will take a lot for the world to transition to a new monetary paradigm. Banks have been failing for centuries and even millennia, and many currencies have been reset over the years by central banks. Regardless, the paradigm continues to persist.

"Being your own bank" may eventually become the new paradigm, but that could be decades or even centuries away. One thing I've learned over the years is to never underestimate the likelihood that the status quo will persist. Humans invariably tend towards stability first and foremost until they are pushed to the limit, which is when revolutionary change finally happens.

First, if the banks have much larger withdrawals than deposits, then that would simply mean they should be closing. If the money going out is bigger than the money coming it, then there is no profit to begin with. These banks should cease operating. This is not a failure of the banking system; this is a failure of the particular banks caught in such a situation.

Second, crypto is in a way personal banking. Those who have crypto accounts or wallets are, in one way or another, already banked. They have a storage, a currency they can spend and withdraw anytime, and a payment system. They don't need banks anymore with that.

I think they're putting limits so that they will still have enough funds. You know that this situation is understandable and people are in panic that's why setting up a limit per withdrawal is a must.

What if those huge deposits will start withdrawing their money at the banks at the same time? The advantage of holding bitcoin is that you hold your own funds and there's no need for a third party.

I'm sure that India and Lebanon have central banks,that will try to save their banks,if they fail to save the banks,there will be bankrupts.However,the disaster inside the fiat financial system won't lead more people into using cryptocurrencies.If a bank goes bankrupt,all the people who have deposited money there will lose their savings,so they won't have the money to buy cryptocurrencies.
Many merchants still aren't accepting cryptocurrency payments for foods and remedies(which are the most important good in a crisis).What's the point of buying crypto coins,if we can't use those coins to purchase food and remedies?

Many places bitcoin beginning to announce the withdrawal from the system. Is there anywhere that has not encountered this problem?

I personally think there are a number of reasons why banks experience bankruptcy, so I start to explain things that are the most rational to things that are ignored because they are religious.

1. The banking business is a sunset business because of banks 5.0. Banking can now be done by non-bank institutions such as Paypal, Skrill, Alipay, and other payment platforms and market places. So far, banks are synonymous with institutions that can provide loans when customers need capital, now many online applications that provide loans in a matter of hours starting from a small nominal up to USD 10,000.

2. Saving is already considered millennial as an old-fashioned thing, they prefer investment through an equity crowdfunding company, with an investment value that is not too large.

3. The majority of banks use a fractional reserve system, in simple language the amount of money printed is many times more than the real collateral owned. So, when there is a massive withdrawal of money by bank customers, will collapse. Not the wrong bank but the system used is wrong.

4. The majority agree that all religions teach goodness, regardless of whether it is right or wrong to only explain the phenomenon that occurs. In the Islamic religion, the system of interest imposed by banks is included in the category of very large sins. Conditions that occur in the world today are a significant increase in the number of Muslims throughout the world equally. the forecast of the end of time is growing religious awareness so that many Muslims avoid conventional banks and keep their money in Islamic banks.

The momentum of fear of using physical money because of the potential to spread the coronavirus can have a positive impact on the education and development of digital currencies (E-Money, cryptocurrency, virtual currency). It's just that in these uncertain conditions, people need guarantees so that the electronic money (e-Money) will be more an option than a cryptocurrency.

It is not the gain of any party here , nor bank , nor cryptocurrencies .
The cryptocurrencies can only work , if the bank is actually in tune with them , it is all connected .
People buy and sell according to their banks and they play an important role in letting people involved with the cryptocurrencies so I do think , if bank falls , cryptocurrencies will also have a major setback .
Yes people might be switching to cryptocurrencies for buying and selling but at the same time the banking system is really really important and for the time being , where people are not able to return loans and pay off, I think this will pass and people will be able to return things to normal very soon .

Your statement is not entirely true here, especially about Indian banks. Recently we had two cases - PMC Bank and Yes Bank. While Yes Bank has now come out of problems because it is getting funds from the government and other big banks, PMC bank is still facing the crisis. But you need to understand what happened to PMC Bank. It is a classic example of fraud management.

The management of PMC bank lent 87% of their deposits to only a single company called HDIL. The company failed big time and hence PMC is facing the heat. They are still in talks with the government for bailout funds but things don't seem to materialize yet. It has nothing to do with the overall financial crisis.

Ideally, in such scenario, cryptos should have got immense popularity. But they aren't getting that either. Because of the worldwide uncertainty during this virus outbreak, a lot of people have lost their jobs. Millions had to close their business. So the world is now walking through a very tough time. So I don't think we will see an immense gain in crypto prices anytime soon. It's all about time, mate! Things will become normal but as of now, nothing really looks very strong for cryptos, nor for the economy in general! 

TS you overestimate the majority of people thinking that if they are disappointed in the banks, then everyone will run to cryptocurrency.
There are enough examples in history for this - in the end, banks just changed a LITTLE/just changed their name/reorganized, people were a little dissatisfied, and then everything went back to its place.
Fiat reject is too radical a step - at the level of abandoning the gold standard

I think the banking system and cryptocurrency business are related some how that a boost in one would have an effect on the other. Bank might have lost from crypto because investment in crypto was reduced drastically and of course, gains were not made and monies won't get to banks.

Yes exactly that's where it leave an opening for crypto as users don't have control over their funds when they save it in banks which they have started to realise and Bitcoin can be their next choice especially of those who don't mind taking risks and those who just wants control over their money but don't wanna make any profit or loss ou of it can opt for stable coins.

Having our wallets, we can fully have control with our money.

Just never forget to use wallets that gives your private keys so that you can access it anytime you want. Avoid the wallets that doesn't provide seeds.

Banks are actually dealing with such thin margins on the billions of dollars they have that people are forgetting how big their budget is. I mean when you want to invest 1 thousand dollars that is quite easy, you can find multiple stuff, when you want to invest 1 million its still quite easy, 10? easy, 100? gets harder.

When you want to invest ONE BILLION DOLLARS into anything, that is too much, that is leaving you with only few options you can use and banks are dealing with only those options and we are talking about trillions here, trillions of dollars trying to keep churning up profit for the shareholders is not something easy. What do they end up doing? They literally just risk it all to make more money, they do very risky moves and that results with them going bankrupt as soon as things turn out nothing like they expected.

bitcoin will be up in a few weeks, just after halving, we all wait for it
answering the main question - imo no, crypto is in the same economical boat as banks, so if banks will lose a lot - we'll meet crypto at the bottom of the sea

Obviously, banks are setting a higher bar on withdrawal since people are panicking and you can already see it on different countries that is hardly hit by the virus and economic crisis, mostly in major part of europe. It is a MUST for a bank to survive a hell of the time, not just for them but also for their clients not to overly get their cash. Banks are not just for storing but also for controlling money flow.

I guess that is not possible. Bitcoin have so much potential in this kind of situation, on top of that is the ease of third party in every transaction what only you need to think of is the fee.

In general, everyone loses, without money, no market works. But this is a good opportunity for people to see the advantages of using cryptography (here in my country people are flocking to banks to withdraw money).

The banking situation is almost the same in many developing countries across the globe. I guess there is still more to be done by the traditional banks otherwise they would keep on collapsing or breaching financial laws that cause them to merge. The world financial economy is changing and is about time banks in developing adapt before they are left behind.

With the situation, no doubt bank are losing money.

There is a panic happening, people will deposits will certainly withdraw their money to secured the funds needed during the home quarantine and we don't know when the quarantine will be over or the life to be back on normal. When there is a massive withdrawal, banks will be short on its cash inflows as they can't also collect loans now as people are losing their job and business establishment are close.

Hopefully this would result to the growth of bitcoin, one will suffer, the other should benefit and that is bitcoin IMO.

i heard banks are on quarantine too  . i mean they wont allow people to withdrew but some give small withdrawals only  .

lets say if there is no crisis and banks dont do this idea  i think many people will still switch on cryptos because they realized that cryptos can also work just like a bank while other crypto users will prefer banks more than crypto because they are not confident with the volatility  . so your right with your last sentence  . one loss is anothers gain  .

the major impact of coronavirus was bringing more worries to many branches of banks, the truth is, it is not easy as crypto-traders because it also strongly affects cryptocurrency, because the panic movement has existed so there is a possibility of finding more different options for our daily basis, even if we can say that cryptocurrency is the tough and central bank can't handle it I think it is suitable to support them at the same time of need that we are all in place of risk because the bank is also guides us.

They have to control it so that there will be no influx whenever the majority of their customers start to panic withdrawal. It's also a bad time for them because they shouldn't stop working despite the lockdown.

I think you don't get what I'm saying.

Thanks
stopwatch (https://stopwatch360.com/stopwatch/)

The banking crisis has long matured in the world and in individual states. We see that the banking system turned out to be ineffective. You may only look at the most powerful country - United States. It has a huge national debt, but you can print as much money as you like and flood the economy with dollars. Deutsche Bank in Germany is a huge minus. It is not normal. Therefore, the crisis of the banking system is inevitable. And many banks will go bankrupt in 2021.

I think this is an important reason but it is not the only reason why people leave banks and go towards Crypto, there are sure to be many banks that have declared or will bankrupt, in addition to you mentioned there are banks that do not have sufficient balance and do not allow people to withdraw their balance as they want, Like the Bank of Lebanon.
There are other reasons, the most important of which are the centralization of banks and their complete control by governments and the ability to monitor or freeze the balance of any customer in these banks without sufficient reasons and so on.
Soon people will realize that this banking system is corrupt and they have to replace it with Crypto, but that needs more time because there are also problems in the Crypto System, the most important of which is the refusal of governments to deal with Crypto so far.

Of course not. No one can match the central bank that if all of them around the globe combine. Bitcoin may be one of the largest money involve but it can't also take away the fact that fiat is the original and the basis for the value of a certain countries economy. I cannot attest to this claim but I am pretty sure that bank could not loss to cryptocurrency or bitcoin.

But in terms in individual gains the  bitcoin is better than anything elese.

i don't know, these things mentioned here are too tiny when you compare them with the horrifying corruption that has been going on in banking system for decades. it even became public after it led to 2008 recession but nothing changed!
people still continue trusting and using the same corrupt banking system and only a very small percentage of them have moved towards bitcoin.

I still believe it is a long way if this revolution is going to occur. People leaving banking and adopt crypto means they will need to be educated about how to use crypto. If you check very well, there still millions of people that can't still access internet not to talk of learning what crypto is. In my country market traders are still putting money at home and still remain unbanked. This category of people are far from adopting crypto

The pandemic could be one reason why they're leaving their cash at their homes.

Cash / ATM withdrawals have lines due to social distancing and for them to avoid that hassle, they have chose not to put it on the banks.

This has also happened with the banks which lost their assets due people fading away with huge loans in millions. We know very well how kingfisher company put the bank into debts. Unless and until bank doesn't recover the money from their property everything is jeopardise.

Anyways, the fact that people will start moving towards the cryptocurrency is not much true. Considering country like India, we don't share much of the awareness regarding the cyrpto world.

Only recently people have started using the digital modes of payment when country's PM put-forth the vision of Digital India. I guess India is naive in terms of using electronic payments, and in that how we could expect them to trust whole new world of transactions and virtual currency! 

That will take time.

Banks are not supposed to have 100% of the deposits in reserves, because the government allows them to loan those deposits to other people in the form of short term loans or even home loans. The liquidity of Banks only becomes a problem when the Banks are loaning more money than what they have in deposits... and then too many people rush to the Banks to withdraw their money.

Fractional-reserve banking is the most common form of banking practised by commercial banks worldwide. It involves banks accepting deposits from customers and making loans to borrowers, while holding in reserve an amount equal to only a fraction of the bank's deposit liabilities. Source : https://en.wikipedia.org/wiki/Fractional-reserve_banking

Bitcoin cannot solve that problem, but people might decide to save their money in Bitcoin, if they do not trust their Banks.  ;)

Money in banks are only about digit, they are about the numbers. But, they are not really existed in the world. So, when everybody wants to withdraw their fiat into cash, this is happening, probably the banks will be bankrupt. And there will be financial problems or crises in the country. however commonly, there is a centralized bank in the country regulated and stated under the government that has the main and big role of the entire banks in the country. So they can help each other. however, if there is no, so, it will be probably for them to go bankrupt. Because they can't meet with the needs of the cash. they only have and save the digits.

I agree with op and with the topic headline, everyone disappointed will search for alternative, and crypto is that alternative. It's a question who can move completely to crypto, there're many legality questions, but even little by little people will move from banks to crypto eventually.
It's something that happens every day, more people are joining and crypto community is growing, little by little there're more of us, and one day the whole world will be crypto, it's how I see the future, because crypto is better in many ways and it's why crypto will win the race.

This is not completely true, at least not in countries of western democracy. Banks don't babkrupt over night and governments don't have the insight in.customers data without any reason and without regulatory body.
Yes, cryptocurrencies are alternative to banking.system however ww still can't rely fully on.crypto and ignore banking services. Everything has good and bad sides and so cryptocurrencies and banks also, there is no black and white situation.

If certain banks will continue to cease their operations due to bankcruptcy, then it will develop more urge for people to have their own way of banking like what crypto has bee offering. This might not be realized nowadys but i'm postive that in the next decade, more people will be interested in it since they will be controlling their own money without the presence of banks.

Banks always have less than 10% of what people deposit right there in the banks in the physical form, rest of the money is paid to the people in form of loans on which banks gain interest and then pay a small percentage of that interest to the depositors who had money deposited in their savings accounts. Now in the pandemic people are not able to pay loans, banks aren't working efficiently and on top of it the general population needs cash for their survival so how can banks pay the people what they are asking as whole. But this only makes the crypto a preferable choice over cash and not that the demand for crypto banks will increase because people are still afraid of cryptocurrencies because of the number and magnitude of scams related to cryptocurrencies.

I don't think so, this is the time that people need money, so they will have to give what their client is withdrawing.
They can;t be in quarantine as they offer basic service, yes, banking belongs to the basic service but they are imposing the proper measures when going in the bank, to tell you, I just withdrawn some funds recently, and the new normal was what I witnessed.

all return to the role of the government to provide an explanation so that there is no large-scale withdrawal of funds at the bank, because it will clearly trigger a large loss to the state no longer to the bank whose customer funds are taken.
because the state must provide bailouts to banks for all transactions that result, so banks are unable to pay customer funds.

but if there is a role for the government and can provide explanations that are acceptable and willing to go down to provide assistance. will provide peace for customers not to simultaneously take their funds at the bank.
information and explanations in difficult times like this are needed so that there is no neglect from the government of its citizens

This is absolutely right. You had made such great and very comprehensive answer, mate. And I agree every words you said, that's actually true.

Good for crypto users. The pandemic had really exposed the vulnerability of the financial system which is why this needs to be replaced by crypto which everyone can bank their own funds in their own wallet that they don't have to submit anything forcing individuals to pay something while their money is already with them. 

There are also banks in my country that ironically declared bankruptcy despite them that can legally launder money.

Bank will probably become bankrupt if that is what is happening in their operations. Huge outgoing than incoming money is really unprofitable for the banks. But the banking system should do more and become flexible so that they minimize the losses that they are experiencing when that happens.


That's what is good in using and manipulating cryptocurrency, it is centralized and you have full control of your assets. They are the one who are making their own fate towards their money and they can balance their withdrawals and deposits through their personal crypto wallets.

Why would the bank become bankcrupt if due to withdrawals only, as long as they have investors, I think they can pay the withdrawals.
Besides, when someone withdraw, they deposit first, so I don't see the sense here, and if they ran out of funds, the central bank are ready to bail them out.

Enlighten me please.



The thing is only few people trust crypto, there's no massive adoption first, so even if crypto looks better as we can do banking without a bank, but without the trust and confidence of people, bank will remain on top.

if there is no solution to solve the problem, chances are people who are very familiar with crypto will leave the bank, they will switch to crypto because crypto itself has the freedom to make transactions, withdrawal in any amount can be done by crypto. even if someone needs money some services on crypto can provide loans and of course over time if there is no solution that can solve this problem, most people will definitely prefer crypto

depends on the crypto service you are using . on the wallet that i use there are restrictions but i can lift these limits the higher the level my account gets  . when it comes to loans there are loaning service here but they all require a collateral because of our anonymity that fraudsters can easily get away if given an oppurtunity  . on some loan service they need more , more than a collateral such as kyc and others.  those are the problem that people will look out before they decide to switch

After there is a vaccination for corona I am sure that banks are going to make lot of money because people don't have any money to recover their lost business so they should have to go for loan as their only choice by that time banks will be making their profits of life time.Some banks might go bank rupt but in general they are going to stay here for sure post covid.

Maybe coronavirus was a trick to transfer money from people to the banks.
Obviously people all around the world have become economically weakened during the pandemic crisis and their incomes are shrunk. If they want to keep living they have to get loans or sell their wealth in order to continue living on the same pace as before coronavirus.

Myself from India, the government is acting at its worst. The reserve fund that has been kept aside for emergency needs were taken and has been diversified to different plans. As banks weren't able to withstand the situation banks were unified and functioning under RBI.

Banks were losing as people have begun to go on different other form of investments than just saving. Majority of the public sectors which were under the government's control were sold to corporates. Someway people are made to suffer out of the ongoing governance.

Don't forget that the bank business is very skewed, as we have seen in the last 20 years. If bank become in trouble (for example for giving out to many bad loans which start to default all at once) then the losses are to big for the banks to handle. In an economy it might be acceptable to let one bank go broke. But if the all banks do the same trades and become insolvent. Than the government has to bail out banks and the losses are transfered to the government.
So when banks make money it for their employees and shareholders, but when the bank losses a lot of money, it's for the average Joe. Who will have to take over the losses through higher taxes in the future when the government bails out all the banks.

I have to agree that banks will rise again once this vaccine is available for public. And they are one of the businesses that is in continuous operations even during this pandemic. But I don't think bank's loss is crypto's gain, because not many people even up until now are familiar with crypto. Not many of them will go to crypto as they have no idea how to transact business in crypto.

Yup, the government will save banks by using bailout funds. In almost all countries, banks are indeed prima donna and are considered the economic pulse. The government also issued a series of policies to protect bank business. By reason of the stability and safety of the country's economy, the government will save banks from destruction. Banks are a sunset business because banking transactions can now be done by non-bank institutions. At this time there should be an awareness that the banking is old and the fact that there is something about the bank that is causing economic problems and the bank is actually controlled by plutocrats who perpetuate oligarchs throughout the world. We must agree that if the old system cannot work, then the new system applied by several countries that have been proven to work can be applied.

At this time of coronavirus banking activities are decreased in my country Venezuela. Fortunately, we have already implemented the use of electronic banking and payments to businesses and individuals through mobile payment. Because if we did not have these services, banking would play an almost null role at this time.

The future of banking needs a restoration from now on because crypto is responding to the gap they have left by not offering services fairly.

Banks were termed to be the backbone to an economy. So, without doubt governments will try to keep the banks on the safer side. Looking the market condition of cryptocurrencies it looks like pure gain and banks and stocks keep failing. Everyone are clear about the recovery period, none knows how long it'll take. Upon the same countries will plan to be on the safer side without much of downward deviation in the growth rate.

I'm no expert of finance but isn't this is the bank's managament's fault?
In my opinion, civillians do have their choice picking the bank they want to use. Even though there are tons of tired banks but there is or will be other bank to start operation. Crypto currencies aren't in the position of trust enough for people to start putting trust in them and say goodbye to physical banks.

The current financial system is heavily damaged because this is what we use now, imagine if we are using crypto don't you think that the economy won't go down? same fate will happen because there is no solid financial system with a global catastrophe like this pandemic. Every thing becomes vulnerable when there is a huge cloud covering the city. Now the alternative is rising, I don't think we are going to adopt the crypto, banks are introducing a new form of currency (CBDCs) which we might use in the future alongside with the fiat currency. As I see now, there is no government that will support, fully, the crypto.

Could you explain this? How did you know bout this?

There are many banks whose management system is very bad. Banks don't work properly so many people leave the bank and their existence goes down a lot. In that case, the bank incurs losses and the demand for crypto increases. In crypto, everyone can trade independently. Stocks are more likely to fail because they do not depend on the economy. In the case of banks, if the economy suffers, the rate of the bank decreases but there is no effect on crypto.

I would love to agree with your idea, but for me it seems too unrealistic.
There is no way for crypto to not being involved in global economy, because both of yours "bank" economy and "crypto" economy parts are tied up on people using them.
So if there is an economical issue, for instance people constantly loosing money due to quarantine, banks will suffer the most -> people will try to use crypto as safe haven -> crypto price increases -> shortly after "last" human that wanted to save funds will invest in crypto the price of whole crypto market will fall badly.
Thus being said I believe that crypto market bull run is going to last only if people will still use banks, if whole economy will bloom, otherwise its only a matter if time before whole crypto market will dam.

On a larger scales, the banks aren't actually lossing, the electronical banking you speak about in most countries are been operated by the bankers, they just made everything easier by digitizing it. Cryptocurrency isn't yet popular in comparison to the level of patronizers the banks has. In the future we might be able to get a clear comparison but don't think doing that now is of any use.

Don't think there's much connection between the price increase of bitcoin and the banks failing, even though the banks were succeeding in their own way, we'll still be recording success within the space.

You mean the stock market will fall? No, it is also getting V shape recovery after the corona crash so no one actually is in loss except the salary class people who are the one ran out of money due to lockdown and big companies are still making the profits.Banks are always kind of bad with the middle class people and they will ask lot of documentation for the loan approval but we have no other choice than banks to get loans that is why they are going to survive even this corona crash.

Of course, government will not allow banks to bankrupt. They are going to survive in any way. Many people rely on banks and banks is the brain of fiat money that's why government will make sure it will survive. Also crypto is not yet accepted in most country or it was not totally use as payment method like fiat money.

Banks going bankrupt is a common thing to hear. But those are banks owned by private entity on a small scale (district etc). If you put your money in state banks or other well renowned banks such as Axis bank, your amount is secured, loans are passed with greater efficiency and there is no limited-on withdrawal except the fact that they will take some time for all the standard procedures.

But as the economy of the country is collapsing, nothing can be said about the scenario we will get to see of the financial structure of the country. Crypto can serve as a good alternative if everything is made convenient, scalable and efficient working product is delivered to solve financial problems. 

Even in my country, government has laid out big covid relief package plan to help the citizens out during this global pandemic. The relief package will surely be passed through the banks (centralized system) and not through something decentralized (like BTC etc).

I agree with your point that banks have been with us for decades and many people place their trust on them whereas crypto currencies haven’t been a part of the ecosystem for long. Therefore, it’s hard for people to place their reliance on such digital currencies during the time of pandemic and economic recession. Although, some might seek shelter in crypto market considering that it is acting as a safe haven in the bleeding markets.

The pandemic didn't stop people to withdraw or to save money.

While in the banks during this pandemic, they have to set limits to control the influx of their depositors for the withdrawals of cash. Because they were avoiding the shortage of cash on their ATMs or branches.

In my opinion, banks have started to lose money not only in India or Lebanon, but some countries have experienced this, especially in
Southeast Asian countries.This is caused by the effect of the corona virus which makes some people lose their jobs and cannot repay debt
repayments to the bank.Not to mention a few millionaires withdraw their money from banks and are transferred to investments such as gold
and cryptocurrency. Therefore the price of cryptocurrency is rising now.

The problem with this banks going down under is that they handle the situation lackadaisical which resulted in the mismanagement and control over the flow of cash in and out. Most banks in my country are faring well and I think the solution is that most of them have alternative that helped people from making transactions which gave convenience thus helping alleviating a total bank collapse. Crypto helped a lot of people in my country including me, this served as a source for me while there is still no schooling.

It's not far to happened as many countries from Southeast asia are in middle to third world countries,.

With this pandemic banking businesses are in declining positions.,

There are many loans that are not being paid and most of those banks really experiencing hardship due
to lockdown that being implemented by the government.

Millionaires who are keeping their money away from the banks and trying to find other means of investment, they are also affected of this pandemic thinking that collapse may take place.

Banks will be boycotted only if every government created their own crypto currencies which is already in the process of some countries like China, government is making huge money from the banks and banks are somewhat part of government but not entirely so for now government has no reasons to adapt to new system.

Some government have no choice but to adopt the cryptocurrency in their economy so that they can take benefits from it through setting taxes from any crypto-related transactions.

But still they chose to not accept crypto above all, that's why banks experience crisis and crypto is not that affected. If governments are including crypto in their banks, people will surely try to invest and engage in this improved system in their economy. We all know that China is really good in terms of businesses related activities so probably they will not let their banks to become bankrupt, they have a huge economy.

Haven't heard anything yet similar to that problem in our country, I never had any withdrawal problem with my money.
Bank run their business through trust, so reputation is very important to them as no one would entrust their money in a bank with a bad reputation.

If a bank would deny withdrawal, there's something happening inside already and that is corruption.
When bank accept our money as deposits, there's no rules that we should let it sit for a while, anytime we can withdraw that, so they are obliged to give that to us. Maybe due to the pandemic banks profitability are affected but it's still not a good reason to deny withdrawal.

If we can't take bank anymore, crypto is always open.

Well, banks do end up bankrupting but that is mainly due to them not really doing their due diligence when giving loans and that means people are not paying what they should (well what did you expect if you loan to people who couldn't pay you back) and also one of the reasons is the fact that they are not regulated too hard.

If a government says that banks will be regulated like crazy, that would eventually result with banks not making that much profit, since they are not profiting their shareholders will not profit, since they do not have that much money they won't be loaning out or investing to other stuff, since they don't do that everyone will have hard time starting a new business or find investment, all of this cripples the economy. So, as you can see banks took all nation under their blackmailing if they fail.

true, even though the pandemic does not end, it will certainly have an impact on banks. but the government will clearly protect banks so that there is no crisis because banks are a form of government participation or presence there. obviously the government will still be able to keep the bank going well by all means, even if it takes action to intervene so that recovery occurs in the banking system.

the crypto market at this time likes or dislikes to appear to lead to improvement, of course, very much awaited for investors who play in the crypto field. unfortunately there are still many countries that do not recognize the existence of crypto itself. in a situation like this, of course if the state recognizes, they can intervene to be able to take tax from every transaction in crypto to cover the leakage because it must be used for pandemic mitigation.

it is clear at this time that the economic growth of every country affected by a pandemic will obviously be disrupted and it cannot be denied. then obviously the government will try to take actions that can make the country not collapse. of course, by not taking excessive action in using the existing budget.

Do you think anyone would run a bank and defraud the investors and get away without facing the law. If it is a legally registered bank then there is nothing much to worry and they offer protection even if there is a theft.

No idea why would a bank deny withdrawal, if you are not dealing with dubious activities then there is nothing to worry and a bank will not close your account without a reason.

The fact is that the banking sector and the cryptocurrency sector have to coexist.

it is related to the supply of money in the bank. if the money in the bank runs out, the bank loses its power as a place to store and circulate money. I am sure the bank does not have malicious intentions let alone corruption.

It is true that several banks around the world suffer losses, the corona virus is the cause. Because customers have difficulty paying down
debt repayments, because some people lost their jobs. Several companies that use capital from banks are also bankrupt, this is indeed a heavy
blow for banks. Therefore the government helps banks by providing stimulus, it is hoped that banks can recover. It's very different from the
current crypto getting stronger, with Bitcoin continuing to rise in price. Perhaps many investors choose cryptocurrency because it is considered
a safe haven.

Banks are not reliable especially because FIAT itself is not reliable so yes I'd say in contrast crypto has some advantage in not being debased on a daily basis, it doesnt make it a success yet just less of a failure.     Its part of a bigger picture and some history going back decades to the second world war when at the same time a global agreement on monetary exchange between economies was being decided.    At that time, it was allocated to USA to be the major global reserve currency with the idea that all money would be gold backed ultimately via that connection and commitment from the central bank of USA, The Federal Reserve.   We know thats not the world we're in right now, hasnt been for many years but thats the legacy and reason why Dollar is so important.  
  Dollar has no link to gold and with such a large trade deficit anything else directly, its mostly based off politics and fiscal deficit spending.    Policy at present is very loose to try ensure events such as banks going bankrupt does not occur as this leads to losses and contraction between banks and in the economy overall.   All of this does and will effect BTC, we have inflation right now but deflation and losses from the ending to the historic FIAT system is inevitable.
  Overall the banks losses are going to be everyones losses, all we can speculate is that those with some holding BTC might do slightly better for being in a system isolated from traditional politics.    I dont expect BTC to be a life raft that saves us from all troubles, more a life jacket that keeps just above the waves of failure as excessive FIAT debt distributes and disintegrates its failed value.

Why some governments needs to adapt it? Banks can bring more income to the country than crypto taxes that is why government supports banks more than the cryptos and the reason for the crisis of banks are lead by the world's economic crisis and it affected by many factors along with covid 19.So people lost the trust on banks and converting their savings into hard assets.

The fact is that thanks to the banking system, governments can control the profits and expenses of each person, and cryptocurrency will make this information anonymous. But if banks provide services to users of cryptocurrency, then confidentiality will have to be forgotten.

The way banks are getting bankrupt is not a new scenario for there are really instances that banks get into bankruptcy because of mismanagement of the cash flow on which more have been given out and no money is coming in most specially at times like this pandemic that people tend to handle more their money on hands rather than putting it into banks added by the fact that people mostly are temporarily jobless that only means no income is getting into their bank accounts that make banks no cash in hand as of the moment. The circulation of money is outside the banks right now for people value the existence of physical money on hand rather than putting it in banks.

The crypto gains because at times like this people are seeking for alternative ways and opportunities of earning money amid with the existence of the pandemic and most people find getting into cryptocurrencies a potential way to be profitable of earning money.

Bank can't do that to their depositors, when they withdraw money, money should be available anytime.

Loans releases should not be taken from investors deposit but from the money of investors or from their borrowings in bigger institution.
It would certainly create a problem if they rely on deposits as most deposits are a simple savings account which is withdrawal anytime, and the definition itself, it should be given anytime.

I believe banks have an institution to help them, but since this is a global crisis, everyone wills struggle and banks not doing proper matching of their money will be expose as it will create a problem.

I am not sure about this, even if some people decides to turn to crypto do you think they will be turning fully to crypto or just a small percentage of what they have will be going in that direction? It is difficult to be relying on cryptocurrency because the price can fall and it might be at a time when you will not be able to deal with such losses. So, anybody planning to rely on crypto should according to a level they can deal with it and not too much to the extent that they won’t be able to handle it. As for banks, in one way or the other you will likely be in need of making use of a bank.

Basically I hate situations where banks will set limits on money that belongs to people, it’s so annoying. In my country, when you want to open an account with them and deposit money, it’s usually easy, but when it comes to withdrawing and other issues you might encounter, they will end up disappointing you. It’s really annoying.

Cryptocurrency is really different, I like the freedom it gives us, although we can’t fully rely on cryptocurrency, you will still be in situation where you will be in need of bank account. Hence, we must need to adopt the environment of managing both fiats and cryptos; that will help us to lead less hassle filled digital life.

With this volatile behavior for sure not entirely will be place to this currency, those wealth wealth
will continue be stored to institutional financial system.
Wealthy individuals always look for secureness of their assets, they are not willing to gamble with
speculative market, if not all but most for sure.



It's the right mentality, you need to make sure that you are willing to stake the amount of investment
as there's no assurance while you are keeping it as crypto
Value may fall to the much lower level, taking the risk depends from how you understand the system
that you  choose.

Whatever banks do, they will not lose the trust of some people, because the meaning of the bank is authority, the meaning of paper money is the trust given by the state. Western European countries with strong banks are in a different situation. In the Middle East and Asia, they have been exposed to many bank frauds over the past 50 years. As a result, the bank's hand is strong.

Banks have been around for a long time but this amazing huge technology and the network and bribe enough to control the governments type of banking industry is probably not a hundred years old, sure if you check the history with things like medici family and so forth you would see that "banks" did controlled governments but that was mainly families or business's owned by people, not corporations.

Today a company could change the CEO have another one and continue their life that way without changing, so it is not really one person or a group of people or a family, it is the idea of the company that is crooked. I do not think that crypto could gain anymore than what is also gaining but banks has to continue to grow smaller and smaller in order to make us finally live a life without being under the heavy load of banks.

I have never known the advantages of crypto but I am sure that in the long term crypto will go up why because digital currency will become the currency of the future

It is still dependent on the country if cryptocurrencies will gain possession of the people's interest rather than getting engage into banking system because if crypto usage is illegal on that certain country, then people do not have any choice but just to stick into using banks and have no possibility for cryptocurrency usage to get in.

At times like this specially we are in the existence of the covid-19 pandemic, interest of getting into bank have been lessen due to the possible threat of acquiring the virus by going outside which makes people make use of keeping their cash on hand rather than putting it inside banks but this does not mean to be a direct bank's loss for the fact that people just wanted to take care of their money for it is always in need to have a cash on hand to be used for purchasing essential goods and services.

On part of crypto gaining which is possible as long as it is legally accepted in a certain country due to the fact that digitalization or cashless transaction is high in demand at times like this to prevent the possibility of spreading the virus, many people will engage on digital currencies which will probably get the attention of getting into crypto engagement making cryptocurrencies gain popularity and more usage at times like this.

Banks will always be here no matter what. It is already carved in our community. And not all people that are not using bank services are into crypto. Some just don't want to use bank or not capable of utilizing their services. So I won't say that if there's bank loss, it is always crypto's gain.

So the conclusion to this - the banking era will only stop when current "grownup" generation will extinct.
Statistics shows that most of the crypto market usership age is below 27 or something.
Answering the main question tho - crypto is part of global economy now as well as banks, so there is no clear correlation between loss of one and gain of another

in my country banks are indeed protected by the state for a certain nominal value for customers if the bank experiences unavoidable losses. therefore the bank is closely monitored by one of the institutions created by the state to monitor every transaction at any time. however, something was overlooked, so that in the end the state had to bail out by providing assistance if the bank lost money.

Majority of the banks around the world are facing bankruptcy. Some big companies even filed for one because this pandemic has put them in financial crisis.

Most people tend to withdraw than deposit these days to ensure their meals and needs at home during the lockdown. Some even applied for loans. With this, majority of the banks are suffering because withdrawal transactions are getting more often than deposits.

I think cryptocurrency would profit somehow since if banks would collapse, there's a high probability some would switch and trust crypto for saving and investing their money. However, crypto would also suffer since in my opinion, it comes hand in hand with central banks.

Central banks engage in different aspects of economy. If banks would collapse, everything will follow. It can create or destroy money which also has a certain reaction to the prices of goods in the market and how the market would behave.

Governments were responsible for growth as well as the lack of development happening in a country. Based on the prevailing scenario around the globe very few governments were functioning active. Few of which are Canada, Vietnam and few more.

In my country banks are in the hands of corporate and government is supportive to the corporate. This makes the corporate people profit and the poor people suffer. Kia motors entered my state few months back, and due to the ongoing sales decline and political corruption they're leaving our state and moving to next state. Banks aren't facing loss, but an image is created in such a way.

You are not 100% right in this. Crypto's goal is not to replace Banks but to enhance the sector with its decentralized model.

   Sabbir2world maybe OP is not 100% right about this, but I understand his point and I agree with his point. Crypto-currencies
will replace banks in the future, there will be no need for banks in my opinion. With decentralized model each of us will be able
to contribute and help. We have experience with centralized models and we know how banks works, I think most of us are
not satisfied, and when we are not satisfied we are looking for ways to replace that, it will happen with banks.

I believe that everything will happen exactly as already said. The fact is that many old people still have not even learned how to use bank cards and continue to prefer cash and I do not believe that they will understand crypto. But how many people will be able to use cryptocurrency today is generally very difficult to say, since the use of cryptocurrency requires certain knowledge to use and store cryptocurrency funds. But I believe that the situation will improve with more education of people, if, together with the introduction of cryptocurrency in a person's daily life, the corresponding knowledge will be taught even in primary schools. I believe that the situation with cryptocurrency will resemble the situation with the computer and the Internet, when with the growth of computerization all over the world, computers began to be installed even in rural schools, since this is a requirement of the modern world.

If this continues, then Yes, people will eventually stop trusting banks and turn towards crypto as a form of digital bank. It is only natural to turn to other alternatives if an option is not working.
However, it will take quite a while if not years for such transition to take place. Throughout history, it has not been easy to break or change the norms of the society. I believe the Government wouldn't want that to happen too so it will be very difficult for that transition to take place fully.
Like I said, eventually we'll get there with time

The moment people are capable of spending crypto everywhere they go without being forced to spend cash, if people are not forced to fiat, they will pick crypto a lot more. Even today there are tons of people who will actually keep their money in crypto but if they can actually spend it, I believe all those people who use fiat to buy crypto and wait for it to go up and sell it back to more fiat, all those people (well not all but most) will keep it in crypto and spend that instead of trying to make more fiat.

I believe new phone apps that would allow you to spend bitcoin on places that do not accept bitcoin could be way to start it, you will be spending bitcoin and that company will turn that crypto to fiat to pay the company, and everyone wins, obviously it will take some time to be there.

Banks do business in the form of mobilizing capital from the people and on-lend to businesses and people. The biggest problem in the pandemic is that businesses do not have the money to repay their banks. This leads to a decrease in the liquidity of the bank. Once businesses default, they will have their assets taken away by the banks but the banks cannot immediately liquidate them. When a wave of people withdrawing money massively, banks do not have money to pay them. Historically there have been many banks that have gone bankrupt or have sold themselves to larger corporations.
To reduce the risk of bankruptcy they will have to find ways to less cash flow out of their banks.
I think if you want to be safe, you need to diversify portfolios and deposits to combat the risk of bankruptcy of banks.