Bitcoin Forum

When I see the picture of our banks in my country's, it seems lots of people in the line to withdraw their funds. An analysis of my country says that people keeping funds on their hands instead of keeping into the bank. And it hasn't happened before where a huge amount of funds holding by population. Bank reports saying, clients are just withdrawing their money, deposits are very low by comparing with withdrawal. That's why people encountering lots of questions from the bank regarding withdrawal. Most likely due to the global pandemic, people want to keep funds on their hands.

I don't know if it is happening in your country as well. But seems people losing their faith from centralized organizations like a bank. It would happen due fair of bankruptcy or due to need money on emergency situations. On the other hand, gold and bitcoin movements saying that new investors getting in. Most probably people want to be their own bank.

What's your thought and what's the real situation of your country?

Holding you cash is practically the same thing with keeping it in the bank when inflation/devaluation hits. The banks though provides safety of your funds from theft and robbery, you'll not be seeing people withdrawing large sums, only to keep it at home, you can be tracked and your money will be stolen, those withdrawing prolly have needs to be met.

I don't know your country, but a situation of a bank going bankrupt in my country or a first world country is next to impossible, the banking sector is responsible for your funds, with so many measures in place to avoid insolvency. And in a situation were the bank is going through a rough time, you'll get your funds back, though devalued, and that is why investors choose to buy gold and bitcoin to avoid that, but rather make profits.

People may be losing faith in centralised organisations, but I've never personally heard one single person ever voice that ever, but they never had and never will have faith in a decentralised alternative. They will simply make the odd complaint and keep the status quo.

It doesn't help that many things that claim to be decentralised are fucking useless, mainly because they weren't.

Some people maybe losing faith on bank but majority of people still trust it.
The thing is, if people loss their faith on bank, they could also be losing their faith on the government.

It's normal that people withdraw their funds as it's needed during the pandemic, but even with massive withdrawal bank can't say no or say wait because it's their responsibility to give the money that people entrust to them for safe keeping. Maybe some banks are corrupt, but in general they are not, in fact banks have a good internal control and put the best practice in handling money.

@Coolcryptovator due to the legal laws in place many people don’t have any other alternative, but to leave their funds in banks and further this is only temporary, because once this pandemic effects start to end then they’ll once again deposit their funds back in to the banks. Also I don’t understand how can a bank ask questions to its customers if they wish to withdraw their own funds, unless there’s a rule in your country which allows banks to subject their customers to such torture?.

In my country many people withdraw their funds due to need money from this pandemic, not due to losing faith on centralized exchanges. Because they need to feed their family every day even though it's hard to find a job, and some people already got retrenchment. Only few people want to invest on gold, because it's safe and reach new ATH few days ago.

Bitcoin still not get massive adoption yet due to volatility and high-risk investment.

Of course banks are afraid of  withdrawals because at the end they will eventually run out of cash and a bank  run could happen anytime if people starts to panic. I don't know if this is true and if i'm not mistaken, I remember an article that says, if all depositors withdraw just only three percent of their total deposit, then banks will ran out of cash and the banking industry will eventually collapse. Imho.



I can attest to your observation and have to agree with it. As in the case of my country, due to this pandemic, many people have lost their businesses and many more have lost their job that they have no option but to withdraw some of their savings to support their family's daily needs.

Some of the people right now have different issues regarding their banks and banks' account so they don't want to keep their funds inside those centralized organizations instead they want to hold their funds because they know what is happening on their money. If they store those funds into banks sometimes there is a transaction under the table and unexpected bankruptcy and they don't want to do that.

Right now on this pandemic outbreak, they need to have enough funds to survive, and are you still going to store your funds right there? I think not because you need to have cash and enough balance to sustain your daily needs.


Today with the rise of the bitcoin there is a lot of the number of supporters with the use of this coin. One of the reasons is you handle your money and you can monitor what is in and out of your money without less hassle of checking. Also, the reason why they want to adopt this kind of coin is the volatile they can get a lot of market income by just making an investment. The buy low and sell high just this simple you can get profit instead of holding your funds into your banks you cannot get these kinds of funds.

The reason is clear, because all the centralized organizations are getting controlled by the governments and usually by some corrupted people they take advantage of the price manipulation and get famous and rich every day, also call themselves banks. Decentralized organization will help the privacy and in the other hand will help the security and economy by avoiding the price manipulation and abusing the governments and centralized traditional banks.

I don't really know if it has the same situation in my country, but if you're in a third world country, that's possible. Now that we are facing a pandemic, it's inevitable for others to be in a situation where they have to withdraw their remaining money in the bank probably because they need it for their necessity. Also for people keeping funds in their hands, maybe because they have no access to banks.

However, even if withdrawal from banks is increasing as well as the number of people investing in gold and crypto, we can't really say that they are moving from centralized to other methods of investments because they are losing their trust since we're not sure if those are the same people.

People are forced to use banks, especially if they are employed or have their own private companies - how else will you receive a salary or conduct business transactions? Throughout history, banks have always proven to be those who give little and take a lot - and if we only remember the recent past and the crisis that began in 2008, then it was the banks that saved themselves with public money and people were not happy about it.

In my country the amount of money is constantly increasing due to the large number of people working in foreign countries who send part of the money to domestic banks. Also in some countries, as someone has already mentioned, clients' funds are insured by the state up to a certain amount - so the collapse of a bank does not necessarily mean a loss of money.

Bitcoin is still a long way from adapting among the masses, but it would be too naive to believe that such changes can happen in just 10 years - especially when the current system struggles to stay exactly as it is now. Controlling money in the hands of ordinary people is a real nightmare for banks, and this is exactly one of the basic features behind the idea of Bitcoin.

I think it's plainly because of the pandemic. A lot of people have lost their jobs since the pandemic started, and there are still a lot of them who haven't resumed yet and other businesses were temporarily closed until everything is clear from the virus. So, withdrawals of savings is expected since these people haven't produced enough income since the pandemic, and what more else to deposit?

IMO, the rise of Btc isn't because of these people withdrawing from their banks and switching to crypto as their own bank. Though some rumors said so, like the stimulus checks Btc pump. But I believe these are still because of the post halving hype. Some old time traders and investors are coming back to crypto market.

I guess that is better for them than having much of their funds in the banks not getting paid by the banks or delayed for one reason or the other. I think I did similar thing in the beginning of the crisis when banks were closed or closing. But the PoS small business operators (who acted a bit like the banks during that period) were part of reasons I stopped bothering about withdrawing most of my funds. I still think it is better not to have everything in centralized currencies though.

I do not think they are losing faith in bank but rather due to the current economic crisis. People have lost jobs while some are receiving half salary so generally, people will make more withdrawal than depositing money that has not been earning during the crisis. You talk about people queuing to withdraw their money. I think that is also expected and also people want to have free access to their money at any time they want it and that is reason why many prefer to hold their money and not bank it

I don't think people are losing faith in centralized organizations,  but in banks and governments.

Centralized organizations are everywhere: bitcointalk, reddit, apple, Amazon, Facebook,  google.

I believe that for the first time in history people are loving this new tech monopoly.  Most of people love instagram monopoly,  google monopoly and so on.

Centralized organizations are at their top. But now we have a decentralized world currency. And just one, bitcoin.

My friend's boss who owns several companies gave a message to all his employees to withdraw their money from the bank and save it in cash and provided information that next month's salary will be given in cash. In my country, one of the banks already has a liquidity issue.

The fractional reserve banking system that is applied in commercial banking around the world through the ability to create money (money creation), so that the money supply shifts from its balance point is a source of systemic problems of modern economic instability and is fraught with the risk of recurring economic recessions because it is built as a pseudo financial platform, and have implications for the bubble economy. The difference between assets and liabilities (fractional reserve banking) can undergo a process of loss of trust, which in turn inevitably causes banks to enter into a circle of liquidity crises due to shocks on the asset side.

It doesn't look like losing faith on banks to me. People are simply applying the lessons on savings and one of which is to have funds to use in cases of emergencies.

Like what others are saying, people are losing jobs that's why most have no choice but to take out their money to buy necessities or to use it as capital. It's not that they want to be their own bank, most are just desperate to find another source of income to sustain their needs. You already pointed out money flowing into bitcoin and gold, there's also a massive increase in number of online businesses. You see all sorts of products from food, clothes, masks, face shields and other stuffs that are being sold/offered in various social media platforms.

Once things get back to the old normal and people going back to their jobs, money will most likely flow back to the banks.

I don't blame them in the least.  People are scared right now, and I'm sure a lot of them aren't sure whether there's not going to be another banking crisis like there was in 2008.  If there hadn't been a quick solution in the form of massive bailouts back then, banks would have been failing all over and you'd be lucky if you could withdraw any funds from your bank.

In my country (the US), the situation isn't as dire as what OP is describing as far as I know.  Most people I see paying for things are still doing it with their phones and/or debit cards, so it's obvious they still have faith in the banking system.  Plus there's a coin shortage right now, and stores are asking customers to kindly not use cash or to have exact change.

People have been skeptical of those centralized organizations OP mentioned for a long time--that's not a new thing.  The level of skepticism and whether or not people hoard cash depends on the state of the economy and whether it looks like there might be a disaster on the horizon.  At present, we're kind of in the midst of a disaster (COVID-19 and joblessness), so I'm not surprised people are keeping their cash at home instead of in a bank.

Nowadays, bank run would not be likely to happen because people do transactions without physical cash (cashless). Not sure what happens to @Coolcryptovator's country, but my guess is because of the recession, so people withdraw their savings to buy daily needs. Perhaps most local groceries store there cannot accept cashless payment yet?

It is not about faith. But when you can have decentralised money without need to trust third party to operate why on earth you would not chose that. It is money. A very worth thing. It can afford to be costly.

For so long I think that yes people are losing faith from centralized organizations for a long time now that is why we are increasing here in crypto,
They want to move into decentralized and we have seen the number of people joining crypto has been increasing for a long time now.
I don't think that those people just want to gain profit because of the popularity of Bitcoin I am sure some of them wants the crypto because it is decentralized.

I am seeing something very similar happening in my country but that is to be expected, the performance of the economy has been really bad during the previous months and it is understandable that people are losing confidence in centralized institutions like banks and governments to deal with this crisis when we have seen that their management of the crisis is precisely what has allowed us to reach this point in which many people are desperate to try to find a job and a way to sustain themselves.

The only bad thing is that this is not enough to cause that adoption of bitcoin to really go up and unfortunately people will have to get really desperate for that to happen.

If they are losing faith from centralized organizations, then why is there such a huge "line" in the bank you use? Isn't it because they trust bank to store their money? And, there are ATMs, why would people want to stand in line to withdraw money (unless they are withdrawing huge amount. But cards do have higher limits. You will need to let your bank know first though).
They are now withdrawing money probably because due to some monetary policy change done by your government so that they don't keep their money deposited, but instead invest it somewhere.

Most likely the way I have observed the situation in the country where I reside, the reality speaks that people do really tends to hold their own money or physical cash instead of putting it into banks most specially because of the existence of the pandemic wherein having cash on hand is really in need to avoid falling in line for too long and prevent yourself from going outside just to make withdrawal transactions on bank counters or even at ATMs.

At this point of time, maybe the reason why people are doing such is not duly because they are losing faith on banks or other centralized organizations. It is just that at times like this, people only thinks of having cash on hand or if not, having cash balance on digital form using mobile apps to access their funds. Maybe people mostly think that storing money in banks are not necessary for now because there are lots of expenses that are needed to attend to and having a cash on hand will provide less hassle compared to storing it on banks. Maybe after this pandemic, people will find reason to store up and hold their moneys on banks but for now that cash is always in need most of the time to buy necessities, people will keep on withdrawing their money so that they would have something to spend for emergency purposes and other needs.

Withdrawing money does not mean that he has lost confidence in a bank. During a pandemic like this, many people have lost their jobs and most of the rest have decreased their income.  That means, another option to stay survival in this life, then their savings will be the last aces that will be sacrificed to eat and pay bills ...

For now, maybe the existence of Bitcoin will experience an increase in trend.  That's because a lot of free time is owned by people who are definitely looking for additional income ... And Bitcoin must be one of the objects of their research, how can Bitcoin make money

True,  people withdraw money because they need cash at the current situation, the only thing that could lose their faith on bank is when bank can't fulfill their obligation to provide the money requested. These kind of banks should never be trusted, but banking industry is big, and it's global so I don't think a problem with few banks could affect its entirety.


Bitcoin is good as an investment, however, people put money in the bank to save, not to invest and even if it's easy to withdraw your money from your wallet, but the volatility is going to affect your money, this does not happen in the bank as cash is stable.

People withdraw their money from the banks is because they need that money to buy foods and else to survive in this pandemic. They can not survive if they don't have money in their hands because not all countries using digital money (credit/debit card) in many stores, and many stores still use physical money. People are not losing their faith from centralized organizations, but these situations are very tough for them, and they still survive without knowing until when this is over.

Well, a lot of people are going to be surprised probably but around here in Europe deposits have actually grown, almost all countries have seen savings increasing (https://ec.europa.eu/eurostat/statistics-explained/index.php/Quarterly_sector_accounts_-_households#The_highest_household_saving_rates_in_both_the_EU-27_and_the_euro_area) and bank account growing. My total surprise was Poland with an increase in banking savings of 10 billion PLN, that's 2.5 billion$ a month.

Also, I've seen a change in people's habits around here, probably because of the virus.
In the first days of the month, the workers from the sanitation department that is located about 2 streets from me usually come in the evening and make lines of 30-40 people to instantly withdraw money from the ATM machines in the mall close by, well, for 3 months I've seen them no more, a max of 1-2, probably they have started using their debits cards to actually pay for stuff in the stores rather than a mean to cash out at an ATM 1 hour after payment.



Well said, but let's add a few more to the mix, binance, coinbase, gemini, blockchain, wirex, crypto.com...and so on.
If people would lose faith in centralized organizations centralized exchanges would be the first to take a hit, but it ain't happening.

I have seen interesting statistics in Russia, which says that the number of bank deposits is growing by 10% per year, and salaries by 2% per year.
If the official inflation rate is 4-5%, then the real one can be from 10 to 30% per year, depending on the goods you want to purchase.
If at the beginning of the year the dollar was worth 61 rubles, now it is worth 74 rubles. A rise in price of 21% is our inflation for 8 months. And household appliances, televisions, telephones have risen in price even more, so the market is flooded with cheap Chinese counterparts.
The maximum interest on ruble deposits in Russian banks is no more than 12%, which is even less than real inflation.
Therefore, many people buy dollars and euros and keep their savings that way.

People have lost trust and fait into centralized government run economy long time ago but there is nothing you can do about it, you either double down or you just try to avoid it. If you ask people who like the leading parties and the person they voted won, even they would say that their tax is not used properly, even they would think that tax could be used a lot more efficiently to help people, however people who didn't voted for the winner would be even more furious and would be looking to get out of paying taxes even harder.

So, there is not a single person on earth that still believes that when you pay taxes you get something in return with 100% value, most of it goes to either into someones pockets or goes to waste because governments usually fail and deliver slowly and mismanage.

I don't think there is anyone that believe Government again, this people are politicians and serve the need to selected few of the society. as more people learn about Crypto and understand it the more Central government lose control, the world is seeing a shift in the governance system and I expect this trend to continue

I would argue people lose faith in fiat money, politicians and public media all together. The current man-made crisis showed perfectly how easy it is to subliminally manipulate people. Fortunately more and more do their own research and question the decisions of the government and the central bank. I think we need a decentralized media outlet that covers only news that got confirmed from at least 3 more trustworthy sources, that would help re-establishing trust in media. As for fiats, I think at this point it´s just limiting the damage and accept a digital decentralized future.

Every people haven't lost faith over the centralized system, it is the few or a group of educated people. Through education people have learned the technology and as a part through analysis understood what the government is doing and how is decentralized system more effective. For this we can't term people losing faith on centralized organization. As everything is happening through connectivity, trust is much concerned and decentralized system tries to make use of it.

You shouldnt even be living in your country anymore if you simply have no trust on it anymore.


I seem to be missing this important stuff, which country are you living in?

If mass amount of people actually withdraw their cash from the banks, that would mean your country is on the brink of economy crisis but if only a handful of people withdraw their cash for obviously no particular reason at all then dont sweat it. The number of funds deposits are low compared with withdrawal simply means that there are alot of people out there that are having hard time dealing with their business on the pandemic situation

The fact that people withdraw their cash from banks means nothing at all if the top brass on your country still living as wealthy as ever even in this pandemic situation.

The reason for the loss of trust from centralized companies is that the price of Bitcoin is rising. Bitcoin is a very good currency for investment and since it is not stable it is possible to earn a double profit if the price goes up. Centralized companies are under the control of the government and operate as they wish but Bitcoin is not under anyone's control. Everyone can work independently, so the demand for centralized companies is decreasing and the demand for crypto is increasing.

People need money to support their needs, they'd be withdrawing their funds but if its the big savers who are withdrawing their funds, its going to be a different story. There are banks already saying they are filing bankruptcy and then their clients are now withdrawing their funds.

The ones who are not losing faith the centralize are often the big savers who felt like their government had stolen money from them after printing trillions.

This begins with being an employee, your company requires you to have a bank where your salary will be directly deposit into, you are free to choose what bank are you going to choose OR your bank will provide you the bank that is somehow associated with them, their sister company, or the company itself is a bank of course. By this way transactions are being handled by a third party, it is easier for the company to work without handling those salary distribution. In my opinion, intermediaries like banks are designed for having a smooth flow of money in overall, whether we want it or not we are going to use bank in most of the situations.

Same here, remittance inflows to our country is rising due to our countrymen who is residing and working abroad, we are fourth -highest in the remittance inflows after Mexico. And as have you mentioned, money in the bank is insured, they got golds backed up on your money, but it will still depends on the contract signed after having a deal with the bank, some are fully insured, some are just a half and so on.

Most of the issue that concerns banks and withdrawals right now is mostly due to the pandemic imo. Even if people are losing faith in Banks, most would still probably opt to use them since there's no better alternative that could help them be at ease as much as those. Ofc, if you just look up a bit and study a bit, there are ways that could replace them (crypto), but some people don't really have the time to do so and hence, would just opt to choose the one that the majority has chosen plus one that the Government is backing since most people think that having the Government means it's secure.

If there was a better alternative, sure, people would go to it. But on the idea that the alternative is recognized by a supreme backer, one that you can put your trust in, which the Government did initially, and well, pretty much lost in the current situation.

In my country, many people withdraw money from banks, but not because of losing faith from the bank. If the poor people do that,
it is because they have to buy daily necessities and for the rich people to move their money into investments that pay off far greater
than the interest given by the bank. Usually the rich people will invest in gold, stocks market and cryptocurrency.

In my country. People losing the sole faith on government due to the rubbish decision that has made for the past few months due to covid19 situation. But as far as I can see the reason people are withdrawing their money is for the necessities that needed to purchase. I cant say losing my interest on banks as I still have 60% of my funds locked out there.

Most response here have the same sentiment about it. Im curious if there is an actual survey per country if we could gathered an accurate result for a question like "Do you like centralized bank or new trend of decentralized crypto"? Maybe we can still have a score of 70% favor of banks cause people will never drop a long time tradition on using financial institution like banks.

in my country its totally different because centralized organizations here like banks are verry indemand , so many new banks are now introduced  . people here will likely going to choose bank over cryptos  .

your right op maybe its only happening on your country but why you look so sad , your supposed to be happy because thats what what we all want , we want cryptos and decentralization to overtake  .

Same here. In the last big crisis, the financial crisis of 2008 people got really afraid of banks and where looking for secruity outside of the big centralized organizations. The problem was that the crisis was selfmade from the banking industry and the trust levels where very low. But now with corona the crisis is not selfmade by big institutions, of course there are few ignorant people who believe it's all a hoax. The majority however are looking for the government for guidance.

In my country there has been a definite trend of drop in bank deposits but it has nothing to do with distrust of centralized institutions or banks. In developing countries like mine, people used to have a mentality of bank deposits being a safety net and the ultimate savings investments were the ubiquitous Fixed Deposits. With increasing awareness, people are diverting their savings to the stock market, trading and other riskier investments hoping to get better returns.

There really isn't the widespread distrust of big banks in general. Here you have public, state owned banks as well as private banks. Those with a more conservative outlook tend to prefer the public banks. Most people generally have an account with all type of these institutions.

Centralized organizations are one of the organizations that people can trust at the highest level. The most appropriate means to complete the overall economic activities and transactions. But at the present time, we see that people are preferring to keep the money in their hands instead of saving it in the bank. I think it is not just because they have lost faith in the centralized organization, there may be some special reason behind it. Example: bank expenses,  bankruptcy, bank theft or money laundering, increase in VAT on deposits. And the most important thing is people lose their business and job they withdraw their money from the bank due to maintain their basic needs.

the possibility of hoaxes does exist, because the agency that has the right to convict someone is affected by the corona virus or not is a health agency. the worst possibility is, they are exercising their right to sentence healthy people as corona virus positive patients with the aim of getting incentives for their efforts to stop this virus.
but if our point of view is expanded again, it means that other countries also announce that this corona really exists, the possibility of this being a hoax is getting smaller, because world-class hoaxes are very difficult to do without going through doctrine first

Luckily, I haven't seen this kind of situation in our country, I will just a long line in cases wherein the government will have it's sort of stimulus package, but usually though, some transactions are being done online already.

So I don't think that they are losing faith in the centralised organisation like banks. Maybe the withdrawals is meant to have cash on hand. Yes, cashless is here, but majority still prefer to be paid in cash in markets in buying foods.

   I will agree with the headline! It's not hard to understand what OP is talking about if you are involved with crypto-currencies.
It's like that for me, everything I know about decentralized governance I learned right here in crypto-currencies.
   I lost faith in centralized organizations. They had time to develop and look where are we now? I think that global economic
a situation doesn't look good, we need something better. Is that decentralization? I believe it is, it offers so much, and it can bring
a fair economic system available to all people at all times.

Literally banks are in losses due to no loans taken by the people due to this pqandemic and stock values of them also decreases that is why people are withdrawing money from the banks which are at the verge of bankruptcy and other factors could be investment or emergency needs.Why people need to hold their money if they do then simply they are losing the value of their assets.

The era of change is coming gradually and blockchain adoption is becoming a reality.

I admit there are more withrawals nowadays than making deposits simply because we are currently facing a pandemic and we need to survive from it. This does not means that we are no longer interested in centralized banks because majority are still attached to banks for the safekeeping of our deposits. Although our country is heading into a cashless society soon, but i think people are not yet ready to embrace that big change.

This isn't simple. To overtake the growth of banks and go completely decentralized. The usage need to increase little by little, further there needs to better awareness. Importantly the government needs to support and give all legal procedures to make things perfect without restriction or complications. All this won't happen in a day or in a week's time. Until then we're supposed to hope for the change and do the mouth of spreading.

It seems that the same thing is happening in my country, people are over reacting and in a hurry to get their money in the banks,wherever you look there is always a long queue of atm machines, maybe because of unemployment the reason why most of us ran out of money in their hands, and it is possible that many of them think that banks may close due to the worldwide spread of covid-19 so they rush their money out of the banks and thinking that their money is safer with their hands.

The most affected people of this pandemic or those withdrawing their funds to banks are basically living under middle class. They need money to sustain their needs, having no choice but to withdraw their savings to survive in this unfortunate situation.

But well-off people are still keeping their assets in banks because money is not a problem. Even this pandemic exist for months they are less affected and can stay at home and not starving. Thats how it goes here, it doesnt mean people are losing trust to centralized organizations  its just that they have no choice.

I have lost my faith in them loooong time ago, I got into bitcoin mainly because it is decentralized and nobody could take a control of it, well at least nobody has done that so far, I hope that will continue. That is also one of the same reasons why I do not go into ICO or IEO or whatever stuff neither, same with DEFI nowadays what people hype about, never going to invest into those silly idiotic things you know why?

Because they are run by people, they dress up and make up like they are a "company" but in reality they are not a company and just bunch of people and even if they were, I do not want government handling my money, why would I want some company? Centralized organization outside of crypto and inside of crypto are all the same, I do not trust them and I would not leave my money to them.

The problem that banks do not allow massive withdrawals is to control the market and prevent money from being withdrawn quickly from their systems. If so, the entire banking system will quickly lose its liquidity. I realize that the state they do so has good reason. We should not worry too much when the epidemic is under control, the world will be at peace again and you are free to withdraw your money.

Another reason for people to want to hold cash instead of leaving their funds in banks is because at the beginning of the crisis we did not knew how big it will be, while many people have been infected the mortality rate of the virus was unknown and this had people very scared and they did not knew if we were going to have a bank holiday and suddenly all their savings will disappear or a part of it will be stolen, and while this may seem impossible to happen this has happened already many times in history and those that are aware of that will not let their money sit in a bank for long.

Banks lose their customers when their stock value decreases on their stock market and due to the pandemic banks are not making much money because most of the revenues created by the banks are from loans and now they are not giving out enough loans because they are afraid that they may not pay back since all the business were hindered due to lockdown restrictions.

Big banks have stocks, but small banks only rely on private investors and some are just even owned by family, or they call it a family business.
Their customers could be their depositors or their borrowers, but depositors doesn't care much about the bank as long as it can give the money anytime they withdraw, while on the part of the loans, I think Banks knows how to match everything, they also borrow the money they lend out, so they don't risk anything from their end and there's no reason they can't allow clients to withdraw the funds.


That's right, but they can still continue their operation, this might only result to removing employees (non regular) to adjust expenses accordingly.

People are not really losing their faith or trust into centralized organizations like banks. It is just that it is not convenient to store up funds inside the banks at this time most specially we are in the pandemic on which we mostly need to have cash on hand now that there is a long line always at ATMs and even at bank counters. People do tend to have cash on hand which makes them not to put their money inside banks so that they can always have funds to purchase necessities like medical and of course food and good essentials.

Considerably, people are just being practical on thinking that instead of storing money inside banks, why not just hold it so that once needed in case of emergency, they do not already need to get into ATMs and bank counters to withdraw money for spending. The situation is not just suitable for bank storage right now and it does not mean that people are losing faith on centralized organizations like them.

There must be a reason, maybe it is because of our current situation or anything else,

In our country, people start to lose their faith in banks due to a lot of issues we encounter. A lot of people are losing their funds without knowing the reason, there are so many issues that we face that people started to stop using banks.

In Venezuela we already suffered with long lines in front of the banks before the pandemic. We now queue to withdraw ~ $ 1 daily on the week of banking activity. Because they are variants (one week the bank works and the next week not). Generally, the poorest people line up to buy food cheaper. It is a sad situation!
There are people who do not keep money in banks, as there are others who prefer to use the bank to use the electronic channels of online banking.

The majority of people just didnt care at all about centralization. They just use services that like. Only geeks thinking about decentralization

That long line may be the result of people panic with regards to the COVID-19 escalating concerns.  I am sure they think that it is better or more convenient to hold their money than letting banks hold it for them in this time of crisis.  I do not think this is connected to the trust matters but rather the availability of funds when it is needed.  It is convenient for us to have an available fund in hand rather than going to the bank every time we need the money.  So I believe the actions of those people who is withdrawing their fund is more inclined to convenience than having no trust on banks.

Imo it depends on the country and on its history especially. If people have an economy default on their memory or other economical catastrophe - they are most likely to withdraw funds now, because they're afraid of bad things to happen once again.
I'm pretty sure people from lets say Switzerland are way less likely to withdraw funds from their banks compared to US for instance

Alternatively in my country the situation is absolutely inverse. Government is bolstering a cashless Economy so people are relatively more people are opening bank accounts and trusting the banks. There have been a few incidents which may have cast a significant doubt on the banking system but some incentives to account holders have motivated people to enter into the banking system.

On one side I don't think this is as a negative thing it's because this set of population was far away from modernization and entering into cryptos without a bank account today looks almost impossible. But yes there hasn't been any major negativity about the banks in my country atleast.

Is there ay banks work like that? Banks needs to have huge economical activity even if it is a private sector bank or else people can't trust them with their longetitivity.Banks are making money from the interest rate only, if you deposit some amount into your bank they are going to lend it for more interest rate than your deposit interest and this is what we call they are making money out of nothing.If there is no more depositors then how banks can lend money to the people.

Not just Geeks but most of the countries in the world are thinking of decentralised exchanges. Here everyone can do everything on their own the central government has no control and the centralized agencies are shutting down many companies due to the effects of the epidemic and cutting the workers which is causing people to lose faith in the central agencies. That is why everyone is leaning towards decentralisation due to which the demand is increasing and many countries are giving legitimacy.

I think it's a stick with two ends that can hit the same way. On the one hand, we are afraid of the influence of the government and therefore because of this we very often advocate decentralization, But on the other hand, independent new projects are more and more trying to fraudulently attract investment funds. it is at this moment that investors lose their funds and have no way to bring to justice the developers of such projects, that is, scammers, since they do not belong to any country.

the way you speak seems to be just some people's underground business. That is the type of loan with high interest rates. That only happens in a few places where there is no tight government control. In my country there are also many households that do the same but not many. The bank is still the most reputable lender with moderate interest rates, I have not lost confidence in my country's banks.

Some people may be losing faith in the current bank system but those people are not growing very fast.
I think being in the crypto space helps give you the echo chamber effect where you talk to people who already agree with you and you are subbed and follow people who are saying the same stuff.
If you go talk to some random person about how money is not safe in there bank account they will think your crazy.

I think there is a lot more politics involved in the world right now, we are talking about Roman Empire for example and how ceaser was like this and how aurelius was like that but I feel like everyday regular farmer roman didn't really felt the politicians all that much, they were just doing whatever they were doing everyday when an imparator changed to someone else or even republic changed to empire.

So, right now I do not think that people actually can stay irrelevant like that, even if you say you are apolitic and not really vote anyone and whatever you still face the news and you still hear whats going on, even if it doesn't interest you, you are aware of the situation. Obviously the immense technological and communication improvements caused this but that did dropped the faith people have towards centralized organizations as well.

I guess the main reason for people are withdrawing money isn't lost faith, it's negative interest rate policy. Why would a lender be willing to pay someone to borrow money?

Most of the people nowadays are having some trouble with their funds that's why they are pushed to their limit and their savings are getting withdrew out of their banks. This pandemic is unexpected and no one is prepared that this will hit humanity and affect the economy so hard. That's why people are keeping their money on their own instead of keeping it in their banks, so that it is much easier to manipulate and control.


We all know that, but this is the season where it could become more popular because during quarantine, we are into the use of social media and internet more. So probably, bitcoin will somehow become more popular and increase the people who are willing to engage to it.


But as they collect taxes from us, government officials are not responsible in spending the money of its people. Most of them are corrupting our money and think of their own benefits only.

That's why during this pandemic, it is not guaranteed to let other people handle our money.

people deposit on banks for other purpose and not only for loans  but sometimes banks are borrowing the money of the people and they are paying interest  but for lending companies thats different because people are taking loans for interest or for colaterals  which is sometimes high but they dont have a choice but to accept it because they also need the money for important use  .

depends on the lender . a lender can be your close friend or neighbor too and they wont ask interest , they will just ask for repayment   .

Probably, corrupt government officials are also the reason why people holding their own money instead of saving it into a bank. As you can see, the economy is really crashing and the only thing that we can do is to manage and budget our money to our needs. If we hold and have a full control of our money then I can say that it is much easier for us to sustain our needs. Banking is not really necessary nowadays especially that they have an increasing fees. Businesses are not in a good state, some of them are bankrupted and having a hard time to recover and I think that centralized organizations are not the only way where we can improve and secure our financial needs.

Venezuela was already in a difficult situation even before the pandemic came and I cannot imagine how difficult things could be now with the pandemic in place, but I will not be surprised if in the next decades something similar happens all around the world as the current system based on debt and fiat currencies collapses and people try to withdraw the money that they have in the bank only to discover that whatever they had for the most part has disappeared and now they can only withdraw a very small amount of money out of banks.

This is a problem of the current time and not a global problem. Every crisis happens this way-people are afraid that banks will die and are ready to accept the fact that their money can be decreased by inflation while they are lying under the mattress. For them to keep money at home is safer than in a Bank that can just die taking all their savings to the grave.
When the economy finally recovers (and growth is already accelerating), the money will be back in the banks.

I agree with your statement. Some people have different issues about banks maybe because of personal experience or because of a gossip they heard about having one, so they opt to not trust their funds to them. It varies actually. Some just prefer having cold cash just in case an emergency happen, they wouldn't have to go to banks or atm machines to withraw their money. While some prefer to save their hard earn money to banks so it'll have an interest over time.

People really need money to be able to buy and pay for the necessities like food, water, and bills especially during this pandemic. The advantage of those people opt to hold their funds themselves is they could get and spend the money anytime using cash. The disadvantage, it could be easily spent since it's cash. There's no guarantee it would be properly saved unlike in banks.

For those people who chose to trust their funds in banks cons is sometimes they have to stand in line for couple of hours to withraw money. Though they could go cashless and just use their cards, but some prefer to buy in local stores and supermarkets (because it offers cheaper price) and these don't have such payment method.

conditions in my country are still fairly reasonable unlike in your country, withdrawals do exist but naturally and banks are still working as usual, it's just that small and medium enterprises are the biggest affected here, gold is an investment from a long time ago, so it's no wonder people will put their money down there.

By the way, I agree with this. Many people do not just withdraw money from their accounts and take it out of the banks - they either buy something for super-long-term use or invest in something that will always be in the price. They buy gold or land or real estate - anything that in the future will definitely be in demand for one reason or another and is minimally subject to inflation, for example.
As they say - no matter how much money there is in the world, there is no more land!

This is why despite the crash that we saw in March of this year in the price of bitcoin the price recovered relatively quickly, bitcoin by design is very scarce and people are realizing that governments do not have any kind of problem printing as much money as they want in order to solve the problems that they have created themselves but as we know this decreases the purchasing power of your money but in the case of bitcoin we see the opposite with the price of bitcoin having a tendency to go up over the long term.

Well, even peoples are not losing faith from centralized organizations but there are some problems in my country. The government of my country announced lately that they will not responsible for bankruptcy. If a bank goes bankrupt, means you lost your money. This wasn't a real-time and perfect decision, especially during the COVID-19 pandemic. Most probably that's why I have seen that picture to our banks. Possibly people's withdrawing money to confrontation the bad situation or both would be a reason why banks are becoming empty.

Those banks will be replaced with other bank, in the end all people will get is another name, everything else will be the same.
I think that people don't really knows what centealized and decentralized means in the first place. Many of us still learn about that, I can say we are lucky we are in crypto and here we know more about how economy works, what centralized and decentralised organisations means, how they work and what they are stand for, and I guess most of us give advantage to decentralised because we know its a more fair system, and honest to all, not just for individuals and groups as centralized organisations are.
People who feels sick from governments and banks are turning to crypto, they lost faith in centralization long time ago, but they (we) didn't have alternative, now we have and its crypto.

I don't think they'll only rely on people's deposit. Most of the deposits are can be withdrawn anytime, so they can't match it with loans as they can't force the borrower to pay at a specific period if it can't pay, that's why there's a non performing loans in the bank but bank can't say no when something ask for withdrawal, so it's impossible.

Banks through their investors put money to as capital, and they can also use that for lending purpose, but what I'm aware of is that, majority of the funds they release through loans are also borrowed funds from big banks, which they will only pay lesser interest compared to loans they'll extend.


Like I said, they will borrow money, they don't rely on depositors.

I think it's absolutely normal for people to withdraw money from their banks in this period. The pandemic has caused problems economically and it's only normal for people to withdraw money to meet their needs.
I don't know of your county but in my country, people rely on what they've saved over the years to scale through. If no other money is coming, then there is no other choice than to withdraw what's it the bank.
People still have faith in centralized institutions. It's just circumstances that have forced their hands

Based on what I have experienced and a little speculation, that in my country the bank has an appeal to people who are in the working years and old. Banks have solutions for those who want to save money and at the same time get money (deposits) and those who want money (loans). At the same time, the government offers a very nice discount up front for those who have accounts at certain banks, making banks the first choice for buying anything related to the government. The centralized organization still has a lot of faith in my country because it is more instant, even though if we understand it will have bad consequences in the future and have a big risk when compared to what they offer.

How exactly these banks are getting investors? Only the depositors are the reason for the people to invest on banks but the profit of bank is not from investors because they have to return it back the invested amount when they sell their shares.

So banks are making profits by giving the loans and the money is coming from the rich depositors in general.SO exactly bank gets money from people by giving less interest in the name of deposit interest and give the same money to other people for more interest rates.

I believe that today almost all governments are doing everything to ensure that the banking system exists for a very long time. During this period, the economic situation is very difficult and many people live without work, unable to replenish their household budget, and for some, the main job reduces the already small salaries. In order to survive, people go to the bank for loans, leaving their property as collateral. Thus, the banking system not only controls the expenses and incomes of people, but also makes them its slaves. And this whole process takes place under the auspices of the government.

Thats the worse situation one could ever get into while there is a recession. Thigns are becoming very difficult for every body already but the banks are still taking advantage of everyone who pays them to keep their own money.

This is why its not good for banks to be part of the equation still because its one of the institution that just doesn't help an individual to grow financially. You'd much survive if the money is kept somewhere else you only knew.

Banks being replaced with other banks don't help the people who's savings are gone as a result of a bank going out of business with to backstop by the government for savings.  Bank bankruptcies reduce confidence in the banking system.  Bank runs are merely the loss of confidence in the bank, regardless of whether the bank is actually unstable or not.  Just the worry that banks could become unstable actually makes the banks unstable, and the more banks that fail the more people will be concerned about the remaining banks.

Originally central banks were set up for the purpose of deposits and withdrawals, so why should we be concerned about seeing people withdraw their money from banks?
Withdrawing money from banks remains a natural matter, So we must not think negatively, as we all know the world is still under the influence of the epidemic. Certainly, this health crisis will soon pass and life will return to its normal course.
In my country, funds are deposited and withdrawn from banks freely without fear or thinking about an economic crisis!

In my country, people are still believing in centralized organizations and the banking system. They dont have other choices since most of them are not well educated and they are hardly depended on everything on the governments. They realize that those centralized organizations can easily steal their money cause there are many cases which people lose their money when a bank becomes bankrupt. There is no insurance for us at all

I try to teach many of my friends how to use bitcoin and how to manage money by themselves in a proper way. But It seems that they lose their hope in bitcoin and other cryptocurrencies since there are too many scammers around us. And they are not independent enough to understand the concept of digital money. Therefore, they choose to buy gold instead of bitcoin. Well, that is still good though

That is why banking system were created for, they don't want the people to enjoy what they are earning in the form of salary or profit they just want to grab them by giving loans to them in the critical conditions by just printing the papers.Government is lacking up the banking system but people are the reason why banks are exists for now.

This is why people must insist on well decentralized system, so those centralized financial institutions and others, don't come and dominate/exploit you again under the watch of our "governments".

Well, I think part of the reasons we got where we are is due to inadequate/lack of true transparency,  accountability..., lack of just laws, violation of just-laws/fundamental rights, centralization of powers(as opposed to true decentralization of powers) , poor participation in governance, etc..
Blockchains or decentralized systems/networks can help solve these problems, especially in the online world. People should steadily insist on true decentralization, for their own good and the good of society. This is our chance to prove that we are not part of the problems. What we support/encourage today will also determine the future of our world and many souls.
I think it will be foolish to  be screaming about unfair/unjust systems while supporting centralization against these good/important ideals of Blockchain/Bitcoin: decentralization, transparency, immutablity, censorship resistant, security/safety, privacy/anonymity, permissionless/trustless, consensus etc

Wow, this is extremely worrying, historically the reason governments backed banks in the case of bankruptcy is because they want to avoid a run on the banks, because as we know most of the time banks hold debts from other banks and if one of them collapses this puts other banks at risk of collapsing as well creating a domino effect that could destroy the economy of the country, I do not really know what took the government of your country to take that decision but taking into account the moment in which they did it with the economic crisis that we're facing and the pandemic that does not go away I can say they could not have chosen an even worst time to do this.

i dont hate banks i like banks they protect my money:)


if you lose your crypto keys how will you rcover funds?  but with bank even i lose my online passwrods or bank card the bank will still verify who i am and will hold funds for me.

i dont mind banks and i really dont undestood this bs against centralised organisations.

Banks will always be there. And I don't think the withdrawing of funds these days means losing trust on these institutions. But rather they are just withdrawing in preparation for this crisis. Because we don't know how long it's gonna be. It is better to have always cash on hand to prepare for the worst case scenario. But once this pandemic is over, people will always go back to their banks because that's where they feel safe to entrust their funds. And many people still do.

This may be true - but btc is too unstable and unpredictable for ordinary people to be happy to invest in it. Most people are suffering when their investments fall sharply - and no one wants to get an extra heart present.
For the younger generation, BTC can be an attractive means for investment (and even then - only for those who have money hah). Anyway, there are more people from the older generation in our world.

It's the same in my country too, and I think this is due to the fact that 1. Most our banks are now very busy with long queue to attend to customers because of the social distancing, even the ATM has too many queue.
2. Since people are not really going to their work place, what they need is to withdraw the saved money to keep surviving.
3. In my country, even withdraw VAT deductions had increased so many prefer to withdraw big at ones and keep spending by bit.

When the bitcoin thing first started the whole premise was the fact that banks were ruining the whole world and that was actually right, they are still ruining the world as well but unfortunately it is not getting as much attention as it did 2008 because at that moment banks basically ruined the economy of not only USA but other big nations as well, causing literally over a billion people being affected because banks wanted to leverage mortgages a lot higher than it is and with that high risk they didn't care if it would go down or not because they were profiting from it a ton, they got greedy and all of that came down crashing.

Hence I believe ever since 2008 the new generations do not trust banks, they would rather not work with banks if there was a possibility.

Personally I don't have anything against those that like banks, if you do not feel like taking the responsibility of being your own bank and protecting your coins then that is fine with me, use banks as much as you want, however we know that many times in the past banks have failed their obligations to their clients and in many cases they had being the ones to stole the money from your bank accounts and when that happens you cannot do anything about it because they are backed by the governments and at that time you will have no right to complain.

When exactly did that happen? If that was report earlier this year, then it was because of the Coronavirus. When the coronavirus started and there was about to be a lockdown, a lot of banks in my country were saying the same that there were more withdrawals than deposits, and I think people were trying to withdraw money to buy food stuffs and other things they will need, because the government said that the lockdown will be for a month, so people were rushing to banks to take their money and buy the things they will need. Around that time any day I’m going out I would see crowds in front of banks early in the morning waiting for the bank to open so they can take their money.

in general, people loose faith in centralized organizations not because of untrust but more because of outdated technologies and overregulations, which are already solved by decentralized crypto solutions. as for now i even prefer to use dex-s than cex-s

Im Losing Faith sure!!
You try to do business or Something but always someone try scam You!
And If smash someones head then its you who is bad lol :D

I rather not deal with anyone at all so sad you cant trust

Definitely right. And this is part of the reason why I think there is a huge amount of demand for BTC and precious metals within this COVID recession.

Especially with countries that have seen these sorts of cash crunches before, the citizens understand that when all hell breaks loose, you cannot possibly rely on these centralised institutions to function normally, let alone act in their best interests.

There is a lot of unrest and tension around the world right now. This is the sort of event that will catalyse mass adoption of decentralised technologies, whether cryptos, decentralised public forums/instant messengers, etc.

Not really, the majority of people still depend on the government and the centralized system. As you can see, millions of people use social media, banks, etc in order to make life easier. Soon, they give up on control their life by themselves and give that system more and more power.

In modern conditions, it is impossible to do without a centralized system of power, and the entire centuries-old history of mankind only confirms this. The whole question is to what extent this centralization occurs, because in the last century people are trying to find the necessary balance between the interests of the state and the interests of citizens, as well as between the interests of companies and employees. And please do not deify the system of power and centralized organizations and make them an object of faith ;)

me too) i check dex projects a lot because of scam((( and btw, i found interetsing xsigma stable coin exchange, reccomend u to check  - they have good financial model and team from ripple and amazon

This sounds pretty dystopian, I do observe this kind of situation in my country too. I think that the reason for the people submitting to the will of the system and being another cog in the clockwork is because we are conditioned to the point that we can't truly exist without spending money and depending on this archaic institutions, our education system did not teach us what we will encounter when we become adults, they created organic machines that is smart enough to do the paper work and passively submit to crony power. Hopefully, this will all change with cryptocurrency and new generation of thinkers.

Changes are coming! I am one of those people who don't trust the system, and it is because of trust more than because outdated technologies and for sure over regulations (you said it nicely by the way). Very unpleasant workers that always ask for one more paper...
And people will realize all the benefits of decentralized apps, we just need to give more time to ongoing adoption, nothing magical will happen overnight, but as we all see crypto is bigger every year, step by step (sometimes more than one, forward & backward).

As some above saying, we depend on system... more or less in my case, and you can read about people who went full crypto! It's happening around...all depends from individual situation (place where you live, laws around), but people manage to find ways, more and more! We have a good direction I believe!

I am not sure they are losing confidence in bank but or maybe due to the current financial emergency. Individuals have misplaced employments whereas a few are getting half compensation so by and large, individuals will make more withdrawal than storing cash that has not been winning amid the emergency. We can conversation around individuals lining to pull back their money. I think that's moreover anticipated additionally individuals need to have free get to their cash at any time they need it which is reason why numerous lean toward to hold their cash.

It seems that not everyone thinks so, I still believe in banks.  Because banking health can show health for the economy in each country.  The domino effect that a bank has is very high, if one bank collapses it might drag another bank into a crash in the country's economy.  Until now, if you look at the policies that have been taken by the central bank in my country.  I still believe my country is fine, even though the slowdown will continue until there are no restrictions on living.

In my country the same thing happens, lots of people who withdraw money from banks and prefer to keep it in assets that can provide future benefits.
Especially since the internet has become a basic necessity, many people have become aware that saving money in the bank will only make  its
value continue to fall.

Therefore, assets such as cryptocurrency are the choice of many people to increase their wealth. Moreover, the price of Bitcoin which is pumped is
very high, making many people realize that investing in Bitcoin is something that must be done, especially in a pandemic like now.

The only thing why people are losing faith in centralized organizations because the decentralized method is a good way to have a more secured and fast transaction without authorities getting involved. Decentralization also solves trust issues because most people have their own sensitive data, money, and assets that they don't need to rely on authorities to protect them.

It's deeper than that to be honest, the reason that people are starting to lose faith in their banking institutions is because most banking institutions do not want this people in the first place, there is a reason why the paper work when you want to create an account is so time-consuming, they want those patient and docile enough to passively accept their TOS. Also, some people are getting more aware of the dark side and the unseen side of banking industry which is only fueled to a greater heights by movies that portray banks and other financial institutions as evil and unforgiving which is true by the way, this in turn makes the people aware that they are getting screwed up by these bankers that only works for the commissions.

If they are loosing the faith from centralised organisation then it's good for the crypto space as we know!

However, that's not completely true because many institutional organisations are now making heads up to invest into cryptocurrencies. The problem is they are also centralised, driven by real world rules and regulations so they are influenced by government, limitations etc.

And they are becoming huge part of the crypto. So if people are getting away from the centralised system then they this in turn could hamper the crypto market too. It may not be visible change today but would be mega if these institutes out grow and invest into crypto currencies.

I can't support that decentralized system will win over the centralized one, our government itself is centralized, what would it make the world if we will all be living in a decentralized way. Decentralized is just an alternative, maybe a big alternative but the centralized system would always dominate.

Per OP's example, it's based on a cased to cased basis as not all banks are corrupt, most banks still gained the trust of the people.

Maybe for small depositors it's easy for them to withdraw the money and just hold it, but how about those companies that has huge deposits and they choose banks to ensure their deposits are safe.

In my country here many people has stopped depositing money in the bank since last year because of corona virus lockdown that occurred within two months interval, I can see that the trust humans have with banking system of government has been depreciated, because instead of money kept in the money yield interest after been with bank some months the money have to depreciate due to their banking charges, so putting money in back is not helpful and humans has see a means or device that will yield positively to their money which is bitcoin investment, and I believe centralising system of money banking is no longer comfortable to people.

Where I was born, everyone's exposure to blockchain technology was slow.  At the same time, the transition from regulation and structure to decentralization is considered at the security and owner level.  Even covid -19 is awakened, limited, ruining the digital transition.  Some centralized money management banks are doing well, people's confidence depends on it.  At least for now.  Democracy for financial freedom is to be expected - but the inheritance they expect is the patronage of problems related to inheritance.

In my country, i see that people who take their money from the bank. It doesn't meant they distrust with the bank but because they need more money to fulfill their needs during pandemic. We know, because of the pandemic, Many people dont have any income to fulfill their needs, but they have to pay every expenses from their saving. Most of people in my city, doesnt interest to invest in crypto. They think that its too risky. They prefer invest their money in gold to crypto.

Another big reason would be banking industry is not sustainable and thats why it has killed a lot of economies all around the world. The logic is this ; they get all of your money, then they loan others with it, then they repacakge thousands of loans together and sell that to each other, invest on it raise it lower it and a lot of things, then they invest into stocks, stocks tied to companies, companies make money but that means there is a finite amount of money right now and if they keep profiting all the time and make money then they will have all the money? How can a company make endless profits year after year every year if there is finite amount of money?

This means there needs to be money printed every year, and those companies make tens of billions of dollars each while regular people have few hundred increases every year, maybe few thousand if they are lucky. As you can see we started from first step and showed how they hurt regular people, that is another reason to hate them.

It's not as simple as you're trying to imagine and you're a little misguided or trying to mislead. According to your logic, it turns out that all financial organizations work efficiently and always earn a profit, but in a market economy, this should not happen. Because there is a constant struggle and some players win against other players. Some get rich, while others go bankrupt or become the object of absorption of a more successful competitor. The invisible hand of Adam Smith's market must be at work.

The banking system is heavily influenced and controlled by the VIP of our countries. When banks will force middle-class people to pay their loans back but they will not or unable to force high business class people to pay their debt. One of the largest banks in Indian Called " YES Bank" was going to shut down because of bad loans. This happens because of some corrupt people and shows us how vulnerable a centralized system can be where few corrupt people can destroy the whole system. How we can trust these types of systems when our money is not ours anymore if we put them in the system.

Yeah some forced not to save their money in bank and pay the bank fee but instead they might have stopped depositing because they can't afford to save money anymore due to pandemic so the saying that people distrust centralized organizations might be a bit biased. However, as I've seen there's ongoing trend of not saving in bank but instead investing it to stocks because of the millenials. Still same thing though, trusting centralized organization howevewer the money is not too concentrated in one institution.

Thank you, it's why I trust centralized more than decentralized, DEX looks more shady to me, you want the real transparency? Centralized entities got you covered, I'm not planing on holding my money, they are safer in the banks, everyone keeps shouting DeX but none really works

If we are talking about decentralized resources in the cryptocurrency market, then you also need to take into account the fact that decentralization carries a certain danger for the user, where the user does not undergo any verification of his identity. If something, somewhere happens, then the user will not be able to prove his involvement in any information, data or assets And thus will not be able to protect his property.

That's true and decentralization while solves a lot of problems, I always feel that certain things are good being centralized because when things are decentralized and some bug or scam happens then you cannot hold anyone responsible for that. I mean imagine investing in something where you don't know who is operating it and how it works, then getting scammed you have no option to lodge a complaint.

Lets say some data is stolen from Facebook then we know we can hold someone responsible but in a decentralized system we don't know whom to ask if anything goes wrong. I like the decentralization being implemented at most places now but still being a non-technical guy I have my own worries about the system.

The problem banks have is that you lose your trust to them but you do not lose your money to them, there are still countless amount of money in banks that has no other option at all. Normally let's assume you are a business that deals with hundreds of thousands of dollars, there are so many of them, you need a loan in hundreds of thousands, there are a lot of them too and think about all those people who are way above that, people who deal with millions of dollars and even billions.

When you imagine those people, can you imagine them working with cash? That is impossible, they can't use cash and that means you have to basically just use a bank in order to carry that in a small tiny card, otherwise you would need to carry your money in a whole luggage or even few of them just to walk around, which is impossible. So poor people can remove their money from banks, but as long as huge corporations keep working with them, there won't be any problems for them.

You can't escape inflation and deflation no matter where you decide to keep your money, bank or at hand or anywhere else it still doesn't make any difference, to me I'd still prefer centralized organization, they just works better, sorry to say I haven't seen real decentralized organization that works

I agree with the first part of your post that people cashing money from bank does not necessarily show distrust but might be need of the time more than anything else. I don't agree with the later part though because I feel that more and more people are now investing into crypto and digital currencies instead of gold which was the traditional way of investing.

Yes, some people still feel a bit insecure when investing into Bitcoins or crypto as a whole but that is because they haven't understood how it works and because of the claims that bitcoin is a bubble some people are not ready to invest their hard earned money into crypto and understandably so, but data-wise more and more people are shifting from traditional methods of investing like gold towards digital assets like bitcoins.

Fear of bankruptcy? Well not me because no matter how smart I am or how good in trading I am I can't forever keep holding my coins and assets, to get fiat cash in hand I will still have to make deposits into my bank account first, it's only through bank you can have FIAT in hand, we are not in a world where you can buy everything using your smartphones yet, you are going to need cash and bank is the answer to that

Most of the people have lost jobs and or have been on a skeletal workforce which may have force them to withdraw their fund instead of depositing. The pandemic is the caused of this and not the distrust of individuals to banks.
Regarding about the increase of investors on bitcoin compared to before, I might say that due to event or the bitcoin halving is one of the reason why investors are eyeing on bitcoin for some quick profit and may also be there for the long run.

Centralized organizations we talk about are not the ones you think about. Binance is centralized but we are not talking about that, you could use that if you want and there is no problem for it. What we are talking about here is the banks and other places like insurance and whatever, those are really the horrible ones because they are not good at what they do and they are stealing everyone's money.

So, if you are not sure about binance versus uniswap that's fine, you can trust uniswap and I do not know why you don't because they are decentralized and open source so you have nothing to worry about, but even if you do not want to trust them that's fine it is a personal preference and you can go with binance. However if you consider banks versus binance, it should be binance all the way, they are not doing anything to hurt you and they are trying to make money while we all make money, that is a lot better for binance, if we get rich they get rich so they want what's better for us.

We can't forget that there is a place for centralised institutional and Decentralised ones, human by nature are prone to corruption and it is not that these centralised governments are bad, they can work as they are intended to. Even the so called decentralised systems and platforms we are operating and championing in crypto how, decentralised are they? Ethereum still has element of centralisation involved in it, let Vitalik decides that he is quitting Ethereum today and moving to a new projects, you will see how this is going to affect the Ethereum ecosystem

I think it's all about innovations. People are starting to find new ways on where they could keep large amount of money aside from banks. In my country, the emergence of digital apps where you can keep your money are becoming more convenient since you can use it to pay bills at the same time. Banks are being outdated already and it's not surprising actually. There's a possibility that banks will shut down as new system of fund keeping institutions or organization arises. Crypto might enter the game too since lots of people are already starting to acknowledge it considering the high value of bitcoin right now.

I agree with this point of view. People were surprised by this pandemic and with so many bills to pay every month they were forced to withdraw their economies from banks. And as jobs in general diminished, their monthly income was reduced as well. Others had to move from formal to informal market to acquire some income, what in many cases skip bank transactions.
Most people still believe in banks or don't have any opinion about it, while crypto currency is unknown to them, at least where I live.

I think in this case it makes some sense the real big investors (whales) seeing their fiat economies in recession made the smart move to put their funds in crypto currency to split part of their fortune, in case their countries economies become worse. And of course add this to bitcoin halving as you mentioned.

Today people are tired not only of the banking system, but also of other financial organizations, such as Microfinance Organizations, which use the poor financial condition of people, squeeze the last funds from each person, providing loans under very bad conditions. Against the background of Microfinance Organizations, any Bank seems to be a kindergarten institution, where conditions and opportunities are much softer and easier for each client.

It depends on the country. Once I had a presentation about banking culture in some post-soviet countries and from my research, I can say that they avoid deposit in bank accounts. The reason is that in some of these countries, back in 90s, a lot of people, the highest percentage of the population had deposit on banks account (there weren't commercial banks, banks belonged to the government). And one day, people lost deposits, government take it all, then happened inflation, currency was changed, etc. That's why majority of population don't trust to banks in some countries (younger population more likely trusts banks and makes deposits if they have).

That's where the government will come in if these institution is offering loans that does not have a reasonable interest of the people. I think microfinance loans focus on the poor people to help them, but this loan does not come with collateral and therefore they need to educate people to use the funds in starting a business or additional capital of the existing business, without that and without proper monitoring, the funds will be diverted to other purposes and the problem will start.

Financial literacy is what the poor needs, for them to know their obligation and for them to manage the funds they borrowed effectively.

Financial literacy in general will not prevent anyone, including more affluent people, and not just the poor, because in the absence of financial literacy, you can turn from just wealthy to just poor ;) Entrepreneurship also requires some talent and a certain mindset, and not everyone will necessarily succeed in this area, and vice versa, it is possible to ruin, so giving advice about the fact that borrowed funds should be spent only on business is quite risky advice.