Bitcoin Forum

Four banks of a province in China have frozen people's deposits amounting to millions of dollars and now no one can withdraw their money.

There is some news that banks may go bankrupt and the possibility is that people will not be able to withdraw their money.

No one can freeze your account if it is bitcoin. If bitcoin is there, this situation can be avoided. Bitcoin fix it!


https://twitter.com/nvk/status/1546281750543966208
https://i.imgur.com/gfIIfUq.jpg


https://www.reuters.com/world/china/chinese-protesters-demanding-bank-deposits-tussle-with-security-men-2022-07-10/
https://i.imgur.com/sTb4fIO.jpg

Not when they're stored on custodial wallets. Isn't trading and commercial use of bitcoin also banned in China? So it may be true that bitcoin can fix the freezing of assets in other countries but not in China. It becomes useless if they cannot use it to buy goods directly or convert it to fiat first. There may be some individuals willing to trade P2P but for how long?

As @Yogee well pointed out, the way someone keeps his Bitcoin plays a crucial role in whether it really belongs to him or he entrusted it to someone else for safekeeping. Therefore, all Bitcoin that is on centralized crypto exchanges belongs to the owners, those exchanges and any government that at some point wants to confiscate it for some reason.

Bitcoin cannot fix China or any country in the world in the way you think until people change and start seriously asking for society to change. In countries like China, this has been proven to be an almost impossible mission because the Chinese (the majority) do not want change, and given how many there are, they could overthrow any government overnight.

---

@Smack That Ace, it would be nice if you could learn to reduce the image to the appropriate size.

True but do you know what else can happen if you store all your assets in bitcoin ?  This (https://imgur.com/0TygXIj) in a little over 6 monhts.

I'm not saying you shouldn't hold bitcoins or anything, In fact bitcoin can be a great investement if proper risk managment was taken, The point im trying to make is putting all your funds onto one place is not a smart thing to do no matter how good or secure that "place" looks like, the key is to  always try and diversify.

This is one of the areas where bitcoin can make a change. You're your own bank and you don't have to worry about the facility being closed, their servers being down, their website having some issues, them leaking your private data, and the most important thing, them going bankrupt and not being able to give you back your money. With bitcoin there's no line to the ATM, nobody will spray you with tear gas for demanding your money to be returned. It's about time people learn this simple truth.

Until a person feels it for himself, he will never understand for anything in the world that you can't keep your money in banks. Only what only you have access to can be called yours. In the case of banks, your money is in their hands bank accounts and they can do whatever they want with it. Including, not to give to your customers, as in what happened in China. Bitcoin in this case is incomparably superior to a bank deposit, which no one can freeze or prohibit from using. I wonder what percentage of people who are victims of the banking system in China will then go to bitcoin.

As long as they feel need to use bitcoin for their investment and financial freedom.

China has +billion of people, almost 70% of them can access the internet and probably that heard already about bitcoin. Even China banned bitcoin years ago, I'm sure there are still chinese people keep using and trading bitcoin secretly residing on that country playing on devils luck since the banned happen.

That bank has probably something to do with economic crises in their place. Because if they can't let people withdraw the deposited money that they have input, it's probably gone with them. Along with the investment that they probably bought using the deposited money or something. It's going to be troublesome for them if it did happen like that and they can't give a proper solution or something..

If you are one of the depositors there, I hope you get your deposit soon. Bitcoin can't fix it but it can prevent the overloading or bearing of the money that they have invested. If they used the asset to invest in another thing, it would just be the same.

From the bank customer's perspective, technically yes. But they have a variety of purposes and lengths of holding about the money they save. The only concern for bitcoin here is its volatility, they may have to re-plan their spending if bitcoin drops.
And for a while bitcoin still doesn't meet the criteria as a currency in a number of ways other than high volatility.

Is their internet "free" or is it controlled by the State as well? It's a fact that many of them have heard about bitcoin before but so what? There may be a few percentage still playing cat and mouse with the authorities but it's not sustainable is it? It's tough to really tell them to convert their life savings to bitcoin knowing the situation that they can be caught anytime and be punished.

Everyone will now have the idea that the banks can closed and stop withdrawals of their own money. Whether they're currently holding bitcoin or not, that will tick their curiosity on what the banks can really do with our money.

This is the reason why we need bitcoin and what we can do with our own money and wealth. We can hold it on our own with confidence without having the worry that we won't be able to withdraw it someday unless you're holding it on custodial wallets.

From time to time, no one will trust banks to save their assets.

Though we know Bitcoin can't compete with traditional money but still, it has an advantage when it comes to storing it, the golden rule which I most like, "Not your keys, not your coins", the same on the bank, you didn't have full control in your money at the bank so don't expect that it's safe.  You might safe from the volatility but still, there's a risk part when freezing your account.

It might people of China has been now owned Bitcoin even though their government against it.

Agree with this.

---

why they can't withdraw their money as far as i know the government have some kind program to protect the customer in case like this happen. if like this happen and banks till can't withdraw thei customer money 1998 that happen in southeast asia will happen to china

They were cheated by intermediaries, who used higher interest rates to induce users to deposit. Users thought it was a deposit, but it was actually an investment, and then the intermediaries ran away with money. Basically, there was a problem with the intermediaries and relevant supervision (there may be interest transfer), rather than a simple bank unable to withdraw money

China though is cracking down on everything related to bitcoin, so the Chinese people might have a hard time also putting their money and wealth thru bitcoin, hide it, and how do they encash it?

So it's a dilemma for them, but for us who enjoyed the support of our government, needless to say it will be easy for us and for sure majority of us have put our money on bitcoin already. And just put some on banks just an option but not our whole wealth.

Makes me think if this crisis is going to spread and go through China like a wave. If more provinces get similar bank runs it's going to be a huge eye opener for people around the world, similar to the Cyprus bailouts that many have already forgotten about. I'd hate to see people fight for their money and being left with no money to live by, but if it's the only way to teach people that banks are vulnerable and the only safe way is to hold bitcoin and cash, so be it.

"No one can freeze your account if it is bitcoin. If bitcoin is there, this situation can be avoided. Bitcoin fix it!"

Bitcoin in Exchange = Not SAFE.
Cash in Bank = Not SAFE.

Bitcoin in HW Wallet = SAFE.
Cash in Hand = SAFE.

Centralized systems are the main problem, not fiat. I hope you will understand this.
Also, Bitcoin fixes the problems which aren't problems for 95% of the current population on this planet.

Central banks are not trusted. They have leverage and can over leverage to raise fund and if bear market, financial recession comes, they get troubles, liquidation calls and their endings would be like Celcius, Terra Luna, Three Arrows Capital.

Story is same. With cryptocurrency, you can store it in your own wallet. With fiat currency, you can store it in your vault but it is less safe when storing big money in vault at your home. Especially if security in your country is not too good.

Use non custodial wallet, say no to central bank.

Here centralized system is the problem. Is there a way through which traditional currency can be made into usage same as that we have got limited number of supply. Bitcoin usage might've eliminated it, even if we need to have some bitcoin we're in need of banks. Such situations can't be avoided at present.

depend on how you can handle explaining  to the banks your part when they are trying to withdraw your funds.

but when holding bitcoin? are you referring in  exchanges?


but never forget about the risk , because there are hackers that will target your funds if you will not know the use of security and the power of knowledge .

I mean about the people, whether they're holding bitcoin or not, they'll have the idea that banks can halt withdrawals if they need in doing so. And about the explanation in the banks, these people in China have been stopped for their withdrawals, without any explanation.

It is a forced decision and no one can interfere whether you've got the best explanation in the world.

Then, you just need to be that diligent and careful and avoid downloading all of those malicious software because that's where they're coming from and also avoiding filling up forms and putting your own keys there.

Bankruptcy or freezing of people's bank accounts is not a new story and these incidents happen anywhere in the world.

You are right, bitcoin is only safe when we use non custodial wallet , then we have full control over our assets.

But I mean here, if our world had bitcoin and everyone could use bitcoin then stories like this wouldn't happen, bitcoin's existence is to solve problems like these.
Bitcoin's biggest hurdle is the government, but things like this keep happening like it or not, I'm sure people will find a way to use bitcoin to protect their wealth. The government won't be able to stop it forever, trust in the government has been shaken.

And these centralized control and failure concerns are something that bitcoin in and of itself solves, use case proven and validated.  Can you imagine going to a bank and not being able to withdraw any of your hard earned money?  It's no wonder why people are being drawn to bitcoin which in turn also draws people to other cryptos, depending on whether you are a maximalist or not.  Bitcoin offers a viable alternative, thus mitigating centralized concerns, esp banks, as long as you own and are in control of your keys. 

The client of that bank is very unfortunate, it's not a joke that he/she has millions of dollars and the sad thing is that he/she can't withdraw it. The client probably has no idea that the bank where he/she put his/her money or savings will close. And when that happens, possible only 50% of his savings can be paid to him/her by the bank or unfortunately he will not be paid, and in that case he/she can't do nothing because the bank can declared bankruptcy.

I just hope there is still a way for him/her to withdraw his/her money. But the chances are still like 50/50,  and this is the only bad thing about the bank, which is that at any time or day they can freeze your account without your consent. Unlike compared to bitcoin this is not the scenario although there is risk if you put all your money in Bitcoin in one address, maybe it's okay if you spread it on different exchange platforms that you are sure it is safe and included in the top exchange in the Bitcoin industry.

In my opinion it's utopia to live without banks and I'm not referring to fiat traditional banks as the only option disponible, since we also have crypto banks operating. You don't need banks to store money, but you need to partner with banks to invest your funds or borrow money, for an example. What we can do is to decrease the importance and presence banks have in our daily life to minimize the risks of being scammed or having our money seized, although it's not interesting to live without them if you have plans of growing your patrimony.

This is the perfect reason why bitcoin is required at this moment of time. I also read that these protests even turned violent at one point.

That's where you need bitcoin because nobody can restrict you of your funds but the problem is you need fiat to make daily transactions and buy stuff and bitcoin is not acceptable everywhere so you have to go through banking system at this time but they make it their rule to make any changes and restrict you of your funds.

In reality, banks and fiat money remain necessary for daily living, as @Muneng said, I completely agree with him. During difficult times, a bank can provide loans to serve your business, loans to invest in your business...but as long as we should not be too dependent on them, all our assets should not be left to their management. The reason we need bitcoin is that we need to be our own bank to reduce risk, as in the example I mentioned above.

Banks definitely have a functional role in our society. Through credit we can accelerate our growth exponentially, but Bitcoin is necessary too. Most of the world value democracy so that's why a major part of the power needs to be in the hands of the inhabitants. When you concentrate too much power in the hands of a few you create major systemic risks that could produce chaos & havoc. I believe that Bitcoin is a catalyst that will recalibrate the society.

This happens more often than people think, not only in countries with communist/authoritarian governments. Canada a few months ago had began seizing people's bank accounts and freezing funds from people who merely received money from protesting truckers. The willingness of banking institutions to act on the government's whim is abhorrent and your funds are not safe even if you are a law abiding citizen. Your funds can disappear without any recourse.

This is why we need to be educated on how to use and take advantage of banks. Banks are helpful if we use it the right way, Banks provide benefits to their users such as loans, discounts, point system and other things that will let you benefit from them but this doesn't mean that we should put most of our money to them. We don't have full control of our money if it's on our banks, They can do anything like having our account froze, restrict our transactions or even worst just like what the china's banks are doing now. This is why we need bitcoin or cryptocurrency as a whole to set up our own bank and have fully control of our money.