Bitcoin Forum

A nice report about future of bitcoin..

report also cites  litecoin and dogecoin as very important currencies.

https://ir.citi.com/RZh%2B9GHcy3eQvegHG9vuU3r5%2FxkjXBMMfUnULRTyibawadNFQRrrFA%3D%3D

nice to watch a bank write good about bitcoin, the very thing which is going to make banks extinct in future.

"Disruptive Innovation"

Looking at the people around me I find that very difficult to believe in no matter how disruptive the technology is.

big things start so small..

practically speaking why the hell would anyone need a bank if they can literally have a billion dollars in their pockets or in a piece of paper.

I think most banks realise its potential but wouldnt want to admit it publically.

Because people can't handle that without throwing it away.

The same reason why people don't keep a billion (or hundred thousand) dollars in their pocket today.   Bitcoin may change how banks operate, on how much it changes the banks will depend on how widely it is adopted.  There will always be banks.  Banks predate fiat currency by a couple a couple hundred years.   There were banks (100% reserve) in the Roman Empire.  Banking concepts (letters of credit, loans, interest, etc) were used in Greece and China even before that although they didn't exist as banks as we understand them today. 

My thought exactly. In the dark they are trying to figure out how they can profit from it, and they will in the end.

Protection and liquidity assurance.

Remember, banks were originally created to keep money safe. Unfortunately, that has become so obfuscated with all the things that exist in the scope of banks now days. But the fact still remains, a bank acts as a assembled place to store value. After all it's easier to protect something if a whole bunch of people are trying to protect it. (Although, by that same token, it's "centralization" makes it easier to attack...)

It's not rocket surgery. Profiting from Bitcoin = melting fiat into Bitcoin.

probably, but it will be a lot harder than printing money like they do now.

What do you mean by melting fiat into Bitcoin exactly?

Did Blockbuster profited from the Internet?

Banks will never die, hopefully the return to what they were suppose to be..  A spot to safely store wealth.. Not a spot to lend out wealth created from debt.. Currently banks are an abomonation.

Bitcoin is supposed to replace part of the banking system in future, i.e. predominantly online banking transactions. But the whole purpose of a bank is far more than this. Banks give u interest. Banks give money to businesses. Without an institutional way, u cant do it. Bank will probably adopt Bitcoin as a medium of exchange in future and that would branch out new banking activities as well as closing certain ones. But banks are gonna stay... for the GOOD :)

SUre, I could see banks getting a lot of BTC and then they can "store" BTC for people who don't get you can store it yourself.  But the banks might give interest, so that would be an added incentive for you to let banks hold it...uh oh that kinda sounds like it goes against the BTC principles...

Banks will have their place for certain things, but bitcoin will hopefully cut into their monopoly.

Bitcoin was created with the idea that it will be a currency and payment network that will not rely on trust. Therefore no banks are needed. You could say that it's even hostile towards them since it operates fully independent from them so it's not only a competitor, but also an ideology that keeps spreading. Making people think that in the future they might not need banks.

But if you ask me, the fact that a big bank like citi can see the positives of bitcoin is a positive thing.

There's a new race going on.  Wouldn't you want to be the first bank to implement crypto-technology to lower transfer fees for your customers, branches, etc.?  I can already hear the engines revving.  Probably some intense white-paper research going on right about now. 

Strange thing about the law.  A corporate entity is treated as a "person" for all intents and purposes.  The reasons individuals, initially described as crypto-anarchists, also apply to corporations.  So in a sense, the advantages of anonymity, low transfer fees, and unknown business relationships apply to these "people" as well.  The world of corporate transparency just got a little bit darker.

Well some people believe we can't live without banks.
So I think banks will always have some kind of business.
Maybe it can be storing bitcoins or lending bitcoins.
They will probably find something to do like that, or someone has to make them really hated.

Bit Coin banks can be a useful thing for ease of use for your bit coins and as lending institutions. I would use such a bank if they used a public address so we could verify that they are solvent via the block chain.  

100% agree, bitcoin is a total threat to citi and other banks. i wouldnt seek endorsement from banks as a legitimastion of bitcoin...

Blockbuster wasn't an industry.  They were one company within the broad industry of delivering premium content to people.  Netflix and others emerged to leverage the internet.  Blockbuster failed to adapt and went under.  Banks that don't adapt to future innovations (not just to bicoin) will also go under.  But the industry of banking, in some form or another, making money off other peoples' needs to use money and to keep money secure, will be around for a long time.

I think I still owe them some late fees. It always surprises me when I see video rental stores still in business.

i don't like the fact that banks and financial institutions are paying notice to bitcoin. they'll just end up pooling their money together to influence lawmakers to be against it.

I've been lucky enough to start up my own bank. It's called the Bank of Me. It has one customer. We've been operational for over a year. Had to adapt our security policies and percentages a couple of times. We were robbed once but only of a small amount. Luckily we had moved 90% of our customers funds into a safer, cooler, storage facility. Learnt from that mistake.

We have the emergence of many independent franchises over the last year and long may it continue.

I think they see something of value that has nothing to do with what us Minions consider Bitcoin to be. I believe they finally got their head wrapped around it to somehow make bank on the whole cryptocurrency scene.

They see potential, alright!

No, it'll be easier.

Bank.
Contact ally.
Create new alt.
List alt on exchange.
Bank positions themselves.
Profit.
Rinse.
Repeat.

Soon, banks will have their customers mine for them, i.e. Fifth Third Bank would have 53Coin, to be traded on some exchange. How about: WFCoin; STCoin; CitiCoin; BoACoin; JPMC; C1Coin; INGCoin; to name a few. All listed on some exchange, competing with one another.

And, all the mining will be done on the Cloud where contracts would need to be purchased.

Why stop at banks? Politicians could just as easily set up their own coins to have their supports mine for them, of which would be traded on some exchange, with some creative way to glean a certain percentage outta what's mined to support their election campaign. Hell, with this scenario, a politician can now have their supporters earn a buck while they fill their campaign coffer. An individual can then support opposing camps simultaneously if the ROI is favorable, otherwise only the most favorable politician's mining coop will get funded fuller. This could all be in place prior to the 2016 general election, with a test run for 2014, this fall.

I believe short to medium term the most disruption will be on the western union types for transferring money from place to place. Millions and millions of dollars and other currencies will be saved for the consumer and businesses.

Right now it costs me almost 10% to send money to my in laws that are oversea's and its done the real old fashion way we find somebody traveling and send the money with them. Its hardly safe or cheap.

Credit card fee's are anywhere from 1.5% to almost 5% for some of the airline perks cards. So i believe bitcoin's can disrupt credit cards as well. But imo the credit card companies have a few more advantages than the money wire companies.

Steve
 

Of course bank will ever exist. Bank are not evil. The system is.

Bank will exist for ever, if tomorrow something REALLY serious open door who can keep your bitcoin safe with insurance + make you able to spend it pretty easily with multiples account (saving, current) protected by different password + make you able to invest in stock or whatever or can do it for you, a trader will take your bitcoin and play with it and take a comission (because you don't have time to take care it).

I will sign up and pay for it for sure (in a reasonnable way) Maybe i will not put everything i have, because i'm paranoid. But bank will forever exist because security is a pro thing, and investment is needed in our economy. Maybe is more risky for me to take care about my own security than give it to a bank. Really i'm not really good at security, some of you are, but we are not all engineer with 4 lapops and 2 desk computer at home.

Bank is needed overall for investment, i believe about p2p stocks market, but i think it's will be like a "2nd market" for smaller company, we need also centralised. We need p2p and centralised, we need to have the choose. Serious company with real invest they need some centralisation.

I hope people with large amount of BTC will realise they better to invest Bitcoin in Bitcoin company instead of keep it in cold storage, this will not help Bitcoin to be what it need to be :) But people with millions of dollars worth bitcoin they need some insurance.

I hope a Bitcoin trust fund will emerge soon. Like they take the top10 of best startup bitcoin in different localisation to mitige the risk. You put an invest of 5 bitcoin for example and you receive 10 different colored coin from company. I feel like we need kind of centralised organisation, or it's will be a giant mess, because you need a huge investment to make a system like this. P2P is very good, but i will not rules the world. We need some "centralised" organisation.

Centralised not mean dark organisation, Bitcoin allow transparency and all company who want to be trusted will need to open their account to public soon. Its start to happening. Maybe bank of tomorrow will not be Bank of today, it's all depends how they handle their transition in this new system. It's like paypal i feel, maybe Paypal tomorrow will be stronger then never if they integrate Bitcoin in a right way. Maybe they will not and will disapear in 5-10years.

I'm sure pretty sure we will have a giant schism in banking system. Some will fight bitcoin to dead to survive, and some will try to transition into, they will invest and fund Bitcoin bank.
I think bank who will try to fight BTC are dangerous and maybe they can make some damage to Bitcoin, maybe with politics, maybe with misinformation, maybe with illegal thing, maybe all of 3. But they will not destroy the idea, so the fight is already lost, they can just try to delay it like 5-10years.

They can be sucesfull in transition in a new system, dont forget Banker are kind of genious (they recruit something like 30% of all the better student in the world, and they are liberalist by education so bitcoin is a dream who can come true for them?), have kind of illimited fund and it's an intellectual elite of this world, dont underestimate this people lol... If they see an opportunity, they will take it seriously. Bank will continue exist of course, they have so much money, they just can't lose 100%.

Centalised is good because centralised organisation is more easy to make profit, so they can invest massively, and can do faster and better what p2p have hard time to make. It's a reality. It's how the world works for thousand of years, and will continue i believe.

Bitcoin will negatively affect the long term profitability of banks as they make a huge amount of revenue from payment processing and deposit account fees that Bitcoin eliminates (for the most part).

I call dibs on WTFcoin!

Regarding banks, if you put your money under your mattress it depreciates every day whereas, in an interest bearing account it appreciates.  You put BTC under your mattress and it appreciates more rapidly.  Quite a bit more than banks are sufficiently solvent to keep up with.  So, long story short:  Just Bitcoin them to death!

PS, don't jack with my mortgage interest rate though.  I got a deal on that!

Last I heard, Citibank was still very against bitcoins and will close accounts if they find out you move a decent amount of btc-related transactions through there. In the US, no major bank is accepting of bitcoin. The only ones that won't give you a complete hassle about is are credit unions. Chase is the worst when it comes to this.

I believe banks can be an excellent bitcoin exchange. They already have our names and addresses, so need for extra KYC issues, and we have learnt to trust them (most of them) with our fiat.

They could be, but fractional reserve lending would put us right back in the situation that bit coin was created to solve.

All banks have definitely taken notice of Bitcoin, but most probably agree that it isn't quite big enough for them to try and do anything about it. I wonder which will be the first to publicly jump in?

Bitcoin was not created to solve fractional reserve lending, it was created to solve the issue with P2P payments being centralized and high cost.

I would be very careful about heaping kudos on Citibank...Bitcoin is their enemy, and they know it, whether they admit that publicly or not.

Exactly! Anyways, we should not worry about banks. Sneaky bankers will find their place in the cryptoworld.

And they told abou BlackCoin too http://www.coindesk.com/citi-bitcoin-debit-credit-card-issuers/

I think it was JP Morgan Chase that recently invented a patent that sounded very similar to Bitcoin.