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Title: Banks have nothing to fear from the bitcoin network Post by: Pietjebel on October 01, 2014, 07:42:43 PM When Alice buys bitcoins from Bob, fiat moves from Bank A(Alice) to Bank B(Bob), hence there is no loss for the banking system. In other words banks have nothing to fear from the bitcoin network, right? Title: Re: Banks have nothing to fear from the bitcoin network Post by: Robert Paulson on October 01, 2014, 07:45:21 PM what if Alice and Bob both get their paychecks in bitcoin and don't need to convert any fiat for it.
what if no one uses fiat anymore. the only reason banking is as profitable as it is today is because banks are allowed to print fiat money and loan it to people with interest. Title: Re: Banks have nothing to fear from the bitcoin network Post by: Pietjebel on October 01, 2014, 07:53:48 PM the only reason banking is as profitable as it is today is because banks are allowed to print fiat money and loan it to people with interest. They will probably be able to continue to do so for a while. Title: Re: Banks have nothing to fear from the bitcoin network Post by: RustyNomad on October 01, 2014, 07:58:07 PM The banks do have something to fear. International transfers make up a large portion of the fees that some banks earn.
If the bitcoin network becomes as prevalent as I believe it will, it would mean that a very large chunk of that income will no longer land up in the banks pockets. Also, once people get used to using bitcoin they will start using it for more and more day-to-day activities meaning that the banks will become even more irrelevant. Title: Re: Banks have nothing to fear from the bitcoin network Post by: Robert Paulson on October 01, 2014, 08:10:20 PM the only reason banking is as profitable as it is today is because banks are allowed to print fiat money and loan it to people with interest. They will probably be able to continue to do so for a while. if no one accepts their fiat money except the state, then it loses 99% of its purchasing power, in that case it doesn't matter that they are allowed to continue. Title: Re: Banks have nothing to fear from the bitcoin network Post by: BittBurger on October 01, 2014, 08:15:34 PM Actually, I am of the opinion that banks have nothing to fear from Bitcoin because they can, and will just fork the blockchain and make their own coin, their own network, and steal the entire concept to save themselves billions of dollars in fees, and promote the acquisition of new customers by offering cheaper services. And there will be Bitcion, sitting over there in the corner still.
-B- Title: Re: Banks have nothing to fear from the bitcoin network Post by: Robert Paulson on October 01, 2014, 08:26:30 PM Actually, I am of the opinion that banks have nothing to fear from Bitcoin because they can, and will just fork the blockchain and make their own coin, their own network, and steal the entire concept to save themselves billions of dollars in fees, and promote the acquisition of new customers by offering cheaper services. And there will be Bitcion, sitting over there in the corner still. -B- the banks cannot survive if the people use an unprintable form of money. forking the blockchain won't give them the ability to print money, only making BankCoin can do that (whats the point they already have paper money they can print). Title: Re: Banks have nothing to fear from the bitcoin network Post by: Beliathon on October 01, 2014, 08:48:32 PM "Newspapers have nothing to fear from the internet!"
Title: Re: Banks have nothing to fear from the bitcoin network Post by: bornil267645 on October 01, 2014, 08:51:31 PM well the main principle of the current banking system is to guard fiat currency so virtual currency will scare them. my suggestion is to create a different banking system for BTC.
Title: Re: Banks have nothing to fear from the bitcoin network Post by: Meuh6879 on October 01, 2014, 08:55:31 PM you pay your credit card
you pay the error of the bank you pay the POS of your merchand you pay the fractionnary reserve no. smart people build a network standalone ... that it work without maintenance. bitcoin. and banks crash ... like any other outdated industry. Title: Re: Banks have nothing to fear from the bitcoin network Post by: zimmah on October 02, 2014, 02:46:32 AM When Alice buys bitcoins from Bob, fiat moves from Bank A(Alice) to Bank B(Bob), hence there is no loss for the banking system. In other words banks have nothing to fear from the bitcoin network, right? That only works as long as people use fiat. Once enough people use bitcoin, those people can exit the fiat system forever. Title: Re: Banks have nothing to fear from the bitcoin network Post by: Zer0p0inT on October 02, 2014, 03:22:08 AM Mark Cuban apparently thinks that bitcoin has no chance against the central banks
http://finance.yahoo.com/news/billionaire-entrepreneur-mark-cuban-bitcoin-191326116.html Title: Re: Banks have nothing to fear from the bitcoin network Post by: blumangroup on October 02, 2014, 04:36:04 AM Actually, I am of the opinion that banks have nothing to fear from Bitcoin because they can, and will just fork the blockchain and make their own coin, their own network, and steal the entire concept to save themselves billions of dollars in fees, and promote the acquisition of new customers by offering cheaper services. And there will be Bitcion, sitting over there in the corner still. -B- the banks cannot survive if the people use an unprintable form of money. forking the blockchain won't give them the ability to print money, only making BankCoin can do that (whats the point they already have paper money they can print). Title: Re: Banks have nothing to fear from the bitcoin network Post by: Robert Paulson on October 03, 2014, 12:01:15 AM Actually, I am of the opinion that banks have nothing to fear from Bitcoin because they can, and will just fork the blockchain and make their own coin, their own network, and steal the entire concept to save themselves billions of dollars in fees, and promote the acquisition of new customers by offering cheaper services. And there will be Bitcion, sitting over there in the corner still. -B- the banks cannot survive if the people use an unprintable form of money. forking the blockchain won't give them the ability to print money, only making BankCoin can do that (whats the point they already have paper money they can print). you are wrong, commercial banks today are able to print fiat. if a commercial bank wants to print fiat all it has to do is borrow from the central bank something called base money, it is then allowed to loan to customers around 10 times more than the amount of base money it borrowed. even if a future bitcoin bank will exist and do a fractional reserve there is a limit to how many fake bitcoins it can claim to have before enough people try to withdraw some of them and collapse the bank. Title: Re: Banks have nothing to fear from the bitcoin network Post by: ticoti on October 03, 2014, 12:20:12 AM what they are afraid is that they lose their comissions because some can move from A B C D...
so it may be many movements before there is a fiat income to the bank Title: Re: Banks have nothing to fear from the bitcoin network Post by: sublime5447 on October 03, 2014, 01:12:11 AM When Alice buys bitcoins from Bob, fiat moves from Bank A(Alice) to Bank B(Bob), hence there is no loss for the banking system. In other words banks have nothing to fear from the bitcoin network, right? Exactly the banks have nothing to fear, the governments have nothing to fear, the status quo has nothing to fear, the ruling elite have nothing to fear... So why support it again? Title: Re: Banks have nothing to fear from the bitcoin network Post by: sublime5447 on October 03, 2014, 01:14:44 AM what they are afraid is that they lose their comissions because some can move from A B C D... so it may be many movements before there is a fiat income to the bank That doesn't matter. They will just cut you off at the point of centralization the government will just say where did you get the funds from? did you make a profit and they will be able to look at the public record of your transactions. Title: Re: Banks have nothing to fear from the bitcoin network Post by: botany on October 03, 2014, 01:52:25 AM Actually, I am of the opinion that banks have nothing to fear from Bitcoin because they can, and will just fork the blockchain and make their own coin, their own network, and steal the entire concept to save themselves billions of dollars in fees, and promote the acquisition of new customers by offering cheaper services. And there will be Bitcion, sitting over there in the corner still. -B- the banks cannot survive if the people use an unprintable form of money. forking the blockchain won't give them the ability to print money, only making BankCoin can do that (whats the point they already have paper money they can print). you are wrong, commercial banks today are able to print fiat. if a commercial bank wants to print fiat all it has to do is borrow from the central bank something called base money, it is then allowed to loan to customers around 10 times more than the amount of base money it borrowed. even if a future bitcoin bank will exist and do a fractional reserve there is a limit to how many fake bitcoins it can claim to have before enough people try to withdraw some of them and collapse the bank. Your understanding of the fractional reserve system is wrong. Banks cannot lend out more money than they have (deposits, equity, base money, etc). It is just that they should have a fraction of their deposits in the form of reserves, to meet any contingency. Title: Re: Banks have nothing to fear from the bitcoin network Post by: snappa4ever on October 03, 2014, 01:54:35 AM Bitcoin will aid the banking sector. Agreed with the title of this topic.
Title: Re: Banks have nothing to fear from the bitcoin network Post by: chairoverflow on October 03, 2014, 03:13:46 AM the only reason banking is as profitable as it is today is because banks are allowed to print fiat money and loan it to people with interest. They will probably be able to continue to do so for a while. Title: Re: Banks have nothing to fear from the bitcoin network Post by: vipgelsi on October 03, 2014, 03:14:54 AM Credit card companies have more to fear.
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