Bitcoin Forum

Is there any place in market for concept of Bitcoin bank?

Benefits of secured value combined with anonymity and speed of bitcoin network.

Any suggestions or opinions?

Well, since the main idea behind Bitcoin was to create a decentralized currency where the big guys don't give out loans and charge huge interest rates, I don't think a Bitcoin Bank is a great idea.

As far as a bank goes. not really, it goes against the main concept of using it...as already mentioned.  Some people have started funds that allow you to deposit bitcoin and "lock in" a value, which is usually backed by some commodity (gold/silver/etc).  ATMs were pretty popular, but you also need to register as a money transmitter too (in the US).  Bitcoin is disruptive to the banking establishment, so it tips the apple cart of all the industries that have sat upon that throne for the past couple of hundred years. Because of that, you would have a hard time getting a foothold in traditional banking.

Young entrepreneurs need startup money for local businesses. Families need homes. Municipalities need fire departments. Sure there will be a need for banks. Where else would they get money?

^^^ This.

As much as you hate banks, the world needs them.
This is why they got the population enslaved, because they need them.

That being said, there are Bitcoin banks but don't give out loans yet.
Coinbase can be considered a bank and so can Circle.
They don't give out loans yet, but who knows.

Main idea was not providing loans,even in later stages it will be way of generating profit,and supporting comunity.
my idea was to concentrate btc value,with services such as free transfers between accounts,exchange, buy/sell with direct exchange from/to fiat,and secure capital of whole group of btc owners by single subject.

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I roughly compare the Bitcoin markets (e.g. Bitstamp or Kraken) with the "bank". You can store your Bitcoins there, you can exchange them and you can withdraw them. For sure, it's no real bank. A bank in this correlation would be Blockchain.info Wallet, Bitcoin-Qt or a Paper Wallet. The one and only difference is, that no third-party can freeze your coins + you get no interests on your holdings.

Well, yes - I also think - there can be the BTC bank, even in virtual way - but till today no one want to create virtual BTC bank, because there is a large credit risk - you can loose your BTC credits

Eeven though there probably isn't a place for a BTC Bank, I still don't think we should make the name "bank" redundant. This will help people understand and familiarise themselves with the concept.

But then we would lie the majority. Because in the Bitcoin world there isn't a bank. You are the bank and that must me clear for everyone. Bitcoin is something new, we can't compare it with our old money / fiat system, based on capitalism and a huge discrepancy between rich and poor...

Bitcoin bank can have potential in investments, and definetely it could be vital enough to keep working, it depends only on investment and credit risk policy adapted.
Only problem is to convince people to trust starting institution such as virtual bank.
In my opinion, it is possible to develop idea, and maybe when whole concept of bitcoin become more mature, bank should be created.

Yes We cant compare it to FIAT, bt people allways need, and surely they will seek and trust, some subject that will provide them some security in financial way.

In my opinion Bank could be created, and of course it need to will have some similarity with Fiat system. Even bitcoin is something new, it is created within capitalism, and it adapt some of its principles, so idea of bank as system tool of capitalism teoretically could be real.

For sure, Bitcoin has the image of a free market economy and is actually also a free market economy. You can explain that with the simple economy preferences (e.g. supply and demand etc.). Because there is no control of Bitcoin (it's decentralized), the Bitcoin hasn't the image of a social market economy...so we need no bank.

We are creating a full-reserve crypto-bank. Check my signature.

hi. iam discussing about bitcoin project,which will work with bitcoin and will work on its existing infrastructure,and possibly links allready existing projects.

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You may check NXT's multigateway bitcoins. With Crypto Reserve, that feature may act like a frictionless bitcoin bank utilizing the bitcoin's own blockchain - together with Crypto Reserve's blockchain.

You should not even use those two words together.  ;)

We should pioneer new creative ways to move away from the traditional "Banking" thinking... and build on something new.  ;D ;D

Your wallet is your bank , Be the bank of yourself . You have the control of all your money , you don't need a bank. I think you didn't understand what is the sense of bitcoin....

the people that try to tell you that you dont need a bank are full of hot air.

want a bitcoin bank ? make it yourself. the wallet is simply a wallet nothing more nothing less.

There has been some talk about this for awhile now, cheak out this thread
https://bitcointalk.org/index.php?topic=755490.0;topicseen

Can you send bitcoins instantly?

No.

Can you send bitcoins without any fees?

No.

Can you exchange bitcoins with any other security in an easy and secure manner?

No.

Can you have insured bitcoin loans or credits?

No.

Is there any reliable decentralized investment fund?

No.

Those are all the areas in development. And those are what make bitcoiners need a crypto-bank. Bitcoin shows us a way to store and transfer value in a decentralized way, but it has its own deficiencies to be resolved by some innocent interventions, that is, financial applications to be built on bitcoin. There are decentralized solutions to those problems, but there are also such problems where there's nothing to do except accepting the legitimacy of a semi-centralized crypto-bank.

Believe it or not, like it or not, this is the future, and this is going to happen inevitably.

Do you think bitcoin is centralization?
make a wallet is enough for safe your btc, make a hard password, save private key, make a high security.

To be successful, a bitcoin bank would need to offer the same services a classic bank offers. That's savings accounts which provide some interest, and loans so that you can buy a house. Without offering those services, a bitcoin bank would be absolutely useless, and meaningless.

I agree with mentioned above.
Iam looking for way to answer yes to all of questions asked.
I am developing testing idea of Banking subject to see if it is fail or succesfull idea.

You are very welcome to join our project, then. Check my signature.

PS. We have already found a way to say 'yes' to all of the above questions, and are in the process of realizing it.

This entirely defeats the concept of a decentralized network...

No, it doesn't. To the contrary, a bitcoin bank would strengthen the bitcoin ecosystem as long as everything is bitcoin denominated.

https://bitcointalk.org/index.php?topic=841169.msg9523539#msg9523539

It's funny because the real answer to all above questions is YES

In your dreams?

You can send Bitcoins instantly from one countrie to another countrie.

Yes there are fees, but you must not send your transaction with a fee.

-Bitcoins are sent instantly but the confirmation takes in average 10min
-You can send without a fee and still have good odds of your transaction being confirmed fast
-Exchanges are kind of safe if you use them for a portion of your btc and you don't keep btc stored. coinbase is safe, locabitcoins too
-...

I just don't see how this can happen with BTC.  Banks lend more than they have, calling it fractional reserve banking.

How do you lend 2btc when you only have 1?

Its why BTC is so great.

Solution: Full-reserve banking.

How?

Check my signature.

OK. I'll not advertise my project any more. This was the last.

If you lend twice or three times your reserves it is very conservative and could be OK with some customers but the problem in western economies is that they lend much more and customers don't care because of the government (kind of fake) guarantee on deposits.

I never wrote that this project should behave as classical bank.
Reffering to your argument about fractional lending, Yes there is no possibility to lend coins that are not in possesion of bank, that should be considered as large advantade, shouldnt it?

Of course bank as typical capital market instrument cannot be applied, whole discussion above was started becouse i was curious about ideas about creating something similar to banks that are known today.

Banks as capital market instruments hold savings and cash of its customers with providing benefits such as interest etc (fee for investing customers deposits) - bitcoin bank should hold bitcoins on behalf of customers and also provide some interest for same reason.

Bank invests and provide loans - bitcoin bank should do the same, but in much lower volume as  they can lend only what they have, and credit risk is much higher considering anonymity.

Bank secure deposits - bitcoin bank should too.

Bank can secure savings against inflation - bitcoin fluctuation is high, but it is possible.

There is some of major functions of bank above, and i think that same services could be provided in bitcoin environment without any difficulties.

Bitcoin is new, and it still isnt wide spread, lets make another step towards general public.
Older and less educated people dont trust it, and general public will accept it more if they will have something trustworthy to start at such as bank.

you are right about this and if there would be a trustful "bitcoinbank" the normal people would also start to use bitcoins maybe daily and not afraid to lose their "wallet" "account" "money".

If there would be a trusful bitcoinbank I would use that.

why I have to have wallets in my smartphone, tablet, pc, laptop?

do I want to do backups and stress about this or is it easier that there would be a bank? I have backups in my computer but when my computer says "bye bye" so I need this also in memorysticks? 

aaah...cloudservers....really...bank is the best option and bitcoin would still remain decentralized.

No, a wallet is a wallet. A bank offers services, i.e. loans, interest etc. People against the concept of banks are fools

You can get per to per services through a smart organization or invest your bitcoins to get a revenue.

Thank you for your opinion.
At least i can see that i am not only person with same way of thinking.

If you ge any ideas concerning this topic feel free to discuss it via PM

Concept of Banks in nowday economy IS wrong, but we do not get anything better.
Idea of Banks alone is great, and it improve our lives,but concept of virtual money, and continual cycle of debt is wrong.

At the moment iam studying conept of creditunion, what could be something with some advantages of Banking system (loans, security, interest, full control of account) but it didnt messing around with large amount of imaginary money in system.

Feel free to suggest any more ideas to topic of Bitcoin Bank by PM, i will love to discuss it further.

You don't need to trust a third part for "store your coin" you have this free wallet and you use it for save your own bitcoin. The bitcoin bank will "destroy" the concept of free & decentralized "coin". Bitcoin is "out" from this actual economy system.



Ps: sorry if I seemed arrogant.

Isnt Coinbase basically a digital bank for the most part? The only thing missing is them offering loans / mortgages BUT bitcoins themselves are their product.

I dont find it arrogant, just i think there should be alternative to wallets as not everybdy is as IT literate as we are.
I belive that BTC concept of free and decentralised coin could be changed hardly, as there is no central bank, or control over its value as we saw in last 2 years. Just pure market driven.

Some tried and it failed.

maybe wrong way of doing it.

people in here doesnt seem to realise that banks are needed for loans , or are all of you born rich? sure , your bitcoin wallet is your own " bank " but the banks only purpose isent making sure your money safe , they lend money to.

good idea, we need for that
for store bitcoin in the bank.

Perhaps a Bitcoin bank is a little bit unnecessary, but an electronic fiat bank like Paypal is always a good idea.
We need more competition for Paypal, since their fees are just too high.

an USB bank?

why you need a bank of bitcoin when you can control your money yourself?

sure you can use BitShares exchange and bank of bitassets, https://www.bitshares.org/

the method is easy you change btc fot BTS in www.poloniex.com and later buy BitBtc inside the wallet, your bitcoins pass to be BitBtc(asset) backed by 300% warranty in BTS, you always can change back to your bitcoins without loose money and you will take a yield (%variable of bonus for bagholding)

https://bitsharestalk.org/index.php?PHPSESSID=e7608a67d43454c7ef0ac643f1fdc59a&

You may want to have some services easily available.

Maybe if that "bank" will use a multiSig wallet, it would be possible to create a sort of bank but only with a multiSig function. However I don't think that now a bank is a primary important  we need other service (like pay in fiat -> btc , pay the bills with bitcoin directly, etc...)

tbh im surprised bitcoin doesent already have some sort of wonga like businesses already.

You can pay with bitcoin directly if the company that is issuying the bill is accepting bitcoins.