Bitcoin Forum

I just visited the bank... denied until Monday.  :-[

Global adoption can't happen soon enough, what a crock of shit this fiat banking system is.

Good for you to realize this pal. Better late than never. haha  ;D ;D It  has been repeated so many times in the threads on bitcoin forums of how horrible the banks are.  But there  aren't   enough options for us to choose from tbh.

I had some problems friday trying to send a transaction overseas, and I was told to "please you'll have to wait until monday" without any details on what went wrong. You can imagine my frustration. Banks do indeed sucks and are deprecated as hell in this post-Bitcoin reality. I can't wait until Bitcoin scales up to defeat all those dinosaurs.

That why i have moved in 2014, my life economies to Bitcoin network ...
I use P2P solution since 1999 ... and they works flawless since 2008 without any update or maintenance.

The future is already done.
Evolution, Morpheus, Evolution ...

What happened exactly?

There's a reason there is a sarcastic saying that implies people don't work much, it's called "working banker's hours." Global adoption of Bitcoin will be great but I think the fiat system needs to remain for Bitcoin to flourish. If the fiat system disappears the Bitcoin system will be completely exposed to manipulation (as we've seen with fiat.)

For a moment there I was thinking you were making a Greece joke
Then forgot the banks tend to be closed over the weekends lol.

What happened? I took a cheque I received to a branch of the bank that issued it and they refused to cash it until Monday.

basically it's a stupid think that bank are closed in the weekend and payments can not be processed when we all know that payments are alla automatic

i think it has to do with the fact that bank fear a mass withdrawal in the weekend, and some will not be proceeded due to their pesky scam about investing your money ecc....

I have often been a victim of the banks' nuisance, when I had important work to do and somehow at some phase, had to rely on their assistance for the completion of my transactions or confirm payments, I visit them and they make me stand in line for so long or sometimes even tell me to come back after an hour as they are on their 'lunch break'. FUCKING KIDS, need a recess so bad. Can't hire different people to work while the others have their break, fucking stupid.

It is hard to follow your intention with this thread by not providing information why your bank makes problems.

Are you from Greece?  ;)

Of course Bank tellers can't process transactions during weekends. Banks are reputable institutions after all. Another fact is that money are working for the bank over night and during weekends.
Bank invest your money during that time, money in the bank are not yours anymore they are bank property (you probably know what happened in Greece and on Cyprus).

Even I have had similar experiences  with banks. They had me waiting for two hours once. Also I had been treated not so kindly by the workers there. And after waiting for almost about an hour in line just one person was in front of me when they asked us to come back an hour later because it was their lunch time. I felt devastated. That was the moment I started hating on banks.

Its sad you had such experiences in banks, but the reason banks deserve hate is much more than their rude behavior and unnatural work ethics, its them 'creating and empowering' scams. Its the banksters risking the savings of so many customers and gambling with their money with foreign deals and a major example is the Greece economic fallout.

My bank here is really cool but as the state of affairs stand today we really need to engage in more options where currencies and commerce and savings are concerned..Diversifying assets in different currencies is a MUST nowadays. Holding everything in the banks is not an option anymore.

my banks is also very good, zero fee on everything plus only 1.75 % on conversion rate from other fiat currency, actually i don't have a real bank account, but just their card with a control panel, which require 3 numberous to gain the access

despite this i'm still with bitcoin for numerous thing, like full control over money and fee, like the fact that bitcoin work 24/7 ecc...

Your words are music to my ears.  ;)

Every time someone complain to me about their banks, I answer them with this... "Why do you not switch to Bitcoin?"

You stand before them with the Blue pill and the Green Pill.... They already had a taste of the Blue {Banking} pill... and the experience was bad... You are giving them the option to take another pill... They can chose to stay with the Blue pill, or they can try the Green pill.

Go Neo... Try the Green pill  ;) ...You will realize the truth, when you take the Green pill.... {The Blue pill is not your only option anymore}

This puts me in the mood, to watch "The Matrix" again.  ;D ;D ;D

So you're recommending people to switch to bitcoin, in terms of transactions? If they want to send somebody money, they need to convert their money in btc and send that btc to somebody who also has a bitcoin wallet. If you are recommending people to switch to bitcoin to store their savings, you think they wouldn't fucking kill you if they put their life's savings in bitcoin and there is a spike down and they lose more than half of their savings? What will you say to them in terms of emergency then? 'HODL?'

Cm'on man, that's why the bitcoin was invented in the first place, to help out when the fiat system fails us. Hang tight, Bitcoin will soon be everywhere to help our cause.

Having business opportunities pass you by while the bank sits on your money for days or even weeks really sucks.

as we know that central banks are currently the dominant structure nations use to manage their economies. and they have monopoly power and are not going to give up that power without a fight,meanwhile Bitcoin and other digital currencies have generated significant interest for better curency than fiat, but government support for them is virtually nonexistent.

You can recommend something to someone and explain the pro's and con's to them, and leave the decision to them. I am not putting a gun next to these people's heads and forcing them to switch to Bitcoin.

I show them, that there are other alternatives to what they have at the moment.

It's still a high risk, and I make sure to highlight these risks, when I introduce them to Bitcoin. It's just a great conversation starter, if someone starts to complain about their bad experience with their banks.

One of the people I introduced to Bitcoin, sold some of his shares and bought Bitcoins with it. He made a $6040 profit from selling it. That profit was for a 2 months investment... His yearly profit from that, would

have been $2034. It's things like this, that make me smile... He knew all the risks, and went for it... I got a FREE lunch and a friend for life.  ;)

not that significant, i still find the interest in crypto a tiny drop in the ocean compared to fiat, there is the need to catch many more people's interest, if you want to compete with major circuit and bank, right now we can at best compete with paypal and all its clone

What bullshit! If they had the cash on hand to cover the amount AND it was an amount that wouldn't leave them vulnerable until Monday they absolutely should have cashed the cheque for you!

Aren't you glad that your account isn't with this bank?

Aren't you able to deposit the cheque at the ATM?  ATM's are 24 hours and I usually do my deposits on the rare occasion that I receive a cheque.

I wonder how much we'll awaken as a civilization in this next decade.  Corporations are constantly being revealed as fraudulent so maybe if we talk to our political reps we can actually see some change happen.  Slow change is better than no change at all.

No.

Ya the bank has been really sucky these days bitcoin is better

Banks have become sucking only because now we are the owners of bitcoins. Or else before bitcoins came into existence we didn't had any other option rather than using the banking system for sending and receiving money but now things have changed and it will change in the coming years.

What country do you live in if you don't mind me asking?  And is that how banks in general work where you are or just your particular bank?

Get your money instantly, spendable in about 10 minutes, that's how Bitcoin works. No waiting days or weeks, no lineups, no fishy smelling tellers, no clunky ATMs. Bitcoin doesn't care what country you're in.

Welcome to fiat currencies. Where a 3rd party entity suddenly can take control of your money and do whatever they please with it without facing consequences under law. Happened in Greece, happens everywhere. It's not something that can ever be trusted with large sums of money. They'll screw you over 10/10 times.

The good thing about bitcoin is that it is available 24 hours a day regardless of whether it is weekday or weekend, you can practically perform cross border transactions and have the fund available in just a matter of hours. Consider that with banks, it will probably take at least a week and you haven't even consider about the fees just yet.

This is one reason we need Bitcoin more widely accepted and available. It is time many of us started educating members of our family and friends..If all of us got our families and friends just to buy a small portion of their spare funds and turn it into BTC we could start a new world economy of avid savers!  :)

this is the trump card of bitcoin, if more banks can act in "sucky" way, people around the word would recognize more the merit of bitcoin, and start to use it more

it's not a matter of convincing them, that bitcoin is better(which is), but that what they are using right now sucks in comparison

Fiat currencies: Bunch of paper given to the masses fooling them that they own it. Banks: Financial institutions that smile at you when you first make an account at their bank, don't even respond to you 3 months later when you're standing in line for 2 hours. Bitcoin: Possible escape from the controlling nature and rule of men with power, but practically unknown to the masses.

From my experience it's the best way to go about it. Just mention Bitcoin vaguely, explain it's important for the future and so on, but don't directly tell them to convert money into Bitcoin. Those that are curious will investigate by themselves and take a decision. Those that only care about making money will probably ignore it because they don't see it clear or don't understand it and don't take it serious enough, but make no mistake, those people will be the ones that will tell you "why the fuck you didn't tell me to invest when it was only 300USD?" and may be even pissed off at you.

I understand that, but that's not what I was asking.  But you also can't spend your bitcoin when you go to the market, so it's not a solution yet.

If you don't want to share that information, just say you'd prefer to keep it private.

Banks are always going to "suck" - Their will never be a day when everyone loves banking practices. There are too many banks screwing the public daily that their will always be some bad press about it daily.

I see that many people don't like banks here, but we still badly need them. Only a handful of people are able to buy a house without getting a loan. And millions of businesses would be unable to survive without credit. Countries are no better. Greece would have disappeared without credit.

That is exactly the problem banks created. We are living on a debt which is increasing dramatically as we speak.

In a world where 1% of the population owns 40% of the planet's wealth... In a world where 34,000 children die every single day from poverty and preventable diseases, and where 50% of the world's population lives on less than 2 dollars a day... One thing is clear. Something is very wrong. And whether we are aware of it or not, the lifeblood of all our established institutions and thus society itself is money.

The fractional reserve policy, perpetrated by the Federal Reserve, which has spread in practice to the great majority of banks in the world, is, in fact, a system of modern slavery.

You can learn why we Banks are even worse than we thinkand Why Our Money System is Flawed: https://www.youtube.com/watch?v=prcu7sjjg_Y (https://www.youtube.com/watch?v=prcu7sjjg_Y)

even if you deposit on saturday, you will get the money on monday, so the 24/7 working is a big joke with atm

they are using those two days to work with your money and investing in assets it is well known...

I may be wrong but I think Saxobank actually caused people on the correct side, even from early on, of the CHF market huge losses, when the central bank removed the floor. Anyone know otherwise?. I think this happened with a few LP's, but not really sure. If true though, just shows you how shady some of the players really are..

It really depends on the bank and how long you've had an account with them.  With my bank, some of the money would be available for use right away.

Yeah and online transfers using bitcoin is so fast that it takes hardly 10 mins for the amount to get credited into your account and that also the services are available 24/7. I generally transfer bitcoins to my local currency whenever I am in need of cash so it gets transfer straight away to my bank account with minimal charges.

It's hard to call it modern when it doesn't exist yet. Every country in the world operates the same system. The developed countries obviously have greater scale to indulge in what us folks would consider negatives of that system. But there is no country in the world that works on a different system or a better system...so the modern system is what we're proposing we get away from.

What future system would you propose? How do we make the transition without the world as we know it collapsing?

Ugh, I hear you. I had to go wait in line for about an hour to sort out my first ever bank account. "Your signatures across multiple papers, signed on out shitty desks are not similar enough"... I know, safety and making sure I sign properly, blablabla. But there's already a completely reliable way to sign digitally! In fact, it has proven much easier to be my own bank with bitcoin (interest included) than to open an account at a bank. Banks are really full of shit. And don't get me started on the fees. God, the fucking fees. I can't have a good time on vacation without having them suck about 15% of my vacation money just to move it and/pr exchange it into another currency.

That is the case with every bank. Previously when we were not using bitcoins, we were left with no other option but to approach a bank and all that banking procedures for opening a a/c and paper work, that was just a waste of time, but now we are blessed with bitcoins so I hardly visit the bank & that also only to watch beautiful female employees of the bank  ;) :D

My worst story about a bank was I opened a checking account in a good bank for where I went to college.  After college I had 0 need for the account. 

I went in nicely asked to close my account they gave me like a 50 dollar or something fee they wanted to close the account.  I said I found that a little unfair that I was locked into it till X date. 

So I then asked what was the minimum amount I had to leave in account without a fee.... the manager said there was none.  I nicely told them I would take everything out of my checking account but 5 cents.   They sent me letters about my balance for a year and a half or so until they finally closed it.  I consider that a win for 5 cents.

This will change soon my friend, that's why we are all here and busting our asses to give the banks decent competition. And the fact that they are crooks we don't  need to repeat again, everybody knows this now. Lol

Yeah, everyone have faced the bad experience with the banks in the past, as they were the monopolists in the market, and we were like their slaves, but now the things have changed, and we don't need banks when it comes to the financial transactions, we have our own bank ie blockchain  ;D

Sorry for your problem and i have never had any problems. maybe you need to ask customer service. what's the problem

Yup bank sucks.
I went to a local bank to open a new savings account.
It's so much time consuming to open just a single account.
But with bitcoin, you download a 20mb wallet and you are presented with around 15 to 20 account.

And them normally answer to you" I cannot switch to bitcoin because its impossible to do with bitcoin all the things that one banks do" I cannot go at supermarket and buy everything I do with bitcoin. I cannot buy bread with bitcoin. I cannot send bitcoin to everyone becouse not all the people I know know bitcoin and have a wallet to store it, becouse I don't have bitcoin every month like the other money, because to change fiat money in bitcoin cost and is money lost. etc etc.

The time taken is because of government regulations, not the bank's inefficiency.
Wait till the government starts regulating bitcoin.  :)

It would be a very positive change to society as a whole if the current banking system were to collapse and be rebuilt without corrupt central banks, but I don't see it happening anytime soon.  Even in the next collapse, similar to 2008, I think they will stay with the same FIAT and go to extreme measure (debt) to keep the game alive for another few years.

People are becoming more aware of the banking system and its faults, but not enough people are aware to demand a change, and the government will not propose such a change away from FIAT unless it is demanded and a politicians election depends on it.

That being said, I hope I am wrong, but I don't see the elites of the world backing down ever.

if you need to withdraw money use the ATM, if you have to pay something use the online paying system if you have one, or play your things on time and make a notice that everybody has a working time.
The banks work with your money and give you just a 6 % interest rate, common that is so little. Invest your money in something else ;)

We really don't know that day would either come or not that governments starts regulating bitcoins, its still a long way to go when government will come in support of bitcoins and yes banking sucks but there is no other option for the people who are not into bitcoins.

Cold, hard fiat cash still rules, my friend.
There may be a lot of people who are not into bitcoins, but avoid banks like the plague. Cash does wonders for them.

I don't know who you bank with, but my bank definitely doesn't offer anything close to a 6% interest rate (I'm assuming you're talking about deposits).

6% is a very good rate if there's no risk involved, seeing that we can borrow at 2.1% here in Canada.

This is true, but getting rid of fiat cash is already on the global goverment agendas:

http://www.abc.net.au/news/2015-03-04/researchers-say-cash-could-disappear-within-decade/6278266

Once this happens, there will be no escape except for those that learned how to use Bitcoin and stay anonymous by doing so. And even then, any real state you buy will be linked to your Bitcoin transaction, but its better than nothing.

6% is definitely a good price, a very good rate by the bank. If money is saved and interested is provided, its one of the most secure investments. Bojan wants to reap more benefits than just 6 percent which also increases the risk factor and the way of reaping that profit might not be really that secure as much. If freeyourmind wanted to earn more profit and didn't care about security, he would go to a casino and not a bank :)

The interest rate return should be compared to inflation. In the developed world with low inflation, 6% is probably very good.
In a developing economy with 10-12% inflation, you are losing money every year if you put it in a deposit which gives you 6%p.a.

Interest rates offered by banks aren't worth the risk of having your money stored over there. I would consider it if I could at least make a passive income out of it, but the only people living off thin air by interest due having their savings on a bank are already rich people anyway. Normal people get peanuts off having their wealth on banks.

If you have millions in bank, then you get good returns as the capital is huge, but for an ordinary guy who is earning a average salary, doesn't gives good returns as the capital is low, so he would surely not deposit his funds in bank, he would rather choose an alternative investment where he is earning higher interest rates. Banks are not for normal people earning average salary.

With banks, you know that they are subject to regulation and there is federal insurance. Of course, you don't get rich by putting your money in the bank, but at least these are comforts. Right now, Bitcoin is wild west territory.

Just a normal thing. No one cannot expect that the banks works Saturday and Sunday. Don't give a fault for something that has right. You work these days? No, I think. But even yes must be paid double. If the banks have nothing urgent to work |i don't see for what reason they must work these days.

Yuu must or can use bitcoins my friend. There are exchanges that work every day of the week. Change your bitcoins and voila. You have in your hands your needed money and your can do with those everything you want. That's for what was invented bitcoin! For these hard days....

You can usually transfer money online after working hours. The need to visit the branch has reduced over time.

You guys are all assuming I have a bank account that's not frozen.  :-\

However, thank you all for taking the time to post and defend the honor of these blood sucking parasites.

Yep, and then you'll see Bitcoin being the 'fiat' and some form of new system touted as the answer.

There is no escaping manipulation in a truly zero strings attached "free" market system - in fact, as you alude to - it's guaranteed.  For this simple fact, you need a control element inside that "free market system" which at most mitigates most of the instability created by these manipulating agents.  Banks should not that entity, and if governments is/are going to put it under their jurisdiction they need employ tools that are as generic and corruption-resistant as possible...but because people form governments and greed is an inherent disease inside mankind's basic nature - there is no reality where manipulation will not occur.  

It's just flawed because humans are flawed.

Yup, banks sucks.
There are many formalities to be filled to get a new account opened.
Thanks to Bitcoin, with this we just need a software and can get unlimited number of accounts without filling any formalities.

Banks are legal thieves. You gave them your money and they won't let you take them if a global crisis or similar s**t happens. And they charge you $$$ for this protection service, yet they fail.

Banks are responsible for us getting poor in every year. The Interest rate system works against your pocket.

Not all banks are the same, even when it comes to basic personal accounts. It can be very wise to contact the banks in your local area to discuss what exactly you'd get if you opened a basic account. While all banks are different, they can generally be lumped into two general categories: large chain banks and smaller local ones

don't use a bank account anymore, use something like a debit card that work as a bank account itself, liek with deutesche bank, i mean those cards that have the IBAN on the rear

they have lower cost if not zero and they are far more manageable

How can you have a debit card without having an actual bank account? In my country I can't think of any bank that will let you have a card unless you open an account with them in beforehand.

OK, so I tried again this time on Monday during regular business hours and after waiting in line for 15 minuets, denied again. "Come back during AM hours" they said.  :'(

So to recap, the bank (I'll leave them unnamed) refused to cash their own cheque at one of their own branches during regular business hours on a working day. Money Mart on the other hand had no problem cashing the cheque (for an absolutely massive fee).

its not only the chance of funds being frozen, but the bull crap fees the maintain a checkings account is appalling..

like my bank charges me $3 dollars every month just to have a checkings account, like wth? i might as well just keep everything in cash and avoid giving out free money.

Banks do suck, but we really have no option.

I mean I dont want to support them, but how would I cash my check and yeah theres the whole check cashing route, but they take fees each time i earn money.. so its not worth it to close my account.

Well we don't have an option for a moment or we might even do but it's too expensive to use everywhere and anywhere  (if you get one of the bitcoin debit cards) but we are working hard here to make this an option. And I bet that in 3-5 years time it will be 10 times easier and even cheaper to use bitcoin and to be your own bank. Then we will have a real alternative.

The point is, if we have waited all theye years and coped with banks, let's wait just a bit more and I am sure our future will be different.

But those debit cards are very expensive right now.
As we can see more and more companies are coming in the field of bitcoin debit card, so there will be competition in between them and we will see much reduction of the prices of debit cards.

Well the title of this thread definitely got my attention. Banks do definitely suck. I hate the ATM fees, interest fees, and every other fee banks and credit cards companies charge. I'm looking forward to a time where Bitcoin is accepted everywhere. I would definitely be saving a lot of money.

Yes they are very expensive, but I was just giving an example that even today you don't need a bank account and you can still live and do everything  like you have one with this bitcoin debit card.

But that's not the point, point that I wanted to make is that in 3-5 years everything will be much smoother and cheaper, is that a bitcoin debit card or not, it doesn't matter. We just need a bit more and we will be independent.

Well, technically, you can take out most of your banked funds and store them as cash savings, and loan out your cash yourself to make more money than you could with the savings gathering interest in a bank.

That's probably illegal, but the banks should be illegal anyways :P

Or you can also lend someone your money on interest and see your money growing.
And if the person dies or runs away with your money then see your money sink.

Make good loans, get collateral, simple things that make such methods work are necessary to avoid exactly what you're describing.

Yeah, for the first time we have something that can go head to head with fiat currency, and people will vote with their feet. If bitcoin genuinely is better then people will just naturally start to prefer to deal in bitcoin rather than dollars, or pounds, or euros or whatever. There will be no restrictions on bitcoins and there will be no transfer fees like banks. You can be your own bank, no need to depend on banks to open for transactions.

Problems encourage the creation of innovative solutions...if banks didn't suck, our beloved Bitcoin would still be hiding in the recesses of the fringe lunatic's mind.  Put that in your vape and smoke it!

really banking system sucks they are just sucking everyones blood..in india they are paying a intrest of 8% in a whole year and if we take a loan then we have to pay 2.5% intrest per month so clearly they are filling their own pockets

They got a living to make just like everyone else. Shame it can't be an honest one much of the time.

It is not normal the system of rates in India. And the author of post have right if think that the banks sucks. But not all the banks are such. In my country are banks which reasonable in their rates. And help all times the client when him is in need. Not not only for money but even for services (bank services).

Read and watch everything on this site to learn, applies to all countries.
Bankers are thieves (http://www.ukcolumn.org/bring-back-the-bradbury)


This also, you have been robbed from these for years Justin Walker What exactly  is Austerity? Answer, it’s just a huge and completely  provable LIE! (http://www.thebcgroup.co.uk/austerity.pdf)

Permit me to issue and control the money of a nation, and I care not who makes its laws! - This is exactly what Banks do now.
The saddest part of the story is that banks leech of poor and middle class people the most. I am not even able to have debit card because of the fees.

Banks don't issue money (Treasury / Central banks do). They do control the money of a nation.
Apart from the fees, banks deny credit to the poor/middle class even when they deserve it. They also have no hesitation in asking for bailouts from public money.

Well, I suppose that almost everyone hates banks. I remember that one day I wanted to make a deposit and there was no one in line so I supposed that this was going to be quick, but no, the bank clerks began giving me a ton of excuses, half an hour later I understood why no one was at the bank, all of them have left.

I keep a pretty low amount in my checking account, just enough to pay a couple months of bills.  I don't really see any reason to keep more than that in my account.

Yes, in most countries the interest rate doesn't beat inflation.
You are losing money by keeping it in the bank account.

I have a feeling that the first few companies who accept bills to be paid (i.e. electric, water, rent, etc) in btc, they will have a huge flock of btc users (which are a pretty good amount of people) to flock to them.  It's not like those companies can't continue to accept fiat, so why not? This will be incredible, because people then can finally be removed from the fiat system forever and never have to worry about dealing with banks again... hmmm... :)

That will depend on which Country and if Bitcoin in that Country is that popular. In my country there is an exchange site where you can pay your utility bills (electric, water) and school tuition fees. Problem is not everyone here knows about the existence of Bitcoin. There are users of Bitcoin here but not it's not used for that purpose they are not even active in forums like this to lean more about it.

As I have heard long time ago that the real robbers are the bankers, well it depends on the bank and the employers. Sure thing banks are not the assurance of our savings and investments but they sure do they're part for it.

Yes bankers are are real robbers. That's the reason Satoshi has given us a chance to have our own banking facility within our computers. Bankers themselves thinking of creator money and forcing their time to time rules and regulations to rob our hard earned money. Really Banks suck.

7-8% of inflation against 3% max on interest in any bank account, where you freeze your money for a long period

not worth it, the only good thing is that bank are less prone to being hacked

1st attempt at cashing a cheque (on a Saturday) at a branch of the bank that issued it.

"sorry come back on Monday"

2nd attempt (on a Monday).

"sorry come back during AM hours"

3rd attempt on a Monday in the AM.

"sorry we have to hold the cheque for 4 business days, we can't do that unless you have an account with us"

So there you have it, a bank refusing to cash their own cheque. They suck, they should have told me to fuck off and not come back on my first visit.

Yup, sounds like America.  ::)

Or any other country in the world.
There is a huge imbalance in the power equation between a bank and its customers. Banks know that they can treat retail customers badly and get away with it.

There is nothing about banks that "suck". A bank is a business. If you want to buy a bank yourself, go ahead. You can search "banks for sale" on any search engine and will be able to find a large number for sale.

You will need to take deposits and make loans. To get deposits, you will need to get people to trust you to take their money for safe keeping. Once you get enough deposits, you can loan those deposits out to other people. You pay the people who give you money for safe keeping an interest rate (could be 0.01%) and loan the money out at an interest rate (3%+) and then take the spread.

You will do well if everyone pays you back and people keep their trust in you. If you make stupid loans, as many banks did leading up to 2008, you may lose so much money that you can't cover the deposits.

If you don't have the Federal Reserve/government to back you up in that situation, then you will lose people's deposits.

If you loan money out long term and take in money short term (via deposit) and people lose faith in you and everyone comes in to take their money out, you will experience a "run on the bank" and could end up having to tell people that you don't have the money to give them as shown nicely in "It's a Wonderful Life"

https://www.youtube.com/watch?v=iPkJH6BT7dM

Now, as a depositor, would you put your money in a bank that had no Fed backing or one that did? In the US, we have FDIC insurance so if a bank royally screws up and lends money to people who don't pay it back, the depositors can still get their money out.

As part of that, when you own a US bank, you can't make stupid loans. You can't go loaning money out to your friends who aren't going to pay you back. You get regulated. The government comes in an audits you every few months. They go through all your loans and balances and make sure you aren't screwing everything up. And if you are screwing up, they will shut you down before they think you will lose all the money and they will usually sell or merge your bank with a decent one to clean up the mess.

You agree to submit to all that if you own a bank that takes FDIC insurance and government loans.

You don't need to do any of that, of course. If you want to start your own bank without any of that regulation, just convince a bunch of friends to deposit money with you. You can loan it out to other friends. If those friends use that loaned money to buy things from other people you know and you can convince those people to give they money to you on deposit, you can reloan the same money out again.

And there you go, you are a bank without regulation and without any reserve ratio. You can loan out money at an interest rate, get it back with deposits, loan the same money out again, get it back, loan it out again, etc. You are creating money "out of thin air" with no reserve ratio.

You will need to convince people to deposit their money with you, of course, and you better not make many bad loans.

You could do it with bitcoin if you wanted. Take 100 bitcoins on deposit from Person #1. Give him 1% a year in interest for it. Loan out the 100 bitcoins to person #2 at 3% interest. Person #2 buys something from Person #3. Get Person #3 to deposit the 100 bitcoins with you. Loan out the 100 bitcoins to Person #4. Person #4 buys something from Person #5. Get Person #5 to deposit their bitcoins with you.

At the end, you have 200 bitcoins loaned out (to #2, #4) and people have 300 bitcoins deposited with you (#1, #3, #5). And you actually have 100 bitcoins on deposit. There are only 100 bitcoins required for this example.

You can do that forever. And it can work if everyone pays you back and people don't withdraw too much. For example, imagine you did it until there were 100,000 bitcoins loaned out and people had 100,100 bitcoins deposited with you. You would still only have 100 bitcoins on deposit and only 100 bitcoins are needed to do all that lending and depositing.

Ta da, you have a bitcoin bank with a fraction reserve lending system, a money multiplier and everything else.

Now, the questions to you are...

what is the value of bitcoin if anyone can borrow as much as they want at a low interest rate?

does it matter how many bitcoins there actually are when this is going on?

Everything is fine as long as people don't ask to withdraw more than 100 bitcoins at a time and all loans are paid back.

This is how banking systems work at their core.

Now, this is different from central banks. You don't deposit your money with central banks. Central banks exist to keep the banking system from falling apart. Rules are set to determine all sorts of things that relate to banks to keep the system from blowing up. You don't need a central bank but without something like it, you end up with a system where people create banks, make stupid loans and lose everyone's money.

Many countries have a completely government controlled banking system. In the US, it is a mix of public/private institutions and you can start your own bank (or credit union or whatnot).

Bitcoin's value comes from it's deflationary nature and the fact that it is a new technology with many applications that make it way superior to any fiat currency. If more people were not as ignorant as you are, more people would be using it
Well, yes and no. This hypothetical Bitcoin bank has many possible customers and new money from new and existing customers are always being deposited in the bank. In most instances where people do not pay back their Btcoin loan, their collateral gets sold. The banks usually send threatening letters to foreclose your home if you do not pay off your loan and you lose your real estate investment. There is alwayys collateral involved and banks usually go after people who do not pay credit cards bills with threatening lawsuits. These kind of intimidation tatics apply to Bitcoin.
As stated above the bank can still recover owed money
As I said above, banks have many tactics to go after peoples money. Collector calls, sending thugs, destroying your credit score, foreclosing your home, selling your business, and many many other nasty tactics they still go after your money. The federal reserve is stealing from the wealth of the US economy every time a new dollar is printed. There is nothing that is backing the US dollar other than the falling American economy. If the central banking system worked so well, why does America experience increasing amount of debt? Bitcoin is based on a technology that takes time to find its true value. The dollar will collapse and Bitcoin will probably take over.

I'll address your two main points.

First, the scarcity (deflationary nature) of something does not determine its monetary value. It is desire and need vs. ability to access that creates monetary value. If scarcity created value then an old pair of your shoes would increase in value over time as there is only one pair of your old shoes.

The value of bitcoins are determined by desire and need along with the ease it is to acquire them. If borrowing bitcoin was easy, the monetary value of bitcoin would go down if you just look at the scarcity component. However, if the ability to borrow bitcoin caused the desire for it to go up, that could cancel out the negative monetary affect of the increased ease of access. It is not a single factor that causes monetary value.

Second, your comments about banks is not true. Banks do have collateral for loans, that is correct.

However, many, many times, that collateral does not make up for the value lost when a loan goes bad. There are millions of examples of this. Credit card debt is an easy one to understand. Everyone has likely known people who racked up too much credit card debt and then went bankrupt. The banks lost the money they lent in that case.

When credit card debt goes bad, banks usually sell the bad debt to a collection agency at a loss so they don't have to deal with it. You can buy collection agency debt yourself if you want and try to make money off it. There are many collection agencies. Some do decent business, some don't. Similar to banks you can simply type "collection agency for sale" in a search engine to find one if you want to buy one. Buy up the debt and hire a bunch of people to start calling people to try and collect. The banks certainly do not make a profit selling their bad debt to these agencies. The really bad debt can be bought for pennies on the dollar.

The reason the financial crisis in 2008 was so bad is because banks were making 90% or 100% loans (or more) on homes at their then market value. Housing prices dropped 50% so people didn't pay back their loans and the banks ended up with huge portfolios full of crappy homes that they couldn't manage and needed to sell. The government had to step in and loaned money to the banks so they didn't go under. And the government purchased many of the banks crappy loan portfolios. And they merged together banks with terrible loan portfolios with stronger banks. And the work done did keep the system from failing. The banks lost real money and many are still today digging out of that hole. It is the main reason the Fed has been keeping interest rate low.

So, no, banks don't always have a way of recouping the money they lose. f it was that easy, we'd all own banks and the richest people in the US would be bank owners. If you look at the rich list, they aren't the owners of banks. They are tech company founders, Walmart heirs, hedge fund traders and the like.

Banks sucks, Bitcoin is the future  ;D

This might be a no brainer, but why did you try to use a bank instead of just using bitcoin?  Your life would've been much easier and less frustrating for sure.  Banks do suck, and that's why we have bitcoin to get around them.

I guess your one of those BS buyers that has been hoisted on us by the elite. The richest people in the world are the owners the the federal reserve's debt. All new federal reserve notes that exist in circulation are based on the US economy and the value we place on that currency. Scarcity is simply a mechanism Satoshi implemented to protect hyperinflation with bitcoin. This protects the value of Bitcoin in the long run, a feature not provided by the US dollar. Second, corporations are definitely not the richest organizations in the world.  The US government owes trillions of dollars to the federal reserve. The owners of the federal reserve's debt are the richest people in the world.