Bitcoin Forum

Bitcoin banking is more secure than normal banking, because you are the only one that has access to your personal wallet but in normal banking customer cares can login into your bank account without you're notice and use your money for any kind of businesses.bitcoin banking is more reliable than normal banking because money that is in your normal banking can be deducted or withdrawal without you're notice but that can not happen in Bitcoin banking everything happens with your authorization.

Bitcoin banking would means that organizations or banks specifically are accepting customers to use bitcoin like fiat, this can be possible in a country that accept bitcoin for investment and legal tender. This still means that not your key not your coin. But if you have the private key with you, it is better but security is different, you can use fiat or bitcoin in a way that is either secure or not secure, what bitcoin gives is privacy and freedom of not depending on third party.

Or banks not allowing you to withdraw your money. It had been happening all over the world not just in the country with an authoritarian government.

Upon learning all that you have all the rights to your BTC and bank runs happening all over the world, you would protect yourself and not put all your eggs anymore in a bank but in your wallet where you have the private key.

Its true that the technical team or the customer care of the bank can have access to your account if the know the password. We have had issues where bank staff fraudulently transfer or steal customers funds. Sometimes banks carryout some illegal deductions from people's account without permission. But we should not assume that Bitcoin transactions are totally protected. You must ensure you use decentralized wallets and also make sure you keep your passwords and keys safe. Someone having access to your password or keys might be quite disastrous than the pitfalls of conventional banks. Your entire funds can be stolen in few seconds if your security is compromised. 
Also, in most countries where Bitcoin transactions is restricted, you still need these commercial banking services to carryout financial transactions. 

Depends on your preference. If you are into security, then banks would be a better option because that's what you are paying for; they'd secure your money. But if you don't want your money to be stagnant, choosing an asset by means of storing a particular value would be also great, just take note of the risks. Bitcoin and other cryptocurrencies has advantages over banks but for sure banks as well have such thing and one is being acceptable across countries. Those people who prefer storing cryptocurrencies are simply ones who are seeking profit than to just let their money 'sleep' over years. But to answer the statement when it comes to preferences; banks still is more preferrable by more people. One reason is stability wherein we are not all ready to risks even if profit will be in exchange. Next is wide range of usage and for being accepted as a mode of payment. Lastly, banks would allow you to loan through credit while Bitcoin banking won't In terms of Bitcoin's advanatages, there's no need to mention lower fees and faster transactions and also anonymity. But more importantly, being profitable.

It depends on someone if they know what are the advantages and disadvantages of the banking system and the same goes to Bitcoin. Both have their pros and cons but most people who doesn't have knowledge about cryptocurrency or Bitcoin would rather choose banks instead of having their own wallet where they have full control. It's just a matter of time before they knew it or someone might need to educate them about the pros and cons of Bitcoin and Banks.

As time passes by, most of these people choosing banks would choose to switch to cryptocurrency although, the regulation might hinder it.

In fact, traditional banks, despite their shortcomings, have many advantages. For example, it is that users of traditional banks don't need to worry about the security and storage of their deposit. The whole issue is decided by the bank and deprives customers of this headache. Convenient, isn't it. Especially for those who are lazy and don't want to bother with security issues.

In the case of bitcoin banking, it will be necessary to take on the responsibility of keeping and maintaining the safety of savings. Nobody else will do it for you. If a mistake is made with the record or an insufficiently reliable place to store the seed-phrase, everything will go down the drain. Here you won’t be able to turn to support, which will fix your problem, and the consequences of mistakes can be catastrophic and deprive you of everything you had.

So, these 2 types of banks have radically opposite features. 

They both have advantages and disadvantages over each other if you think of it.

Personal security matters a lot with bitcoins, If your bitcoins gets lost, they are lost for real and the chances of recovery are very close to zero. But with normal banking your funds can be recovered and the culprits even apprehended.

Banks have picked up this habit of some unnecessary charges that they deduct without notifying you simply because you signed to some terms and conditions. With Bitcoins, there are no unnecessary charges.

In summary, the reason bitcoin is what most of us have started tending towards to keep our funds is because we have seen that in all the advantages and disadvantages that they have with normal banking, it is better and more reliable for the future.

Each banking system has its advantages. The advantage of decentralized banking is that you are the only one under the control of your keys, as stated by OP, so theoretically nobody can touch it, besides you.

However, in case you have your wallet hacked and funds are lost, it will be much harder and even impossible to retrieve it, while at centralized banking system, transactions are reversible and you can count with the help of bank managers to track your money and rescue it back to your account. On the other hand, if a superior order comes from the government and central bank seizing funds, even the managers won't be able to help you keeping your money in your hands, as they will comply with requirements from their superiors.

You have to measure the pros and cons of each system and make your choice based on your analysis.

Truly, both have pros and cons and sometimes even crypto users can't avoid the use of banking system.
If you have mortgage, more than likely, you need a bank account as it is a requirement for this transaction to push thru.
But if you feel you have nothing to do with banks, and just use crypto or btc to go on with your life, why not?
Remember, each one of us has own priorities, so it depends on us if we do need bank or btc only or both.

This is the direction I felt the thread would follow and you can imagine my surprise when I saw the direction it went! Perhaps not the very best of thread title but, its not entirely out of place.

More of what am getting is about centralisation and decentralisation of which, both are definitely a composit of for owning a wallet and some local fiat bank. As much as local banks might tamper with your funds, that doesn't mean they've got any authority to do so and as such, you could fight them legally over rights to your funds.

When it comes to wallets, your entirely in charge and that's cool.
What would be the function of some bank should bitcoin be used for a legal tender? Do they stand in the places of wallets or something... perhaps exchanges but, that still doesn't make them any less centralised.

The last few years have made me question whether terms like fractional reserve banking should be covered by standard education. If yes, which other financial and economic concepts should school curriculums try to cover? I wonder how many recognize what the "fractional reserve" in fractional reserve banking implies.

I would guess that most who grew up during the internet era, understand the importance of min maxing setups in video games. But by the same token, those same individuals who spent hours strategizing in games might fail to comprehend the importance of min maxing their financial and investment plans. Which could result in them being unsatisfied with their own standard of living.

While the idea of stocks, bonds, FOREX, real estate and other markets might seem frightening and alien. They're not so different from video games in their structure and economy.

I like that I don't see many negative comments when people try to compare banks with bitcoin. Even if people do not recognize differences between banks and bitcoin today. It is possible that future experience will give them a good education on the topic. A better education than they could ever have received from a school system, perhaps?

Word "BANK" doesnt fit out on Bitcoin.
If we do make out some definition of Bank then here it is;

A bank is a financial institution that is licensed to accept checking and savings deposits and make loans.
Source (https://www.investopedia.com/terms/b/bank.asp#:~:text=A%20bank%20is%20a%20financial,exchange%2C%20and%20safe%20deposit%20boxes.)

Bitcoin does really oppose on what Bank does offer, you could be your own bank where you do have the full control of your funds
without having 3rd party involved on the time you do make out some transactions which it turns out to be a revolutionary stuffs.

There are advantages and disadvantages for both of it but I'm more with holding my own money through bitcoin. And as someone who likes, holds, and invests in bitcoin I'll choose to have it and I know its advantages of it.
But for someone who's not into it then the most advantageous them are banking it plainly because they're more caring about bitcoin's volatility and they trust the banking system more than it.

I agree with your opinion. which not everyone knows about the advantages of storing in crypto because if we forget our wallet key it will be difficult for us to access it. whereas if we save it in the bank we will be helped to recover it profitably.

You are missing some of the key points here. Both have pros and cons. There's no perfect between them even though I prefer the use of crypto over banks.

In terms of security, you are the one who is responsible for that referring to holding your bitcoin. Money in the bank might not be safe for you, but their clients are all insured in terms of sh*t even in bankruptcy (which doesn't happen overnight).

Aside from that, digital banking nowadays is way more convenient and quicker if you asked me. For now, bitcoin is more used for investment purposes.

Wasn't there a term "BTC - Banking the unbanked" or was this referring to all of cryptocurrencies making you your own bank?

Now a days you are seeing the corporate and governments regulating arms telling financial banks ban cryptocurreny use to their customers.
Heard this just today from several different media outlets who report on cryptocurrency news specifically.
So this is just one take on the news of this happening in different parts of the world:
https://cointelegraph.com/news/crypto-regulation-world-how-laws-for-digital-assets-changed-in-2022

Why people is thinking that Bitcoin system is more secured than the system whereby bank system, it's because of they have Bitcoin at mind and secondly Bitcoin don't have a second party for investment is directly to the investors so i believe that Bitcoin have more security than the fiat currency system of banking

Maybe the traditional system isn't that effective, for the centralised functioning. Slowly there are moves happening around in which traditional and the cryptocurrency coexist. When it comes to cryptocurrency the user have the complete control over the funds. The same can't be expected with traditional banks. The ultimate of blockchain is to remove the third party and provide the benefits to the owners.

Well I think it needs to be stated that it all depends on how you do your "bitcoin banking".  FTX is a perfect example of bitcoin banking being not much different than normal banking.  In both cases when you leave your coins on an exchange or in the bank, the company is using your funds to invest for their own good/profit.  However in this like to like scenario, traditional banks offer at least some level of protection/insurance that crypto exchanges don't.

I totally agree on this, It is certainly true that traditional banks offer a level of security and convenience for customers in terms of storing and protecting their deposits. Customers do not need to worry about the technicalities of securing their funds, as the bank takes on this responsibility.

On the other hand, with a digital currency like bitcoin, the individual is responsible for the security and storage of their funds. This can be a daunting task for those who are not very into tech world or who do not want to take on the responsibility of managing their own security. Therefore, it is understandable that some people may prefer the convenience and security offered by traditional banks over the added responsibility and potential risks of self-management with digital currencies.

The pros of a situation are always balanced by the cons. In the end, It is all a matter of perspective I guess.

In my personal opinion, while talking about Bitcoin we should not talk about banking.
Banks are one of the ultimate keeps of trust and Bitcoin is trust-less. This new asset is supposed to go beyond banking, it is a solution to the problem that gave birth to banks as we know them.

We can talk about Bitcoin self-custody or Bitcoin saving/or transactions made with it, but "Bitcoin banking" sounds like oxymoron.  :P

It is very extraordinary understanding that you express here so I also have to agree with what you say. Because the pros and cons are always there and will always be born in the end caused by each person's perspective. For now I still use traditional bank services to save some of my money and I keep some of it myself in the form of digital currency. I do this because I still need the bank and its convenience in saving money and it also doesn't make it difficult for me when I need money as soon as possible.

Another repository in digital form I do is to trade and also invest when there is a good moment to enter the market or when I want to try to get a better profit, although I don't put all of it into it right away. Because I always save half of the assets that I want to use for anything. That is why I still use the two depository models until now and will still use traditional bank services as long as they are very helpful to me as a customer.

When talking of bitcoin banking does it mean buying and hold or storing in a self custodian wallet or bank as generally accepting bitcoin as means of payment like the ( deposit and withdrawal) methods?
Unconditionally this body's may likely operates as one what you could say is that with bitcoin stored in your wallet there's no significant charges as bank does but to convert bitcoin to fiat we must definitely visit bank to make withdrawal which is why they are almost same thing, the different ls just about "privacy"

I do not know why you want to insert the word exchange with the word bitcoin, although in the white paper the main goal is to end the need to trust a third party in order to access your currencies or send that money.
Therefore, there is no such thing as a “banking service” that means trusting a third party, and therefore means that you do not have your keys.

Customers care has limitations to what they can do on customers dashboards, not they can’t move some details but not all of them. In banks, there are different kinds customers care, the ones that attend to customers at the basic level, these ones only collect your problems and transfer them to the right place for solutions and the main customers care who have access to the main data base. They are usually train though there are cases where they have stolen users money and later caught because you can’t fool the banks themselves because they know what they are doing, they know when their staffs steal people’s money.

Bitcoin and banks both have security concerns, bitcoin depends on the owner while the bank depends on their self which is not safe, bitcoin above every other financial institution but you have to be vigilant about keeping your seed phrase safe.

What do you mean by bitcoin banking first of all? Banking in itself means when you have an intermediary in between who takes money on your behalf and gives to other people basically assisting people in transactions. There is no such term as bitcoin banking as no intermediary is required. But I think you mean normal transacting using bitcoin which obviously is better than normal transactions done using traditional banking.

Bitcoin has never been an alternative to banking, don't get too hyped about bitcoin. If you are in need of money and need to borrow money, can bitcoin lend you? Investing in bitcoin can be profitable, but it also carries certain risks. If you invest in bitcoin by the end of 2021, you are currently losing more than 80% of your value and if that is money you need to use urgently, then I don't think bitcoin is in your favor. Both banking and bitcoin are necessary for us, both have their own pros and cons.

If you don't know how to keep your funds safe, then you're no better than the bank at all.

Bitcoin gives you the freedom to be your own bank. But if you yourself fail to keep your funds safe from outside sources, then you are an easy target for hackers that can sweep your money in a heartbeat. That's why people should really study bitcoin before they jump ship 100% and use bitcoin/crypto to keep their assets. This is what a lot of people overlook when they begin investing in bitcoins. They fail to realize that there is also a ton of work involved if you really want to keep your funds safe in your own safekeeping.

It also helps if you know what you really want to do with your money. There are lots of advantages in using a bank, but if you really want to be 'independent' from them, you are also foregoing these advantages for ensuring that you and you alone holds your funds. Better decide if it's worth it before making the switch.

The mistaken thing with which some people fail to understand is that traditional banking and bitcoin bank both has a different purpose it serves and one can't completely take the place of the other.
OP yes bitcoin banking grants the user self custody of his assets without any interference by a third party into the user wallet  without the owner's authorization but in a situation where your wallet is hacked and your assets stolen then there's no insurance for you on your loss assets. But unlike the traditional banking wether your bank account got hacked and fund stolen, or bank got liquidated you are insured to the refund of your loss funds by the bank after all necessary process has been followed.
I may not a favourite if he traditional banking system to crypto-banking but there's a place necessity  for crypto and a place for fiat.

Limits to the amount of money you can withdraw are so common that people no longer see them for what they are, which is an attempt by banks and governments to limit the use of your own money, which is completely ridiculous, you earned that money and yet banks do not allow you to access it in the way you want, and yet the people of today do not think much about it, and only once those limits reach incredibly low amounts they will begin to complain but by that time it is too late to do anything and most likely you will never see that money again, then it is important to have some savings in cash and in bitcoin to avoid being left without any money if a bank run or a bank holiday happen.

Banks hardly do any securing anymore and they reserve the right to coordinate with the government to lock you out of your funds or siphon funds from your account without any of your input. Banks don't actually sit on the cash that their customers hand them. They invest them into projects or become large institutional lenders. The reason they can support issuing out funds to user accounts and sustain transactions is because most banking is digital. If every customer were to go to the bank and try and withdraw their accounts, the bank collapses. Your money doesn't actually exist in a bank.

I really want to believe that it works exactly as you write. However, there are many questions about bitcoin banking. For example, who is behind them? If behind them are the same as behind ordinary banks, then I see this as a risk. Yes, we own our BTC and the keys to it, but we will need to look at the conditions for connecting to such bitcoin banking, because perhaps they will simply offer to store our BTC with them and this will already be risky, because at any moment they will be able to say - oh, sorry everything was stolen from us, and we will lose everything. So, on the one hand, bitcoin banking is an interesting offer, on the other hand, there are a number of nuances that it would be desirable to know about in order not to lose your BTC.

The activities of banks are being downplayed especially in developing countries. Banks are always among the top 10 successful companies. In the top 10 banks will occupy like 6 slots because they do nothing but manage and use people's money to be successful.
The fraudulent debits and fees being charged;
They can freeze your account also;
They trade your data;
Track how much you worth;
And lots more. I wish bitcoin will in this life replace this traditional banking system.
The exchanges would have done it, just that they aren't trustworthy.

This is Bitcoin now and becomes more better, it provides financial services especially to those who still have no bank accounts because of a strict requirements. Probably OP is just trying to emphasize here that Bitcoin is way better because you can control your money here while in a bank someone is using your money for their own investment scheme, if you already have knowledge about Bitcoin better to use it. Just use banks for your fiat transactions since Banks are still vital today and better to be friendly with them so if you need something from them, you can easily have it. The better option right now is to have both.

I can say that I agree with you because I think we need both banking systems and even the centralized and traditional banking system is still needed for us because of many reasons, there two got two different goal and surly bitcoin banking ban be much safer compared to traditional systems and the reason is mostly because of the privacy people can get from these decentralized systems and because they can have full control over their money without of involving any their party element, unlike the normal banking system.

Every banking must have its own advantages and disadvantages, for bitcoin banking and ordinary banks both have a relationship and they need each other, but for bitcoin wallets that control assets only people can get private keys and cannot be controlled by others but for central banks our assets can be controlled by third parties although not completely and they can see the assets we have without our knowledge even though full control  It's on our side, and it's very different from our bitcoin wallets.

Nothing else is more secure than Bitcoin banking imagine having a huge amount of Bitcoin stored in a Nano hardware wallet anonymously compared to saving it in a bank as a fiat where some fraudulent bank officials might reveal some secret information related to the owner to scammers especially in third world countries where corruption thrives the life owner of the huge fiat saved in the bank might be at risk probably his secret might have been revealed to kidnappers who will want a share out of the savings, personally all my funds are in form of crypto stored in my wallet whenever I needed some fiat I will initiate a P2P transaction in Binance to fiat.

Bitcoin is even more secure than that as a hardware wallet is a clear sign that you are storing some form of cryptocurrency and that you are holder putting you at risk, however bitcoin can be stored in so many ways that are inconspicuous, one way to do this especially if you are traveling is to simply remember your seed words, while this is not an appropriate method to store your coins long term as humans are forgetful by nature, it is a good way to keep your coins with you when you travel while carrying no evidence this is the case.

When you talk of bank and Bitcoin the two are different both in nature and operation.
1: Bitcoin is a digital currency, and bank is a financial institution without the feature of currency like bitcoin.
2: bank is a government-regulated financial business, while Bitcoin is decentralized and unregulated.

The only similarity between the two is the sending of money from one person to another, but the bank is a third-party storage institution while Bitcoin is self-custody.