Investment Banker - Bitcoin is not a "real" currency ;->

[lucasjkr]

I can see where he's hung up on the "general use" issue.

Just as I can't pick up a pebble and trade it among my friends and say its a currency since it's not generally accepted as such, Bitcoin as a global currency might not be there quite yet; with 7 billion and change people on the planet, less than a million people using it, it's not exactly at saturation point. That's not to say it won't be in the future, nor that bankers aren't watching it, but as far as general use, I don't think any of us can argue its reached that point yet.

What are bAnkers missing by not recognizing it yet, though?

Should they offer Btc denominated accounts, or something?

[Netnox]

Anything can be real money as long as people see value in it, paper cash itself is almost worthless its about the trust regarding this paper, you can use something else instead like bitcoin, if people value it and use it as means of exchange then it's real money, whether its cash, bitcoin, shells or rocks doesn't matter. These bankers are damn retarded or scared, bitcoin is coming no matter what.

[deisik]

Anything can be real money as long as people see value in it, paper cash itself is almost worthless its about the trust regarding this paper, you can use something else instead like bitcoin, if people value it and use it as means of exchange then it's real money, whether its cash, bitcoin, shells or rocks doesn't matter. These bankers are damn retarded or scared, bitcoin is coming no matter what.

Well, did its acceptance actually increase in the last year? Bitcoin has inherent deficiencies (due to its decentralized nature primarily) which don't make it very convenient for casual expenditures (actually far from it). So, in a sense, that banker is right that bitcoin is not a true currency, since it doesn't circulate as real monies should do...

[Netnox]

Anything can be real money as long as people see value in it, paper cash itself is almost worthless its about the trust regarding this paper, you can use something else instead like bitcoin, if people value it and use it as means of exchange then it's real money, whether its cash, bitcoin, shells or rocks doesn't matter. These bankers are damn retarded or scared, bitcoin is coming no matter what.

Well, did its acceptance actually increased in the last year? Bitcoin has inherent deficiencies (due to its decentralized nature primarily) which don't make it very convenient for casual expenditures (actually far from it). So, in a sense, that banker is right that bitcoin is not a true currency, since it doesn't circulate as real monies should do...

Acceptance did increase, it doesn't have to circulate like fiat to be real money, i can order food and get it delivered with bitcoin, to me bitcoin is real money.

[lucasjkr]

To you it's real money. To me it's somethjng that's potentially valuable. But the banker wants to see more in the way of trabsacting before he considers it a "currency".

My real question is, with so many of us declaring Bitcoin to be the end of banks, what does his opinion matter? What could he or his employer do differently if they thought it was a "real" currency versus not?

I mean, I've suggested in the future that banks could offer safekeeping services in the form if BTC denominated deposit accounts for people who dint feel they're capable of securely holding their coins themselves, but that suggestion is laughed off as out of hand if not derided altogether...

So if we won't give btc too banks to hold or to lend, their primary businesses, what does their opinion matter?

[vvv8]

He's right Bitcoin is not a "real" currency. It's far better than fiat currency and it's Crypto Currency.
You can't proove the money flow on illegal activities if they've used fiat in cash form.
But You can see even satoshi's transactions from the begining.

Bingo, somebody talking sense.

There are LOTS of people that work in banks, that are void of the knowledge required to be useful in the future that is coming. Alot of them, don't even understand how computers work, how would you expect somebody as impotent as that to grasp the full potential of something as beautiful as bitcoin?

They are stupid, and whether or not they are aware of their own stupidity doesn't really matter, because in the end, people like that are the ones which will be phased out in the global economic future, and rightfully so because there are too many idiots living and breathing in this world which DO NOT BELONG.

[OpenOcean]

I use it and have made money off of it.

[twiifm]

He's right Bitcoin is not a "real" currency. It's far better than fiat currency and it's Crypto Currency.
You can't proove the money flow on illegal activities if they've used fiat in cash form.
But You can see even satoshi's transactions from the begining.

Bingo, somebody talking sense.

There are LOTS of people that work in banks, that are void of the knowledge required to be useful in the future that is coming. Alot of them, don't even understand how computers work, how would you expect somebody as impotent as that to grasp the full potential of something as beautiful as bitcoin?

They are stupid, and whether or not they are aware of their own stupidity doesn't really matter, because in the end, people like that are the ones which will be phased out in the global economic future, and rightfully so because there are too many idiots living and breathing in this world which DO NOT BELONG.

RFOL.  The smug is strong with this one

[Dotakels]

I had a most interesting discussion with a investment banker today.

I asked him the question... "Do you see Bitcoin as a disruptive technology or a threat to the traditional banking system"

His answer {Most arrogantly} ....We do not consider Bitcoin as a "real" currency.  

I then asked him to define a currency in his opinion ...and he said ..." a system of money in general use in a particular country "

I then told him...Bitcoin is a global currency... He then replied.. "But nobody use it"  

They are clearly in the "Let's ignore it" phase of the disruption cycle... When they wake up... it will be to late to change.  

Hahahah theres nobody use it ? If he only knows that all over a million using bitcoins. And also the million users that have been helped by the bitcoin.

[techgeek]

That investment banker, how old was he? You gotta understand most ex jp morgan people already started their own private funds to start a private mining company of their own.

eg: cucumber mining

If you do a search and read some threads, the coins that were bought from auction for silkroad coins links to something interesting lol.

Besides, thats only one investment banker and that also tells you that even though he has the title, I repeat title as a, "investment banker".  It doesnt tell you that he knows the difference of what currency really means - fiat : means trust, which is what most are already have been doing for bitcoin lol.

His argument would be in a constructive way, I would say would be how can you compete with a how many year old paper vs this digital currency.

[aso118]

What are bAnkers missing by not recognizing it yet, though?

Should they offer Btc denominated accounts, or something?

BTC denominated accounts won't be a reality until there is regulatory clarity.
Banks have huge compliance departments and try to end on the right side of the law (although they do pay huge fines now and then).
There will be a lot of questions raised - will these deposits be insured, who will insure them, etc.

[gkv9]

What are bAnkers missing by not recognizing it yet, though?

Should they offer Btc denominated accounts, or something?

BTC denominated accounts won't be a reality until there is regulatory clarity.
Banks have huge compliance departments and try to end on the right side of the law (although they do pay huge fines now and then).
There will be a lot of questions raised - will these deposits be insured, who will insure them, etc.

But if regulations come into existence for Bitcoins, there won't be any room left for decentralization I guess, and most importantly, there won't be any anonymity which we are here for...

[Q7]

These people has been too long in the current fiat banking system so you would expect what their responses would be. You will be surprised what they say will be basically follow everything by the book and word by word. I don't think you will even need to sell them the idea about bitcoin, it will be up to them to realize it one day.

[Dotakels]

These people has been too long in the current fiat banking system so you would expect what their responses would be. You will be surprised what they say will be basically follow everything by the book and word by word. I don't think you will even need to sell them the idea about bitcoin, it will be up to them to realize it one day.

They not believing in bitcoin because they never use it and they not know about it so dont expect that they will consider it as a currency because they only know is their country currency .

[Amph]

What are bAnkers missing by not recognizing it yet, though?

Should they offer Btc denominated accounts, or something?

BTC denominated accounts won't be a reality until there is regulatory clarity.
Banks have huge compliance departments and try to end on the right side of the law (although they do pay huge fines now and then).
There will be a lot of questions raised - will these deposits be insured, who will insure them, etc.

But if regulations come into existence for Bitcoins, there won't be any room left for decentralization I guess, and most importantly, there won't be any anonymity which we are here for...

in a decentralization system security should be automatized(don't know how can you that now, but there must be a way...), with no maintenance ever by any human, a fully automatized system that can also preserve anonymity

[tyz]

There are many bad investment bankers out there and only a few good ones. He definetly belongs to the group of bad investment bankers. Talk to someone who sees the entire picture of the future's currency system and he would not argue like your guy did.

[aso118]

These people has been too long in the current fiat banking system so you would expect what their responses would be. You will be surprised what they say will be basically follow everything by the book and word by word. I don't think you will even need to sell them the idea about bitcoin, it will be up to them to realize it one day.

Investment bankers smell money. Once there is serious money to be made in Bitcoin, I am sure investment bankers will be attracted in droves. It doesn't matter if they have spent their whole life in the fiat banking system; they will still be eager to sell packaged bitcoin derivatives.

[Kprawn]

To answer some of the questions posted here...

He is still young... 47 {Most of these guys are a lot older} and he is highly educated. His whole family work in the banking sector for ages.

I think it's more a question of scale.... {In Banking terms... Bitcoin is still relatively small, if you compare it to other currencies .... transaction volumes etc}

I took it a step further, and discussed it with a friends wife...She is a branch manager for a local bank. {She has no clue, what Bitcoin is, and they only deal with what is approved by the Government/Reserve Banks and their shareholders}

She was interrested in the "low fees" structure of Bitcoins and wanted to promote their latest "low fee" option on saving accounts to me. {Obviously, I was not interrested}

They are simply ignorant and more interrested on how they can make more profit, from using some similar technology that is not patented. {The disruption will come quickly, whilst they are sleeping}

[deisik]

She was interrested in the "low fees" structure of Bitcoins and wanted to promote their latest "low fee" option on saving accounts to me. {Obviously, I was not interrested}

They are simply ignorant and more interrested on how they can make more profit, from using some similar technology that is not patented. {The disruption will come quickly, whilst they are sleeping}

You have to pay a fee on a saving account? Next, if they are ignorant they won't see that if they try to use similar technology, no one will use it since they would have to make it decentralized which, in the first place, they will never do, and, in the second, if they nevertheless do, there is already tough competition there. So the end result is quite predictable in any case...

[600watt]

what did the kodak people say when photography became digital ?