Banks and Bitcoin

[Amph]

Hi evrybody,

i have a general question.

in your opinion, how banks can earn with bitcoin?

they could earn by asking users to deposit bitcoin on their bank, and instead of playing with fiat they play with bitcoin(invest them) they in exchange will offer you interest on your deposit(like 2-3%) and security

basically same thing they are doing nowaday but with bitcoin

[thejaytiesto]

Damnit that sucks if that happens. Thats why BTC is better (no one can freeze your account)

Only who have the private keys can "freeze" it, how? By forgot the private key itself  . If we are thinking that bitcoin can replace (kill) the actual economic system based with intermediary (banks) we should also think how to teach who don't have any knowledge on how to use a PC/device and related  wallet/client.


PS: remember who owns the private key owns the bitcoin!

Thats why if you have your coins in an exchange, you don't own the bitcoin, they do... something that a lot of people seem to forget.
Unfortuantely tho, leaving your BTC in an exchange is the only way to benefit from quick pumps, otherwise you miss the opportunity since it takes too long to deposit BTC.

[Q7]

As long as bitcoin is priced in fiat, exchanges will continue to take place. From here, banks could profit by providing additional services like what exchanger does to convert to fiat and earn from commission. They could even offer bitcoin accounts and change monthly maintenance fee for that. The question is here whether they want to do it considering bitcoin is in direct competition to fiat and having the potential to replace current system some day.

[magic ice]

Hi evrybody,

i have a general question.

in your opinion, how banks can earn with bitcoin?

Banks already accept that the technology behind bitcoin has a lot of potential.

Some banks are already testing it like BNY Mellon of Wall Street:

Unionbank of Switzerland even made a lab for the study of the technology

Read more: http://www.newsbtc.com/2015/04/02/swiss-giant-ubs-announces-bitcoin-technology-research-lab/

[bryant.coleman]

they could earn by asking users to deposti bitcoin on their bank, and instead of playing with fiat they play with bitcoin(invest them) they in exchange will offer you interest on your deposit(like 2-3%) and security

Interests are paid on fiat deposits, because fiat is susceptible to inflation. It loses value every day. Inflation is not a problem with Bitcoin, as the monetary supply is limited. So there is no need to pay interests on BTC deposits.

[Amph]

they could earn by asking users to deposti bitcoin on their bank, and instead of playing with fiat they play with bitcoin(invest them) they in exchange will offer you interest on your deposit(like 2-3%) and security

Interests are paid on fiat deposits, because fiat is susceptible to inflation. It loses value every day. Inflation is not a problem with Bitcoin, as the monetary supply is limited. So there is no need to pay interests on BTC deposits.

i mean they pay you interest in fiat, not bitcoin, you lock your bitcoin in their bank and for this they will offer an annual interest

[redsn0w]

they could earn by asking users to deposti bitcoin on their bank, and instead of playing with fiat they play with bitcoin(invest them) they in exchange will offer you interest on your deposit(like 2-3%) and security

Interests are paid on fiat deposits, because fiat is susceptible to inflation. It loses value every day. Inflation is not a problem with Bitcoin, as the monetary supply is limited. So there is no need to pay interests on BTC deposits.

i mean they pay you interest in fiat, not bitcoin, you lock your bitcoin in their bank and for this they will offer an annual interest

A bank for bitcoin is a "stupid" thing, we should consider our wallet as bank not the contrary. Bitcoin bring back the "ownership of money" without the use of a 'bank' so I'm sorry but banks and bitcoin will never can be possible and I will trust only my wallet for store my bitcoin. Here some interesting articles:

- http://www.thebitcoinsociety.org/it/content/bitcoin-beauty-trustless-transactions
- https://bitcoinmagazine.com/6630/trustless-bitcoin-anonymity-here-at-last/

[jjacob]

The banks make a fortune from credit (debit) card fees and wire transfer fees. They will fight anything that jeopardizes that income, especially Bitcoin. That's the reason they are sometimes closing accounts with any  transfers from Bitcoin businesses or exchanges  without giving any reason. 

You could have banks providing Bitcoin credit cards.
People forget that you get up to 45 days of credit by using credit cards. That can't happen unless you have a bank.

[ashour]

Banks could make profit selling bitcoin like exchanges. When the demand rises and there is a bigger volume banks could sell bitcoins in real life to the average Joe and make profit.

[tokeweed]

Hi evrybody,

i have a general question.

in your opinion, how banks can earn with bitcoin?

By buying all the Asic companies.

Or at least loaning them millions.

[Nikolai the Barber]

The great thing about bitcoin is we don't need a bank. We are our own with btc.

Damnit that sucks if that happens. Thats why BTC is better (no one can freeze your account)

Only who have the private keys can "freeze" it, how? By forgot the private key itself  . If we are thinking that bitcoin can replace (kill) the actual economic system based with intermediary (banks) we should also think how to teach who don't have any knowledge on how to use a PC/device and related  wallet/client.


PS: remember who owns the private key owns the bitcoin!

Thats why if you have your coins in an exchange, you don't own the bitcoin, they do... something that a lot of people seem to forget.
Unfortuantely tho, leaving your BTC in an exchange is the only way to benefit from quick pumps, otherwise you miss the opportunity since it takes too long to deposit BTC.

Decentralized exchanges will probably get around this so you can keep your coins yourself right up until the actual trade. No more relying on third parties.

[redsn0w]

The great thing about bitcoin is we don't need a bank. We are our own with btc.

Damnit that sucks if that happens. Thats why BTC is better (no one can freeze your account)

Only who have the private keys can "freeze" it, how? By forgot the private key itself  . If we are thinking that bitcoin can replace (kill) the actual economic system based with intermediary (banks) we should also think how to teach who don't have any knowledge on how to use a PC/device and related  wallet/client.


PS: remember who owns the private key owns the bitcoin!

Thats why if you have your coins in an exchange, you don't own the bitcoin, they do... something that a lot of people seem to forget.
Unfortuantely tho, leaving your BTC in an exchange is the only way to benefit from quick pumps, otherwise you miss the opportunity since it takes too long to deposit BTC.

Decentralized exchanges will probably get around this so you can keep your coins yourself right up until the actual trade. No more relying on third parties.

The problem with the "theory decentralised exchange" is that it cannot be used FIAT value on it, because the banks aren't decentralized so there is the problem of the chargeback aka irreversibility. Maybe it could be possible a decentralised exchange with only the various crypto-currencies (I hope to see a dec. exchange in the next 1-2 years, here a possible valid example : Mercury - https://bitcointalk.org/index.php?topic=946174.0).

[sana54210]

Hi evrybody,

i have a general question.

in your opinion, how banks can earn with bitcoin?

The banking system would have to revolutionize to keep up with Bitcoins.
Banks have the leverage in terms of currency,so if they're smart enough
they would be able buy,sell and mine at volume rates,within the system just like everyone else

[Ron~Popeil]

I just don't see how the two are at all compatible. Banks exist for one reason: to control the money supply so they can tip the balance in favor the shareholders and owners. Bitcoin is neutral. You cannot manipulate it to enrich the few at the expense of everyone. If anything banks will see bitcoin as a threat and will launch a campaign that made the chinese fud last year look like a birthday party. Banks are the enemy. 

[stevenh512]

Offer Bitcoin storage (vault) with insurance. Invest in Bitcoin startups. Bitcoin loanss. Tons of other applications that aren't possible with fiat. Plenty of opportunities.

Where are these applications (presumably, applications a bank would be interested in) that aren't possible with fiat?

Vault with insurance: Isn't this one of the services banks have provided from the very beginning regardless of whether the currency is gold, silver, fiat dollars or whatever else?

Invest and/or loan: I put these two together because, between the two of them, this is how nearly every commercial bank in the world makes the majority of its profits. You deposit money, they loan it out or invest it, usually they loan out more than you actually deposit (sometimes up to 10x more). Bitcoin is far worse (for the bank) than fiat in this respect, since the bank can not create BTC it doesn't have and loan it out as if it really exists. I guess in theory they could operate a fractional reserve, but with a hard limit on the number of Bitcoins that can exist I see that scheme collapsing pretty quickly, Chase and Bank of America would be in no better position than MtGox because they still can't create these extra BTC out of thin air and unlike dollars, nobody is going to print more once we hit that hard limit. This also makes the "vault with insurance" service much less profitable for the bank than it currently is with fiat money.

I can't think of applications a bank would be interested in that aren't possible with fiat, but for those applications and services that a bank traditionally already provides, BTC would put the bank at a significant disadvantage compared to fiat.

[jjacob]

I just don't see how the two are at all compatible. Banks exist for one reason: to control the money supply so they can tip the balance in favor the shareholders and owners. Bitcoin is neutral. You cannot manipulate it to enrich the few at the expense of everyone. If anything banks will see bitcoin as a threat and will launch a campaign that made the chinese fud last year look like a birthday party. Banks are the enemy. 

Banks will evolve. They may not even be called banks any more. But they provide a market for credit and will be around in one form or the other, even if Bitcoin succeeds.

[Cruxer]

Hi evrybody,

i have a general question.

in your opinion, how banks can earn with bitcoin?

Who sayed they can in the first place? Andreas sayed, they shouldn't profit much from financial services if systems works correctly.

[AtheistAKASaneBrain]

Hi evrybody,

i have a general question.

in your opinion, how banks can earn with bitcoin?

Who sayed they can in the first place? Andreas sayed, they shouldn't profit much from financial services if systems works correctly.

It's not mutually exclusive imo. They could launch services that simulate traditional banks to store your BTC, if you do not trust yourself. Xapo acts like a traditional bank for example.

[dasource]

I just don't see how the two are at all compatible. Banks exist for one reason: to control the money supply so they can tip the balance in favor the shareholders and owners. Bitcoin is neutral. You cannot manipulate it to enrich the few at the expense of everyone. If anything banks will see bitcoin as a threat and will launch a campaign that made the chinese fud last year look like a birthday party. Banks are the enemy. 

Banks will evolve. They may not even be called banks any more. But they provide a market for credit and will be around in one form or the other, even if Bitcoin succeeds.

Our entire existence has been about evolving and the banks will have to follow if they want to remain useful.

[BillyBobZorton]

I just don't see how the two are at all compatible. Banks exist for one reason: to control the money supply so they can tip the balance in favor the shareholders and owners. Bitcoin is neutral. You cannot manipulate it to enrich the few at the expense of everyone. If anything banks will see bitcoin as a threat and will launch a campaign that made the chinese fud last year look like a birthday party. Banks are the enemy. 

Banks will evolve. They may not even be called banks any more. But they provide a market for credit and will be around in one form or the other, even if Bitcoin succeeds.

Our entire existence has been about evolving and the banks will have to follow if they want to remain useful.

Yeah I agree, the banking infrastructure is huge and they could use it to sustain bitcoin operations and forms of storage, instead of endlessly fighting it or remaining neutral at best.