Bitcoin makes banks unnecessary

[louise123]

Bitcoin does not make banks unnecessary.

Bitcoin cannot provide loans.
Bitcoin cannot provide investments.
Bitcoin cannot provide estate security.

Bitcoin has it's place as an option to the intelligent investor.  But it will never replace a bank.

Bitcoin does make banks unnecessary.

Bitcoin users can provide loans. -> BTCjam for example
Bitcoin can provide investments. -> Colored coins
Bitcoin can provide estate security. -> same as above

 

[1714622653]

1714622653

[1714622653]

1714622653

[1714622653]

1714622653

[1714622653]

1714622653

[1714622653]

1714622653

[BillyBobZorton]

Im all for being my own bank, I love the idea of being responsible and having my stuff distributed and secured in any way you like, but everyone is like this. A lot of people find comfort in not being in constant responsibility of all of your wealth which is understandable. Thats why stuff like Xapo is being created and if the don't fuck up it might be a success.

[Bit_Happy]

Bitcoin makes banks unnecessary?
We will still "need" someone to bribe political leaders, finance both sides of many wars, and promote chaos throughout the 'civilized' world.

[Rico Suave]

Bitcoin does not make banks unnecessary.

Bitcoin cannot provide loans.
Bitcoin cannot provide investments.
Bitcoin cannot provide estate security.

Bitcoin has it's place as an option to the intelligent investor.  But it will never replace a bank.

yeah, bitcoin will never replace bank, it is impossible, I just see bitcoin is good for international transfer, only international transfer is better than banks' transfer, much faster and anonymous. But the price is volatile, when btc is not volatile, btc may be used as a currency, or alternative, but never the alternatives of banks.

I think people get the two types of banks mixed up. There's the central banks that issue the money and then the regular banks that give ordinary people loans and hold their savings etc. It could in theory get rid of the central banks because we don't need them to issue our money any more and others could be prohibited from creating it out of thin air themselves though loans etc. If they haven't got the cash or coins to make a loan then they can't load any money because if it's not on the blockchain then they don't own it.

[elizabethcrypto]

Bitcoin does not make banks unnecessary.

Bitcoin cannot provide loans.
Bitcoin cannot provide investments.
Bitcoin cannot provide estate security.

Bitcoin has it's place as an option to the intelligent investor.  But it will never replace a bank.

Maybe not in its current form, however I believe this tech can evolve to support just that, using smart contracts and a decentralized model.

[thejaytiesto]

Yup, some people will not like being responsible. It's too stressful to keep track of all your wealth, do a lot of backups, and hope your house doesn't burn or you don't get stolen. Thats why some people like banks and trust them more than what they trust themselves.

[tinof]

Yup, some people will not like being responsible. It's too stressful to keep track of all your wealth, do a lot of backups, and hope your house doesn't burn or you don't get stolen. Thats why some people like banks and trust them more than what they trust themselves.

Storing money in bank serve a purpose in society. Using the money to finance "productive" economic expansion being one. Mitigating the risk of having the money stolen or burn in your own house being another.

[MRKLYE]

This is one of the main reason that banks are militant or unaccepting of BTC.
I know I've had atleast 1 bank account closed due to BTC use.
Had some asshole charge me back $400 interac e-transfer and had to spill the beans that I had been trading BTC with him..
Now my SIN and email are banned from the interac e-transfer system and I have to find other means to buy/sell BTC..

Absolutly sucks ass.

[doof]

Bitcoin cannot provide loans.

Lets say all ~21million the BTC have been mined by Bob.

Alice wants to purchase a house for 21million BTC.

Bob lends the 21million BTC at 5% PA for 25years.

How is the interest paid?

[hodap]

Bitcoin cannot provide loans.

Lets say all ~21million the BTC have been mined by Bob.

Alice wants to purchase a house for 21million BTC.

Bob lends the 21million BTC at 5% PA for 25years.

How is the interest paid?

Price is a function of supply and demand. If there is only 21M btc in circulation, a house can't worth 21M BTC.

[Ingatqhvq]

Bitcoin may change the bank, but hardly make the bank disappear.
There are still a lot of thing bitcoin can't do and bank can do, such as loan.

[debtcoin]

Hi everyone, new to bitcoin just going through the forums.

[Kprawn]

In the beginning they created banks to keep money and valuebles safe... Then they saw the opportunity to loan people money, from the money stored by other people, and they charged them interest for doing that. {It's not their money.. they doing it with your money} Then the "stored" money was not enough to cover the need, so the reserve banks started to print "Monopoly Money" ... and everything went south from there...

So will BTC take the same route? { 3rd parties like BTCJam take investment BTC to borrow to people, and when the investment capital runs out, they cook the books and they start to borrow BTC that does not exist }

In the end, we have the same problem we have with the banks. {Money being borrowed, that are only on fake 3rd party ledgers}

[louise123]

In the beginning they created banks to keep money and valuebles safe... Then they saw the opportunity to loan people money, from the money stored by other people, and they charged them interest for doing that. {It's not their money.. they doing it with your money} Then the "stored" money was not enough to cover the need, so the reserve banks started to print "Monopoly Money" ... and everything went south from there...

So will BTC take the same route? { 3rd parties like BTCJam take investment BTC to borrow to people, and when the investment capital runs out, they cook the books and they start to borrow BTC that does not exist }

In the end, we have the same problem we have with the banks. {Money being borrowed, that are only on fake 3rd party ledgers}

I am not sure that is what happens.
You see with banks, when you get a loan, wehether in cash or cheque, that money will end up back in the bank.
That is why they can exploit it.

With BTC, you cannot do that.
You cannot miraculously make Bitcoin appear in your bank.
You either got it to lend it out, or not.
 

[Amph]

Bitcoin cannot provide loans.

Lets say all ~21million the BTC have been mined by Bob.

Alice wants to purchase a house for 21million BTC.

Bob lends the 21million BTC at 5% PA for 25years.

How is the interest paid?

this is a unrealistic scenario, it's like saying if someone hold all fiat currencies he can't pay the interest anymore, as long as there is no printing, so i think you are insinuating that because the supply of bitcoin is limited there can't be loan if such unrealistic situation appear? it does not work in that way....

[Kakmakr]

In the beginning they created banks to keep money and valuebles safe... Then they saw the opportunity to loan people money, from the money stored by other people, and they charged them interest for doing that. {It's not their money.. they doing it with your money} Then the "stored" money was not enough to cover the need, so the reserve banks started to print "Monopoly Money" ... and everything went south from there...

So will BTC take the same route? { 3rd parties like BTCJam take investment BTC to borrow to people, and when the investment capital runs out, they cook the books and they start to borrow BTC that does not exist }

In the end, we have the same problem we have with the banks. {Money being borrowed, that are only on fake 3rd party ledgers}

I am not sure that is what happens.
You see with banks, when you get a loan, wehether in cash or cheque, that money will end up back in the bank.
That is why they can exploit it.

With BTC, you cannot do that.
You cannot miraculously make Bitcoin appear in your bank.
You either got it to lend it out, or not.
 

I think what he is saying is, they do it off-chain. They keep a seperate ledger for Bitcoins that are not reflected on the blockchain.
It's like a company with two invoice books, one for the auditors and one that are not being audited.
In a way some exchanges followed the same principles.