Will the Banking Industry kill Bitcoin and keep the Blockchain?

[Denker]

Every financial institution and every Bank seem to have their eyes set on the bitcoin and bitcoin these days... But being Bitcoin as a currency the main competitor to banks and the traditional financial system, won't it be possible to see Banks trying to stifle bitcoin while investing in the Blockchain?

Have you ever heard of that Bitcon refuses to die? How do you want to destroy a decentralized network? You can't! The only thing you can do is to manipulate the public not to use it. But does prohibition worked out? Has compuserve or AOL been a success?

Banks can and will use Blockchains for private centralized use cases.But this won't have any benefits for the clients/consumers in general.
Bitcoin and decentralzed Blockchains qill have massive advantages and breakthroughs for the general public worldwide!

[Oscilson]

Ok let's ask ourselves this question : Would you build your business on top of a technology controlled by external entities that are mostly unknown? The banks want something they can control and change, when they want to. They do not want to wait for a BIP to be proposed and then for some unknown entities to reach consensus and to decide if it is viable or not.

How do you build a business around all those uncertainties? They would rather create their own <Private Blockchain> with developers they trust and then manipulate the protocol in the way they want it to work.

We cannot ignore this, and the latest Core vs XT fights are not helping to bring them to the table. Our fighting and indecision are pushing companies toward <Private> alternatives and Alt coins.

So each bank create its own currency? There will be hundreds currencies. They need a common currency to do the conversion and value each currency. That common currency is bitcoin.

[mayax]

Ok let's ask ourselves this question : Would you build your business on top of a technology controlled by external entities that are mostly unknown? The banks want something they can control and change, when they want to. They do not want to wait for a BIP to be proposed and then for some unknown entities to reach consensus and to decide if it is viable or not.

How do you build a business around all those uncertainties? They would rather create their own <Private Blockchain> with developers they trust and then manipulate the protocol in the way they want it to work.

We cannot ignore this, and the latest Core vs XT fights are not helping to bring them to the table. Our fighting and indecision are pushing companies toward <Private> alternatives and Alt coins.

So each bank create its own currency? There will be hundreds currencies. They need a common currency to do the conversion and value each currency. That common currency is bitcoin.

"common currency" ? Where is it common? It's banned in many countries and hard to be used and so on

Why Bitcoin? They can create an e-currency that they control (and it's normal to be like that) called "X" which will be adopted by almost anybody.

The BTC users are around of 3 mil and only a part of these people are owning BTC so Bitcoin doesn't really exist for the financial world market. It's just a lot of buzz and a "trendy" thing. Nothing more...

[Amph]

you will think that it would be a viable solution for them to waste money to kill bitcoin, maybe via 51% or something, when they can simply use those money to compete with it

or to raise infrastructure that can help regualte it and thus increase their taxes income? i think the latter is more advantageous for them

[mayax]

you will think that it would be a viable solution for them to waste money to kill bitcoin, maybe viua 51% or something, when they can simply use those money to compete with it

or to raise infrastructure that can help regualte it and thus increase their taxes income? i think the latter is more advantageous for them

They won't waste money to kill bitcoin. Bitcoin as e-currency doesn't exist for them. It's nothing; around of 3 mil users and much less are owning BTC.  Keep in mind that BTC has a lot of advertising and buzz in media and it only has 3 mil users.
 A LOT of money were already invested in this "buzz" and the results are very low IMO.

They are curious about the software behind BTC and nothing more.

[BTChaintrader]

I don't think banks are going to be able to kill bitcoin and use blockchain. It's not possible with the current system which is decentralized in my opinion.

Btw @mayax, 3 million users for such a young technology is actually a lot. And that's an industry which will innovate like crazy and create real paying jobs. So the potential is huge.

[acquafredda]

Of course what matters is the Blockchain that is the technology behind Bitcoin. This is what Wall Street banks are keepin an eye on.
They are probably looking for something to replace VISA, Mastercard etc. to be completely in control of the money processing.

But Bitcoin will keep on living 

[electronicfactura]

I don't think banking industry will ever succeed to do so.If we see how Bitcoin went through in last couple of years then no one can even think that Bitcoin can be undone.Bitcoin and blockchain are necessary for each other.Bitcoin will be more stronger and has bright future.

[VirosaGITS]

you will think that it would be a viable solution for them to waste money to kill bitcoin, maybe viua 51% or something, when they can simply use those money to compete with it

or to raise infrastructure that can help regualte it and thus increase their taxes income? i think the latter is more advantageous for them

That is what i am suggesting, but i'm not sure what kind of infrastructure could be used to regulate BTC for that cheap when there is no way to know/prove who own what address until a user send money online to his bank.

As such if a user is careful and use stealth services, its very hard to do any regulating since it would require a lot of resources to little avail.

You could have them actively monitor billions of addresses and money moving to and from retailers that accept Bitcoin and match them with personal data that they aren't even legally allowed to request (in countries with proper civil rights).

And you'd need massive man power to shift through everything since its not because 2 address connect that all the connected addresses is owned by one person.

For instance if a user here is sending me money from an address connected to 10 addresses which 10s of addresses are connected to it and then i send that money to an address and cash it out, does it mean every address connected to it is mine? Of course not, and its nearly impossible to prove which is which by simple mathematical connections.

[zimmah]

Every financial institution and every Bank seem to have their eyes set on the bitcoin and bitcoin these days... But being Bitcoin as a currency the main competitor to banks and the traditional financial system, won't it be possible to see Banks trying to stifle bitcoin while investing in the Blockchain?

Remember the early Internet? Where every company wanted to make their own localized version of it?

Remember how that ended?

Same with Bitcoin, Bitcoin is much better when it's global and all inclusive. Banks that make their own block chain will eventually be almost forced to just join the global block chain, because there is little to gain from having your own bubble.

[knowhow]

Banks should create a blockhain just to increase their revenue,their profit instead they charge themselfes thousands will charge a small fee and be able to play with the people money from one side to another.

[cellard]

Every financial institution and every Bank seem to have their eyes set on the bitcoin and bitcoin these days... But being Bitcoin as a currency the main competitor to banks and the traditional financial system, won't it be possible to see Banks trying to stifle bitcoin while investing in the Blockchain?

Remember the early Internet? Where every company wanted to make their own localized version of it?

Remember how that ended?

Same with Bitcoin, Bitcoin is much better when it's global and all inclusive. Banks that make their own block chain will eventually be almost forced to just join the global block chain, because there is little to gain from having your own bubble.

That is the correct analogy, the real question is how long will it take for all those "intranet blockchains" to die. I wonder if it will be a matter of a couple of years or we will stuck with that shit for decades before we can see Bitcoin shine and go to 1 million dollars per coin where it should be once all businesses run under the protocol.

[VCLChief]

All of the BLOCKCHAIN attentions promotes bitcoin by default. Gives it more credibility and changes the perception from Dark Market concept to a Wall Street.  Everybody put your big boy pants on - Bitcoin is not dying. Be patient and wait for the next economic downturn. The banks will be up a creek but wont get bailed out next time.  And where do you think everybody will run  too put their cash? And its only months away.

[chennan]

Every financial institution and every Bank seem to have their eyes set on the bitcoin and bitcoin these days... But being Bitcoin as a currency the main competitor to banks and the traditional financial system, won't it be possible to see Banks trying to stifle bitcoin while investing in the Blockchain?

Remember the early Internet? Where every company wanted to make their own localized version of it?

Remember how that ended?

Same with Bitcoin, Bitcoin is much better when it's global and all inclusive. Banks that make their own block chain will eventually be almost forced to just join the global block chain, because there is little to gain from having your own bubble.

Exactly, and just think about the fact that even if a bank issues their own local version of it, they would still mainly make fiat transactions riding on the back of the block chain; and not use (or I would think they wouldn't) the banks "coin" to be a currency in it's self since it gets money from the feds.  Plus, you have to deal with the fact that bitcoins have WAY more purchasing power than fiat. 

[Oscilson]

All of the BLOCKCHAIN attentions promotes bitcoin by default. Gives it more credibility and changes the perception from Dark Market concept to a Wall Street.  Everybody put your big boy pants on - Bitcoin is not dying. Be patient and wait for the next economic downturn. The banks will be up a creek but wont get bailed out next time.  And where do you think everybody will run  too put their cash? And its only months away.

Bitcoin will also adopt the good points of other blockchain.

[thejaytiesto]

What those clueless morons refuse to understand is that you need a token to keep a decentralized blockchain operative and safe.
Second, you can't have a blockchain to be as solid as the bitcoin one unless you decentralize it. That's why "local blockchains" are doomed from day one.

[VirosaGITS]

What those clueless morons refuse to understand is that you need a token to keep a decentralized blockchain operative and safe.
Second, you can't have a blockchain to be as solid as the bitcoin one unless you decentralize it. That's why "local blockchains" are doomed from day one.

Actually, you really don't. You don't need a token, you just need some data to to write.

And banks can easily decentralize the verification system by using a node systems. They will create some sort of operation verification system... And then they can simply use the blockchain technology as a super ledger for automated transactions.

They can and will do all that without needing to touch Bitcoin at all.

[boopy265420]

More and more banks showing interest in blockchain technology and giving indicator to adopt it as it is need of time.Bitcoin will not be killed by any banks if governments didn't succeed to finish it the banks can't do this.There will be healthy competition betwwen banks and bitcointo take blockchain technology to advanced level.

[aso118]

Every financial institution and every Bank seem to have their eyes set on the bitcoin and bitcoin these days... But being Bitcoin as a currency the main competitor to banks and the traditional financial system, won't it be possible to see Banks trying to stifle bitcoin while investing in the Blockchain?

Remember the early Internet? Where every company wanted to make their own localized version of it?
Remember how that ended?
Same with Bitcoin, Bitcoin is much better when it's global and all inclusive. Banks that make their own block chain will eventually be almost forced to just join the global block chain, because there is little to gain from having your own bubble.

That struggle hasn't stopped (Refer internet.org by facebook).
Banks aren't going to stop trying.

[FanEagle]

Banks will try but fail miserably.
They can always create an altcoin dedicated to banks, so they will own their own blockchain.