Can Bitcoin make Banks disappear?

[rickadone]

I think bitcoin can't make bank disappear because banks are still more useful than bitcoin and banks are run by the goverment and the government are more powerful than the people who runs bitcoin. But if no one are still using the bank there's a big chance that bitcoin can make the bank disappear.

Bitcoin and banks are totally unrelated. Bitcoin is a currency and banks are a financial intermediary to facilitate borrowing and saving of money. They also keep transfer fees down. If bitcoin were to be used by everyone they would still keep banks for the same reason we have banks now for every other currency.

The only difference between Bitcoin and other currency that would affect banks is that Bitcoin is decentralized. That may be the confusion. Just because a currency is decentralized doesn’t mean it doesn’t need banks.

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[adriaymati58]

If it's nolonger decentralized it would make the reason btc was created moot

[Omega Weapon]

This is a complicated question. The reason why banks exist is because they can do credit creation (by issuing loans.) This enables a bank to lend out more “money” than reserves (at the central bank and other assets.) Bitcoin is like “gold” and if it becomes more common in everyday transactions it would mean that banks would have to build up bitcoin reserves, in case they start having accounts denominated in bitcoin. This in turn enforces central banks to hold bitcoin in case banks have to be bailed out (if bitcoin becomes very common.)

However, in parallel there’s more development happening around the bitcoin network. Although the bitcoin network cannot handle much transaction volumes, there’s work that enables decentralised high speed transactions using the bitcoin network as a settlement layer. These technologies are named lightning network, lumino, sidechains, etc. This enables high capacity transfers completely outside the banking network. If peer-to-peer lending networks enables alternative ways of people getting loans, then the need for banks may almost diminish. At least how we view “banks” today, i.e. credit creation. These institutions will of course not disappear but transform into something else. Perhaps into something like investment funds.

Banks are just going to adapt if bitcoin becomes king, it is very likely that you will find a way to pull their trick on bitcoin the same way they do in fiat and then they will keep doing what they do best stealing people’s wealth by providing a service no one really needs.

Bitterly Truth, we can now monitored and control our money so why bother ourselves in engaging in banks and other banks activities. Our bitcoin wallet have features that are useful like banks and having low transaction fees are much more better than in banks.

Yes, but it seems that people are blind and kept ignorant about how the economy really works, so as long as they can exchange their dollar for products and services they are fine with things as they are which is a shame since things could be a lot better thanks to bitcoin.

[mrcash02]

This is a complicated question. The reason why banks exist is because they can do credit creation (by issuing loans.) This enables a bank to lend out more “money” than reserves (at the central bank and other assets.) Bitcoin is like “gold” and if it becomes more common in everyday transactions it would mean that banks would have to build up bitcoin reserves, in case they start having accounts denominated in bitcoin. This in turn enforces central banks to hold bitcoin in case banks have to be bailed out (if bitcoin becomes very common.)

However, in parallel there’s more development happening around the bitcoin network. Although the bitcoin network cannot handle much transaction volumes, there’s work that enables decentralised high speed transactions using the bitcoin network as a settlement layer. These technologies are named lightning network, lumino, sidechains, etc. This enables high capacity transfers completely outside the banking network. If peer-to-peer lending networks enables alternative ways of people getting loans, then the need for banks may almost diminish. At least how we view “banks” today, i.e. credit creation. These institutions will of course not disappear but transform into something else. Perhaps into something like investment funds.

Banks are just going to adapt if bitcoin becomes king, it is very likely that you will find a way to pull their trick on bitcoin the same way they do in fiat and then they will keep doing what they do best stealing people’s wealth by providing a service no one really needs.

Bitterly Truth, we can now monitored and control our money so why bother ourselves in engaging in banks and other banks activities. Our bitcoin wallet have features that are useful like banks and having low transaction fees are much more better than in banks.

Yes, but it seems that people are blind and kept ignorant about how the economy really works, so as long as they can exchange their dollar for products and services they are fine with things as they are which is a shame since things could be a lot better thanks to bitcoin.

They are blind and ignorant because fiat still supplies everything they need, they are confortable with this situation, it's normal. Currently the most people that are using BTCs are doing this because they need extra sources of money and Bitcoin is a good one. Maybe there are other people needing money also, but for any reason they don't trust Bitcoin or they think it's a dangerous currency/scheme. To say the truth I tought this before start using BTCs.

[Janation]

I think this maybe true because bitcoin is now not things of the past it is now advanced.
And it is not hard in terms of some difficulties one can received in bank issues.
When once one follow due process in opening bit coin wallet there no problem and the services of bitcoi n is fast.
So even now bitcoin is dominating the bank.

That is really ridiculous, bitcoin, a digital currency can't make banks dissapear, how.can these digital currencies remove banks on the job? And besides, bitcoin is just a digital currency, a secondary currency, which means money is still used even in the near future. Banks are for money, that is why bitcoin can't affect banks no matter what. I think if it will be affecting banks, it can be for greater good because it can implement the system banks now are using.

[SamsungBitcoin]

This is a complicated question. The reason why banks exist is because they can do credit creation (by issuing loans.) This enables a bank to lend out more “money” than reserves (at the central bank and other assets.) Bitcoin is like “gold” and if it becomes more common in everyday transactions it would mean that banks would have to build up bitcoin reserves, in case they start having accounts denominated in bitcoin. This in turn enforces central banks to hold bitcoin in case banks have to be bailed out (if bitcoin becomes very common.)

However, in parallel there’s more development happening around the bitcoin network. Although the bitcoin network cannot handle much transaction volumes, there’s work that enables decentralised high speed transactions using the bitcoin network as a settlement layer. These technologies are named lightning network, lumino, sidechains, etc. This enables high capacity transfers completely outside the banking network. If peer-to-peer lending networks enables alternative ways of people getting loans, then the need for banks may almost diminish. At least how we view “banks” today, i.e. credit creation. These institutions will of course not disappear but transform into something else. Perhaps into something like investment funds.

Banks are just going to adapt if bitcoin becomes king, it is very likely that you will find a way to pull their trick on bitcoin the same way they do in fiat and then they will keep doing what they do best stealing people’s wealth by providing a service no one really needs.

Bitterly Truth, we can now monitored and control our money so why bother ourselves in engaging in banks and other banks activities. Our bitcoin wallet have features that are useful like banks and having low transaction fees are much more better than in banks.

Yes, but it seems that people are blind and kept ignorant about how the economy really works, so as long as they can exchange their dollar for products and services they are fine with things as they are which is a shame since things could be a lot better thanks to bitcoin.

They are blind and ignorant because fiat still supplies everything they need, they are confortable with this situation, it's normal. Currently the most people that are using BTCs are doing this because they need extra sources of money and Bitcoin is a good one. Maybe there are other people needing money also, but for any reason they don't trust Bitcoin or they think it's a dangerous currency/scheme. To say the truth I tought this before start using BTCs.

Agree with you mate, me also before i discover bitcoin i do not trust this i just trying for 1 month if this is paying, when i prove it i start putting some of my extra money as investment and then now i started to recruit my office mate to used this as their additional investment but still we used bank as our main safe keeper of our money bitcoin is just an investment.

[Nagadota]

It's near impossible for Bitcoin to destroy banks.  Even if it did much better, there would be new banking systems centered around Bitcoin, as there are already edgy Bitcoin savings accounts like Freebitco.in have.

[alexsandria]

It's near impossible for Bitcoin to destroy banks.  Even if it did much better, there would be new banking systems centered around Bitcoin, as there are already edgy Bitcoin savings accounts like Freebitco.in have.

Certainly. Bitcoin wouldn't have a value without fiat money bank. Banks can destroy bitcoin but bitcoin can not destroy banks since banks are being used by the government to implement the exact money supply to avoid money devaluing.

[Yanisumin]

its impossible, because bitcoin cannot fully change money and as money will exist banks will exists too.

The possibility of this is very low and almost impossible. Governments are being controlled by banks and global elites. It will be more than just a war before banks will dissapear. Look at what happened to the people that oppose the central banks and drop the dollar reserves. They died in vain even tho they only mean what is good for their people. We can barely scratch the banking system. I'm not saying that there's no hope but let's accept the fact that this will be harder than hard. Because as you can see even Bitcoin replace the fiat as a 💰, Bitcoin will be money too and banks will appear again. This will be a never ending cycle unless all the greed's and desire of wealth to everyone of us is remove.

[batang_bitcoin]

It's near impossible for Bitcoin to destroy banks.  Even if it did much better, there would be new banking systems centered around Bitcoin, as there are already edgy Bitcoin savings accounts like Freebitco.in have.

It's very impossible that bitcoin can disappear the banks. Look at the comparison, decentralized vs centralized. The people will choose with what's the government is backing up and that is going to be with the banks. Talking about disappearance of the banks, I don't think it will happen, they are one of the biggest need of a country.

[Lubang Bawah]

If anyone says banks disappear because of the bitcoin, then emphatically I say it was impossible, that could make the banks disappear is the government policy not another.

[DoublerHunter]

If anyone says banks disappear because of the bitcoin, then emphatically I say it was impossible, that could make the banks disappear is the government policy not another.

Banks will not disappear what ever happens because banks are required in our society to balance things like flow of the money and the storage of most of the money in the world, if there is no bank then the money of the world will be in danger and crimes will occur more often.

[adriaymati58]

Banks can't make bitcoins disappear since it doesn't depend on them at all, there is no way to stop bitcoin unless the price drops.

[choppork]

That is really ridiculous, bitcoin, a digital currency can't make banks dissapear, how.can these digital currencies remove banks on the job? And besides, bitcoin is just a digital currency, a secondary currency, which means money is still used even in the near future. Banks are for money, that is why bitcoin can't affect banks no matter what. I think if it will be affecting banks, it can be for greater good because it can implement the system banks now are using.

Today, fiat is at the top and bitcoin is being used by just a minority. We're just a couple of people when looked at from the bigger picture. But that can change after a couple of years because the growth of the population is exponential. One bitcoin user can recruit 2 non-bitcoin users and those 2 non-bitcoin users can recruit 4 non-bitcoin users (2 each) when they get into bitcoins. And so on..

When a decent amount of people are using bitcoins, then the banks might even be at a better place because every bitcoin user needs the banks to withdraw their money. Meaning, the banks will be used often than before bitcoin becomes mainstream.

But since the growth is exponential, there can be a point in time when bitcoin users has become too many that the stuffs that we buy can be bought in bitcoin terms and not only in fiat terms. Eventually at that point, bank will be used lesser since we can then pay in bitcoins directly. Thus, in the far far future, bitcoin can get rid of the banks.

tl;dr: In the distant future, the increase of bitcoin users will be of advantage to the banks. But when the number of bitcoin users blows up and the prices of items are based on bitcoin, we will be using banks less and less that will eventually lead to banks not being used at all.

[HongKong]

I will say very likely, this is because if the transaction we can control surely don't need the services of the bank. I'm optimistic the bank will disappear and one factor is bitcoin.

I am pretty sure that Banks won't just disappear because of Bitcoin. There is a good chance that bunch of Banks will be obsolete since there would be a low amount of people trying to use fiat to pay for something.
Banks may try to incorporate Bitcoin into their payment system just so they could stay afloat and make money off of people's deposits. Bitcoin could work with Banks without causing them to do a bailout if most Banks were smart then they would all be rich already.

[Ayiranorea]

Banks can't make bitcoins disappear since it doesn't depend on them at all, there is no way to stop bitcoin unless the price drops.

I think you've misunderstood the content, please make a recheck. Banks are the primary economy and financial service providers​. In every nation Banks might have played a big role in Country's​ growth. So it's not that easy or an possible thing to make banks get replaced by bitcoin.

[BeGoods]

Bitcoin will naver make banks disappear, that is just insane.

true the reason is very simple bitcoin will not be able to beat fiat because fiat is the main currency in each country and fiat will require banks

[Yuuto]

Bitcoin will naver make banks disappear, that is just insane.

true the reason is very simple bitcoin will not be able to beat fiat because fiat is the main currency in each country and fiat will require banks

I always thought that the cryptocurrencies are revolution in finances world but saying that they might cause banks to bankrupt seems pretty stupid for me.
As we can see nowadays, banks are interested about new technology - blockchain what means some of them will try to reap a piece of "crypto" cake by getting into this  new finance sector.

Obviously, banks see bitcoin as a danger for their fund transfer system, because it is totally out of their control, the regular citizen may avoid banking system by sending transactions in bitcoin, or buying things for everyday use by paying with BTC.

Banks are worried about cryptocurrencies, there is no doubt, but they have to implement new solutions to still attract clients to use their system instead of blockchain.
I think we might see banks in a crypto business in few years.
I really feel like I shouldnt post here because this question was answered thousands time already, but I had to show my point of view.

[hankyulpark]

Banks, as a business model, will be replaced by something else, with the BTC and other cryptocurrencies help. Banks main profit comes from two things: fees and interest rates. Cryptocurrencies will have a huge impact on both, but especially on fees, by making several times cheaper to use them over the banking system. To survive, the banks will need to provide something different.

[Gheka]

Yes, I think it's possible but with the current bitcoin's ability, I think it's not enough to make the bank disappear. I do not think the governments of the countries will accept bitcoin, bitcoin can not control that is everyone knows, so it is unlikely that bitcoin will affect the banks. However, the future is unpredictable, maybe the future bitcoins will have big changes and it can make the bank disappear but all is just predictable, now we can only wait and hope for a better future of bitcoin