Can Bitcoin make Banks disappear?

[btcwonder1]

Due to it being in very small quantity, 21 million to be precise, bitcoin will never become widespread enough to eliminate the need for traditional banking. We will always need the banking system to carry our daily as well as our business transactions.

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[Fatanut]

Bitcoin transaction is fast so when bitcoin slowly promoted to all natoins and all nations bitcoin be  used to all over the world. maybe most of the people will used botcoin,for easy transactions for payments,shop and others.That time maybe banks will fall down.ofcourse people looking for a fast and convinient settlement.

That will only happen if the blockchain is finally upgraded. Luckily for us, there's going to be a judgment day which is the August 1. If we're to continue having the same blockchain, the transaction fee will be a lot more than what it is right now. Along with the increase of bitcoin's price, the transaction fee will be really high in fiat terms.

"Convenience" for merchants isn't something that we have right now and it's because bitcoin transactions are really slow, bitcoin transaction cannot support microtransactions, and bitcoin is subject to volatility. We might live long enough to see the bitcoin transaction becoming better but bitcoin will always be volatile which make most merchants reluctant to accepting bitcoins as payment.

[Rostadom]

Yes it is quite possible, if the transaction is bitcoin increasingly massive and ever-increasing bank transaction will certainly continue to fall and the bank eventually will disappear.

Not a valid reason and illogical

It's not possible in this decade or maybe centuries, nowadays bitcoin have huge transaction and bank still be a key in all country. Bank will follow government regulation and controlled by government so it wont disappear even bitcoin transaction increasing massive.

Maybe Bank will disappear when all of people in the whole world use computer in every activities, nowadays lot of people don't have a computer or don't understand a computer. Let say poor people in Africa, Papua new guinea, etc, who don't know how to use computer/device.

Do you ever think if bank disappear and no paper money will help poor people without bitcoin miner to life and survive?

What makes you think that bitcoin will be the currency once the banks have disappeared and paper money were all burned down? If anything, there's a much higher chance that these people will go back to trading goods in exchange of other goods. It is called the barter system and I think it's a lot better than having fiat in a poor country. People will be busy planting trees, catching fish, hunting deer, only because those are the only things that we really need. We might go back to having a primitive life but isn't it a lot better than all these technology. You can research about how depressed a normal person is in this era.

The only reason why the poor people would start using bitcoins is when they are forced to do so. Otherwise, their economy will take a step back and go back to doing older ways.

[BeGoods]

I don't think bitcoin will sweep banks away but bitcoin will make banks into bitcoin banks. Maybe in the future , there will be no real money , everyone will use bitcoin. Who knows ?

I think impossible bitcoin will shift the bank. Because banks covered by governments and banks become very central to the finances of each country. Bank not only as a place to save money but also a money manager in a country. Impossible bitcoin will eliminate the bank

[ximply]

Hi Newbie here.. but let me share you what I think.

If bank will disappear because of bitcoin then by that time if i would ask you how much is the value of your bitcoin then what would you say? $5,000? Keep in mind that bank is the reason why we have fiat money. or maybe you will answer the value of bitcoin like BTC1=100 cows

I think bank will not disappear but they will adopt to the blockchain technology as well. Right now when you use your fiat money to buy a burger you dont pay a fee for it.  With bitcoin right now you pay a high fee. If people will continue to use fiat money for their everyday use then banks will still be there.  If bitcoin will continue to have a higher fee then slowly transactions will also slow down, for people will hold on to their bitcoin. Then bitcoin ecosystem will slowly die particularly when it reaches the 21M count of bitcoin. Then what would happen then? no more incentive for miner not even on fees for the bitcoin ecosystem slowly dies out because of high fee and no one is using it for transactions.

...then in the end bitcoin will disappear

think about it while we can still make the action needed to make bitcoin last forever.

My two cent --from a newbie

[OrangeII]

I don't think bitcoin will sweep banks away but bitcoin will make banks into bitcoin banks. Maybe in the future , there will be no real money , everyone will use bitcoin. Who knows ?

I think impossible bitcoin will shift the bank. Because banks covered by governments and banks become very central to the finances of each country. Bank not only as a place to save money but also a money manager in a country. Impossible bitcoin will eliminate the bank

You're right, the existence of a bank might intimidate bitcoin. Well, basically banks are more needed today than bitcoins in terms of storage, because bitcoin prices tend to be unstable. I guess that's also impossible

[tigershark]

I don't think bitcoin will sweep banks away but bitcoin will make banks into bitcoin banks. Maybe in the future , there will be no real money , everyone will use bitcoin. Who knows ?

I think impossible bitcoin will shift the bank. Because banks covered by governments and banks become very central to the finances of each country. Bank not only as a place to save money but also a money manager in a country. Impossible bitcoin will eliminate the bank

You're right, the existence of a bank might intimidate bitcoin. Well, basically banks are more needed today than bitcoins in terms of storage, because bitcoin prices tend to be unstable. I guess that's also impossible

Banks will be needed as long as governments issue fiat currencies unless they shift to their own digital currency rather than paper money. However, as individuals start to store more money outside of banks in cryptocurrency wallets, banks will become less important.

[Rostadom]

Hi Newbie here.. but let me share you what I think.

If bank will disappear because of bitcoin then by that time if i would ask you how much is the value of your bitcoin then what would you say? $5,000? Keep in mind that bank is the reason why we have fiat money. or maybe you will answer the value of bitcoin like BTC1=100 cows

I think bank will not disappear but they will adopt to the blockchain technology as well. Right now when you use your fiat money to buy a burger you dont pay a fee for it.  With bitcoin right now you pay a high fee. If people will continue to use fiat money for their everyday use then banks will still be there.  If bitcoin will continue to have a higher fee then slowly transactions will also slow down, for people will hold on to their bitcoin. Then bitcoin ecosystem will slowly die particularly when it reaches the 21M count of bitcoin. Then what would happen then? no more incentive for miner not even on fees for the bitcoin ecosystem slowly dies out because of high fee and no one is using it for transactions.

...then in the end bitcoin will disappear

think about it while we can still make the action needed to make bitcoin last forever.

My two cent --from a newbie

Is there none? There's value added tax on every single transaction that you're doing except for person-to-person trade. Groceries, medicine, any type of commodities, there's a VAT there. It might not seem that there's a transaction fee but there is. Even when you simply earn money, there's a transaction fee because you have to report an income tax.

One solution for bitcoin to have no fees is to have a multi-sig wallet for a huge company. I'm actually using an online wallet right now that if you send bitcoins to another person using the same website, there's no tx fee and the confirmation time is instant. I believe it's because what actually happened is that they simply updated your balance in their database. Your bitcoins are located somewhere else in that multi-sig wallet. This makes things centralized but it's one solution.

[Vaskiy]

I don't think bitcoin will sweep banks away but bitcoin will make banks into bitcoin banks. Maybe in the future , there will be no real money , everyone will use bitcoin. Who knows ?

In future the banks might add bitcoin to their list of service provided, but could never convert entirely to bitcoin bank. Always real money has got its usage as well the value, because till date the users of bitcoin is very low compared to the fiat users around the world. Bitcoin creates a change in the system, but the same never leads to replacing.

[LegendOF45]

Bitcoin is a threat to conventional financial systems, especially banks, but I'm sure that banks will never disappear as long as there is a regulation that protects banks, better banks open units to accept bitcoin.

[joganuts]

Banks aren't going anywhere,  not anytime soon anyway.  Even in the unlikeliest event of Bitcoin becoming the world's international currency banks will still be there to provide loans and gain interest in btc.  I'd say fiat will be around well after Bitcoin is gone though.

Bank system and fiat price is a vital part on the growth and development of bitcoin. So it doesn't need to make it disappear in the point that there will never be a bank im the future. Bitcoin will develope more if there is a help or a part of bitcoin in the process. It's better to combine both systems for more development for the users to experience.

[fasdorcas]

It seems that experts say that Bitcoin 'Here to Stay,' But Banks Could Disappear.


"TheStreet: How do you think FinTech will impact the way banks operate?

Frank Schwab: Banks either react on, or they will disappear. Anyway, the consolidation of the banking industry accelerates as the behaviour of people changes. Some banks will benefit from [FinTech], some will be pushed to the back end, and some will disappear."
http://www.thestreet.com/story/13419089/1/bitcoin-here-to-stay-but-banks-could-disappear-says-fintech-expert.html

What's your read on that?

I think Bitcoin will not make the banks disappear but also make it even more development. Because, the value of Bitcoin will also be converted into money, where money exists, it is certain that banks will also survive. I believe the banks will change rather than disappear. They will change to be able to work with Bitcoin. In addition, banks are inevitable needs of each person when they want to borrow money, save money, change money, transfer money, ... nothing can change it. Therefore, the bank will not disappear

Basically the bank was formed from the government, and it is really in need of a country. Well, I think the bank is something that will be a harvester in a country. Aya do not think that it will be replaced by bitcoin or other altcoin.

That is correct. So, what is sure thing to happen and is currently happening right now is that banks and bitcoin co exist each other.. People have opportunity to choose which alternative they want to use on their online financial transactions.

I think you are right. A country cannot run without a bank. There is a proper check and balance system in bank. I don't see the banks getting replaced with the bitcoin not in the near future. Whereas both bitcoins and banks can exist in future. We know that in today's era, most of us are't well aware of a bitcoin and many people dont' believe the bitcoin to be trust worthy. It will take time for the bitcoin to make its impact in lives of a common person. Until then, bitcoin can't even compete with real currency or a bank.

[jawitech]

I think banks will change their policies base on Bitcoins . That much popular bitcoins in future we will see how much popular it is no one can cross bitcoins range.

[Gheka]

I don't think bitcoin will sweep banks away but bitcoin will make banks into bitcoin banks. Maybe in the future , there will be no real money , everyone will use bitcoin. Who knows ?

In future the banks might add bitcoin to their list of service provided, but could never convert entirely to bitcoin bank. Always real money has got its usage as well the value, because till date the users of bitcoin is very low compared to the fiat users around the world. Bitcoin creates a change in the system, but the same never leads to replacing.

Yeah, I agree with you, in the future the bank will consider bitcoin as a payment method, we will be able to convert bitcoin into cash or cash into bitcoin at the bank. The real money has been the habit of everyone in the world, the future of real money will still exist, it can decrease in number of users but it will never disappear or be replaced by bitcoin. Bitcoin can be popular and powerful on the internet but in the real world, it's not strong enough to replace or disappear of anything, real money is always convenient and more popular than Bitcoin

[linkme]

It seems that experts say that Bitcoin 'Here to Stay,' But Banks Could Disappear.


"TheStreet: How do you think FinTech will impact the way banks operate?

Frank Schwab: Banks either react on, or they will disappear. Anyway, the consolidation of the banking industry accelerates as the behaviour of people changes. Some banks will benefit from [FinTech], some will be pushed to the back end, and some will disappear."
http://www.thestreet.com/story/13419089/1/bitcoin-here-to-stay-but-banks-could-disappear-says-fintech-expert.html

What's your read on that?

Basically, when a thing is replaced, there must be something that is better than itself so that Bitcoin is not good enough to replace Bank at all. I think Bank can disapear when there are some Altcoins that is optimized for people to use them as money.

[highlandknight]

There are no middle ways like banks for exchanging the bitcoins. The complete transaction details will be stored in the block chain. if all governments accept the bitcoins, then bitcoin will make banks disappear. Other wise, banks will depend on bitcoin.

[stompix]

Is there none? There's value added tax on every single transaction that you're doing except for person-to-person trade. Groceries, medicine, any type of commodities, there's a VAT there. It might not seem that there's a transaction fee but there is. Even when you simply earn money, there's a transaction fee because you have to report an income tax.

VAT is not something all countries have.
Take for example the US.
There are cases where the sales tax (not VAT) is 0 like OR or(!) MT.

And even in the EU the VAT for a lot of things can be 0 best example is the UK.

So next time a bit of research before posting would be nice:)

[Polar91]

Banks will not disappear. As we all know banks are one of the wise establishments in town. They will not agree that bitcoin will be the reason for them to disappear or to get lost theie clients. For them to be able to settle down or adapt with the situation of bitcoin's popularization and many people around the world are widely using it, they will be surely offer the storage or feature bitcoin as one of their services in the banks. That will lead or push their clients to continuously invest on them in terms of using or accepting bitcoin.

[zevtev9]

This is a very difficult question to answer, particularly for someone who believes in bitcoin, I don't think banks will disappear as a whole but probably will change their system a bit, perhaps even enabling and using bitcoin accounts and paying interest in bitcoins.
The issue with banks disappearing is the fact they are the engine for finance, funding and financing everything from merchants loans to real estate, so, if banks disappear, what will cover these needs.

[cotton ball]

This is a very difficult question to answer, particularly for someone who believes in bitcoin, I don't think banks will disappear as a whole but probably will change their system a bit, perhaps even enabling and using bitcoin accounts and paying interest in bitcoins.
The issue with banks disappearing is the fact they are the engine for finance, funding and financing everything from merchants loans to real estate, so, if banks disappear, what will cover these needs.

Bank is product of civilization of the world government, if bank disappears automatically, the world economy will be uproar, the best solution is to adopt peer-to-peer system and start receiving bitcoin as global currency. The power of cryptocurrency can not be dammed but also can not stand alone in public. Requires approval from the official financial system and must have a legal tender.

The potential for bitcoin to make Banks disappear is zero percent.