Merging of bitcoin and banks

[groll]

Many have said that bitcoin will destroy and will bring an end to banking institutions but i read this article and find out that bitcoin will not destroy banks instead it will empower them.

https://www.cryptocoinsnews.com/blockchain-empower-banks/

I will qoute some

"R3 has managed to organize every major western bank together on a project designed to imitate blockchain technology as it exists in Bitcoin. These firms are open-minded as to how this final form will take, even suggesting they could re-invent security altogether in pursuit of new banking systems.

Financial institutions are not going to surrender their industry. And consumers will appreciate easy-to-use more efficient systems of the future in banking."

So is it feasible or not?

[helloeverybody]

Theres no doubt in my mind that banks will implement some form of "blockchain technology" but it wont be bitcoin obviously. They are too late to actually buy up and use bitcoin and i doubt they would even like a decentralised approach. their blockchain would be integral to their chain of banks only probably and i doubt the end user would get any benefits over the current system they use.

[Finestream]

We cannot merge bitcoins to banks because bitcoin is decentralized while banks are not, if bitcoins will be merge the best features like being anonymous and less transactions fees will be affected and might be change as bank want to be the more dominating force in the merger if possible.

[jacktheking]

Bitcoin may or may not replace bank but I really hope it will. However Bitcoin will never be able to integrate with the banks. I guess that the article is just referring to the Blockchain concept by Satoshi Nakamoto.

[ObscureBean]

Yes this is most likely how things will eventually play out. It's a little sad that so many here see in Bitcoin a means to stand against the government. How can Bitcoin fight the government when it's very existence depend on infrastructure/resources owned and maintained by the government? The government doesn't even need to acknowledge Bitcoin, it can simply turn around and absorb Bitcoin in its entirety and reconfigure it to its cause.
The government is but a reflection of the individual. The solution to government control lies not on the outside but rather on the inside.

[groll]

Yes this is most likely how things will eventually play out. It's a little sad that so many here see in Bitcoin a means to stand against the government. How can Bitcoin fight the government when it's very existence depend on infrastructure/resources owned and maintained by the government? The government doesn't even need to acknowledge Bitcoin, it can simply turn around and absorb Bitcoin in its entirety and reconfigure it to its cause.
The government is but a reflection of the individual. The solution to government control lies not on the outside but rather on the inside.

In a sense you made some good points. If banks and bitcoin will merge then bitcoin will no longer or will lose its sense of decentralization. Bitcoin will be limited and the interest rates will no longer enjoyed by us but by the few elites in the banking system. I just hope that they will not succeed merging banks and bitcoin because it spells a bad news to us in the bitcoin economy.

[Xester]

Yes this is most likely how things will eventually play out. It's a little sad that so many here see in Bitcoin a means to stand against the government. How can Bitcoin fight the government when it's very existence depend on infrastructure/resources owned and maintained by the government? The government doesn't even need to acknowledge Bitcoin, it can simply turn around and absorb Bitcoin in its entirety and reconfigure it to its cause.
The government is but a reflection of the individual. The solution to government control lies not on the outside but rather on the inside.

In a sense you made some good points. If banks and bitcoin will merge then bitcoin will no longer or will lose its sense of decentralization. Bitcoin will be limited and the interest rates will no longer enjoyed by us but by the few elites in the banking system. I just hope that they will not succeed merging banks and bitcoin because it spells a bad news to us in the bitcoin economy.

Bitcoin users will suffer once again the same condition they suffer with fiat currency. Banks are just a greedy companies who are not concerned with the clients welfare but the status of their income. They did not put up banks to assist or help us financially but to kill us with big interests . Banks are a virus that will infect bitcoins.  Bitcoin must not be allowed to be merged with banks.

[extrabyte]

I think that it has the both positive and negative impact, many banks cooperate with companies that operate on bitcoin like bitx ecoin xapo etc, these debit cards are from bank so indirectly banks support bitcoin, but cant be merged.

[Denker]

Many have said that bitcoin will destroy and will bring an end to banking institutions but i read this article and find out that bitcoin will not destroy banks instead it will empower them.

https://www.cryptocoinsnews.com/blockchain-empower-banks/

I will qoute some

"R3 has managed to organize every major western bank together on a project designed to imitate blockchain technology as it exists in Bitcoin. These firms are open-minded as to how this final form will take, even suggesting they could re-invent security altogether in pursuit of new banking systems.

Financial institutions are not going to surrender their industry. And consumers will appreciate easy-to-use more efficient systems of the future in banking."

So is it feasible or not?

Bitcoin as THE open, decentralized, permissionless Blockchain is a completely beast compared to that highly centralized, controlled permissioned blockchains the banks are going to build and use.
Sure it will give them some advantages as reducing costs, cutting out middlemen etc, but this is nothing highly innovate.The could achieve same things with distributed databases, MySQL etc.
Bitcoin will a majority of banks like they exist today become obsolete.Many of them will disappear, if they like it or not doesn't matter.
That however doesn't mean that banks won't play a role in the future.They will have their markets.But they will lose their extreme dominant role they are having today.

[virtualx]

Many have said that bitcoin will destroy and will bring an end to banking institutions but i read this article and find out that bitcoin will not destroy banks instead it will empower them.

So is it feasible or not?

Banks are based on supply/demand exactly the same as bitcoin. If nobody puts their money on bank, the bank collapses. I think its unrealistic to think of the "one size fits all", there will always be people who like different value storage (investment, bank, bitcoin, house).

What I hope banks get from bitcoin is that transaction speed of 5 days is not the standard



 

[Mauser]

Many have said that bitcoin will destroy and will bring an end to banking institutions but i read this article and find out that bitcoin will not destroy banks instead it will empower them.

So is it feasible or not?

Banks are based on supply/demand exactly the same as bitcoin. If nobody puts their money on bank, the bank collapses. I think its unrealistic to think of the "one size fits all", there will always be people who like different value storage (investment, bank, bitcoin, house).

What I hope banks get from bitcoin is that transaction speed of 5 days is not the standard



 

In Europe transaction need to be processed within 1 business day which was already a big change overhere.

If I understood the article correctly it is more about internet security than actual using bitcoin within banks.

Banks heavily rely on the central bank which is printing money for them if needed. As long as there is not opportunity to create "more" bitcoins from nothing, I don't believe banks will actually start using Bitcoins.

[Ziskinberg]

Many have said that bitcoin will destroy and will bring an end to banking institutions but i read this article and find out that bitcoin will not destroy banks instead it will empower them.

So is it feasible or not?

Banks are based on supply/demand exactly the same as bitcoin. If nobody puts their money on bank, the bank collapses. I think its unrealistic to think of the "one size fits all", there will always be people who like different value storage (investment, bank, bitcoin, house).

What I hope banks get from bitcoin is that transaction speed of 5 days is not the standard



 

In Europe transaction need to be processed within 1 business day which was already a big change overhere.

If I understood the article correctly it is more about internet security than actual using bitcoin within banks.

Banks heavily rely on the central bank which is printing money for them if needed. As long as there is not opportunity to create "more" bitcoins from nothing, I don't believe banks will actually start using Bitcoins.

Banks has a set of rules to follow while bitcoins has really no rules to transact it online, I wonder how the government can merged bitcoin to banks when they have a different goal. Bitcoins is here to help the majority of people to transact online transparently and with faster and cheap transactions.

The basic element of bitcoins cannot be change by the government so it is impossible to merge both.

[Hazir]

The only real blockchains are the one used as a backbone of  decentralized coins. Private blockchain is not a blockchain at all it is more  is just a confusing name for a shared database, nothing more.
The key to Bitcoin's astonishing security is its decentralization which comes from its advanced and original use of proof of work mining. How exactly private blockchains will try to achieve that?

[mobnepal]

Thinking bitcoin could end bank is not fully true but it can replace many of the fiat stored from bank towards bitcoin due to much more security, transparency, easy to access features.

Actually blockchain tech is more important that can help banks and to have transparent and secure banking transactions.

So as a whole blockchain tech can be merged by banks which can help banking institution on the other hand more adaption towards bitcoin can harm banks as they will lost lots of their stored fiat.

[jak3]

it will  be great if banks can adopt the blockchain technology but it is impossible for them to do so because they can not show their transactions to everyone and then will never let anyone see each others balance

[Shiroslullaby]

I'm sure if banks end up using Blockchain technology, they would want it to be private, so no one could see the transactions.
That's why I'm interested in projects like Zcash which claim to be able to send private transactions.

From the https://z.cash/ website-
"maintain a secure ledger of balances without disclosing the parties or amounts involved"

[yayayo]

The private, centralized blockchain projects of the banks will fail miserably - at least if they are intended to replace Bitcoin as a currency. The only reason of why Bitcoin uses a blockchain is to make decentralization possible. If you want a centralized value transfer system you don't need to use a blockchain, it would be just a waste of resources.

I seriously doubt that the banks will be successful with R3. Whatever smart user interface they may offer, all the transactions at their network will be subject to bank and government approval. So it's essentially some kind of Paypal 2.0 they're offering. Nobody needs or wants that. Or would you voluntarily choose a restricted currency when you can have a free one?

Sorry, dear banks, but you'll have to scale back your business...

Btw.: Two important developers already left R3.

ya.ya.yo!

[HatakeKakashi]

I mentioned my points on Banks and Bitcoins and would like to repeat them:
Well instead of writing an essay, let me put down my points on PROS of both
Pros of BTC wallet:
1. Anonymous
2. Can be withdrawn anytime
3. Can withdraw small amounts
4. Can withdraw large amounts hassle free
5. Can transfer 5 times in a minute without any hassle
6. Exchanging is hassle free
7. Receiving is very easy
8. Can create several accounts
Pros of Bank wallet:
1. Secure, can prove your money
2. Safe, will not go bankrupt soon.
3. A lot of e-commerce website prefer this
4. A lot of banks allow safe invest
5. No scam and privacy
6. Bank currency is not volatile
So, now why would someone want to merge these two? It would just cancel out their pros and add to cons. They are great the way they are. Peace!

[ajareselde]

Blockchain tech and banks yes, but bitcoin and banks - not as much. Even tho there is much to be earned by banks that operate as bitcoin friendly,
there is still much missing regulation and anti money laundering acts to protect the banks for abuse. Let's use the word cooperation instead of merging, and
we could have more chance for success.

[ASHLIUSZ]

Blockchain tech and banks yes, but bitcoin and banks - not as much. Even tho there is much to be earned by banks that operate as bitcoin friendly,
there is still much missing regulation and anti money laundering acts to protect the banks for abuse. Let's use the word cooperation instead of merging, and
we could have more chance for success.

yes, banks see the opportunity that the technology behind Bitcoin brings. Blockchain that Bitcoin is based on allows you to move funds quickly regardless of your location. It can also efficiently automate business processes. Banks are also already trying to integrate it with the systems already in place. LHV Bank has already built a mobile payment system for moving euros using the bitcoin transaction system as a platform.