[2016-09-05] Bitcoin: Will it be a major threat to our banks in 2017?

[trinaldao]

Imagine this future: the year is 2017, the currency tussle between many of the world’s largest developed economies has escalated into full-scale war (evidenced by extreme government intervention in monetary policy and various currency easing projects), and consumers and business owners in both developed and developing economies finally say: “enough is enough, we want a fairer playing field free of extreme inflation and currency wars, which erode pricing power and unfairly disadvantage people in countries with fewer monetary levers to pull.”

http://www.fool.com.au/2016/09/05/bitcoin-will-it-be-a-major-threat-to-our-banks-in-2017/

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[panju1]

Imagine this future: the year is 2017, the currency tussle between many of the world’s largest developed economies has escalated into full-scale war (evidenced by extreme government intervention in monetary policy and various currency easing projects), and consumers and business owners in both developed and developing economies finally say: “enough is enough, we want a fairer playing field free of extreme inflation and currency wars, which erode pricing power and unfairly disadvantage people in countries with fewer monetary levers to pull.”

http://www.fool.com.au/2016/09/05/bitcoin-will-it-be-a-major-threat-to-our-banks-in-2017/

In such a scenario, people will turn to gold.
Bitcoin's adoption is not that widespread for it to be considered as a safe asset for common people.
Banks have tided over bigger crises than this. 

[TraderTimm]

In such a scenario, people will turn to gold.
Bitcoin's adoption is not that widespread for it to be considered as a safe asset for common people.
Banks have tided over bigger crises than this. 

Banks will not "tide over" a 19 TRILLION dollar hole of debt, when the interest payments come calling.

As for gold, there are logistics to it that are necessary to attend to, like making sure you aren't being sold gold-cladded garbage - like some in NYC found out when buying bars. Even coins aren't immune to potential counterfeit attempts. Unless you want to become an expert at assaying, you are taking a risk every time you trust a gold seller with your money. (Much like any other financial transaction.)

For me, I don't need the weight or the worry of verifying my coins or bars are "pure", I'd rather just have 6 confirms on my transactions and backups in suitable places as needed. Good luck getting gold across the border, they tend to frown on concentrated wealth moving out of the country.

Me, I'll just bounce my wealth to a secure location and travel with zero problems.

Thanks Bitcoin!

[Karartma1]

In such a scenario, people will turn to gold.
Bitcoin's adoption is not that widespread for it to be considered as a safe asset for common people.
Banks have tided over bigger crises than this. 

Banks will not "tide over" a 19 TRILLION dollar hole of debt, when the interest payments come calling.

As for gold, there are logistics to it that are necessary to attend to, like making sure you aren't being sold gold-cladded garbage - like some in NYC found out when buying bars. Even coins aren't immune to potential counterfeit attempts. Unless you want to become an expert at assaying, you are taking a risk every time you trust a gold seller with your money. (Much like any other financial transaction.)

For me, I don't need the weight or the worry of verifying my coins or bars are "pure", I'd rather just have 6 confirms on my transactions and backups in suitable places as needed. Good luck getting gold across the border, they tend to frown on concentrated wealth moving out of the country.

Me, I'll just bounce my wealth to a secure location and travel with zero problems.

Thanks Bitcoin!

I'm all in on these words.
Bitcoin proved itself to be the best innovation since the internet itself. There 's no doubt about this. All the fuss about the "blockchain" will eventually whane and disappear.
Bitcoin is already challenging banks. If one uses Bitcoin he suddenly realize its potential.
I do hope that more and more young people will get on board.
If a teenager starts using bitcoin today he will refuse to have a bank tomorrow.

[Kprawn]

Banks are not going to sit back and let Bitcoin disrupt it... they have had control over our financial matter for years and they have done this with our

governments backing. Why would our governments stop supporting them now, they even bailed them out, when they were suppose to fail. We will

see Banks making changes to their systems to compete with Bitcoin and the governments will once again back them in that efforts. It's about

control. 

[TraderTimm]

Banks are not going to sit back and let Bitcoin disrupt it... they have had control over our financial matter for years and they have done this with our

governments backing. Why would our governments stop supporting them now, they even bailed them out, when they were suppose to fail. We will

see Banks making changes to their systems to compete with Bitcoin and the governments will once again back them in that efforts. It's about

control. 

Banks don't have the control you seem to imply. Yes, they'll kick and scream once Bitcoin gets more traction amongst the people they are used to duping/ripping off, but by then the trends will be absolute and crushing. Buggy-makers couldn't stop the automobile, even with antiquated laws about having a "flagman" to warn oncoming pedestrians and horse-riders about the "dangerous" automobile approaching. Every industry likes its little insular spot, but most can't stay there when the tectonic plates begin to shift.

Bitcoin will subsume and absorb all of these, because they're run by people who can't understand why we love Bitcoin -- the blue-sky freedom of managing our own wealth. If you think "too big to fail" is going to continue forever, I suggest you look at the large pile of derivatives and sovereign debt being piled up around the world, and tell me -- which will last longer, an expanding balance sheet of debt, or Bitcoin?

My vote is on Bitcoin.

[gentlemand]

Banks don't have the control you seem to imply.

No bank will give a UK Bitcoin company an account though that might be slowly changing. As a result of that the UK Bitcoin scene is laughable compared to other places. There are no proper exchanges and very little commerce.

If banks everywhere refused to work with exchanges then Bitcoin's usage will be vastly curtailed. It's not sexy but that's how it is. If we ever reached closed loop status then the problem goes away but there'll always be a need to interact with fiat and that means banks.

As for the original question, 2037 maybe?

[TraderTimm]

Banks don't have the control you seem to imply.

No bank will give a UK Bitcoin company an account though that might be slowly changing. As a result of that the UK Bitcoin scene is laughable compared to other places. There are no proper exchanges and very little commerce.

If banks everywhere refused to work with exchanges then Bitcoin's usage will be vastly curtailed. It's not sexy but that's how it is. If we ever reached closed loop status then the problem goes away but there'll always be a need to interact with fiat and that means banks.

As for the original question, 2037 maybe?

Their greed will be their undoing. UK Banks will eventually be forced to recognize Bitcoin commerce just like any other fee-earning enterprise. We're at that awkward stage of Bitcoin's progress, where closed-loop hasn't happened yet, so we're forced to talk to institutions whose idea of progress is ATMs and Chip-and-PIN, which aren't really new ideas at all.

They'll either change with the times or go extinct due to their own mis-steps.