If you believe banks will work with Bitcoin, you're delusional

[erikalui]

Banks accepting bitcoins would be the same as how we have demat accounts where we open a demat account, buy shares via bank cash and sell them via the banking website itself and the bank charges fees for the transaction. If banks work with bitcoins, they too can charge a fee for each transaction that would be profitable for them. It's not like owning a USD account but more like stock market shares. Money that is used for loans come from our fixed deposits and what interest rates they earn from the loans are given to the FD holders (cutting off their own profit).

[1715336819]

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[ObscureBean]

Not necessarily, they could still 'embrace' Bitcoin by implementing it as an alternative deposit method. They wouldn't be keeping your funds in Bitcoin, your Bitcoin deposit would immediately get converted to dollars/local currency. But I think most likely they will come up with their own digital currency at some point. Beyond the petty people vs government war, the blockchain technology is a fundamental upgrade and benefits everyone. Except maybe criminals/fraudsters 

[Kprawn]

Counter question.

What if, when Bitcoin is getting this popular and adapted by people so that banks and regulators do not have an other choice to work with Bitcoin?

They will stop this from happening, way before we see mainstream adoption. The governments will implement regulations to slow Bitcoin

down and to stunt their growth. The Banks will block Bitcoin associated accounts, like they did in Australia. The race is on, between Bitcoin

going mainstream and the banks releasing their private Blockchains. While we are struggling to gear up with scaling issues, the banks are

working hard to catch up. This whole block size issue, is going to bite us on the ass. 

[QuestionAuthority]

Definition of "Bank"

A bank is a financial institution that accepts deposits from the public and creates credit. Financial institutions provide services as intermediaries of financial markets and can denominate their services in any currency. Broadly speaking, there are three major types of financial institutions:

Depository institutions – deposit-taking institutions that accept and manage deposits and make loans, including banks, building societies, credit unions, trust companies, and mortgage loan companies;

Contractual institutions – insurance companies and pension funds

Investment institutions – investment banks, underwriters, brokerage firms.

Definition of "Bitcoin"

A type of digital currency in which encryption techniques are used to regulate the generation of units of currency and verify the transfer of funds.


Banks are HIGHLY REGULATED institutions that operate with the permission and oversight of government. The only fucking way a "bank" could use Bitcoin to denominate its services is if Bitcoin was the national currency of that country.

/thread

[xdrpx]

When you mentioned about banks holding our dollars and lending it to those who require loans for interest, it's not only to make money for themselves but also give us the interest for using our funds. It's how the banking system works in my place and seems to be pretty good since we a get a good ROI for depositing funds in fixed deposit schemes or a savings account. Most people earn their living with the interest they earn from banks after they retire. In the case of Bitcoins this currently isn't possible cause there are no such schemes that provide least risk and good returns.

[Daniel91]

I see this often "banks should start working with Bitcoin users since that's where things are headed, why not cooperate?".

If you think your bank is going to keep your bitcoins in some account then you can use your debit card to convert to dollars at the point of sale then you don't really understand the main revenue of banks.

Banks hold your dollars in their bank accounts. They then turn around and leverage your dollars in their account by 10 times to issue loans to people where they get their main revenue.

If people are holding their funds in bitcoins and only using banks as a transaction medium the bank is not making much money.

Don't expect banks to embrace Bitcoin. The reason they're all creating their own "blockchains" is so they can make it so that they can hold your funds and leverage it.

Every central bank warning about Bitcoin is another central bank realizing that they are going to lose if people start using Bitcoin.

Banks can still make some revenues through the exchange rates.
In fact, main problem (for the banks) is that Bitcoin is not regulated in the financial market.
Bitcoin is not recognized by the law as financial asset or official money (in the most countries).
So, even if some banks consider to offer Bitcoin, there is no way to do it legally.

[Red-Apple]

i don't really see the point of it either. i say bitcoin was created to help us get rid of banks so why some people insist on going back to the old system is beyond my understanding.

Banks hold your dollars in their bank accounts. They then turn around and leverage your dollars in their account by 10 times to issue loans to people where they get their main revenue.

don't you think banks can do the same thing with bitcoin in people's accounts and generate an additional revenue?

[calkob]

I see this often "banks should start working with Bitcoin users since that's where things are headed, why not cooperate?".

If you think your bank is going to keep your bitcoins in some account then you can use your debit card to convert to dollars at the point of sale then you don't really understand the main revenue of banks.

Banks hold your dollars in their bank accounts. They then turn around and leverage your dollars in their account by 10 times to issue loans to people where they get their main revenue.

If people are holding their funds in bitcoins and only using banks as a transaction medium the bank is not making much money.

Don't expect banks to embrace Bitcoin. The reason they're all creating their own "blockchains" is so they can make it so that they can hold your funds and leverage it.

Every central bank warning about Bitcoin is another central bank realizing that they are going to lose if people start using Bitcoin.

Your right Banks wont work with bitcoin, because there wont be any banking the way we know it today when bitcoin is adopted

[Yakamoto]

I see this often "banks should start working with Bitcoin users since that's where things are headed, why not cooperate?".

If you think your bank is going to keep your bitcoins in some account then you can use your debit card to convert to dollars at the point of sale then you don't really understand the main revenue of banks.

Banks hold your dollars in their bank accounts. They then turn around and leverage your dollars in their account by 10 times to issue loans to people where they get their main revenue.

If people are holding their funds in bitcoins and only using banks as a transaction medium the bank is not making much money.

Don't expect banks to embrace Bitcoin. The reason they're all creating their own "blockchains" is so they can make it so that they can hold your funds and leverage it.

Every central bank warning about Bitcoin is another central bank realizing that they are going to lose if people start using Bitcoin.

Your right Banks wont work with bitcoin, because there wont be any banking the way we know it today when bitcoin is adopted

No, banking will still exist in a relatively similar manner to what we see now even if Bitcoin is accepted globally and becomes one of the biggest things a lot of people are using. The only thing that will noticeably change will be fractional reserve banking, and even then they might find a way around that.

But banks will not just bend over and accept Bitcoin at all.

[QuestionAuthority]

[Tanic]

I think it is pretty possible. Bitcoin is getting it's popularyty this days. This is crypto currency and today they are getting more and more stronger. There is an app called Apple Buy, with this app you can buy things without paper money and cars, all transactions made through the net. And I heard that MasterCard is also creading something like that, paymeth through salfy! So i think banks will start interested in crypto currencies cause of that very soon.

[hawkins]

Well, I guess someday it really happened. if bitcoin into something big, most likely will work with bitcoin so that the bank does not disappear. bitcoin will have something new each year, while the bank is not so likely bitcoin will become larger than the bank.

[Barbut]

I agree with op statement, I agree that banks will not accept bitcoin, and it's more possible they to create some new alt coin.
OP is right about way how the banks work and how they male profit, with bitcoins they can't do nothing, they can't control founds like they can with fiat. It's question is it better for them to invest in bitcoin, or in new altcoin, I guess they will do their research, they have enough money to invest in what ever they wish, we can just wait and see results.

[tyz]

I think that governments have to acknowledge Bitcoin when a large number of people want to use it. Probably it seems naive. But look at some developments in Europe (Italy, France, Sweden, ...). Populist parties achieve 10% and more on elections and the government of the corresponding country is suddenly accepting their positions (best example is Britain at the moment). I believe this could also happen to alternative payments like Bitcoin when people want that.

Counter question.

What if, when Bitcoin is getting this popular and adapted by people so that banks and regulators do not have an other choice to work with Bitcoin?

it won't come that far. i am quite sure that governments will step into action to make further growth of bitcoin impossible by implementing all kinds of ridiculous policies. that's of course assuming bitcoin is growing too large.

[MingLee]

Banks might work with Bitcoin in the future, however they will likely be resistant to it because, as you said, they will not have the capacity to make as much money off of a system that requires you to prove the finite quantity you have. There will be no way that the banks will be able to loan out as much as they currently do.

[Elwar]

Goldman (Sachs) a lead investor in funding round for Bitcoin startup Circle:
http://www.wsj.com/article_email/goldman-a-lead-investor-in-funding-round-for-bitcoin-startup-circle-1430363042-lMyQjAxMTA1NzMyMDgzODA2Wj

Circle CEO Allaire: It’s Highly Unlikely We’ll Be Using Bitcoin in 5 or 10 Years
http://coinjournal.net/circle-ceo-allaire-highly-unlikely-well-using-bitcoin-5-10-years/

Bitcoin Seller Circle No Longer Selling Bitcoin
http://news.dinbits.com/2016/12/bitcoin-seller-circle-no-longer-selling.html

[btcdevil]

I see this often "banks should start working with Bitcoin users since that's where things are headed, why not cooperate?".

If you think your bank is going to keep your bitcoins in some account then you can use your debit card to convert to dollars at the point of sale then you don't really understand the main revenue of banks.

Banks hold your dollars in their bank accounts. They then turn around and leverage your dollars in their account by 10 times to issue loans to people where they get their main revenue.

If people are holding their funds in bitcoins and only using banks as a transaction medium the bank is not making much money.

Don't expect banks to embrace Bitcoin. The reason they're all creating their own "blockchains" is so they can make it so that they can hold your funds and leverage it.

Every central bank warning about Bitcoin is another central bank realizing that they are going to lose if people start using Bitcoin.

Perfectly said about bank and bitcoin, because bank operation is to utilize the money deposited in their bank from the account holders to some good revenue generating so that from that revenue they can maintain their expenses cost and give interest to account holders. because without revenue generating they cannot run the bank with their own pocket money.

But it is also true that Bank and Bitcoin are both different ways of system. Bank is used to run all your business transaction with fiat currency and bitcoin is mainly used for investment and online shopping and online work

[yayayo]

I see this often "banks should start working with Bitcoin users since that's where things are headed, why not cooperate?".

[...]

People, who really think this way have not understood what Bitcoin is all about. Bitcoin is about being your own bank. Bitcoin stands against banking from its deepest core. The message engraved into the Genesis Block is unequivocal in that regard.

Of course banks will not cooperate and start working with Bitcoin, because when Bitcoin is successful, there will be nothing to earn for them. Bitcoin makes banks in their current form entirely expendable. In a world where fiat money is no longer widely used and replaced by native Bitcoin transactions, there will be no business for banks any more.

That's why bank officials are currently experiencing painful cognitive dissonance when it comes to Bitcoin, which they seek to reduce by engaging in various form of private Blockchain nonsense.

ya.ya.yo!

[michellee]

I see this often "banks should start working with Bitcoin users since that's where things are headed, why not cooperate?".

If you think your bank is going to keep your bitcoins in some account then you can use your debit card to convert to dollars at the point of sale then you don't really understand the main revenue of banks.

Banks hold your dollars in their bank accounts. They then turn around and leverage your dollars in their account by 10 times to issue loans to people where they get their main revenue.

If people are holding their funds in bitcoins and only using banks as a transaction medium the bank is not making much money.

Don't expect banks to embrace Bitcoin. The reason they're all creating their own "blockchains" is so they can make it so that they can hold your funds and leverage it.

Every central bank warning about Bitcoin is another central bank realizing that they are going to lose if people start using Bitcoin.

Perfectly said about bank and bitcoin, because bank operation is to utilize the money deposited in their bank from the account holders to some good revenue generating so that from that revenue they can maintain their expenses cost and give interest to account holders. because without revenue generating they cannot run the bank with their own pocket money.

But it is also true that Bank and Bitcoin are both different ways of system. Bank is used to run all your business transaction with fiat currency and bitcoin is mainly used for investment and online shopping and online work

but what will be happen if bank is adopted blockchain technology? is it be good for bank to work with bitcoin? because we see that bitcoin is made simple transaction to do without to give our details, but in bank we need to give our details in transaction. beside that, the fee is the mostly problem for bank which is higher than bitcoin.

i believe that in someday, bank will be learn about blockchain technology and if they can learn and know about the benefit of blockchain technology, i am sure the bank will be adopt it into their technology so the bank will work with bitcoin.

[Xester]

Bitcoin banks are actually operating right now. The online wallets and the escrow wallets are actually bitcoin banks wherein we can store our bitcoins and convert it to cash. But if you are talking about how the banks use our money and loan them and they are the only one earning, well thats possible with bitcoin too, there are already loan sites online which lends you bitcoin but with a certain interest and is more greedy than the real banks. In short if banks will decide to create a bitcoin bank that is very possible, they will set-up online wallets wherein you can store your bitcoins, in every transaction there are fees and you can even loan bitcoins on that site. You can also automatically convert bitcoin to cash if you use their site.

The reason why banks did not integrate bitcoin is because of the number of users. Banks are limited to their local counterparts and if the local area is not at least 40% of the population using bitcoin then it is not feasible and a gamble.