You should never trust banks

[President79]

I don't have any reasons not to trust banks because as far as I know, banking storage of money is reliable and many business owners deposited their assets on a savings accounts they have for fiat cash money. Well if we ignore trusting banks its not worth earning btc because we can use fiat cash money, to exchange it from digital currency to fiat currency by using online wallet which has an option for bank cash-out.

Yes correct, let alone all the bank supervised and guaranteed by the State, of course we never doubt that the bank has a high level of trust, and as my experience, I have never been disappointed with the bank, all transactions are transparent.

[Dudeperfect]

What did they tell you that the reason was ?

A bank would never close your account for no reason, and the reason for that is that in every case thy profit from you (except you can´t repay a loan, but you wrote you lost money)

I have seen a case where a person's bank account was closed (funds were frozen) to repay the loan of that nation. Yes, it is moral responsibility of every citizen to contribute to the growth of the nation but in this case, his funds were used without his permission. The biggest benefit we receive in using bitcoin is that the funds and 100% in our control (unless kept in web wallet).

May you also mention the source just to make sure that it's a true or fact that's happened recently? If someone got their account closed, there's must be some strong reason behind it, otherwise, they're able to sue the bank.
Actually never heard of a case that makes the country looks like a criminal by stealing money from someone's bank account which probably not worth that much, just curious.

Why not, here you go. The guy mentioned it on bitcointalk itself. This case is from 2013. I am quoting the post of Zeroday and it is his own experience and in his own words.

The most of circulating assets on our business Current Account are blocked.
Over 700k of expropriated money will be used to repay country's debt. Probably we will get back about 20% of this amount in 6-7 years.

I'm not Russian oligarch, but just European medium size IT business. Thousands of other companies around Cyprus have the same situation.

The business is definitely ruined, all Cypriot workers to be fired.
We are moving to small Caribbean country where authorities have more respect to people's assets. Also we are thinking about using Bitcoin to pay wages and for payments between our partners.

Special thanks to:

- Jeroen Dijsselbloem
- Angela Merkel
- Manuel Barroso
- the rest of officials of "European Comission"



P.S. The worst thing is, that even a month ago I was suspecting that things can go wrong. In February, I several times called my banker and lawyer and asked them if money on the account is safe, mentioning that article in Financial Times. But they convinced me that there is no reason to worry, and even if country goes default, in no way current accounts may be affected. "This is European Union and banks here can't just grab your money and go" I was told.
I got a hard lesson and now I know the meaning of phrase "TRUST NO ONE".


[ 2013-04-01 11:32:19 PM Update ]

Deposits under €100,000 in Laiki will be transferred to the BoC. All deposits belonging to credit institutions, insurance companies, the government and other public bodies such as local authorities and municipal councils will also be carried over to the BoC. The same applies for charity foundations, schools and educational bodies and deposits belonging to the country’s main bank card transaction agency, JCC Payment Systems Ltd. Depositors who move from Laiki to the BoC are not part of the haircut.
The deposits that will not be transferred to the BoC will be part of a bad bank that will undergo resolution, i.e. an orderly wind down. Although the money will be there nominally, depositors will not have access to their money for an indefinite amount of time. As the bad bank slowly starts tidying up its account books cash would start going into the accounts, but the depositors could lose a substantial part of their savings if the bad bank fails to fully recoup all of its bad assets, as expected by analysts.

Source: cyprus-mail.com

Now we have untouchables whose accounts in Laiki Bank are not affected. This means that money expropriated from regular business, current and savings accounts will sponsor all other "tax exempt" accounts.

[ 2013-04-02 05:32:24 PM Update ]

I have news from a law company who are now working on class action lawsuit filed by the depositors of Laiki Popular Bank and The Bank of Cyprus.
At this moment they are gathering information from affected account holders with over 100k EUR amounts and looking for legal grounds to appeal the seizure of funds.

Our attorney assumes that, with the current situation, it is most likely that the depositors of Laiki Bank will eventually lose 100% of any amount over 100K EUR.
Although legal research is not yet finished, lawyers suspect that the whole situation with bailout is contrary to the constitution of Cyprus and the European Declaration of Human Rights.
We have already had precedents where local Cypriot lawyers backed by influential business figures have already won some small victories.

I'm asking everyone, who has affected account in Laiki Bank or The Bank Of Cyprus, to contact me regarding participation in the class action by sending me private message.

[ 2013-04-04 07:37:24 AM Update ]

Central Bank could face slew of lawsuits from depositors

LARGE depositors in Laiki Bank who face losing most if not all their money have warned they will take the Central Bank’s top brass to court if even one cent is taken out of their accounts.

The threat of legal action raises the spectre of the bailout programme unravelling in the courts, and slapping the state with massive sums in penalties. 

A lawyer representing a number of large depositors sent a letter to Central Bank Governor Panicos Demetriades last Thursday warning that if a haircut of any size was imposed on their deposits held at Laiki Bank, depositors will file a private criminal case against the governor, board members, and certain CB officials for allegedly committing “a number of criminal acts and omissions”.

[ 2013-04-10 06:41:50 AM Update ]
Today I've sold another part of my bitcoins and now I have money enough to completely pay off all our debts to customers and contractors.
Thanks to Lady Luck and Satoshi Nakamoto for the resurrection of my business!

I'm so inspired with bitcoin that I'm thinking about launching serious bitcoin related business project. Will announce it soon.



[ 2013-05-30 09:22:23 PM Update ]
The stealing of my money is now finalized.

Yesterday I looked at my Laiki account and found that frozen amount is not more shown on my balance.
100% of frozen funds is now appears as outgoing transaction to nobody with comment "DECREE".

Also there are some news from lawyers.

The Supreme Court has not announced its decision yet. It examines preliminary objections raised by the Attorney on a basis that the Law and the Order are political acts of the state (like decision to start war) and therefore cannot be examined or controlled by the Supreme Court and that the matter in issue should be considered as a private and not a public law matter.

Also, there is recent translation of the "Capital Controls imposing DECREE"



[ 2013-07-10 10:49:23 PM Update ]
"Blocked Funds" amount has finally disappeared from our Laiki account. Bank told me it's "waived" (their interpretation of word "stolen"). We won't receive any bank shares as compensation for confiscated amount since the bank is liquidated.
The rest of the money (100k EUR) are still subject to Capital Control and we can only transfer 5K monthly.

Today I had a conversation with a manager from Laiki Bank.
He has been honest and confirmed that we may forget about anything over 100K as it's already spent to pay country's debts. Also, I was warned that the financial situation in the country is getting worse and worse and we should be ready to lose even part of insured (under 100K) money during this year (this is why they keep capital control enforced).

By the way, this style of "bank restructuring" is going to be adopted in the whole European Union.
Soon, everyone's uninsured money (over 100K EUR) in EU banks will be at risk of seizure.



/the material in this post can be used on any resources without any restrictions/

[Mersedes]

I don't have any reasons not to trust banks because as far as I know, banking storage of money is reliable and many business owners deposited their assets on a savings accounts they have for fiat cash money. Well if we ignore trusting banks its not worth earning btc because we can use fiat cash money, to exchange it from digital currency to fiat currency by using online wallet which has an option for bank cash-out.

Yes correct, let alone all the bank supervised and guaranteed by the State, of course we never doubt that the bank has a high level of trust, and as my experience, I have never been disappointed with the bank, all transactions are transparent.

I agree with you - the banks are very reliable. And I have no reason to not trust them. I did not commit any illegal actions, so I had no problems with the bank. I am sure that the banks provide high security to its customers

[chaser15]

I agree with you - the banks are very reliable. And I have no reason to not trust them. I did not commit any illegal actions, so I had no problems with the bank. I am sure that the banks provide high security to its customers

Negative images of a bank is just being brought up as a general because there is really a failed bank. But it doesn't mean that even there is a failed bank in some part of the world, all banks will become like that. Here in my country, banking industry is really a stable institution and growing every year. It's also help the employment rates to be increased because most of them are continous hiring.

It's really up to a person's experienced with a bank if they will trust it or not. There are just banks that fails to comply with the usual banking characteristics.

[wahb]

I don't have any reasons not to trust banks because as far as I know, banking storage of money is reliable and many business owners deposited their assets on a savings accounts they have for fiat cash money. Well if we ignore trusting banks its not worth earning btc because we can use fiat cash money, to exchange it from digital currency to fiat currency by using online wallet which has an option for bank cash-out.

Yes correct, let alone all the bank supervised and guaranteed by the State, of course we never doubt that the bank has a high level of trust, and as my experience, I have never been disappointed with the bank, all transactions are transparent.

yes that is right o say that even private banks are working under the control and supervision of the governments. and we are mostly use bitcoin not only for depositing oa withdrawal  of money. but there are so many options for which we are using bitcoin in which the payment of utility bills are also present.

[Finestream]

I don't have any reasons not to trust banks because as far as I know, banking storage of money is reliable and many business owners deposited their assets on a savings accounts they have for fiat cash money. Well if we ignore trusting banks its not worth earning btc because we can use fiat cash money, to exchange it from digital currency to fiat currency by using online wallet which has an option for bank cash-out.

Yes correct, let alone all the bank supervised and guaranteed by the State, of course we never doubt that the bank has a high level of trust, and as my experience, I have never been disappointed with the bank, all transactions are transparent.

yes that is right o say that even private banks are working under the control and supervision of the governments. and we are mostly use bitcoin not only for depositing oa withdrawal  of money. but there are so many options for which we are using bitcoin in which the payment of utility bills are also present.

That is possible because your exchange sites had partnerships with some companies and that is a good move for them to retain their customers. But if you look at the deeper since, it's not what defines the comparison of banks and bitcoin. Banks is regulated by the government while bitcoin is not, that said, they have different risk but bitcoin is riskier since we are living in a world where government govern the people.

[zidanw]

if bank compared with bitcoin I would trust with bitcoin because bitcoin users are in full control of Reviews their transactions I thought it was more secure. was forced to believe in the bank because the bank has government support

[NEWGOODOUBLE]

I don't have any reasons not to trust banks because as far as I know, banking storage of money is reliable and many business owners deposited their assets on a savings accounts they have for fiat cash money. Well if we ignore trusting banks its not worth earning btc because we can use fiat cash money, to exchange it from digital currency to fiat currency by using online wallet which has an option for bank cash-out.

I think there is no reason for us not to believe the bank while we were depending on the bank. no need hypocritical not to use banks. because I'm sure you also use the help of the bank to convert bitcoin to fiat

[vrm86]

I don't have any reasons not to trust banks because as far as I know, banking storage of money is reliable and many business owners deposited their assets on a savings accounts they have for fiat cash money. Well if we ignore trusting banks its not worth earning btc because we can use fiat cash money, to exchange it from digital currency to fiat currency by using online wallet which has an option for bank cash-out.

I think there is no reason for us not to believe the bank while we were depending on the bank. no need hypocritical not to use banks. because I'm sure you also use the help of the bank to convert bitcoin to fiat

With no ability to turn BTC into fiat, Bitcoin would never reach such price and attention level. Sure, it's possible to sell coins outside banking system, but it's rather marginal part of world's market volume. We are praising BTC as a standalone mean of payment, but actually almost every single BTC would be transferred in to market one day, and will be sold to someone else for fiat. 

[ged00u]

I don't have any reasons not to trust banks because as far as I know, banking storage of money is reliable and many business owners deposited their assets on a savings accounts they have for fiat cash money. Well if we ignore trusting banks its not worth earning btc because we can use fiat cash money, to exchange it from digital currency to fiat currency by using online wallet which has an option for bank cash-out.

I think there is no reason for us not to believe the bank while we were depending on the bank. no need hypocritical not to use banks. because I'm sure you also use the help of the bank to convert bitcoin to fiat

With no ability to turn BTC into fiat, Bitcoin would never reach such price and attention level. Sure, it's possible to sell coins outside banking system, but it's rather marginal part of world's market volume. We are praising BTC as a standalone mean of payment, but actually almost every single BTC would be transferred in to market one day, and will be sold to someone else for fiat. 

No. People still know how to use Bitcoin without converting it into dollar. When bitcoin was created, hackers still use Bitcoin for many illegal activities without changing it into FIAT. Then, people recognized the benefits of bitcoin and start buying it and hold it as a type of investment. Keep in mind that Bitcoin can still survive no matter how the world change, while Fiat can be destroyed by physical damage

[deisik]

I don't have any reasons not to trust banks because as far as I know, banking storage of money is reliable and many business owners deposited their assets on a savings accounts they have for fiat cash money. Well if we ignore trusting banks its not worth earning btc because we can use fiat cash money, to exchange it from digital currency to fiat currency by using online wallet which has an option for bank cash-out.

I think there is no reason for us not to believe the bank while we were depending on the bank. no need hypocritical not to use banks. because I'm sure you also use the help of the bank to convert bitcoin to fiat

With no ability to turn BTC into fiat, Bitcoin would never reach such price and attention level. Sure, it's possible to sell coins outside banking system, but it's rather marginal part of world's market volume. We are praising BTC as a standalone mean of payment, but actually almost every single BTC would be transferred in to market one day, and will be sold to someone else for fiat. 

No. People still know how to use Bitcoin without converting it into dollar. When bitcoin was created, hackers still use Bitcoin for many illegal activities without changing it into FIAT. Then, people recognized the benefits of bitcoin and start buying it and hold it as a type of investment. Keep in mind that Bitcoin can still survive no matter how the world change, while Fiat can be destroyed by physical damage

I'd rather agree with the poster which you replied to

Without exchanges sticking around as well as web wallets, you wouldn't be able to trade your bitcoins for fiat (and vice versa) as effortlessly and quickly as you can nowadays. I'm strongly inclined to think that over 90% of people now posting here (and this is likely a mild approximation) wouldn't even have heard about Bitcoin. Those hackers that you refer to are as marginal as ever. It is laymen that actually contribute to Bitcoin popularity and prosperity. Any financial asset remains valuable only as long as it is widely adopted and used. Otherwise, geeks would still be buying pizza for 10k bitcoins

[Ayers]

I don't have any reasons not to trust banks because as far as I know, banking storage of money is reliable and many business owners deposited their assets on a savings accounts they have for fiat cash money. Well if we ignore trusting banks its not worth earning btc because we can use fiat cash money, to exchange it from digital currency to fiat currency by using online wallet which has an option for bank cash-out.

Yes correct, let alone all the bank supervised and guaranteed by the State, of course we never doubt that the bank has a high level of trust, and as my experience, I have never been disappointed with the bank, all transactions are transparent.

this doesn't mean that they can't go bankrupt, and this happen all your money vanish in a matter of second and you can't do anything, pretty much like a scammers that scam your wallet, only invest and leave your money on bank that are well known and on the top 10 among oall the bank in the world, because with the recent crysis there are many bank that went bankrupt

[vrm86]

Then, people recognized the benefits of bitcoin and start buying it and hold it as a type of investment.

Yes, more and more people are interested in buying BTC, but mainly because it's profiteering potencial. If you check the topics about investments, people are often refering to the actual value of BTC. Many of them have target BTC/USD ratio that they will move all their coins to gain profit.

Keep in mind that Bitcoin can still survive no matter how the world change, while Fiat can be destroyed by physical damage.

Actually there are even more threats to your public keys. If you:

- print it on paper -> it would be damaged as well as paper notes
- flash/optic drive -> physical conditions including UV light
- hdd drive -> as above, but EMP instead of UV
- cloud hosting -> most risky, many of threads here
- carving in stone seems to be most secure
.... and this is only for assumption, that people still have electricity and internet. Without access to blockchain, your private keys are useless. I can imagine that world can change this way.

[deppil]

I don't have any reasons not to trust banks because as far as I know, banking storage of money is reliable and many business owners deposited their assets on a savings accounts they have for fiat cash money. Well if we ignore trusting banks its not worth earning btc because we can use fiat cash money, to exchange it from digital currency to fiat currency by using online wallet which has an option for bank cash-out.

Yes correct, let alone all the bank supervised and guaranteed by the State, of course we never doubt that the bank has a high level of trust, and as my experience, I have never been disappointed with the bank, all transactions are transparent.

I agree with you - the banks are very reliable. And I have no reason to not trust them. I did not commit any illegal actions, so I had no problems with the bank. I am sure that the banks provide high security to its customers

if you're not doing anything illegal. certainly the bank will continue to provide benefits to you because the bank function is not only to save money but to send money to another place with ease

[asriloni]

I don't have any reasons not to trust banks because as far as I know, banking storage of money is reliable and many business owners deposited their assets on a savings accounts they have for fiat cash money. Well if we ignore trusting banks its not worth earning btc because we can use fiat cash money, to exchange it from digital currency to fiat currency by using online wallet which has an option for bank cash-out.

Yes correct, let alone all the bank supervised and guaranteed by the State, of course we never doubt that the bank has a high level of trust, and as my experience, I have never been disappointed with the bank, all transactions are transparent.

I agree with you - the banks are very reliable. And I have no reason to not trust them. I did not commit any illegal actions, so I had no problems with the bank. I am sure that the banks provide high security to its customers

if you're not doing anything illegal. certainly the bank will continue to provide benefits to you because the bank function is not only to save money but to send money to another place with ease

But the bank will try to blocking the funds which it has a suspicious funding. And I think it's really bad if the bank always try to blocking the fund without provide a reason for the user. in this time.

[DoublerHunter]

Why do we need to not trust the banks? Do you have any proofs that banks is not trustworthy? Because i think they are. Banks are trustworthy because they help the economy to have a smooth circulation of the money because that is where the most people put their money. Banks are here for a lot of years and i think that is enough for us to believed that banks are trustworthy.

[JL421]

I don't have any reasons not to trust banks because as far as I know, banking storage of money is reliable and many business owners deposited their assets on a savings accounts they have for fiat cash money. Well if we ignore trusting banks its not worth earning btc because we can use fiat cash money, to exchange it from digital currency to fiat currency by using online wallet which has an option for bank cash-out.

Yeah that's what banks are something which are more thana century old and j think this person is thinking banks should be replaced by bitcoins or some other alternative which is too much. But I don't think bank is the only way to get bitcoins I met a person yesterday who would give me his bitcoins for my phone.

[pyata4ok]

I don't have any reasons not to trust banks because as far as I know, banking storage of money is reliable and many business owners deposited their assets on a savings accounts they have for fiat cash money. Well if we ignore trusting banks its not worth earning btc because we can use fiat cash money, to exchange it from digital currency to fiat currency by using online wallet which has an option for bank cash-out.

Yeah that's what banks are something which are more thana century old and j think this person is thinking banks should be replaced by bitcoins or some other alternative which is too much. But I don't think bank is the only way to get bitcoins I met a person yesterday who would give me his bitcoins for my phone.

To date, the bank has no alternative. You say it yourself. So there is no alternative and is not. With bitcoin lot of questions and there will be many problems as your desires will be fulfilled. The first is the legalization and the effective recognition of the bitcoin currency, the second control operations and that everyone understands what it means. Bitcoin will lose benefits.

[pitham1]

I don't have any reasons not to trust banks because as far as I know, banking storage of money is reliable and many business owners deposited their assets on a savings accounts they have for fiat cash money. Well if we ignore trusting banks its not worth earning btc because we can use fiat cash money, to exchange it from digital currency to fiat currency by using online wallet which has an option for bank cash-out.

Yeah that's what banks are something which are more thana century old and j think this person is thinking banks should be replaced by bitcoins or some other alternative which is too much. But I don't think bank is the only way to get bitcoins I met a person yesterday who would give me his bitcoins for my phone.

To date, the bank has no alternative. You say it yourself. So there is no alternative and is not. With bitcoin lot of questions and there will be many problems as your desires will be fulfilled. The first is the legalization and the effective recognition of the bitcoin currency, the second control operations and that everyone understands what it means. Bitcoin will lose benefits.

There are companies which focus on the individual businesses that banks operate in
- P2P lending businesses give competition to banks loan businesses
- Online wallets give competition to their payment businesses
- Blockchain firms may challenge their custodian businesses.

Soon, banks might find that all their businesses have been chipped away. 

[delliaerd]

Why do we need to not trust the banks? Do you have any proofs that banks is not trustworthy? Because i think they are. Banks are trustworthy because they help the economy to have a smooth circulation of the money because that is where the most people put their money. Banks are here for a lot of years and i think that is enough for us to believed that banks are trustworthy.

there is a bank that has made customers lose money when in liquidation. This case in my country. but not all banks are bad, I still believe in state-owned banks, because a lot of financial aid that is given to the people. I just do not believe in banks other than state-owned banks, because most of the deals they give you is a lot of benefit to them but not to the customer. we now have our own wallet so maybe we can reduce the use of banks.