Build a Bank Of Bitcoin

[avikz]

Building a bitcoin bank is a stupid idea. I understand that you don't know how a bank works, I can make it out from your proposal. Bank gives loan to creditworthy people and earn interest income from them. Then they distribute a percentage of that interest income to their depositors. There is no safe way to give loan to any bitcoin user.

There are so many p2p lending website in the market like btcjam. just invest in few loans there and you will understand that people are not paying them back. I used to invest a lot there, but when I started getting lots of scammers who ran away with the money, I stopped. If a bitcoin bank starts giving loan to the users, same thing will happen. So keep bitcoin in your wallet and trust me, that is  the only safe way to earn from bitcoin.

[bitgoldpanther1978]

if i build a bank of bitcoin that operating like a traditional fiat money bank when people can save the money and get interest for their saving and also people can get a loan from my bank but the fiat money is change for bitcoin, the question is would you guys trust me to save your bitcoin on my bitcoin bank that i want to build ?

For you to do that you must have a big capital, even you have big capital it wouldn't be sure if you will succeed on your plan in cryptocurrency. Because of the of the community don't like to have a bitcoin bank, they will only ignore your bank, even no matter how good you had in your program to your bitcoin bank. Still refusing you will being apply.

[SvenBomvolen]

This idea would be popular among bitcoin believers and only in the case of big price. If bitcoin would start to fall down many users would hurry up to take their coins back to cash it out while the price is not so low. And that would ruine your bank.

[dothebeats]

Defeats the main purpose of bitcoin (decentralization) and "be your own bank." What's the purpose of this bitcoin bank anyways? Even if you let them store your money, they would take a it of your profit and give you miniscule results. It's better if you just keep your own money/bitcoin and start from there. It reduces the risks of hacking and also gives you full control in your money and your profit.

[Raimonn]

I don't like the idea of a Bank of Bitcoins, in my opinion bitcoin is our freedom from the old bank economical system. If we give the control of our bitcoins (the private key) to a bank, we haven't the real control of them.
Also i think its very difficult that someone trust you keep their bitcoins.

[Yakamoto]

Defeats the main purpose of bitcoin (decentralization) and "be your own bank." What's the purpose of this bitcoin bank anyways? Even if you let them store your money, they would take a it of your profit and give you miniscule results. It's better if you just keep your own money/bitcoin and start from there. It reduces the risks of hacking and also gives you full control in your money and your profit.

Bitcoin banks also end up breaking the 21m cap, since a large majority of banks end up performing fractional reserve lending in order to make a profit off of the money they end up getting deposited within their accounts. That's how they can provide interest to depositors.

However, if Bitcoin became large enough, banks would be a better way to protect against hacking due to more robust security systems.

[wxa7115]

That is not the real question. The real question is will you earn from your bank and still function as a bank that gives interest to your customers? Of course the answer will be a Big NO, because the #1 reason is that Bitcoin is volatile and a currency that is Volatile won't be attractive to people who are asking out loans from your bank. In return you won't earn anything from it.

The biggest problem from an economical point of view is how are you going to pay interest to the account owners, when traditional banks do so by loaning that money but we know loaning in bitcoin is very risky, just look at the lending section in the forum.

[Fatanut]

That is not the real question. The real question is will you earn from your bank and still function as a bank that gives interest to your customers? Of course the answer will be a Big NO, because the #1 reason is that Bitcoin is volatile and a currency that is Volatile won't be attractive to people who are asking out loans from your bank. In return you won't earn anything from it.

The biggest problem from an economical point of view is how are you going to pay interest to the account owners, when traditional banks do so by loaning that money but we know loaning in bitcoin is very risky, just look at the lending section in the forum.

Banks don't only depend on their lending system. They also invest your money somewhere. They invest usually in big companies that have really promising strategy and goals for their business. You know that they are not going to get scammed by that company because they have legal agreements to each other.

I agree with you that if they start loaning random people on the Internet, their company will be doomed. That's why it's most likely that they're not going to do that. There are website like BTC Jam that loans people on the Internet and to be honest I don't know why is their website still on. People would just be running away from them even when they got that certain individual's identity.

[ivanst776]

if i build a bank of bitcoin that operating like a traditional fiat money bank when people can save the money and get interest for their saving and also people can get a loan from my bank but the fiat money is change for bitcoin, the question is would you guys trust me to save your bitcoin on my bitcoin bank that i want to build ?

But why? People who use bitcoin often don't like the word "bank", I don't think that people would trust you to give our money.

Because with out money you are going to invest somewhere else and since it is only online/digitally then it is very easy.

The same happens with the local banks, you give them cash, they store in digits, they lend in digits and so on.

[MoneyIsDebt]

This idea would be popular among  believers and only in the case of big price. If  would start to fall down many users would hurry up to take their coins back to cash it out while the price is not so low. And that would ruine your bank.

i think it don't need any bank....... it is already serving as a bank...... we can have access to our own wallet.... we can see our deposit or withdraw....... what else you want??

[Vaccinus]

This idea would be popular among  believers and only in the case of big price. If  would start to fall down many users would hurry up to take their coins back to cash it out while the price is not so low. And that would ruine your bank.

i think it don't need any bank....... it is already serving as a bank...... we can have access to our own wallet.... we can see our deposit or withdraw....... what else you want??

bank can be good because they offers interest, my wallet don't offer interest just sit there doing nothing until bitcoin go to 100k isn't very wise imho, also a bank would attract more newbies investors that don't see bitcoin well, and more people make bitcoin stronger and more valuable, how can not you consider this a positive thing?

[machinek20]

I think bitcoin and bank not a good match, it is really hard to implemented bitcoin system to the bank, and nobody is interested in bitcoin bank, so i think your plan to build bitcoin bank will failed, and i dont see why someone want to keep their bitcoin in bank when you treat bitcoin like a fiat

[Idrisu]

bitcoin bank should build in large numbers means there are branches in several major cities in the country, provide services, as well as a good management system competitive interest then surely people will believe

I buy into your ideas " build Bank for bitcoin is a good idea" For now I will advice bitcoin and blockchains owners to first of all resolved the issue of delay in transfer confirmation because it will encourage business owners to buy into the ideas of a system that has low fee, decentralization and transparency. We would look up to a day were we have bitcoin or cryptocurrencies banks.

[Seansky]

What is even the point of using bitcoin if it even had a bank at all? It offers anonymity yet having a bitcoin bank will deprive it's users anonymity and it will be like same old fiat so having a bitcoin bank is not a good idea since it is against bitcoin's main things why it is used as of now by many people around the globe and also it is against maybe to satoshi's real goal for creating bitcoin.

[densuj]

if i build a bank of bitcoin that operating like a traditional fiat money bank when people can save the money and get interest for their saving and also people can get a loan from my bank but the fiat money is change for bitcoin, the question is would you guys trust me to save your bitcoin on my bitcoin bank that i want to build ?

Actually build a bank of bitcoin is good ideas like your explaining about it,
the problem if you are really want build bank of bitcoin will needs good reputation,
unfortunately your are newbie and don't have reputation on here.
The people will not trusted in you with put their bitcoin on your service,
please don't offense it is the fact must be known.

Only the befits will prove whether the idea of bitcoin bank is good or not. Because I do find any extra benefits by having a bitcoin banks. We are already getting all the benefits (what a bank could offer) from bitcoin wallet itself or some third party specialized services.

There are lot of practical of complications on building a bitcoin bank and its reputation hence sticking with current system would be more convenient for many bitcoiners imho.

Yes I agree with you, with bitcoin we have own bank but the problem is
we still can not make loans if we are just put our money in bitcoin,
It is weakness if there are not bank of bitcoin although there is service like btcjam for making loans.
That is still not enough because of we must wait until there are people who gives the loans.

[valta4065]

I don't even see the point.
Only 3 uses to a bank:
-keeping your property safe -> useless if you have your own wallet
-keeping up with inflation through the 2% you'l earn a year -> ridiculous compared to BTC inflation
-having your money accessible at all time through credit card -> digital currency hello?

[carlisle1]

if i build a bank of bitcoin that operating like a traditional fiat money bank when people can save the money and get interest for their saving and also people can get a loan from my bank but the fiat money is change for bitcoin, the question is would you guys trust me to save your bitcoin on my bitcoin bank that i want to build ?

you should encourage us first and tell us what will be the advantage and good benefits that we will get from using your bitcoin bank aside from getting an interest and loans and how can we be sure that our funds will be much secured . so far, I don't know if it's already necessary to have a bank for bitcoin when we can have our own bank by having a good and secured wallet .

[Bitcotalk]

if you like a bank which are available for fiat nowadays like running under the rule of government then it is impossible to get the same banks for the use of bitcoin because for that it will first require the governments to legalize bitcoin and then we will be able to get a bank like that which will be the same like our current banks.

[shield132]

This isn't good idea and there are many reasons for that.
1. Goverment doesn't support bitcoin and in reality they don't like it
2. Bitcoin loans will be very bad for banks especially online loans because it's against bitcoin rules (anonymity)
3. It will be economically bad for any bank because of it's very changeable price.
4. If it is be good idea, it would be already done but we see that bitcoin bank doesn't excist.

[Ewinsane]

if i build a bank of bitcoin that operating like a traditional fiat money bank when people can save the money and get interest for their saving and also people can get a loan from my bank but the fiat money is change for bitcoin, the question is would you guys trust me to save your bitcoin on my bitcoin bank that i want to build ?

i think we do not need to save our bitcoin with any bank because we can save our bitcoin easily in our wallet and it more safe and better to save my bitcoin in my wallet and bitcoin system is very much stable so do not need bitcoin bank.