Build a Bank Of Bitcoin

[deisik]

Face it guys - idea of bitcoin bank is idiotic. We don't need bank to hold our bitcoins, we don't need another parasitic 3rd party.
The only reason people want this "bitcoin bank" to happen is they want to collect accrued interests.
But you tell me how it would work with unstable nature and volatility of BTC? Because I can't really grasp it

You are not alone who can't grasp that idea

Banks are earning interest by lending out the money they attracted to deposits (in fact, the fiat banking systems as of today don't work like this anymore but still), so Bitcoin banks could only accrue interest on Bitcoin deposits via interest received from folks that borrowed bitcoins from the banks. But as it has already been noted many times, this system simply can't work given the volatility of Bitcoin prices that we have today (and this likely won't change in the future). So the only real way they could provide interest is by investing the deposits in something profitable. But in that case, they will be just money management companies (like mutual funds), not banks (and I'm not even talking about the unpredictable nature of their investments)

[wxa7115]

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?

I think the number 1 reason that you give is probably the reason a bank of bitcoin could happen, if you have some knowledge of computers then securing your coins yourself is very easy but for the average person that only knows how to use instagram and facebook it may be harder and then they may decide to use an additional service for it.

[bncbnc]

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?

I think the number 1 reason that you give is probably the reason a bank of bitcoin could happen, if you have some knowledge of computers then securing your coins yourself is very easy but for the average person that only knows how to use instagram and facebook it may be harder and then they may decide to use an additional service for it.

i think in present modern time compare is one of the most important factor of our life. i think even the backward countries have the facilities of computer and internet. therefore i do not think that computer and internet can make any trouble.

[Xenophoto]

I would not. First is I dont know you.
Second are many questions.
1. Would you rely on the bitcoin price as it grows also?
 Example: If I stored 1 bitcoin to you now and the price is $1018 then suddenly it goes up by $2000 does that mean you my store bitcoin in your also have that price? You might lose some money with that.
2. How much is the interest? Is that interest going to grow according to the price of bitcoin?

1. Probably so, because your 1BTC is still 1BTC despite the fact that the price has increased. If you can only withdraw $1018, then that's not a bitcoin bank at all. It's simply a fiat bank that's uses bitcoin to receive/send.

2. I don't know about OP but why should the interest grow according to the price of bitcoin? If the interest was initially 5%, then it should stay as that regardless of how much bitcoin grows or declines.

[NEWGOODOUBLE]

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?

I think the number 1 reason that you give is probably the reason a bank of bitcoin could happen, if you have some knowledge of computers then securing your coins yourself is very easy but for the average person that only knows how to use instagram and facebook it may be harder and then they may decide to use an additional service for it.

but when bitcoin bank offers guaranteed security. precisely wallet offering better terms to provide high security such as authentication and without control by anyone ?

[BrewMaster]

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?

I think the number 1 reason that you give is probably the reason a bank of bitcoin could happen, if you have some knowledge of computers then securing your coins yourself is very easy but for the average person that only knows how to use instagram and facebook it may be harder and then they may decide to use an additional service for it.

but when bitcoin bank offers guaranteed security. precisely wallet offering better terms to provide high security such as authentication and without control by anyone ?

no bank can offer you more security than you can achieve on your own while using bitcoin with cold storage.
and i strongly disagree with the need to be a computer expert in order to achieve the security.
it is not that hard to make a cold storage such as paper wallet and run a wallet on an air-gap system for signing,... and there are lots of walk throughs to read for this.

[wxa7115]

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?

I think the number 1 reason that you give is probably the reason a bank of bitcoin could happen, if you have some knowledge of computers then securing your coins yourself is very easy but for the average person that only knows how to use instagram and facebook it may be harder and then they may decide to use an additional service for it.

but when bitcoin bank offers guaranteed security. precisely wallet offering better terms to provide high security such as authentication and without control by anyone ?

no bank can offer you more security than you can achieve on your own while using bitcoin with cold storage.
and i strongly disagree with the need to be a computer expert in order to achieve the security.
it is not that hard to make a cold storage such as paper wallet and run a wallet on an air-gap system for signing,... and there are lots of walk throughs to read for this.

You don't need to be a computer expert, but most people are used to just install an application and that is it, they don't know how to use a computer, I have seen people login in their emails and then just close the window not realizing you can easily open the browser and then restore the previous session and now you can see their email, that is the kind of people I’m talking about.

[panju1]

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?

I think the number 1 reason that you give is probably the reason a bank of bitcoin could happen, if you have some knowledge of computers then securing your coins yourself is very easy but for the average person that only knows how to use instagram and facebook it may be harder and then they may decide to use an additional service for it.

but when bitcoin bank offers guaranteed security. precisely wallet offering better terms to provide high security such as authentication and without control by anyone ?

If the government decides to seize your bitcoins, what use would the security provided by the bank be to you? Unless they provide reasonable interest rates, most people won't take the risk.

[HabBear]

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 ?

How does the loan part work? There's no recourse for stealing bitcoin! It would require serious collateral to be put up for the loans. And if so much collateral were needed it wouldn't be advantageous for a borrower to use the bitcoin bank for this purpose. It would be "cheaper" for them to go to a fiat bank, where collateral isn't needed for a personal loan.

And you really care about chasing an idea that's going to earn you 1% interest on your funds? The idea is penny wise, pound foolish.

[Mbah Tyo]

you are sure it will work, because to build a bank that takes huge amounts of money and takes a lot of branches to facilitate its customers,
I hope you succeed

[deisik]

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?

I think the number 1 reason that you give is probably the reason a bank of bitcoin could happen, if you have some knowledge of computers then securing your coins yourself is very easy but for the average person that only knows how to use instagram and facebook it may be harder and then they may decide to use an additional service for it.

but when bitcoin bank offers guaranteed security. precisely wallet offering better terms to provide high security such as authentication and without control by anyone ?

no bank can offer you more security than you can achieve on your own while using bitcoin with cold storage.
and i strongly disagree with the need to be a computer expert in order to achieve the security.
it is not that hard to make a cold storage such as paper wallet and run a wallet on an air-gap system for signing,... and there are lots of walk throughs to read for this

Things are obviously not that simple

There may be a lot of walk-throughs how to make a cold wallet but until you get the hang of the whole process you will most likely make a mistake at some step as with everything else you do for the first time. But with Bitcoin, that may cost you dear since doing something wrong may lead to heavy losses. If you are careful you will of course learn how to do it right without losing a lot, but in this case it is no particularly different from just becoming an expert in anything else, which is what you strongly disagree with (i.e. "the need to be a computer expert in order to achieve the security")

[blackhawkeye1912]

You know, wallets can be your own bank. It doesn't make sense  to me if you are making a bank for bitcoin. I haven't seen any bank like this. Why dont you make a wallet with unique features? Bank means you need to get under the government control which bitcoin users dont  want to be involve with.

I'm kind a little bit confuse of why he is going to build his own bank, Honestly, as a bitcoin fanatic we must understand that by keeping Bitcoin in our own wallet is obviously we are the bank of our own BTC. isn't common sense only, its logic isn't? I think that guy is like to implement the segwit which is not in favor to us for sure.

[phr0stbyt3]

I don't like bitcoin bank, Even the community in bitcoin world don't like it too, because we are decentralized not centralized. if we do that we are breaking and changing the good meaning of bitcoins.

true, I think the presence of bitcoin bank, then they can exert control to each customer or user of bitcoin, but I think with bitcoin bank. it will help the government to believe in bitcoin

I don't think that there any way that the government is gonna believe in bitcoin. It is obvious that by now most the government's are aware of bitcoin's potential but they will still not like bitcoin because they cannot control the price of it so technically even if someone decides to build a bitcoin bank the government won't issue any sort of license as that will create more awareness of bitcoin which most government agencies doesn't want that to happen.

[Nimbulan]

you are sure it will work, because to build a bank that takes huge amounts of money and takes a lot of branches to facilitate its customers,
I hope you succeed

pff it is not so simple in my opinion, first of all the bank has to attract customers by some way or another, i mean why would anyone choose to use it? also i dont think anyone will use it as with bitcoin you can be a bank to yourself

[BeGoods]

you are sure it will work, because to build a bank that takes huge amounts of money and takes a lot of branches to facilitate its customers,
I hope you succeed

to create a bank. I think you need a solid team so that you can create a good bank and has a name in public. if you do not want to work hard as a do promotion. you will not be able to make a bitcoin bank

[Theb]

Face it guys - idea of bitcoin bank is idiotic. We don't need bank to hold our bitcoins, we don't need another parasitic 3rd party.
The only reason people want this "bitcoin bank" to happen is they want to collect accrued interests.
But you tell me how it would work with unstable nature and volatility of BTC? Because I can't really grasp it.

Yup that is right. Banks have the power to limit what your Bitcoin can earn due to its volatility, I know how banks workds you would sign an agreement which you did not know where apparently they have a percentage of your gain and then if your lose money fue to volatility they have no fault into it. It is better to have your money in a Bitcoin Wallet.

[Erza]

You know, wallets can be your own bank. It doesn't make sense  to me if you are making a bank for bitcoin. I haven't seen any bank like this. Why dont you make a wallet with unique features? Bank means you need to get under the government control which bitcoin users dont  want to be involve with.

I'm kind a little bit confuse of why he is going to build his own bank, Honestly, as a bitcoin fanatic we must understand that by keeping Bitcoin in our own wallet is obviously we are the bank of our own BTC. isn't common sense only, its logic isn't? I think that guy is like to implement the segwit which is not in favor to us for sure.

I dont know if this is as same as fiat bank or not. But if you have your own bank, this will earn you more of coin and if many people put their coin on your bank too you will get more and more coin that overflow on your pocket so I think if this can really be apllied I would like to join his bank too

Anyway OP does not mentioned about opening some bank of bitcoin or make a pile of bitcoin that looks like a bank of bitcoin

[Japinat]

You know, wallets can be your own bank. It doesn't make sense  to me if you are making a bank for bitcoin. I haven't seen any bank like this. Why dont you make a wallet with unique features? Bank means you need to get under the government control which bitcoin users dont  want to be involve with.

I'm kind a little bit confuse of why he is going to build his own bank, Honestly, as a bitcoin fanatic we must understand that by keeping Bitcoin in our own wallet is obviously we are the bank of our own BTC. isn't common sense only, its logic isn't? I think that guy is like to implement the segwit which is not in favor to us for sure.

I dont know if this is as same as fiat bank or not. But if you have your own bank, this will earn you more of coin and if many people put their coin on your bank too you will get more and more coin that overflow on your pocket so I think if this can really be apllied I would like to join his bank too

Anyway OP does not mentioned about opening some bank of bitcoin or make a pile of bitcoin that looks like a bank of bitcoin

Probably it's a regular bank that caters bitcoin as deposits because that is something new that in my knowledge is not happening yet. With banks accepting bitcoin as deposits, it will give the entire bitcoin economy a good publicity to the public and will spread awareness to the people.

I hope it will happen in the future to come as I believe as long as the government will know how to regulate it, their would be no problem with them.
In fact, it will give additional revenue to the banks as their deposits will increase coming from us.

[carlerha]

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?

I think the number 1 reason that you give is probably the reason a bank of bitcoin could happen, if you have some knowledge of computers then securing your coins yourself is very easy but for the average person that only knows how to use instagram and facebook it may be harder and then they may decide to use an additional service for it.

but when bitcoin bank offers guaranteed security. precisely wallet offering better terms to provide high security such as authentication and without control by anyone ?

no bank can offer you more security than you can achieve on your own while using bitcoin with cold storage.
and i strongly disagree with the need to be a computer expert in order to achieve the security.
it is not that hard to make a cold storage such as paper wallet and run a wallet on an air-gap system for signing,... and there are lots of walk throughs to read for this.

in fact banks also give you more security because they have the support and supervision of the governments. banks are the more important part of our life, as currently we are mostly depending on fiat therefore banks are also too much important for fiat.

[wuvdoll]

You know, wallets can be your own bank. It doesn't make sense  to me if you are making a bank for bitcoin. I haven't seen any bank like this. Why dont you make a wallet with unique features? Bank means you need to get under the government control which bitcoin users dont  want to be involve with.

I'm kind a little bit confuse of why he is going to build his own bank, Honestly, as a bitcoin fanatic we must understand that by keeping Bitcoin in our own wallet is obviously we are the bank of our own BTC. isn't common sense only, its logic isn't? I think that guy is like to implement the segwit which is not in favor to us for sure.

Basically we are already fed up from the long lasting process of fait banks, I think the online wallet system is the superb as it give us so much facilities of using bitcoin anywhere  and anywhere, we do not need to visit any bank and we can withdraw our bitcoin anywhere and anytime.