Build a Bank Of Bitcoin

[Berns]

At first i would say, i dont trust everyone on the net. Bank of bitcoin is means centralized currency, and no one can guarantee it will be fine using it

Yes, it seems to me that the creation of such a bank is an attempt to centralize bitcoin. And I really do not like it. I believe that bitcoin should not be controlled

They can't make it centralized. To make it centralized, they would have to buy all of the coins or at least the majority of it, and then change the technology into something that collects tax right away in every transaction. It will be like transaction fee, but it will be larger since it's tax. Most people are ranting about the "high" fees, which isn't high at all compared to how much you'd pay if you use other stuffs like Paypal. How much more would they rant when there's already tax in bitcoin. If bitcoin gets taxed, it's already a failed project. Most people will use a different coin and when the government makes it centralized as well, they'd just move to another and so on

I don't think that it is ever going to come to that

Though not because Bitcoin cannot be taxed as such (even that in fact may not be possible), but, as you just said yourself, because they would first have to buy all of the coins. If they buy all the coins (let's assume that), people will just create another Bitcoin (with new fancy bells and whistles like SegWit and Lightning Network) and start using it instead of the old Bitcoin, which they have so wisely got rid of. And then "they" will have to buy up this new Bitcoin all over again

Time came already bro. For the first try Citibank creating their first digital currentcy called citicoin. US government seeking permission to enroll blockchain technology under US commerce department. If this achieved, we ll be taxed for using it. I don't think Gulf countries will do the same their citizens. Let's hope bitcoin price should rise more and Government make btc as ledger alone not with the taxation side

But what difference does it make in the end?

The government can already tax fiat transactions (since they are efficiently controlling commercial banks via the central bank of a country), but what's the purpose of that, what would be the economic reason behind such an idea? Citibank is not the first to create private money, and governments typically don't like this idea (because of possible competition with the government money itself). Okay, let's assume they create their Bitcoin copycat (or whatever) and how will it be different from a myriad of other shit coins already there? In other words, how can they force people to abandon Bitcoin in favor of this new "altcoin", especially if they are going to tax transactions with it (which is meaningless as such)?

Most likely, there will be different benefits for those who will use the national cryptocurrency. Maybe it will be easy to obtain, and can be reduced tax when dealing with this currency. There are many options.

[lol3c]

At first i would say, i dont trust everyone on the net. Bank of bitcoin is means centralized currency, and no one can guarantee it will be fine using it

look at what Coinbase is doing and you will understand how bad Banks can be. We should never trust third party since we can not fully control our money. Moreover, they can easily turn into scammers if they want to. Therefore, Bitcoin is created for the good purposes, for the anonymity and the security. Banks will destroy all these features

[Roboabhishek]

I dont think it will be a great idea because we will not remain anonymous while using bitcoin for transaction because we will have to provide bank with our ID and also there's no guarantee that government will not interfere in the work of bank

[AngelSky]

I dont think it will be a great idea because we will not remain anonymous while using bitcoin for transaction because we will have to provide bank with our ID and also there's no guarantee that government will not interfere in the work of bank

If bitcoin come under banking institutions then we might need to pay more taxes and fees for the transaction and usage, like how we using bitcoin debit card we purchase from the btc companies. So I don't expect bitcoin to take in the mode of financial institution.

[Fatanut]

At first i would say, i dont trust everyone on the net. Bank of bitcoin is means centralized currency, and no one can guarantee it will be fine using it

Yes, it seems to me that the creation of such a bank is an attempt to centralize bitcoin. And I really do not like it. I believe that bitcoin should not be controlled

They can't make it centralized. To make it centralized, they would have to buy all of the coins or at least the majority of it, and then change the technology into something that collects tax right away in every transaction. It will be like transaction fee, but it will be larger since it's tax. Most people are ranting about the "high" fees, which isn't high at all compared to how much you'd pay if you use other stuffs like Paypal. How much more would they rant when there's already tax in bitcoin. If bitcoin gets taxed, it's already a failed project. Most people will use a different coin and when the government makes it centralized as well, they'd just move to another and so on

I don't think that it is ever going to come to that

Though not because Bitcoin cannot be taxed as such (even that in fact may not be possible), but, as you just said yourself, because they would first have to buy all of the coins. If they buy all the coins (let's assume that), people will just create another Bitcoin (with new fancy bells and whistles like SegWit and Lightning Network) and start using it instead of the old Bitcoin, which they have so wisely got rid of. And then "they" will have to buy up this new Bitcoin all over again

Time came already bro. For the first try Citibank creating their first digital currentcy called citicoin. US government seeking permission to enroll blockchain technology under US commerce department. If this achieved, we ll be taxed for using it. I don't think Gulf countries will do the same their citizens. Let's hope bitcoin price should rise more and Government make btc as ledger alone not with the taxation side

But what difference does it make in the end?

The government can already tax fiat transactions (since they are efficiently controlling commercial banks via the central bank of a country), but what's the purpose of that, what would be the economic reason behind such an idea? Citibank is not the first to create private money, and governments typically don't like this idea (because of possible competition with the government money itself). Okay, let's assume they create their Bitcoin copycat (or whatever) and how will it be different from a myriad of other shit coins already there? In other words, how can they force people to abandon Bitcoin in favor of this new "altcoin", especially if they are going to tax transactions with it (which is meaningless as such)?

Most likely, there will be different benefits for those who will use the national cryptocurrency. Maybe it will be easy to obtain, and can be reduced tax when dealing with this currency. There are many options.

That will be some sort of promo. "You get discount on your tax if you use this currency" or whatnot. That's not how the government works. They don't want to reduce tax at all since introducing this type of payment with reduced tax will be a big loss in their part when huge companies start using that payment type. It would be much better to use fiat currency for the government's end where tax will have no discount.

"Easy to obtain" - I don't know what you mean by that. Bitcoin is already easy to obtain. You buy it using your bank account and that's it. Or maybe you meant, it's easy to earn? If so, that will devaluate fiat since people are going to do work for that cryptocurrency since it's easier to earn from that. It will also reduce the amount of workers that get paid in fiat (which ultimately leads to the economy going down but it still depends on what work does the new currency has to offer).

The altcoin of the government will just be an additional dump coin in the future (just like deisik said).

[deisik]

At first i would say, i dont trust everyone on the net. Bank of bitcoin is means centralized currency, and no one can guarantee it will be fine using it

Yes, it seems to me that the creation of such a bank is an attempt to centralize bitcoin. And I really do not like it. I believe that bitcoin should not be controlled

They can't make it centralized. To make it centralized, they would have to buy all of the coins or at least the majority of it, and then change the technology into something that collects tax right away in every transaction. It will be like transaction fee, but it will be larger since it's tax. Most people are ranting about the "high" fees, which isn't high at all compared to how much you'd pay if you use other stuffs like Paypal. How much more would they rant when there's already tax in bitcoin. If bitcoin gets taxed, it's already a failed project. Most people will use a different coin and when the government makes it centralized as well, they'd just move to another and so on

I don't think that it is ever going to come to that

Though not because Bitcoin cannot be taxed as such (even that in fact may not be possible), but, as you just said yourself, because they would first have to buy all of the coins. If they buy all the coins (let's assume that), people will just create another Bitcoin (with new fancy bells and whistles like SegWit and Lightning Network) and start using it instead of the old Bitcoin, which they have so wisely got rid of. And then "they" will have to buy up this new Bitcoin all over again

Time came already bro. For the first try Citibank creating their first digital currentcy called citicoin. US government seeking permission to enroll blockchain technology under US commerce department. If this achieved, we ll be taxed for using it. I don't think Gulf countries will do the same their citizens. Let's hope bitcoin price should rise more and Government make btc as ledger alone not with the taxation side

But what difference does it make in the end?

The government can already tax fiat transactions (since they are efficiently controlling commercial banks via the central bank of a country), but what's the purpose of that, what would be the economic reason behind such an idea? Citibank is not the first to create private money, and governments typically don't like this idea (because of possible competition with the government money itself). Okay, let's assume they create their Bitcoin copycat (or whatever) and how will it be different from a myriad of other shit coins already there? In other words, how can they force people to abandon Bitcoin in favor of this new "altcoin", especially if they are going to tax transactions with it (which is meaningless as such)?

Most likely, there will be different benefits for those who will use the national cryptocurrency. Maybe it will be easy to obtain, and can be reduced tax when dealing with this currency. There are many options

That might actually make some sense after all

At least, regarding the case of digital fiat versus cash, though it will likely work in a reverse way, i.e. they won't give any benefits for using digital fiat (non-cash money is already a cryptocurrency in it own right) but rather penalize usage of cash. But this still doesn't answer the question how it is going to compete with Bitcoin since Bitcoin basically excludes government (as a third party) from money circulation altogether. They could theoretically make a Bitcoin killer altcoin (given their resources) but that would require them to remove themselves from the whole process, which would be in direct opposition to the essence of the state as such (i.e. the highest possible centralization)

[hurain]

I dont think it will be a great idea because we will not remain anonymous while using bitcoin for transaction because we will have to provide bank with our ID and also there's no guarantee that government will not interfere in the work of bank

yes i also think so that it is a good idea. as to me i am good with online wallet and if the bitcoin banks will introduce i think i will never feel the need to use it as i am good with online wallets.

[Natalim]

I dont think it will be a great idea because we will not remain anonymous while using bitcoin for transaction because we will have to provide bank with our ID and also there's no guarantee that government will not interfere in the work of bank

yes i also think so that it is a good idea. as to me i am good with online wallet and if the bitcoin banks will introduce i think i will never feel the need to use it as i am good with online wallets.

I don't know why bitcoin bank is still needed when exchange sites are already here to be considered as our bank. For me it's safer to us even if we do not have the insurance like in real bank, our information is vital and we are not monitored by the government using online wallet only.
Bitcoin bank will defeat the purpose of bitcoin as it is created to do banking without the need of a bank.

[Macai]

In my opinion, if you build a bitcoin bank be sure to build bitcoin bank all over the world and can be accessible anytime anywhere... So people would patronize it.

[Reid]

I dont think it will be a great idea because we will not remain anonymous while using bitcoin for transaction because we will have to provide bank with our ID and also there's no guarantee that government will not interfere in the work of bank

yes i also think so that it is a good idea. as to me i am good with online wallet and if the bitcoin banks will introduce i think i will never feel the need to use it as i am good with online wallets.

Actually I got confused with what the OP said.
It is like the same with the website wallets which are letting their users withdraw their bitcoin to a certain bank. They will just give temporary bank accounts and passwords.
This think that he is saying is like buying and selling also and just an addition of a loaning system.
So there is not much of a difference. Website wallets can do this now.

[t2yax]

In my opinion, if you build a bitcoin bank be sure to build bitcoin bank all over the world and can be accessible anytime anywhere... So people would patronize it.

We see how does bitcoin becoming popular after a year, month or even a day. Everyday there is one person who will involve with bitcoin. I advised to have a bitcoin bank in anywhere, if it will exist, I think that, bitcoin will be more popular and more patronized. We should invest in bitcoin banks, because I think that it would be the best investment for now. We should now invest in bitcoin banks, to make bitcoin more popular, this will be one on the best technologies for the history.

[South Park]

At first i would say, i dont trust everyone on the net. Bank of bitcoin is means centralized currency, and no one can guarantee it will be fine using it

Yes, it seems to me that the creation of such a bank is an attempt to centralize bitcoin. And I really do not like it. I believe that bitcoin should not be controlled

They can't make it centralized. To make it centralized, they would have to buy all of the coins or at least the majority of it, and then change the technology into something that collects tax right away in every transaction. It will be like transaction fee, but it will be larger since it's tax. Most people are ranting about the "high" fees, which isn't high at all compared to how much you'd pay if you use other stuffs like Paypal. How much more would they rant when there's already tax in bitcoin. If bitcoin gets taxed, it's already a failed project. Most people will use a different coin and when the government makes it centralized as well, they'd just move to another and so on..

Yeah, not possible, besides even if they could get control of the network then we could just move to another coin and leave bitcoin behind, so there is no way to take control of the whole cryptocurrencies market because someone can just copy paste the code and create their own coin.

[Gameroid]

In my opinion, if you build a bitcoin bank be sure to build bitcoin bank all over the world and can be accessible anytime anywhere... So people would patronize it.

i think we have already good access to bitcoin using the online wallet system. i it is very easy to access our bitcoin from anywhere just you need an internet connection and will be able to use your bitcoins in no time.

[bravehearth0319]

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 ?

If we are talking about bank, Well I guess in terms of saving bitcoin were the one who is already a bank or we are the bank not others who will hold our bitcoin. and I wouldn't entrust my bitcoin to anyone ever!

[geopolisch]

In my opinion, if you build a bitcoin bank be sure to build bitcoin bank all over the world and can be accessible anytime anywhere... So people would patronize it.

i think we have already good access to bitcoin using the online wallet system. i it is very easy to access our bitcoin from anywhere just you need an internet connection and will be able to use your bitcoins in no time.

Yes the idea is great and the question OP asked is very very important as no one would deposit into a bank that is opened randomly and no actual trust is being build.

But that been said that is not a big concern as some way can be found via which both the users and the owners of the bank can access the funds yet not use it without each other's permission. People trust coinbase and other services for few bitcoins, no one will deposit 10k btc right ? That's why its important to sort this security issue.

[giveen]

At first i would say, i dont trust everyone on the net. Bank of bitcoin is means centralized currency, and no one can guarantee it will be fine using it

That is obvious i mean some people are just scared to invest in bitcoin because someone can steal from their desktop wallet. It is possible but probability is really less. It normally takes time for people to adjust with it. Just think of PayPal who must have trusted it in starting and now people store more than $100k in it. If the bank actually has a motive to serve the people then it shouldn't worry and just wait for people to adapt it slowly.

[lordquanta]

Out of curiosity, as bitcoin is decentralize and not-controlled by anyone then who will be in position to make decision about the bitcoin banking scenario. What would the action steps if something goes wrong like fraud? And who will take necessary actions? How they will tackle inter-country scenario where defaulter is in a country which does not recognize bitcoin as asset or currency? Have we thought about it?
How to stop bitcoin bank from being next mt. gox?

[wuvdoll]

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 ?

Don't expect people to trust you rather make them trust you by your actions. You can run a bank and have a system such that people submit their bitcoins while they are safe too. Once such method I can think of is multi signing and multiple control over your bitcoins, like you have the half control over their coins and half control by the depositers in your bank.

[Fatanut]

Out of curiosity, as bitcoin is decentralize and not-controlled by anyone then who will be in position to make decision about the bitcoin banking scenario. What would the action steps if something goes wrong like fraud? And who will take necessary actions? How they will tackle inter-country scenario where defaulter is in a country which does not recognize bitcoin as asset or currency? Have we thought about it?
How to stop bitcoin bank from being next mt. gox?

No one. And that's the reason why bitcoin is used in the black market. Even if they are doing something illegal, it's alright because it's relatively hard to trace you. On the other hand, if a fraud or a scam happens, you can't do anything about it. Some people prefer doing transactions in this place because there's the trust rating. A hero member will not ruin his account for something much lower than the cost of his account.

No one will take necessary actions to chase the fraudster. You have to take care of yourself and be smart for yourself. No one's going to save you from the consequences of your careless actions. If you get scammed, then you're scammed. There's no refund.

[Gameroid]

At first i would say, i dont trust everyone on the net. Bank of bitcoin is means centralized currency, and no one can guarantee it will be fine using it

Yes, it seems to me that the creation of such a bank is an attempt to centralize bitcoin. And I really do not like it. I believe that bitcoin should not be controlled

They can't make it centralized. To make it centralized, they would have to buy all of the coins or at least the majority of it, and then change the technology into something that collects tax right away in every transaction. It will be like transaction fee, but it will be larger since it's tax. Most people are ranting about the "high" fees, which isn't high at all compared to how much you'd pay if you use other stuffs like Paypal. How much more would they rant when there's already tax in bitcoin. If bitcoin gets taxed, it's already a failed project. Most people will use a different coin and when the government makes it centralized as well, they'd just move to another and so on..

Yeah, not possible, besides even if they could get control of the network then we could just move to another coin and leave bitcoin behind, so there is no way to take control of the whole cryptocurrencies market because someone can just copy past the code and create their own coin.

to me i think it will not world as much. i think in current time online wallet system is enough for us as we can complete our all needs from online wallet.