Build a Bank Of Bitcoin

[deisik]

Banks are actually almost risk free because they are backed up by big corporations. Also when your money is stolen from a bank the government will pay for its losses, because all banks are required that the people putting up money in them are all insured which means you will get back the money that was stolen from you. Banks are also risk free because they actually don't put up any returns to your money

Why would government (read tax payers) want to cover your losses?

If a bank goes bust while its deposits are insured, you will receive your money back within s short period of time. When one of the banks in which I had a deposit account went belly up in the past, I received the deposit (with all outstanding interest) in about two weeks. But that doesn't mean that if someone steals money from your account due to your own negligence (e.g. by getting your account password or something like that), no one is ever going to compensate your losses. Otherwise, everyone and his dog would be stealing money from each other and then got reimbursed by the bank or government (tax payers)

Well he probably meant that if a bank was attacked by a hacker or it was bankrupt they will refund you since they have an insurance. But the insurance does have its limitations and if you have a large sum in your account not everything will be refunded. To make it simple we can just require and oblige the web wallet hosts to apply for an insurance so that when they go bankrupt or attacked by a hacker they can refund our bitcoins.

And how can you do that?

At most, you can just leave and move your coins elsewhere. As I see it, only a government can make these web wallets insure the coins of the clients that they happen to keep. But unlike banks, people can just as well store their bitcoins in their own personal wallets, so Bitcoin "banks" (wallets) won't be able to pass their expenses on end users. Thereby, this idea doesn't look very plausible overall. In other words, if a web wallet gets hacked, your coins are gone. As simple as that

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[Aurel577]

Is this not what hashking tried about 4-5 years ago and it did not end up well.

People didn't pay their loans back, bitcoin prices went up and hashking could not afford to pay people's  coins back. Some loss hundreds of coins.

[szpalata]

Is this not what hashking tried about 4-5 years ago and it did not end up well.

People didn't pay their loans back, bitcoin prices went up and hashking could not afford to pay people's  coins back. Some loss hundreds of coins.

It seems the OP has forgotten that Bitcoin was intended to stop centralization and so if he wants to kee our coins what's going to be the net effect even if we agree to save with him. It's a bad suggestion dude, just start a fiat bank if you need to and leave Bitcoin alone.

[KingdomHearts]

build a bank of bitcoin is never a good idea. It will against the true meaning of bitcoin. The bank is based on the centralized system while bitcoin is decentralized. That is why I never use coinbase wallet

yeah you are right that bitcoin bank is not a good idea because bitcoin wallet is already much more safe and secure and bitcoin wallet work much more better than banks and bank have a high charges and sometime we pay extra charges so bitcoin do not need any bank.

[Sate Jamu]

build a bank of bitcoin is never a good idea. It will against the true meaning of bitcoin. The bank is based on the centralized system while bitcoin is decentralized. That is why I never use coinbase wallet

Yeah right, if the existence of the bitcoin bank will make services such as conventional banks, bitcoin to make wallet we must verify the identity of the official from the governemnt.

[Sled]

build a bank of bitcoin is never a good idea. It will against the true meaning of bitcoin. The bank is based on the centralized system while bitcoin is decentralized. That is why I never use coinbase wallet

yeah you are right that bitcoin bank is not a good idea because bitcoin wallet is already much more safe and secure and bitcoin wallet work much more better than banks and bank have a high charges and sometime we pay extra charges so bitcoin do not need any bank.

Banks is not a good way to put our money because the owner of the bank will take advantage of the deposited amounts of bitcoins because they will use it for their own investments just like the traditional banks do and they will put very small interest that cannot be notice and it is a very bad idea for the bitcoin holders so i think it is good to just put our bitcoins in our wallet and grow it by our own way.

[tosmartak]

As long as you have made successful transactions in the past without negative reviews, anyone will trust you. Moreover, we store our bitcoins in wallets which are more like banks but we still trust them based on reviews and belief that one day, the server won't just close down and disappear.
Regarding the loan, that would be a wrong move with bitcoin price volatility.

[Fatanut]

As long as you have made successful transactions in the past without negative reviews, anyone will trust you. Moreover, we store our bitcoins in wallets which are more like banks but we still trust them based on reviews and belief that one day, the server won't just close down and disappear.
Regarding the loan, that would be a wrong move with bitcoin price volatility.

Let me guess, you're using a web/online wallet and have no idea about desktop wallets or paper wallets at all. Desktop wallets are just as secure as your PC, paper wallets are just as secure as you physically make them. But online wallets? Any hacker can penetrate an online wallet site and take the website down. Don't trust anyone is one of the basics of How to use the Internet 101. Their past transactions and their reputation has nothing to do with their future motives. It's possible that right from the start, they planned that they are going to run away at some point but can't because their website is making a good amount of money.

Reviews or feedback means nothing. It's just what we look for to see it it's still good to use that website, but that doesn't mean it will stay that way especially now that the price of bitcoin is high.

[coinits]

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 you deal in fiat and call yourself a bank then you will need millions of dollars up front to purchase your bank charter, have all officers' backgrounds checked, and determine if you have necessary reserves to conduct business.

Established chartered banks will beat you to the punch and cut your legs out from underneath of you.

Leave fiat out of it if you want to do this.

[betlord90]

build a bank of bitcoin is never a good idea. It will against the true meaning of bitcoin. The bank is based on the centralized system while bitcoin is decentralized. That is why I never use coinbase wallet

yeah you are right that bitcoin bank is not a good idea because bitcoin wallet is already much more safe and secure and bitcoin wallet work much more better than banks and bank have a high charges and sometime we pay extra charges so bitcoin do not need any bank.

Banks is not a good way to put our money because the owner of the bank will take advantage of the deposited amounts of bitcoins because they will use it for their own investments just like the traditional banks do and they will put very small interest that cannot be notice and it is a very bad idea for the bitcoin holders so i think it is good to just put our bitcoins in our wallet and grow it by our own way.

That is their option to survive and do you think they can handle our btc nicely if they cannot get some profits on it? Well i they will be turn scam if they cannot get any benifits on our btc deposits just look at the fiat banks do and i am sure that this will implement the same profits on bitcoins bank if there would be.

But as long as our money will be safe and multiply not just in USD value aswell as in BTC volume well im totally ok with bitcoins bank aslong as they are reputed and got a legal license to run this kind of business.

[Barbut]

I do not trust banks in the first place, and I thin that what OP talks about is not a bank, its an investment company, we all know how investment companies are working. This is a huge risk, and I love bitcoin cause I can risk for my self, why to trust a third party to do something instead of you?
We can hold bitcoins, we can easily move bitcoins why would we need banks? This is why people like crypto world, and this is why bitcoin is a threat to banks and current economy.

[NY-city]

I'm not the first time but to the point if the information that there is someone has the desire to promote the idea of ​​Bitcoin Bank. So they did not speak there but I am an ardent opponent of such a project. I think humanity has already suffered from some banks and does not need now to impose on users in other banks.

[Duzter]

Building a bank of bitcoin is a possible one, but it will make every functioning of bitcoin to be same as that happens with the traditional banking system. For this reason I don't expect the bitcoin to have separate banking network.

[RENATA612]

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 there is legality I will believe, but will it be effective in the future because we know bitcoin prices always go up, and how do you give interest to savers?

[Sled]

Building a bank of bitcoin is a possible one, but it will make every functioning of bitcoin to be same as that happens with the traditional banking system. For this reason I don't expect the bitcoin to have separate banking network.

If making a bank will become a successful project in the first place then they need to expect that the investors or users of their banks will be just a few because now a days, bitcoin users are most likely becoming a smart user and they didn't trust that fast to the new projects and they trust the most recommended thing of the community, so if they are planning to make bank then it will need a lot of years before they prove that their service is worth it.

[tosmartak]

As long as you have made successful transactions in the past without negative reviews, anyone will trust you. Moreover, we store our bitcoins in wallets which are more like banks but we still trust them based on reviews and belief that one day, the server won't just close down and disappear.
Regarding the loan, that would be a wrong move with bitcoin price volatility.

Let me guess, you're using a web/online wallet and have no idea about desktop wallets or paper wallets at all. Desktop wallets are just as secure as your PC, paper wallets are just as secure as you physically make them. But online wallets? Any hacker can penetrate an online wallet site and take the website down. Don't trust anyone is one of the basics of How to use the Internet 101. Their past transactions and their reputation has nothing to do with their future motives. It's possible that right from the start, they planned that they are going to run away at some point but can't because their website is making a good amount of money.

Reviews or feedback means nothing. It's just what we look for to see it it's still good to use that website, but that doesn't mean it will stay that way especially now that the price of bitcoin is high.

Thanks a lot for the enlightenment. You are very right. I actually use an online wallet and I have never viewed it from this angle you mentioned. I have heard about desktop and paper wallets but I have never bothered to make more findings on how to use them. Maybe I've just been in the comfort zone of using online wallets. I will look into that now. Thanks a whole lot. Cheers!

[CyberKuro]

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 your bank is a legal firm, legalized and support by government such as other traditional banks, then I will trust your bank to save my bitcoin. However, it takes a lot of funds to start over and not easy to get govs approval depends on which country you stay obviously.
People would love to save bitcoin and get a loan from your Bank, because they could get interest every month, besides the value keep growing as well.

[Chip-Dale]

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 your bank is a legal firm, legalized and support by government such as other traditional banks, then I will trust your bank to save my bitcoin. However, it takes a lot of funds to start over and not easy to get govs approval depends on which country you stay obviously.
People would love to save bitcoin and get a loan from your Bank, because they could get interest every month, besides the value keep growing as well.

How much was my clear idea of ​​the creation of Bitcoin Bank, then I where you even hoped that in this case all Bitcoin users will be protected even in legal terms, unlike what is happening today. But apparently it will last very long and all because Bitcoin has not yet been implemented in some countries or even in most countries of the world.

[Fatanut]

As long as you have made successful transactions in the past without negative reviews, anyone will trust you. Moreover, we store our bitcoins in wallets which are more like banks but we still trust them based on reviews and belief that one day, the server won't just close down and disappear.
Regarding the loan, that would be a wrong move with bitcoin price volatility.

Let me guess, you're using a web/online wallet and have no idea about desktop wallets or paper wallets at all. Desktop wallets are just as secure as your PC, paper wallets are just as secure as you physically make them. But online wallets? Any hacker can penetrate an online wallet site and take the website down. Don't trust anyone is one of the basics of How to use the Internet 101. Their past transactions and their reputation has nothing to do with their future motives. It's possible that right from the start, they planned that they are going to run away at some point but can't because their website is making a good amount of money.

Reviews or feedback means nothing. It's just what we look for to see it it's still good to use that website, but that doesn't mean it will stay that way especially now that the price of bitcoin is high.

Thanks a lot for the enlightenment. You are very right. I actually use an online wallet and I have never viewed it from this angle you mentioned. I have heard about desktop and paper wallets but I have never bothered to make more findings on how to use them. Maybe I've just been in the comfort zone of using online wallets. I will look into that now. Thanks a whole lot. Cheers!

Most newbies don't realize that. They simply don't want to touch things that they don't know a lot about. Online wallets can be set up in just 5 minutes. But so can an offline wallet. Some trolls are using the line "I'm sure he's using an online wallet" to refer to how little the person they are talking to know about bitcoins. It's actually a good thing since it kind of encourages the newbies to step up and use an offline wallet.

Simply put, most people would settle with what's easiest to them. But that's not how the cryptocurrency world works. If you want to be safe, then do your own research. Even if you're just holding a little amount of bitcoins right now, you still have to make your wallet as safe as you can because you're probably going to hold more than 1 bitcoins in the future.

You're welcome, btw.

[ecnalubma]

We don't need bank, we hate high interest and slow processes. Bitcoin don't need physical bank, we store our bitcoin wherever we want with full control of transactions.