Build a Bank Of Bitcoin

[Lecam]

It would be nice if there would be an official bitcoin bank, where people can transact (deposit/withdraw/convert) with ease. However, this might take a while because not all government supports bitcoin and other cryptocurrency because of security. Maybe this is possible if bitcoin and cryptocurrency will be widely accepted by everyone.

[Lupus Solitarius]

Any online wallet that keep your private key is a bank, so there is nothing new to build.
An you can expect that these site will start to offer all kind of bank services: loans, leasing, and so on.

[deisik]

My first reaction was "this is a complete nonsense", because bitcoin was create just to allow people to not depend from banks.
But if I think to online wallets, the have in their hands YOUR private key, actually they act as banks (and if they run out of business, you lose all your money)
So, bitcoin banks already exist.

 

Online wallets (at least the reputable ones) are constructed in a way so that you generate your private keys without the wallet service having access to it. So the online wallet service never has custody of your coins because they have no ability to access or move the crypto. Exchanges, on the other hand, do have custody because you send the coins to their address. That's also why you're seeing all these exchanges get regulated now by financial regulators, just like banks undergo regulatory supervision. Regulation increases confidence that the operators are legit and can't run away with funds because they'll be prosecuted for fraud and theft.

These ones aren't online wallets

They have their own name, they are called hybrid wallets. And if we compare between online, desktop and hybrid wallets the latter are the least secure of the three because your keys can be stolen from you computer as is the case with desktop wallets and they can be intercepted when you send the keys over the network despite them being encrypted. This is what happened with blockchain.info wallet (which is a hybrid wallet) when the hackers were successful in catching the private keys at one of the Tor exit nodes. On the other hand, online wallets like Coinbase or Xapo have full control over your private keys and you can't ever see them (they never hit the network)

[dragoz11]

Personally I wouldn`t trust such a bank because it is against the btc`s own mission and why this currency has been developed, so it would be a contradiction to it.

[Oggy Pogi]

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 sure, I think it will not be pursued by many people sincd we all know that Bitcoin is standing on its own wherein people can already monitor, manage and access their holdings effectively unlike banks that you need to seek for information by going directly upon them. Building a Bitcoin bank is like building an ordinary bank so it will make no sense because what you will offer, can be done by each people for their own effectively.

[Eugenar]

Banks should be operated by a big organization or a government perhaps not ony by a single person. Also I don't think that thjs thing will be admired by Bitcoin users since there are e-wallets where they can store their Bitcoin and get profit as its market value continues to grow. Banks are usually controlled by a government and it happened that Bitcoin is decentralized so it would go in contrast.

[Gabrieelle]

Personally I wouldn`t trust such a bank because it is against the btc`s own mission and why this currency has been developed, so it would be a contradiction to it.

You have a point, what is the sense of calling it a digital currency if it will exist like a normal fiat money. I guess the creator of bitcoin launched  it for a bigger cause, bigger than what we have right now. Having a bank would be great but once you think about it, what is the purpose of that bank if we all have our wallets it may be online or a cold storage, we can do all we want with our money without the confirmation of anybody.

[Sled]

Personally I wouldn`t trust such a bank because it is against the btc`s own mission and why this currency has been developed, so it would be a contradiction to it.

You have a point, what is the sense of calling it a digital currency if it will exist like a normal fiat money. I guess the creator of bitcoin launched  it for a bigger cause, bigger than what we have right now. Having a bank would be great but once you think about it, what is the purpose of that bank if we all have our wallets it may be online or a cold storage, we can do all we want with our money without the confirmation of anybody.

That is a great point. We should not have a bank for the cryptocurrency because it is like having a centralized wallet where you will be sharing some sensitive information to other people and instead of having a bank, why not just have a cryptocurrency wallet like the hardware wallets for long term storage so we will not worry for the possible security threats because we are the one who are controlling our coins and not the others.

[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 ?

why need to create bank for interest when bitcoin itself providing interest when price grows?and i gues more than enough for what you can offer.and if thats the case whats the sense of beinh decentralized?if you will put banks instead of our own storages the essence of free ownership without interference will gone and theres no need for this communitu to exist

[pathapoddo]

If you give us all services and security, we will trust you. Bitcoin is a serious issue. And it is now a asset for us who have Bitcoin. We want it's security. If you assure as it's security, we will definitely support you. Thank you.

[RudeeTam]

No I won't. If you promise interest on top of the price increase of bitcoin you would lose. In order for your bank to operate properly you will have to use bitcoin for another investment for it to grow. Now, in order for it to grow you either: invest in ICO, trading or gambling. All are high risk. Also, there is no government that will protect our BTCs just in case you go bankrupt.

[Bitcoinjheta]

No I won't. If you promise interest on top of the price increase of bitcoin you would lose. In order for your bank to operate properly you will have to use bitcoin for another investment for it to grow. Now, in order for it to grow you either: invest in ICO, trading or gambling. All are high risk. Also, there is no government that will protect our BTCs just in case you go bankrupt.

Absolutely, that is a very hard process and i won't support that kind of strategy. When you build a bank for the bitcoin users, investors and members it allows only to those country having legally accepted the bitcoin by the government like Japan and United state of America and etc. What about the countries have given only an access but they are not totally legal, it compromises a chaos between that process.

[etron]

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 indeed you have such ideals, then it is legitimate whether consumers who join or not it depends on you in managing the company you want to live in my opinion is not easy to build storage facilities (bank bitcoin) because it takes a skilled person who supports the company you are going to prepare, about me interested or not, it depends on what you are promoting and people will judge your management well or not.

[seroja17]

It could be that more banks will start joining this technology of digital currency decentralization. Several other banks have also begun an investigation to find out how this blockchain application can be useful for the banking business.

[Scripture]

There would be no sense of storing our bitcoin to you bank because we already have wallets and it is better because of liquidity. The other functions are appropriate. We can invest to your bank using our bitcoin. You can also be an exchange channel where bitcoin can be exchanged by a different fiat currency. But if this would be done, the identity of once holder will be released.

[mahilchii]

Nope, you are saying like you want to catch the air in a bottle and provide to those who wants it. Just like air we breath, bitcoin is a block chain technology which does not require a middle man to service and that is the main concept of all the crypto. You cannot have a bank and as many members said wallets are almost serving as a bank in crypto market. Your idea is not bad but should be inline with the concept of crypto market.

[ikipiye]

Generally banks do savings and loans,,If so, whether investors who invest in bitcoin banks also get bank interest and are taxed like fiat banks in general.

[Elmughni]

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

Yes I think, we  have to understand, many people like bitcoin for being anonymous without verified IDs, but if you want bitcoin banks to have to build an office, verified IDs, I think it's very difficult and maybe it's not possible

[yohaneshs]

Bitcoin isn't a currency, it's just digital currency with blockchain technology behind them but bank can use blockchain technology and implemented it in their systems.
Blockchain is just one technology out of many that can be put to use by a bank. Blockchain technology will be suitable for some use cases, but it won’t ever be a solution for all use cases.

[ND]

Launching such a bank would not be easy) Firstly, there is no sufficient regulation for crypto financial institutions. Secondly, it would not be profitable for you - BTC is growing in long term period - and how will you pay dividends to your investors?