[2017-09-20]US bank CEOs are likely 'very afraid' of bitcoin,says wealth advisor

[aysha9872]

CEOs of U.S. banks are likely "very afraid" of bitcoin, according to a wealth advisor.

Some financiers have said the cryptocurrency is an unwise investment because of its volatility or supposedly weak store of value, but bank chiefs have another reason to dislike bitcoin, said Rainer Michael Preiss, executive director at Taurus Wealth Advisors.

"Of course, if you run a very large U.S. bank, most probably you are afraid of blockchain and bitcoin," said Rainer Michael Preiss, executive director at Taurus Wealth Advisors.

His comments came after JPMorgan CEO Jamie Dimon called bitcoin a "fraud" last Tuesday.

Preiss countered, however, that cryptocurrencies could present investors with a viable alternative given the uncertainty from banking's lack of transparency.

"The concerns are about the fractional reserve banking system, and the balance sheet of the Federal Reserve at $4.5 trillion, where the Fed officially refuses an audit," he said. "On the other hand, on the bitcoin blockchain, you have an audit everyday because it's open-sourced."

The digital currency uses blockchain technology to record every transaction that occurs, granting all users full view of the digital ledger.

Cryptocurrencies could also be a "systemic hedge" against the risk of asset price inflation — an increase in the prices of assets that are not everyday items — which central banks have potentially helped to create, Preiss added.

Bitcoin's price has jumped from $700 to $4,000 since Jan. 2014, he said, adding that the hike has signalled "a good store of value" for some. He noted that Dimon had claimed the exact opposite about currency's value store in a 2014 interview with CNBC.

The digital currency was priced at about $3,900 Wednesday afternoon in Asia. It had rebounded nearly $1,000 after a huge plunge last week following announcements by major bitcoin exchanges in China that they planned to close by month-end.

source: https://www.cnbc.com/2017/09/20/us-bank-ceos-are-likely-very-afraid-of-bitcoin-says-wealth-advisor.html

[Kprawn]

Why would they fear Bitcoin. Most of their income are generated from loans and interest charged on debt. {credit cards and

Bank overdrafts / house mortages } They make more than enough money, sucking people dry with these high interest and

"admin" fees being charged for these services. Bitcoin will only take a small portion of their banking fees for transactions on

bank accounts that would be reduced.

https://www.mx.com/moneysummit/top-us-retail-banks-income-revenue

[Irvinn]

The work of banks with money supply - cash or non-cash money fundamentally different from working with crypto currency. Banks work in accordance with the detailed instructions developed and under the protection of the state, but the crypto currency is usually not stewed and is not secured by anything. Therefore, it is absolutely fair that banks are very suspicious of the crypto currency. Over time, when the crypto currency is more firmly embedded in our lives, the attitude of banks to it will inevitably change. At the same time, banks highly appreciated the technology of blocking, on the basis of which the crypto currency functions, and even use their digital coin-ripple to increase the speed of money transfer.

[Real_Person]

The bankers being "likely 'very afraid' of bitcoin" was more believable when trusted "rebels" had control over coding and development of the Bitcoin source. If you want a revolution how can you allow the system to control your primary tools?

[bittraffic]

Banks would be irrelevant in the next years to come when all people int he world prefer to use digital currencies. They'd be out of business by then. I have some friend in the banking institutions and sure they know how a lot of people committed suicide because of high rates and they are grabbing peoples property. This should be our payback time.

[1Referee]

Banks would be irrelevant in the next years to come when all people int he world prefer to use digital currencies. They'd be out of business by then. I have some friend in the banking institutions and sure they know how a lot of people committed suicide because of high rates and they are grabbing peoples property. This should be our payback time.

If we combine our efforts on a global level, we can get the banking system to sink very deep, but the far majority of the people lack the courage to do so. If we look at the average joes, they are quite happy with how everything goes in their life. They have a decent job mostly, can pay their bills without much problems, have a decent chunk of fiat burning, ahum, rusting in their bank accounts, are quite satisfied with their bank since it is by default a safe and trusted place to store wealth, etc. These people have zero incentive to start a new revolution, and they lack the balls to do so. If we want to achieve something, we need these average joes to cooperate, and this is not likely something I see become reality any time soon.