how banks works ?

[peter]

If they borrow you 100,000 $ for new house. Do you think that they have got this money, or they creating it from nothing ?  Money As Debt - on youtube. And I wonder .... mayby bitcoin father will do it this same ; )

[1714947695]

1714947695

[kiba]

If they borrow you 100,000 $ for new house. Do you think that they have got this money, or they creating it from nothing ?  Money As Debt - on youtube. And I wonder .... mayby bitcoin father will do it this same ; )

Satoshi doesn't operate any e-wallet/banking business in bitcoin.

Also, the use of "father" is creepy. Founder is a better term.

[peter]

If they borrow you 100,000 $ for new house. Do you think that they have got this money, or they creating it from nothing ?  Money As Debt - on youtube. And I wonder .... mayby bitcoin father will do it this same ; )

Satoshi doesn't operate any e-wallet/banking business in bitcoin.

Also, the use of "father" is creepy. Founder is a better term.

Ok founder....I know peoples like him for example Madoff
"Satoshi doesn't operate any e-wallet/banking business in bitcoin. " are you sure ?!

[kiba]

"Satoshi doesn't operate any e-wallet/banking business in bitcoin. " are you sure ?!

Satoshi is already Independently wealthy(or will be). Why would he operate banks?

[peter]

"Satoshi doesn't operate any e-wallet/banking business in bitcoin. " are you sure ?!

Satoshi is already Independently wealthy(or will be). Why would he operate banks?

For example people will buy bitcoin for 100 mln usd. He can take 50 mln and setup loan..... there will be always so many people that will keep bitcoin for long time dont want to exchange them to $ but after they would like to exchange them founder can change exchange rates and keep for him self this 50 mln dollars .

[peter]

Satoshi is already Independently wealthy(or will be). Why would he operate banks?


For example people will buy bitcoin for 100 mln usd. He can take 50 mln and setup loan..... there will be always so many people that will keep bitcoin for long time dont want to exchange them to $ but after they would like to exchange them founder can change exchange rates and keep for him self this 50 mln dollars .
and everything will be not scam

[BitLex]

it doesn't need the founder, father, god, or supermutant,
everyone can do it.
you can do it.
why don't you do it?

[peter]

it doesn't need the founder, father, god, or supermutant,
everyone can do it.
you can do it.
why don't you do it?

because i dont have got bitcoin program and people that want to buy it. I dont have got so many bitcoins.

[BitLex]

download it, nothing keeps you from doing that.

and maybe you should at least read and try to understand, how bitcoin works,
seems you don't understand anything of it so far.

[S3052]

because i dont have got bitcoin program and people that want to buy it. I dont have got so many bitcoins.

You should 1) download the bitcoin software then 2) buy some coins to get familiar with it.

Just do it, do it now,... it's fun and potentiall set's you up for a wealthy future.

[Mahkul]

Every time someone calls Satoshi "a father" I immediately think of that scene from Blade Runner where Roy Batty says to Dr. Tyrell "I want more life, father / f*cker".

It is, indeed, creepy.

[RHorning]

Satoshi is already Independently wealthy(or will be). Why would he operate banks?


For example people will buy bitcoin for 100 mln usd. He can take 50 mln and setup loan..... there will be always so many people that will keep bitcoin for long time dont want to exchange them to $ but after they would like to exchange them founder can change exchange rates and keep for him self this 50 mln dollars .
and everything will be not scam

Sad to say, often inventors or founders don't always get to enjoy the fruits of their labors.  Philo Farnsworth certainly had to struggle even for sheer acknowledgement that his invention of electronic television even happened at all, much less that anybody was violating his patents.  Even now his role in the development of television is still dismissed by people who fail to study the history of that device, and Mr. Farnsworth certainly didn't become wealthy with an invention that did end up creating billionaires within his own lifetime from that invention.

Where Satoshi is likely to be making money with Bitcoin is as a consultant, where some organization like Wells Fargo or Chase (yes, these are banks, but that is because they are worried about money) may hire Satoshi in the future in terms of being able to offer Bitcoins to their investors or customers on a more direct basis.  Considering how disruptive Bitcoins may be to the banking industry, simply getting onto the financial lecture circuit is likely going to earn a comfortable lifestyle.  Good for him if that happens too, although Bitcoin will have to be more widely accepted first.

As far as how loans will work with Bitcoin, I think it will be something unique to Bitcoin as it is something very different anyway.  The normal issues which make a "bank" desirable for "borrowing money" don't exist for Bitcoins in a whole bunch of ways.  I could make some predictions (I have too, on other threads) for how "loans" will finally start to happen in a Bitcoin economy, but the fact is that the idea of bitcoins are so new that anything being said right now is a pure guess.  I can think of several ways to make a loan using a bitcoin, but none of them are going to be coming from a fractional reserve bank.  I might be mistaken even on that, however.

[nanaimogold]

Considering the political shitstorm currently blowing, I'm surprised there are not more trolls seeding FUD on this forum.

[kiba]

Considering the political shitstorm currently blowing, I'm surprised there are not more trolls seeding FUD on this forum.

Trolls are indistinguishable than totally super-uninformed can't think users.

[ShadowOfHarbringer]

Considering the political shitstorm currently blowing, I'm surprised there are not more trolls seeding FUD on this forum.

It maybe too difficult for a usual troll to understand how Bitcoin works.
If you don't know anything about something, it is difficult to troll successfully.

[Timo Y]

The only banks that have the ability to create money "out of thin air" are the central banks.

This money is then lent to the high street banks, which lend it to individuals.

When you borrow 100,000 to buy a house, that is hard money. Your high street bank doesn't have the mandate to "create" it, it must borrow the money just like you.

In Bitcoin the distrubuted network acts as the central bank.

Satoshi is no different to anyone else. He does not have priviledged minting rights.

Satoshi could run a bank if he wanted to, but that would be nothing but a "high street bank".

[bitgold]

When you borrow 100,000 to buy a house, that is hard money. Your high street bank doesn't have the mandate to "create" it, it must borrow the money just like you.

Is this true? I think for a 10% fractional reserve system, the bank only need to have 10,000, the other 90,000 was just created out of thin air, by this high street bank.

[grondilu]

Yet, the bank creates 90% of the loan out of thin air.

But it's not as if they were creating this money for themselves, either.  I mean, the lender is the first one who benefits from this loan, amongst with the people who will receive this money (real estate agents, workers who built the house, and so on...).


When the lender gives the money back, the bank destroys it.  It only takes the interest.  To some extend, interests are the reward for the accounting and legal work.  The whole system is not that bad.

In my opinion, the only thing which is outrageous, is the "too big to fail", and the overcomplex regulation which prohibits any competition and free market in the banking economic activity.

[markm]

Trolling is a useful skill; just because amateurs / dabblers have on occassion given it a bad name is not really a great reason to try to apply the term as an insult with a broad brush.

Controversial / innovative ideas can benefit greatly from skilled trolls.

Unfortunately the more skillful the troller the less likely it is that their work will be credited as actually constituting trolling.

-MarkM- (According to NetMarketingForum's forum system I am only a *minor* troll so my work might on occassion be credi{|ta}ble.)

[Veltas]

Satoshi is already Independently wealthy(or will be). Why would he operate banks?


For example people will buy bitcoin for 100 mln usd. He can take 50 mln and setup loan..... there will be always so many people that will keep bitcoin for long time dont want to exchange them to $ but after they would like to exchange them founder can change exchange rates and keep for him self this 50 mln dollars .
and everything will be not scam

I knew of a man who did that, he said; "Give me your money, I'll give you 50% return every year."  People thought it was a good idea, so they paid him.  And he did give it to them, and he used the new customers to pay the old customers.  He was making a neat profit and easily paying the customers their returns.  Then one day the customers ran out.

[Fractality]

Of course it is possible to operate a bank based on BitCoins. And it that sense, then there can also be more than 21 Million BitCoins. That is because the bank doesn't hold the money you give to the bank, it can lend that money to somebody else while you don't need it. So you might believe you "own" 100 BTC, because the bank owes them to you, but in reality somebody else has your 100BTC - so there are two people who believe they are worth 100BTC, but there are only 100BTC as a whole...

Real banks in most countries have a "brake" installed by law, afaik: they have to keep a minimum fraction of the money that people deposit. Otherwise they could in theory create an infinite amount of money, as long as people kept depositing everything in the bank.

[Veltas]

Of course it is possible to operate a bank based on BitCoins. And it that sense, then there can also be more than 21 Million BitCoins. That is because the bank doesn't hold the money you give to the bank, it can lend that money to somebody else while you don't need it. So you might believe you "own" 100 BTC, because the bank owes them to you, but in reality somebody else has your 100BTC - so there are two people who believe they are worth 100BTC, but there are only 100BTC as a whole...

There will never be more than 21 Million Bit Coins, it's impossible.  You can 'promise to pay the bearer' or loan but the amount in circulation will never go above 21 Million.

Real banks in most countries have a "brake" installed by law, afaik: they have to keep a minimum fraction of the money that people deposit. Otherwise they could in theory create an infinite amount of money, as long as people kept depositing everything in the bank.

Which is exactly why banks for bitcoin are a bad idea.  When push comes to shove whoever owns the kitty owns the lot and it's tough luck to anyone who trusted them.  Eventually they'll push the limit and won't be able to pay their members back anymore and boo-hoo.  Since one can easily take a simple loan out outside of bitcoin, bitcoin loans will follow the worldwide loan market since we can exchange bitcoins for money and so on.  Therefore, since bitcoin has no real advantage for loans and a great deal of risk, loaning will have little effect on the value of bitcoins.  If bitcoins were designed to be loaned, they weren't designed very well.

[Fractality]

There will never be more than 21 Million Bit Coins, it's impossible.

As I also said. But there can still be banks based on BitCoins. How could you prevent that?