Bitcoin Bank

[dennis_sweden]

Demand for the Bitcoin bank is staggering as company officials are being inundated with requests for the service. The bank doesn’t expect any issues, however it’s better to be safe than sorry.

I find this staggering to believe; so a vast amount of people are interested to hand over Bitcoins to an entity of which next to nothing is known, apart from that is says it will pay interest. There is a reason as to why people deposit money in a high street bank instead of with a street vendor who also promises to pay interest on any funds received.

[finnthecelt]

Demand for the Bitcoin bank is staggering as company officials are being inundated with requests for the service. The bank doesn’t expect any issues, however it’s better to be safe than sorry.

I find this staggering to believe; so a vast amount of people are interested to hand over Bitcoins to an entity of which next to nothing is known, apart from that is says it will pay interest. There is a reason as to why people deposit money in a high street bank instead of with a street vendor who also promises to pay interest on any funds received.

Right, the forum is discussing who they are and where they came from but there is a "vast amount of people" interested..... Are we in a bubble in here? Seriously.

[dennis_sweden]

Demand for the Bitcoin bank is staggering as company officials are being inundated with requests for the service. The bank doesn’t expect any issues, however it’s better to be safe than sorry.

I find this staggering to believe; so a vast amount of people are interested to hand over Bitcoins to an entity of which next to nothing is known, apart from that is says it will pay interest. There is a reason as to why people deposit money in a high street bank instead of with a street vendor who also promises to pay interest on any funds received.

Right, the forum is discussing who they are and where they came from but there is a "vast amount of people" interested..... Are we in a bubble in here? Seriously.

Instead of all kinds of speculation regarding how the Flexcoin Bank will operate, can you please enlighten this forum as to:

How the Bitoin will be used/invested?
What safeguards are there against the use/investment being lost?
If Flexcoin bank is hacked and Btc stolen, what would the implications be for depositors?

[BubbleBoy]

A glorified online wallet. The owner operates from his mom's basement, and hopes he can attract depositors with vague references about an interest. Is this guy for real ?

At the very least, I would expect a bitcoin bank to prove it's liquidity by proving it owns million dollars worth of bitcoins, as it's own capital. I would also expect a staff of economists, banking professionals, and IT experts.
A "degree is in International Business" just doesn't cut it pal, sorry. You need to prove you have actually managed the wealth of others. You need to prove you or your staff understand risk management, accounting, hypothecation and collaterals, financial law, computer security etc.
Only then I could begin to believe you are actually capable of producing interest for my money, and not leave me goxed with my dick in my hand when a run on the deposits or fraud happen.

[MoonShadow]

goxed with my dick in my hand

Please leave your personal habits out of it, thanks.

[aral]

finnthecelt

I posted this question in another thread (http://forum.bitcoin.org/index.php?topic=21615.0;all)

How will flexcoin use the Bitcoins? The FAQ does not give any information on this subject. What safeguards are there against flexcoin making bad investments and being unable to give deposits back?

None whatever.  Proceed with caution.

Do not proceed.  Do not give this guy $200.  Keep your bitcoins secure in your wallets, where they belong.

[the founder]

Well thanks for plastering my picture on the forum...  lol.

ok we're going to be mining,  hence dividends will be paid via the mining earnings...    no one is getting rich from it.. but guess what.. it's something rather than zero.   The only other alternative is to perhaps charge a transaction fee...  but mining WILL pay less, but at the same time will cost users less as well.

there's no secret that we're behind it (my company) ...  I didn't hide the whois...   but it shouldn't be branded the same as our search optimization business, where we have fortune 500 clients.

at least you didn't plaster my e-mail so I get tons of spam... jeeze..

And someone asked if there is insurance if the site get's hacked?  Though we're taking every single security option we can think of,   Last time I checked the FDIC doesn't insure bitcoins....  if anyone has any ideas I am all ears.

Regarding the above post "in your wallets where they belong"  I STRONGLY disagree..  the whole reason I am tasking the whole company to build http://www.flexcoin.com is because a few weeks ago someone sent me bitcoins to my work machine.. and I needed them at home...  the wallet is fine if you have one computer...  it becomes a substantial problem if you have many...  and a smartphone to boot.

[finnthecelt]

Well thanks for plastering my picture on the forum...  lol.

ok we're going to be mining,  hence dividends will be paid via the mining earnings...    no one is getting rich from it.. but guess what.. it's something rather than zero.   The only other alternative is to perhaps charge a transaction fee...  but mining WILL pay less, but at the same time will cost users less as well.

there's no secret that we're behind it (my company) ...  I didn't hide the whois...   but it shouldn't be branded the same as our search optimization business, where we have fortune 500 clients.

at least you didn't plaster my e-mail so I get tons of spam... jeeze..

And someone asked if there is insurance if the site get's hacked?  Though we're taking every single security option we can think of,   Last time I checked the FDIC doesn't insure bitcoins....  if anyone has any ideas I am all ears.

Regarding the above post "in your wallets where they belong"  I STRONGLY disagree..  the whole reason I am tasking the whole company to build http://www.flexcoin.com is because a few weeks ago someone sent me bitcoins to my work machine.. and I needed them at home...  the wallet is fine if you have one computer...  it becomes a substantial problem if you have many...  and a smartphone to boot.

Couldn't resist with the pic.... 

I don't think anyone thinks you are hiding anything, you seem to be pretty transparent; there's just a lot of concern about experience, security, regulations and financial backing.

[MoonShadow]

And someone asked if there is insurance if the site get's hacked?  Though we're taking every single security option we can think of,   Last time I checked the FDIC doesn't insure bitcoins....  if anyone has any ideas I am all ears.

We don't need the FDIC.  If you can get the explict backing of some early adopter with substantial reserves, who is willing to function in the position of the FDIC, that would be grand.  This alone would give any wallet service a huge advantage over the others, whether they offer dividends or not.

Is this bank going to be fractional?  If so, what will the ratio be?  What kind of loans, CD's, etc do you plan to offer?  I can imagine that such a bank that offers a 50% reserve ratio, and invests into it's own mining hardware, might be able to make this all work; but some kind of major backing would certianly quiet my nerves.