Can Blockchain-based Cryptobanks Overtake Centralized Competitors?

[PRDAEcontact]

It is said that " Due to this decentralized nature, cryptobanks provide powerful solutions to a broad range of business and personal users. These include the security benefits of Blockchain without being bound by external regulations that limit their centralized high street rivals."


Thus, can blockchain-based cryptobanks overtake centralized competitors?

[aleksej996]

I don't see why these cryptobanks would be any different then conventional banks when the adoption of Bitcoin increases to the entire population.
There will be possible Dark net cryptobanks that you can't have for fiat banks, but they will likely not be popular as they don't bring nothing very useful to the ecosystem.

[Xynerise]

Traditional banks work by taking control of your money and giving you an IOU for them, while loaning out money's they don't have via fractional reserve.

This kind of thing will NOT work with cryptocurrencies.

You're not supposed to give your private keys to your bitcoin out, nor store them where you don't have your private keys.
Also the supply of bitcoin is fixed so their scammy fractional reserve will not work here either.

Dead on arrival.

[HeRetiK]

May be a silly question, but what is a "blockchain-based cryptobank"?

If you have full control over and responsibility for your money that's just crypto. If another entity holds your money it's a bank. Everything inbetween just seems like the worst of both worlds?

[SearchingforS]

I think that they can and they should. It will connect people all around the world and help them to stand strong.