Cryptocurrency Banks: needed?

[Maxcrypto1990]

I think it would be useful to have a bank that would provide safety to trading with cryptocurrencies.

So that it would be as easy as it is nowadays to invest in stocks. Just transfer from your normal deposit account to your trading account, instantly be able to use it, and have access to the market through that account.

If that would be possible, I would use that instantly. It would make the entire process so much easier.

A project of that magnitude would be difficult to pull off though.

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[dunfida]

Well, a bitcoin bank is just a philosophical contradiction,  because bitcoin was create just to allow people to not depend from banks.
But actually any online wallet that keep you private key is practically a bank!
Probably, they will start to offer typical bank services.

Btw, I don't trust them at all, and I prefer to keep my private key under my control.

You are right which when we do tend to read up the whitepaper on just on bitcoin alone we would really able to say that it is really a contradiction on what its actual purpose. Keeping it on our wallet would be more better than entrusting our coins into those banks and whats the use of those banks? Just for security? We wont need that service and come to think of that they are just making out of money for sure.Those institutions wont build up for nothing.

[Yanisumin]

Thinking of certain investments in the project where they are planning to arrange a cryptocurrency bank! And I saw discussions about cryptocurrency banks and their "place" in our crypto-future, and, which is even more interesting, noticed that there is quite a number of those who are of the opinion that there is no need for cryptocurrency banks at all. Well, guys, we can discuss that forever, but how do you imagine then the communication with the so-called real world for the sake, e.g., of making deposits or obtaining a loan? How can the whole system function properly without cryprocurrency banks, which are anyway somewhere on the border between the real and crypto worlds?

There are so many ICO's that is offering a bank-like service and they already thought about these kind of problems. But based on their services it won't be enough to provide a real deal in everyday transactions in the barrier between digital and the real world. Unless the government will take part in this bank of cryptocurrencies it won't be implemented, especially in those countries that have a strict policy in the crypto world. They won't let people or private individuals to fully implement the banking system for cryptocurrencies in that kind of problems.
This border will still be governed by the government, and IMO they are slowly taking actions regarding this kind of matters.

[tumokatok]

Thinking of certain investments in the project where they are planning to arrange a cryptocurrency bank! And I saw discussions about cryptocurrency banks and their "place" in our crypto-future, and, which is even more interesting, noticed that there is quite a number of those who are of the opinion that there is no need for cryptocurrency banks at all. Well, guys, we can discuss that forever, but how do you imagine then the communication with the so-called real world for the sake, e.g., of making deposits or obtaining a loan? How can the whole system function properly without cryprocurrency banks, which are anyway somewhere on the border between the real and crypto worlds?

long as there is a currency there must be a good bank that is crypto currency, because the function of all banks is to temporarily save the assets we have, but I think crypto bank has many functions other than to save the assets pliers we have bank crypto can also be used for trading the crypto currency we have

[iMark]

Well, a bitcoin bank is just a philosophical contradiction,  because bitcoin was create just to allow people to not depend from banks.
But actually any online wallet that keep you private key is practically a bank!
Probably, they will start to offer typical bank services.

Btw, I don't trust them at all, and I prefer to keep my private key under my control.

Thats true, in the widespread sense of online wallet that has your private key is actually a bank, because they have full control over your bitcoin, I think when cryptocurrency banks arrive they do not offer a new system, just like online wallet and add other facilities like interest, loans, etc, which is the main problem is lost decentralization and identity that becomes visible, yeah I don't really like this idea and I didnt need it, but as long as it is not a liability, it does not need to be fussed

[mx667]

Well, a bitcoin bank is just a philosophical contradiction,  because bitcoin was create just to allow people to not depend from banks. Thats true, in the widespread sense of online wallet that has your private key is actually a bank, because they have full control over your bitcoin, I think when cryptocurrency banks arrive they do not offer a new system, just like online wallet and add other facilities like interest, loans, etc, which is the main problem is lost decentralization and identity that becomes visible, yeah I don't really like this idea and I didnt need it, but as long as it is not a liability, it does not need to be fussed.

I do not think it's necessary because we all know that when we use Bitcoin, we put Bitcoin in online wallet. That means we can be the bank itself. Everyone can be a bank with Bitcoin and crypto. It is the uniqueness of Bitcoin, very cool yet unique. I do not think we need banks at the moment, and the government to interfere with Bitcoin. But if for the future, I do not really know about it. That's because I can not predict the future, but I hope it will all get sophisticated and better for Bitcoin and the crypto world to grow. I hope I can take advantage of Bitcoin while I can and get a lot of profit from Bitcoin.

[MainIbem]

As we move to the virtual money era, it is  increasingly necessary to look into the security of our assets. It cannot be entirely left to decentralisation. The idea of a cryptocurrency bank is needed. I have seen ICOs having such idea as the reason for the project.

[katiecbell]

Bitcoin has survived without banks or financial institution so I don't think they are needed in anyway. It might further create conflict of interest or may start controversies if bitcoin will be entrusted to banks.

I don’t know why people keep asking questions about Bitcoin banks, like seriously, what is so special that we need banks? By the way, there are already Bitcoin banks, like Bitpay and the rest of them that are alike, they offer you a debit card to withdraw your Bitcoin in cash through ATMs, they allow you to send and receive money through Bitcoin… tell me what else you still need.

[fachant]

Bitcoin has survived without banks or financial institution so I don't think they are needed in anyway. It might further create conflict of interest or may start controversies if bitcoin will be entrusted to banks.

I don’t know why people keep asking questions about Bitcoin banks, like seriously, what is so special that we need banks? By the way, there are already Bitcoin banks, like Bitpay and the rest of them that are alike, they offer you a debit card to withdraw your Bitcoin in cash through ATMs, they allow you to send and receive money through Bitcoin… tell me what else you still need.

You're right. I don't think that a cryptocurrency bank was needed. A decentralized system was created to become independent from banks. Establishing a bank would probably involve additional fees that you have to pay.

[DaftAjax]

Thinking of certain investments in the project where they are planning to arrange a cryptocurrency bank! And I saw discussions about cryptocurrency banks and their "place" in our crypto-future, and, which is even more interesting, noticed that there is quite a number of those who are of the opinion that there is no need for cryptocurrency banks at all. Well, guys, we can discuss that forever, but how do you imagine then the communication with the so-called real world for the sake, e.g., of making deposits or obtaining a loan? How can the whole system function properly without cryprocurrency banks, which are anyway somewhere on the border between the real and crypto worlds?

Simply take the word, decentralized currency. If somehow there would be a cryptocurrency bank, it would immediately tolerates it from decentralization and ruin the whole concept of its creation - to be free of its utilization. Who cares about loans or making deposits. The whole point of it, is for you to manage all of it in your own, bend it, broke it, spend it the way you wanted. We already have the communication between real world and the digital world its called internet.

The system functions properly as you can see. Cryptocurrencies have come a long way, and no crypotocurrency banks have ever been needed.

I don't know what have been engraved in your mind, to think that having someone controls your money makes you better than anyone else.

[South Park]

For me personally? No. If we look at how the average person doesn't want, or at least doesn't care, to be fully responsible for its own funds, then yes. This is a market based on supply and demand, and as long as people think centralized services offer them the usability and convenience they are looking for, it automatically means that the demand is definitely there, and the services offering all this as well. I have no doubt that Coinbase, which more or less can be seen as a Bitcoin bank already, will at some point offer actual bank-like features to capitalize on their significant market position. I however like to see more services end up doing this, because at current rate, Coinbase is going to dominate this market with iron fist....

Your average person is lazy, after a day of work they do not want to concern themselves to how to invest or save, that is why those that invest use the bank to do it for them, they could choose other investments options which will give them better returns by making the very same investment but they do not want to bother, as long as they can watch their favorite TV show and have some money to buy useless junk they do not care about the ways to improve their economic situation.

[btcrich]

How can the whole system function properly without cryprocurrency banks, which are anyway somewhere on the border between the real and crypto worlds?

Why do you need a crypto currency bank in the first place,let us have some argument on why we need one,if you are looking for a loan and hedge crypto currencies for fiat cash,and then you will finish off the loan in due time,first and foremost thing you have to remember is,selling the coins at that price is much more profitable than looking for a loan with it,because you will be getting less than sixty percentage of the market value or below that because of the volatility.

[streetlight]

Bitcoin acts like a bank itself but some people might feel they need a bank to use cryptocurrencies.

[Semosuchi Tesongrato]

There is no sense: a bank is something create to store money in a safe place.
Bitcoin is stored in the blockchain, so there is no need for banks.

[streetlight]

There is no sense: a bank is something create to store money in a safe place.
Bitcoin is stored in the blockchain, so there is no need for banks.

Banks also give loans and interest on money.

[Coffee135]

Now bitcoin is absolutely not suited for the banking system. In conditions of high volatility may not be any Bank. Fiat money, like stability. Show me a suicide bomber who is willing to take a loan in bitcoins. No one can predict the price of bitcoin a year from now. In order to take out a loan you need to have a plan to pay it back. In this situation, you may forever remain a debtor. The cost of bitcoin could grow much more than your income. Are you ready to go into slavery to the Bank?

[Karavadinos]

Thinking of certain investments in the project where they are planning to arrange a cryptocurrency bank! And I saw discussions about cryptocurrency banks and their "place" in our crypto-future, and, which is even more interesting, noticed that there is quite a number of those who are of the opinion that there is no need for cryptocurrency banks at all. Well, guys, we can discuss that forever, but how do you imagine then the communication with the so-called real world for the sake, e.g., of making deposits or obtaining a loan? How can the whole system function properly without cryprocurrency banks, which are anyway somewhere on the border between the real and crypto worlds?

The whole idea of using cryptocurrency is to be free of any government or bank that control your money and monitor what you do with it and violates your privacy, and having a crypto banks defies the whole idea besides why pay banks to keep your money where you can keep them by yourself in your own personal wallet.

[olushakes]

Well, I don't have any serious issue against the having of cryto bank, just some fundamentals that would ensure that it runs properly as a bank when those are settled,then its all good to have a crypto bank among such are

1. What will be the initial deposit that they will have to have before operating a bank, who will collect it? Who will issue the license to operate as such.

2. Who will guarantee funds, how would they pay interest on deposit because a conventional bank do that to customers deposit.

3. Who will be held responsible in case hackers get hold of funds and the fund is stolen? If all these can be answered an verified , we can have such.

[StonedWolf]

I have to say, the idea is really great. But, making it happen isn't that easy. The problem that a project of such kind, can threaten the cryptocurruncy. It can give some sides (people), the power to have a bit of control on bitcoin, which will allow them  to affect it in any way they want. Also, what is make bitcoin special , is the fact that it is untrceable. In any transaction, both sides can send as much as they want without knowing anything about each other. However, if such a bank exists, it will need a loan guarantee in order to give you the money. Which is , in bitcoin's case a bit hard in my opinion. We like it or not, the reason bitcoin behind bitcoin's creation is its "anonymity" .

[Kurokonobasuke]

Thinking of certain investments in the project where they are planning to arrange a cryptocurrency bank! And I saw discussions about cryptocurrency banks and their "place" in our crypto-future, and, which is even more interesting, noticed that there is quite a number of those who are of the opinion that there is no need for cryptocurrency banks at all. Well, guys, we can discuss that forever, but how do you imagine then the communication with the so-called real world for the sake, e.g., of making deposits or obtaining a loan? How can the whole system function properly without cryprocurrency banks, which are anyway somewhere on the border between the real and crypto worlds?

There are wallets where users of Bitcoin can store their wealth, the only thing that it doesn't have is the option loan. But storing on wallets I think is also good since users will be able to fully monitor the market together with their Bitcoin. And alsso, in the first place, the concept of Bitcoin and Banks are in contrast, one is centralized and one is not so I think it is not possible.