Bitcoin Bank

[digitalsoup]

I'm looking for a Bitcoin version of a bank where I could keep my coins in exchange for security against theft and a little bit of interest. The bank would insure my coins up to a certain amount, along the lines of the FDIC. Does something like this exist?

[adisa.candace]

I think not have such bank still

anyways if you want personally sell buy BTC then localbitcoins is better idea to go with

thanks

[quantumflow]

localcoinbank if you need it fast.  But more importantly, you gotta break out of that centralized, paternal insurance mentality buddy.  Our current fractional banking insurance system is not as strong as you think it is.

[beetcoin]

i'm not sure how this could happen.. bitcoin's very nature screams "decentralization." you are responsible for your shit, and no one else. i know a lot of people want this though.

[Texlia]

Bitcoin is design to work decentralized, and I am afraid you cannot find anything as you mentioned.
On the other hand, you may take a look at the lending board https://bitcointalk.org/index.php?board=65.0, and lend your bitcoin to others directly.
Please also beware of scammers, and you may want to get some collaterals and/or personal info about the borrowers before making the deal.

[Hunterbunter]

I'm looking for a Bitcoin version of a bank where I could keep my coins in exchange for security against theft and a little bit of interest. The bank would insure my coins up to a certain amount, along the lines of the FDIC. Does something like this exist?

It doesn't, and may not ever exist.

The FDIC can do that because fiat works fundamentally different to bitcoins. 100% of fiat is loaned into existence, with the intention to do work, whereas the work for a bitcoin's creation happens before it is given to anyone. Of course it's more complicated that this but this is the gist of it. Once both of them have been created, they are the same in that they can both be traded to settle further debt.

The loaning part is what the FDIC relies upon to be able to guarantee deposits. If there is too much withdrawal from too many banks (or too many write-offs), fiat can be borrowed from the reserve to keep things running - see quantitative easing as an example of something similar, which just cannot be done with bitcoins.

The only thing you're going to see regarding banks, while the price is ultra volatile, are those which take your coins and charge you a fee to keep them safe. That is, negative interest. Keep in mind, though, that since it's a deflationary currency, holding on to it long term will generally increase its purchasing power, which is invisible interest, so keeping them safe at a slight price might be worth something if you're worried you're going to lose your coins.

You can earn interest in the form of dividends off some stocks, but the risk is obviously much higher than putting it in a bank (you could very well lose all or part of your investment), in the likes of https://cryptostocks.com etc. There is the IBB (Islamic Bank of Bitcoin) which gives interest free loans you can invest in too, also listed there. Thread here: https://bitcointalk.org/index.php?topic=21732.0

[Bitpoker777]

You can invest them into stocks

[beetcoin]

while i do often worry often that my coins will be jacked, i ultimately would want the power in my hands.. and not in a 3rd party. i guess some people feel safer knowing their wealth is in someone else's hands, but that's just ludicrous to me.

and if you want some bank to insure your bitcoins, you're going to have to pay them a fee. they are going to need a profit, so you'd be basically losing money over time.

[jballs]

I'm looking for a Bitcoin version of a bank where I could keep my coins in exchange for security against theft and a little bit of interest. The bank would insure my coins up to a certain amount, along the lines of the FDIC. Does something like this exist?

It doesn't, and may not ever exist.

The FDIC can do that because fiat works fundamentally different to bitcoins. 100% of fiat is loaned into existence, with the intention to do work, whereas the work for a bitcoin's creation happens before it is given to anyone. Of course it's more complicated that this but this is the gist of it. Once both of them have been created, they are the same in that they can both be traded to settle further debt.

The loaning part is what the FDIC relies upon to be able to guarantee deposits. If there is too much withdrawal from too many banks (or too many write-offs), fiat can be borrowed from the reserve to keep things running - see quantitative easing as an example of something similar, which just cannot be done with bitcoins.

The only thing you're going to see regarding banks, while the price is ultra volatile, are those which take your coins and charge you a fee to keep them safe. That is, negative interest. Keep in mind, though, that since it's a deflationary currency, holding on to it long term will generally increase its purchasing power, which is invisible interest, so keeping them safe at a slight price might be worth something if you're worried you're going to lose your coins.

You can earn interest in the form of dividends off some stocks, but the risk is obviously much higher than putting it in a bank (you could very well lose all or part of your investment), in the likes of https://cryptostocks.com etc. There is the IBB (Islamic Bank of Bitcoin) which gives interest free loans you can invest in too, also listed there. Thread here: https://bitcointalk.org/index.php?topic=21732.0

I could start a bitcoin bank that pays interest right now, and no doubt somebody will soon enough. In fact OP if you want to sign a 6 month CD with a no early redemption clause I will pay you 5% apr... and also if anyone wants a 90-day loan at 15% apr please also drop me a line.


Voila, fractional lending born.

no fiat needed...old fashioned banking before the bailout madness. My borrower defaults I go bankrupt saver loses. Sketch, but totally doable.

[beetcoin]

I'm looking for a Bitcoin version of a bank where I could keep my coins in exchange for security against theft and a little bit of interest. The bank would insure my coins up to a certain amount, along the lines of the FDIC. Does something like this exist?

It doesn't, and may not ever exist.

The FDIC can do that because fiat works fundamentally different to bitcoins. 100% of fiat is loaned into existence, with the intention to do work, whereas the work for a bitcoin's creation happens before it is given to anyone. Of course it's more complicated that this but this is the gist of it. Once both of them have been created, they are the same in that they can both be traded to settle further debt.

The loaning part is what the FDIC relies upon to be able to guarantee deposits. If there is too much withdrawal from too many banks (or too many write-offs), fiat can be borrowed from the reserve to keep things running - see quantitative easing as an example of something similar, which just cannot be done with bitcoins.

The only thing you're going to see regarding banks, while the price is ultra volatile, are those which take your coins and charge you a fee to keep them safe. That is, negative interest. Keep in mind, though, that since it's a deflationary currency, holding on to it long term will generally increase its purchasing power, which is invisible interest, so keeping them safe at a slight price might be worth something if you're worried you're going to lose your coins.

You can earn interest in the form of dividends off some stocks, but the risk is obviously much higher than putting it in a bank (you could very well lose all or part of your investment), in the likes of https://cryptostocks.com etc. There is the IBB (Islamic Bank of Bitcoin) which gives interest free loans you can invest in too, also listed there. Thread here: https://bitcointalk.org/index.php?topic=21732.0

I could start a bitcoin bank that pays interest right now, and no doubt somebody will soon enough. In fact OP if you want to sign a 6 month CD with a no early redemption clause I will pay you 5% apr... and also if anyone wants a 90-day loan at 15% apr please also drop me a line.


Voila, fractional lending born.

no fiat needed...old fashioned banking before the bailout madness. My borrower defaults I go bankrupt saver loses. Sketch, but totally doable.

who would trust you enough to send you their bitcoins? you could easily run away with the spoils. in order for fractional lending to work, everybody in the system has to be willing to accept the derivitives.. which i don't think would happen since we are all anti-establishment.

[laihappy]

You can invest them into stocks. i believe!

[jballs]

who would trust you enough to send you their bitcoins? you could easily run away with the spoils. in order for fractional lending to work, everybody in the system has to be willing to accept the derivitives.. which i don't think would happen since we are all anti-establishment.

Everyone who has ever done business with me trusts me. Banks will be created and they will issue fiat against bitcoins. That fiat will start off as a receipt for a deposit. That receipt will eventually be called a certificate of deposit. The term will begin fixed. If the lender needs his bitcoins back prior to the term duration, he can sell his certificate of deposit to a third party at a discount to face value. Thus the treasury market is born. When the note comes due the third party can claim it with the cd, and collect the coins and interest, minus my cut for finding a reputable borrower in the interim.

You guys aren't reinventing the wheel here you are just greasing it a little.

[digitalsoup]

Some great responses here. I see the benefit of bitcoin as a decentralized currency and love the idea but most people dont have enough technical savvy to insure their coins dont get stolen. With mainstream adoption of bitcoin will come the desire for mainstream security I believe. I know I would pay a monthly or annual fee for the peace of mind that my coins werent going to get stolen and many others would probably pay as well.

[arielbit]

make backups...password encrypted/protected

- burn to cd/dvd, usb flash drive   (put it in a safe) 
- smartphone
- laptop
- pc
- multiple hard drives

there's your bank.

[hunnaryb]

I'm looking for a Bitcoin version of a bank where I could keep my coins in exchange for security against theft and a little bit of interest. The bank would insure my coins up to a certain amount, along the lines of the FDIC. Does something like this exist?

It would be worth only if the Bank have physical assets worth more than BTC deposits. I doubt this will even happen, so it will be always risky to put your BTC to this Bitcoin version of a bank

[Hunterbunter]

Some great responses here. I see the benefit of bitcoin as a decentralized currency and love the idea but most people dont have enough technical savvy to insure their coins dont get stolen. With mainstream adoption of bitcoin will come the desire for mainstream security I believe. I know I would pay a monthly or annual fee for the peace of mind that my coins werent going to get stolen and many others would probably pay as well.

This would be similar to a bank safety deposit box, I imagine. It's something fiat banks might even offer one day, since they're a lot more experienced at keeping money secure.

It would be worth only if the Bank have physical assets worth more than BTC deposits. I doubt this will even happen, so it will be always risky to put your BTC to this Bitcoin version of a bank

Unless you could find an insurance company willing to back you, I suppose.

[beetcoin]

fractional reserves/derivatives are the reason why we are in the shithole that we are in.. bitcoin is supposed to be a disruptive medium of exchange.. not a "let's push the status quo." i guess you could get interest on your BTC if there were a player big enough to make this work.. but i don't know if i support it. what's to stop said bank from doing a .9 reserve to a .05 reserve? they'd just "print" more money out of thin air, as per usual.

[ajax3592]

I think you are looking for www.bitalo.com