What happens when the Banks make a bitcoin Clone?

[gleydson]

I was in bed trying to figure out what to buy with my bitcoin when it reaches $1,000,000.00 and it came to my mind that a lot of people talk about the bebefits of bitcoin, specialy how easy and cheap is to transmit money worldwide, as we all know the bank charge a fortune to do it, and takes ages..

Now what happens when the banks decides that the bitcoin protocol is the future, but obviusly dont like the idea of being late to the party, and between thenselves, i dont know let's say top 20 banks decide to make a bitcoin clone, maybe alla NXT style all premined and split among then, so they can use as assets, use to send money back and forth cheaper and faster than they currently do.?

What would happen then? they would not need bitcoin or any other clone for that matter, right? Why would the average Joe use bitcoin for faster, cheaper payments while he can use his bank and do the same.. or maybe even faster and more secure.. as their bank is to some extent insured?

Don't get me wrong.. I'm all bitcoins, but just curious..

Thanks

[1714819803]

1714819803

[1714819803]

1714819803

[1714819803]

1714819803

[1714819803]

1714819803

[rohnearner]

I was in bed trying to figure out what to buy with my bitcoin when it reaches $1,000,000.00 and it came to my mind that a lot of people talk about the bebefits of bitcoin, specialy how easy and cheap is to transmit money worldwide, as we all know the bank charge a fortune to do it, and takes ages..

Now what happens when the banks decides that the bitcoin protocol is the future, but obviusly dont like the idea of being late to the party, and between thenselves, i dont know let's say top 20 banks decide to make a bitcoin clone, maybe alla NXT style all premined and split among then, so they can use as assets, use to send money back and forth cheaper and faster than they currently do.?

What would happen then? they would not need bitcoin or any other clone for that matter, right? Why would the average Joe use bitcoin for faster, cheaper payments while he can use his bank and do the same.. or maybe even faster and more secure.. as their bank is to some extent insured?

Don't get me wrong.. I'm all bitcoins, but just curious..

Thanks

sounds a legitimate concern i'm sure it must have discussed earlier on this forum earlier  ..! but I like your optimism 1btc=$1,000,000.00  i quite like that

[CIYAM]

A couple of things come to mind:

(a) They have already had *years* to do so and yet have not done a thing.

(b) I doubt that the banks even trust each other enough to create a "coin" that will be shared even amongst themselves.

[cdooer]

Anything the banks create would be centrally controlled, which is the opposite of Bitcoin.

[CIYAM]

Anything the banks create would be centrally controlled, which is the opposite of Bitcoin.

Although this link is worth taking a look at: http://www.finextra.com/news/fullstory.aspx?newsitemid=25714&topic=payments

[btc4ever]

Two possibilities:

a) The bankcoin is just as good as bitcoin in terms of decentralization, open source, license/freedom, fungibility, etc.   In that case, fine.   Smart BTC holders will buy some, cryptocurrency wins.  This is extremely unlikely because of AML requirements, etc.  Pretty much impossible in current legal environment.

b) The bankcoin is not as good in some ways.  ( most likely scenario ). In this case, it must compete with a superior alternative.  In the absence of government force (ie legal tender laws) the superior currency should win in the marketplace.  ( Thiers law ).  With government force, the bad currency will drive the good into hiding (hoarding).  Gresham's law.

http://en.wikipedia.org/wiki/Gresham%27s_law#Reverse_of_Gresham.27s_Law_.28Thiers.27_Law.29

[pera]

Why make a clone when you can just adopt it?
Standard Bank running internal pilot for Switchless' full Bitcoin integration

[theskillzdatklls]

If a bank creates a cryptocurrency then I won't ever invest in it.

If other people think like me, that's what prevents them from doing this.

[pening]

... use to send money back and forth cheaper and faster than they currently do.?

There maybe other uses for Bitcoins with in established banks, but they already have systems that transfer money back and forth for near zero cost and near instant time.  They don't use Visa or Western Union.  In UK and Europe normal bank accounts offer free and instant* interbank transfers.

* some will give an SLA of an hour or two, but in my experience its instant enough, transfer online and money can be withdrawn from another bank ATM a few minutes later.

[exstasie]

Why make a clone when you can just adopt it?
Standard Bank running internal pilot for Switchless' full Bitcoin integration

Well if you make a clone, you can be an early miner of it and make tons of money during the infancy stages.

[j68r]

Banks won't make a bitcoin clone for the simple reason they wouldn't be able to debase it and in doing so transfer wealth to themselves. Do people not understand how the banking fraud works?

[countryfree]

The banks may do that, but today's BTC holders won't touch it. It's one of BTC greatest asset that it's not part of the global financial system, and that it doesn't have any link with any bank. A crypto-currency built by banks? Only banks will use it.

[tabnloz]

What would happen then?

Given the reputation of the financial sector, no one in their right mind would use it!

[Adrian-x]

Re: What happens when the Banks make a bitcoin Clone?

If they are lucky it gets listed with the other Alta.

If the public can mine for transaction fees it may stand a chance.

They would have the same problem with market adoption as Bitcoin (more costly brand awareness)

If it was used as a reserve currency for FRB someone would screw up and the Bank would collapse due to contagion.

If it was used to do 1:1 banking the banks would have no way to generate income.

So no worries if the banks can pull it off Bitcoin will have saved us. Good luck to them.

[cbeast]

Bitcoin developers are working on products for financial institutions and sovereigns as protocol overlay schemes. Soon Central Banks will be praising Bitcoin as they will be able to print their monies and derivatives without fear of counterfeiting or overreaching jurisdictions. Then *they* will be fighting for Bitcoin deregulation.

[DubFX]

I wouldn't touch it myself.

[billyjoeallen]

it doesn't make any sense. The banks would have to bootstrap miners. They would be much better off to slowly and stealthily buy up actual bitcoins, accumulating a sizable stake, and then announcing to the world that they are integrating. no one company or group of companies can instantly create the infrastructure that Bitcoin has built over five years. Any crypto the created would just give the real bitcoin more legitimacy, not to mention an online exchange would spring up in 48 hours for the two coins, effectively meaning you could use bitcoin anyway.