Bitcoin Banks Are Coming. Should That Make You Nervous?

[Drysprinkles291]

This article on https://blockexplorer.com/news/bitcoin-banks-are-coming/ made me wonder... Bitcoin was designed to operate outside the banking system, right? It was created so that you don’t have to trust a bank or third-party. So how does it works if we get Bitcoin banks?

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[Teawhalee]

I think this is just to serve as a means where people will easily trade their coins and convert to fiat at anytime they like.  This is really one of the things that crypto need to bring more liquidity to the tradeable coins and the entire market. 

[leetcoiner]

This article on https://blockexplorer.com/news/bitcoin-banks-are-coming/ made me wonder... Bitcoin was designed to operate outside the banking system, right? It was created so that you don’t have to trust a bank or third-party. So how does it works if we get Bitcoin banks?

This is impossible, since the Bank implies a centralized asset management system, and bitcoin is a fully decentralized system. Banks can take bitcoin in use, as well as any user of the network and issue it at an interest rate, but it is technically impossible to own the entire system, since it is to impose on all people of the planet earth. The news is fake.

[hatshepsut93]

This article on https://blockexplorer.com/news/bitcoin-banks-are-coming/ made me wonder... Bitcoin was designed to operate outside the banking system, right? It was created so that you don’t have to trust a bank or third-party. So how does it works if we get Bitcoin banks?

Bitcoin was designed to allow people do whatever they want with their money, so if some people want to start a bank, that's okay, it's their right. Bitcoin banks have already been here for a while in a form of online wallets and custodial services.
People are using them because they are too scared to handle their coins by themselves, but it's a lose-lose situation - they risk by entrusting their coins with third parties, but they would also risk if they hold their own coins, because they are noobs. IMO this is one of the biggest problems with Bitcoin - user experience can be very harsh as some mistakes will lead to permanent loss of funds.

[aliceHortrex]

This article on https://blockexplorer.com/news/bitcoin-banks-are-coming/ made me wonder... Bitcoin was designed to operate outside the banking system, right? It was created so that you don’t have to trust a bank or third-party. So how does it works if we get Bitcoin banks?

Bitcoin banks are something out of the realm of fantasy. How can a centralized authority subordinate a decentralized system? The answer is no. Very soon, the banking system of Fiat money will become a thing of the past and the digital currency on blockchain technology will occupy the vast majority of the market. It's just a matter of time.

[SUDARMONO]

it is true that bitcoin was created to leave the bank, and I think if there is a bitcoin bank it will not be able to run long, because I think bitcoin does not really need a bank, but I think if the exchange with fiat can happen.

[andigentho]

I think bitcoin is designed to facilitate online transactions and bitcoin banks are only a means by which people can easily exchange their coins or convert to fiat, to make it definitely not separated from the cooperation of the bank. And this is indeed necessary for the development of crypto in the future.

[ngm22585]

This is pretty much inevitable.

[Marshall14]

I doubt this news really,i do not see how bitcoin is gonna work using banks, what really is going to be the functions of the banks.
The blockchain technology covers all aspects a bank could possibly bring into play,and banks are more so centralized entities as opposed to the decentralized nature of the bitcoin.
This information in my opinion holds no water really

[BitHodler]

I think this is just to serve as a means where people will easily trade their coins and convert to fiat at anytime they like.  This is really one of the things that crypto need to bring more liquidity to the tradeable coins and the entire market.  

That's right. If we didn't have centralized platforms emerge, how would people else get into Bitcoin? The more of these platforms emerge, the better it is because more competition in the space leads to better and cheaper services.

From there people can always have their coins be sent to the wallet they own the keys of. There are so many solid mobile wallet clients available that you don't have any excuse to point at for not taking care of your own keys.

Another factor that will continue to stimulate people to not store their coins on exchanges and online wallet services, is how they keep getting hacked. The only way to avoid losing coins is to avoid using these centralized platforms as a wallet.

Without the centralized crypto economy growing it would stay a niche for ever. Don't forget that.

[Myown55]

Why should we panic?? This is rather great news. In fact it is a sign of bitcoins' strength. We are happy about the news and are ready to embrace this great project. Bitcoin is definitely the future.

[gentlemand]

When serious money comes in people don't want to just trust a trezor in their house or some seed words on metal, they want something in a institution. Wouldn't you if you had millions of fiat worth?

Considering the track record of hacks and account freezing that's a no from me. I don't believe places like Coinbase will ever have a significant hack. I do believe they'd happily imprison my funds without thinking twice. The bigger they get the twitchier they'll be.

Most people would rather leave it to someone else so this is inevitable. As long as the rest can come and go as they please unencumbered then so be it. I don't hold out much hope of that.

[hubballi]

The article what mentions is that their are more custodians are coming, which means where you can safely store your bitcoins and use it when ever you want from their. As this custodians are fully secure and insured protected. This they have given as Banks name

[BuyBuyBitcoin]

So how does it works if we get Bitcoin banks?

We arent getting bitcoin banks? The article is just making assumptions on nothing other than this could happen.

Bitcoin could become Russia's national currency, that doesnt mean its going to happen.....

[conceptutorials]

NO. it doesn't make me nervous because its an added plus to bitcoin and to me i will rather commend it because whatever is good is worthy of being commended.

[Elizabethkjenkins]

This article on https://blockexplorer.com/news/bitcoin-banks-are-coming/ made me wonder... Bitcoin was designed to operate outside the banking system, right? It was created so that you don’t have to trust a bank or third-party. So how does it works if we get Bitcoin banks?

I think it will happens someday as right now many of crypto website work with various bank all over the world. And why not? It'll be more easy to trade (buy/sell) you can call it bank or any names.

[pakhitheboss]

This article on https://blockexplorer.com/news/bitcoin-banks-are-coming/ made me wonder... Bitcoin was designed to operate outside the banking system, right? It was created so that you don’t have to trust a bank or third-party. So how does it works if we get Bitcoin banks?

I think this is good for Cryptos as it will help in getting more liquidity into the market. It will also be a hassel free way to convert Crypto to Fiat.

New Investors/Traders will surely enter the market. if this project goes live

Please think in this way that such Banks will help us to trade our cryptos easily

[pooya87]

it is true that bitcoin was created so that it  doesn't need any third party (aka banks) to operate. but also you are forgetting that bitcoin has another feature called censorship resistance. in a way that means that anybody can use bitcoin! even banks. so when you say a "bitcoin bank" is coming, that means anybody is free to start a service with bitcoin, and a bank as a service provider is no exception.
it won't change anything for bitcoin though. in fact i always expect something like to happen but also i wonder how long would it take for it to fail.

[SimonJones]

This article on https://blockexplorer.com/news/bitcoin-banks-are-coming/ made me wonder... Bitcoin was designed to operate outside the banking system, right? It was created so that you don’t have to trust a bank or third-party. So how does it works if we get Bitcoin banks?

No, I am not nervous, rather I am happy because things will become much easier than what it is now.

[smartbitcoininvestor]

A bank is a place to hold your money. It is a place where you can ask for a loan and they will give you money for a mortgage or a car. What you are referring to is likely a bank that will serve as an exchange for your Bitcoins.