Bitcoin financial services

[throwawayman]

So I know some members of this community like to participate in a good old bank bashing session and while I do agree we need to reform our financial system and disruptive technology
like bitcoin and other decentralized innovations are going to part of that I'd like to open up a bit of an open ended discussion about how you guys envision the important services that banks
and other financial institutions provide are going to be changed/replaced.

So for example loans are extremely important for upward economic mobility, is anyone aware of financial institutions that currently offer loans in bitcoin? Is this something that will only
happen when bitcoin has large usage comparable to fiat in order to be stable enough for an institution to even consider giving a loan?

Is there any novel solutions that make a loan self executing via smart contracts or will we always have to have trust trust when it comes to these kind of transactions?

What is the general sentiment regarding custodial services for people's bitcoin so they don't have to be concerned about storing it them selves?
Are there any examples of companies already successfully doing this?

Another reason people tend to open bank accounts rather than store money themselves is that they can get their money back in the event of being scammed
(a sense of security really). So is there any examples of companies providing insurance for people's bitcoin?

So there's several questions to get this kind of conversation started. Feel free to answer as many as you like or just give your own take on the topic in general.

Cheers.

[mk4]

Is there any novel solutions that make a loan self executing via smart contracts or will we always have to have trust trust when it comes to these kind of transactions?

Hope I don't sound like a shill once again, but when talking about loans through cryptocurrencies I always suggest checking out the MakerDAO platform. They loan you through DAI stablecoins. But of course, like most loans, you need a collateral. For now, they only accept ETH collateral (BTC soon as they claim). Just do research on it.

Another reason people tend to open bank accounts rather than store money themselves is that they can get their money back in the event of being scammed
(a sense of security really). So is there any examples of companies providing insurance for people's bitcoin?

I think a lot of people just trust themselves to hold huge amounts of money at home, hence banks. Companies providing bitcoin insurance though, Coinbase. Though as far as I know, they wouldn't be able to cover 100% if ever 100% of their funds(including cold storage) gets stolen for instance. Their insurance only covers their hot wallets which is only 2% of their total holdings.

[hugeblack]

Another reason people tend to open bank accounts rather than store money themselves is that they can get their money back in the event of being scammed
(a sense of security really). So is there any examples of companies providing insurance for people's bitcoin?

Banks will return your money based on the basis that they are trusted parties and will protect your money but that does not mean you are safe. There are a lot of stories for people who have lost their money, even some in the bank.

Cryptocurrencies "Bitcoin" provide you with an irreplaceable alternative As long as you keep your recovery seeds safety, no one will be able to steal your coins without having to trust the promises of someone or an institution.

[KingScorpio]

So I know some members of this community like to participate in a good old bank bashing session and while I do agree we need to reform our financial system and disruptive technology
like bitcoin and other decentralized innovations are going to part of that I'd like to open up a bit of an open ended discussion about how you guys envision the important services that banks
and other financial institutions provide are going to be changed/replaced.

So for example loans are extremely important for upward economic mobility, is anyone aware of financial institutions that currently offer loans in bitcoin? Is this something that will only
happen when bitcoin has large usage comparable to fiat in order to be stable enough for an institution to even consider giving a loan?

Is there any novel solutions that make a loan self executing via smart contracts or will we always have to have trust trust when it comes to these kind of transactions?

What is the general sentiment regarding custodial services for people's bitcoin so they don't have to be concerned about storing it them selves?
Are there any examples of companies already successfully doing this?

Another reason people tend to open bank accounts rather than store money themselves is that they can get their money back in the event of being scammed
(a sense of security really). So is there any examples of companies providing insurance for people's bitcoin?

So there's several questions to get this kind of conversation started. Feel free to answer as many as you like or just give your own take on the topic in general.

Cheers.

lol a loan with bitcoin,

bitcoin is just about making money out of thin air privately (taboo break in egalitarian humanist societies)

und go public about it.

no way there can be a legal and financial system working with that trash.

first. no state police is interested protecting bitcoin, and the 5 million altcoins,

secondly no one can pay a bitcoin loan back, because there is no way an economic environment has a reliable supply of "bitcoin" customers.

regards

[Stac]

  Since bitcoin was introduced on 2009 it was not spoken by the public since they were not so aware  of Bitcoin and its use shortly they became aware of Bitcoin  and its value . Though the growth was slow  people and companies hesitated to join the new territory after two or three years  people started speaking about Bitcoin by the coming up of a new ,Blockchain technology people trusted and transaction was made fluently without any manipulations and without a help from a third party was needed and saw the transaction was done fast all over the global system investing in banks now a days people are feeling no security .

[kaya11]

Is there any novel solutions that make a loan self executing via smart contracts or will we always have to have trust trust when it comes to these kind of transactions?

Hope I don't sound like a shill once again, but when talking about loans through cryptocurrencies I always suggest checking out the MakerDAO platform. They loan you through DAI stablecoins. But of course, like most loans, you need a collateral. For now, they only accept ETH collateral (BTC soon as they claim). Just do research on it.

Another reason people tend to open bank accounts rather than store money themselves is that they can get their money back in the event of being scammed
(a sense of security really). So is there any examples of companies providing insurance for people's bitcoin?

I think a lot of people just trust themselves to hold huge amounts of money at home, hence banks. Companies providing bitcoin insurance though, Coinbase. Though as far as I know, they wouldn't be able to cover 100% if ever 100% of their funds(including cold storage) gets stolen for instance. Their insurance only covers their hot wallets which is only 2% of their total holdings.

Is there any possible way to loan from MakerDAO without any collateral to offer? I don't have any Bitcoins or eth that is why I want to have a loan, so any idea ho to have one? I do have some shitcoins from previous bounties, maybe that should do.

[Beerwizzard]

So for example loans are extremely important for upward economic mobility, is anyone aware of financial institutions that currently offer loans in bitcoin? Is this something that will only
happen when bitcoin has large usage comparable to fiat in order to be stable enough for an institution to even consider giving a loan?

Why would anyone be giving a huge bitcoin loan? Financial institutions supposed to provide big ones, which if harder than giving small loans via different lending websites.
Traditional institution provide low interest rates and getting a small but steady income. They can't legally ask customers to pay them like 100% if interest rates.
In such conditions, they may give a 5% BTC loan and during the next year lose 50% on BTC rate.
Such risk is not acceptable for big banks and dangerous for the financial system.

[Carrelmae10]

..banks already exist before bitcoin was created..nowadays many banks bushes the use of Bitcoin for they treated it illegal because other people uses it in a wrong way..banks considered Bitcoin as a threat for some of them losses big investors because they widrawn their money just to invest in Bitcoin..But we all know that Bitcoin have gone milestone of what it has now..Bitcoin changes everything and we cannot deny that many lives have changed by Bitcoin..

..other people do trust Bitcoin so they invested on it,,and look what they have now,,bitcoin's early investors have gain a lot and until now they successfully harvesting the fruit of their invested..but some people choses to put their money at home or in a safety box because they don't trust banks nor Bitcoin..but it is better to trust investing in Bitcoin if you are aiming for a high profit..

[Cruxer]

Another reason people tend to open bank accounts rather than store money themselves is that they can get their money back in the event of being scammed

thats not so easy. Bank will not give you money unless you will prove in court that you COULD make mistake by getting scammed. Its not that simple, its fight like with insurance companies.
then its not looking so good still is it?
im happy with new era of beign your own bank

[Gaff]

Another reason people tend to open bank accounts rather than store money themselves is that they can get their money back in the event of being scammed

thats not so easy. Bank will not give you money unless you will prove in court that you COULD make mistake by getting scammed. Its not that simple, its fight like with insurance companies.
then its not looking so good still is it?
im happy with new era of beign your own bank

Bitcoin has no limitations in terms of money, and when we entrust that money earned from bitcoin the bank has no control of crypto holders. Freedom  of finances will always be there, and no matter what type of funds you'll be storing at banks whether btc earned fiat it doesn't matter as long as you're confident enough to take full responsibility of that asset of yours.

[davis196]

Crypto loans are possible,but they have to be guaranteed with a big collateral+other people(if the loan is bigger).There's no way to automate the process by using smart contracts.Only people can evaluate the accountability of some borrower.

[kelz1]

There are many financial investment companies that take your money and return them when you retire. Holding your bitcoins is no different from holding your fiat money

[jseverson]

What is the general sentiment regarding custodial services for people's bitcoin so they don't have to be concerned about storing it them selves?
Are there any examples of companies already successfully doing this?

People generally hate it because it kind of defeats the purpose, and it gives custodial companies power similar to what banks have now. They exist mostly for large institutions. One example is Coinbase Custody.

Another reason people tend to open bank accounts rather than store money themselves is that they can get their money back in the event of being scammed
(a sense of security really). So is there any examples of companies providing insurance for people's bitcoin?

Custodial services are most likely insured because that's kind of the point. Other than that, I know Coinbase actually insures customer funds, albeit conditionally. There could be other exchanges that do this but I don't know of any other example.

I feel like I should point out that I don't shill for Coinbase lmao. I just happen to be more familiar with them than other major exchanges.

[Beerwizzard]

Cryptocurrencies "Bitcoin" provide you with an irreplaceable alternative As long as you keep your recovery seeds safety, no one will be able to steal your coins without having to trust the promises of someone or an institution.

The problem is that users still have to care about the safety of their computers. Different keylogger viruses are a pretty popular disease of the crypto community. In this case, banks are still way safer because if your card was stolen you can request a chargeback while if someone hacked you and stole your keys there is no way to get your money back.

Custodial services are most likely insured because that's kind of the point. Other than that, I know Coinbase actually insures customer funds, albeit conditionally. There could be other exchanges that do this but I don't know of any other example.

I feel like I should point out that I don't shill for Coinbase lmao. I just happen to be more familiar with them than other major exchanges.

Sounds interesting.
Do you know any cases when users could get their money back after being hacked?
I feel like funds are secured in case someone hacks coinbase, not a user. That's a bit different kind of security.

[jseverson]

Sounds interesting.
Do you know any cases when users could get their money back after being hacked?
I feel like funds are secured in case someone hacks coinbase, not a user. That's a bit different kind of security.

Yeah, it only kicks in if they themselves get hacked, not individual user accounts:

Please note that the insurance policy covers any losses resulting from a breach of Coinbase’s physical security, cyber security, or by employee theft. This insurance policy does not cover any losses resulting from the compromise of your individual Coinbase account. It is your responsibility to use a strong password and maintain control of all login credentials you use to access Coinbase.

There seems to be at least one documented case of a Coinbase refund:

It was 10.6 bitcoins held in the wallet service Coinbase, the most well-funded and widely implemented service on the market. Jeff, who asked that we not use his last name, got the news of the transaction as soon as it happened, and after going back and forth with a customer-service representative, he had his money refunded. Exactly one month later, it happened again.

But yeah "compromise of your account" could be spun into different ways. Insurance is nice, but I still wouldn't rely on it.

[eaLiTy]

     Bitcoin and Blockchain technology has  brought  a big change towards the transactions of currencies all over the global history since a new cryptocurrency was introduced by Satoshi Nakamoto in the year 2009 .  The  people all over the world have been frustrated  by changing policies of politicians and the government about the physical currency  that made people accept the new form of currency .

[bitbunnny]

     Bitcoin and Blockchain technology has  brought  a big change towards the transactions of currencies all over the global history since a new cryptocurrency was introduced by Satoshi Nakamoto in the year 2009 .  The  people all over the world have been frustrated  by changing policies of politicians and the government about the physical currency  that made people accept the new form of currency .

I would say that this is the big progress that can't be stopped anymore. Bitcoin has brought some kind of revolution that is still ongoing but some are not accepting it with too much enthusiasm. Also, there is still a lot of space for further development and governments will have to embrace these new trends and technologies in order to keep the track.

[Beerwizzard]

Yeah, it only kicks in if they themselves get hacked, not individual user accounts:

Please note that the insurance policy covers any losses resulting from a breach of Coinbase’s physical security, cyber security, or by employee theft. This insurance policy does not cover any losses resulting from the compromise of your individual Coinbase account. It is your responsibility to use a strong password and maintain control of all login credentials you use to access Coinbase.

There seems to be at least one documented case of a Coinbase refund:

It was 10.6 bitcoins held in the wallet service Coinbase, the most well-funded and widely implemented service on the market. Jeff, who asked that we not use his last name, got the news of the transaction as soon as it happened, and after going back and forth with a customer-service representative, he had his money refunded. Exactly one month later, it happened again.

But yeah "compromise of your account" could be spun into different ways. Insurance is nice, but I still wouldn't rely on it.

So coinbase just wanted to say that their centralized service guarantees refund in case of being hacked.
There are 2 more similar cases on your link and one of them was denied because a user didn't use 2fa. The amount of positive cases is miserably low while comparing to banks people have more responsibilities related to safety of their accounts.
If such things are not such user-friendly as we used to see it then we shouldn't expect fast and mass adoption.

[CarnagexD]

     Bitcoin and Blockchain technology has  brought  a big change towards the transactions of currencies all over the global history since a new cryptocurrency was introduced by Satoshi Nakamoto in the year 2009 .  The  people all over the world have been frustrated  by changing policies of politicians and the government about the physical currency  that made people accept the new form of currency .

I would say that this is the big progress that can't be stopped anymore. Bitcoin has brought some kind of revolution that is still ongoing but some are not accepting it with too much enthusiasm. Also, there is still a lot of space for further development and governments will have to embrace these new trends and technologies in order to keep the track.

Definitely, as time goes by i've notice the significant growth of bitcoin not only in price but most especially on its use and going in a mass adoption for some industry. There is a certain change we undergone during the process of bitcoin inflation that made the people go jumped in and we're here now continuing the development.

[suzanne5223]

I believed the OP misunderstand the concept behind bitcoin creation because it was created as a means to save people from the mistake made by the government and the banks. Besides, bitcoin is a true symbol of democracy because one are equal and the future of every project are decided by the community which was one of the reason why every man is his own bank.

Concern, the loan issues we have some crypto currency project that handle but how they operate their service I dont know cause I never use it before.