Can Bitcoin Beat Banks?

[Xampeuu]

banks are related to fiat currencies, while bitcoin without a bank, can still run. but the government will not be able to delete banks for now, it is precisely bitcoin that must be able to take the heart of the government

[Kelvinid]

banks are related to fiat currencies, while bitcoin without a bank, can still run. but the government will not be able to delete banks for now, it is precisely bitcoin that must be able to take the heart of the government

I don't think Bitcoin will be competing against banks,  they aren't the same purpose. And besides, bitcoin never holds others funds unlike of banks and banking system. Though we consider that Bitcoin is a stored value of money but looking it it's platform it is a big different from banks.
Banks will still remain at its zone and it may happens that to consider themselves as a third party in connections with crypto.

[Kakmakr]

To be honest, Bitcoin already beat some aspects of the Banks, but it depends on what the users require from their financial institution and the technology behind that. Bitcoin grants users of this technology, financial privacy and also financial freedom that Banks cannot offer, because they have to adhere to strict KYC/AML regulations.

Bitcoin is also borderless, so people can shift wealth across borders without restrictions and also a lot quicker than what can be accomplished by Banks. 

Large and small amounts of bitcoins <money> can be sent at a fraction of the fees, than what is possible with Banks, so it is even cheaper to use Bitcoin transfers. 

[bitbunnny]

Why is everyone keep saying that Bitcoin will beat the banks? Bitcoin isn't in some kind of war with banks and its purpose is not to replace them. Bitcoin has numerous advantages compared to traditional banking and financial system but the whole idea of it is not to replace the bank and because of the way how Bitcoin is designed and how it's functioning this is not even possible.

[yusupjatigumilar]

I think this is not impossible, even though if you look at the current situation, people do not fully know & understand what bitcoin is and how it works, I think to replace the bank system that is now used will be very difficult because banking itself has strong trust from the community , I even prefer that crypto currencies and conventional banks run harmoniously without interfering with each other.

[michellee]

I think bitcoin doesn't have to beat the banks, but bitcoin can integrate with their system so the banks can work better than before. Bitcoin can reduce the corruption level by recording the report in the blockchain. But it will need help from the government so bitcoin can cooperate with the banks and makes the banks will better.

[BitHodler]

Large and small amounts of bitcoins <money> can be sent at a fraction of the fees, than what is possible with Banks, so it is even cheaper to use Bitcoin transfers.  

In terms of cross border payments that may be true, but locally I can send and receive money instantly at no cost with a service people from different banks can transact with each other.

It started out as a tipping service, but after the max amounts have been lifted significantly people can now send and receive thousands per transaction. It's centralized but incredibly convenient, which is something that crypto doesn't offer.

The best part is that it works every single day, so you're not tied to business days anymore. Banks are catching up fast, people shouldn't underestimate them or think that Bitcoin will wipe them out.

[mu_enrico]

Which banks (functions)?
If it is about money transfer, then bitcoin already better than banks, especially for international payment. However, banks also have many different functions, for example, lending, mortgage, and investment in the form of securities. Yes, bitcoin with smart contracts could streamline these functions, but it might take a long time to become a reality.

[Indrawan77]

Bitcoin won't able to beat bank, and the government won't allowed bitcoin to take over banking system, the main idea of bitcoin creation is to create a better payment system not to overrule some institutions, and the economic of the country could be disrupted if it's using decentralised currency

[palle11]

... Thought as much... The much lauded JPMCoin was all noise and no substance. But can an accident happen to make legacy institutions catch up to the decentralized world?

This can be tricky if JP Morgan is said to have been rumoured to develop its coin. If one of the leading banks is found to be thinking in that direction, who knows what is running in such minds.

But really, banks would be here to stay for a longtime more because there are other little human business interactions that are taken care of by banks.

[HatakeKakashi]

We know banks is supported by the government and we know government is of the strongest in every country. We know also the banks is  older than the bitcoin and banks still here and alive and many people still keeping their money and me too banks is very useful because it can also secure our future for helping to save our money but bitcoin can help us to grow our money both is important.

[adamlillian]

I hear it all the time. Bitcoin/crypto is alternative to fiat. And almost every token philosophy is based on this premise.

The question: can cryptocurrency beat legacy financial institutions to the point of replacing them?

... Thought as much... The much lauded JPMCoin was all noise and no substance. But can an accident happen to make legacy institutions catch up to the decentralized world?

I think crypto can only affect banks and they cannot make banks close. because the bank's capital is quite large and they can buy blockchain technology and continue to provide the best service to customers. In the future, we will see this perfect combination.

[jjjfff]

I hear it all the time. Bitcoin/crypto is alternative to fiat. And almost every token philosophy is based on this premise.

The question: can cryptocurrency beat legacy financial institutions to the point of replacing them?

... Thought as much... The much lauded JPMCoin was all noise and no substance. But can an accident happen to make legacy institutions catch up to the decentralized world?

I think crypto can only affect banks and they cannot make banks close. because the bank's capital is quite large and they can buy blockchain technology and continue to provide the best service to customers. In the future, we will see this perfect combination.

Then how come digital cameras affected polaroid? How come DVD movies destroyed VHS?

By the same logic polaroid could've bought all digital cameras and VHS tape makers could buy DVD co's.

There are disruptive techs which simply revolutionize the space. If every bank tried to buy Bitcoin to protect themselves Bitcoin would shoot up to $ 1 million in months and banks wouldn't be able to buy BTC anymore.

[smyslov]

I hear it all the time. Bitcoin/crypto is alternative to fiat. And almost every token philosophy is based on this premise.

The question: can cryptocurrency beat legacy financial institutions to the point of replacing them?

... Thought as much... The much lauded JPMCoin was all noise and no substance. But can an accident happen to make legacy institutions catch up to the decentralized world?

We still need banks especially those on third world country, there are services that Bitcoin features cannot deliver, they can still co-exist and complement each other, they don't have to vanish one another, I would like to have them served the financial institutions.

[Tylev]

Bitcoin and other cryptocurrency will not affect the existence and functions of existing financial institutions. Banks and other financial institutions will continue to exist in a regular mode. The adoption of cryptocurrency states will not significantly affect their activities. Cryptocurrency can never replace the national money of the states, it is simply not capable of it.

[Rinso]

banks and bitcoin need each other. for example, how do you know how much your country's currency is? after knowing that. You can determine how much a coin is worth right ? without money issued by the bank you will not know how much the economic value of a coin is.

[Mometaskers]

Not quite yet. Remember banks are more than just places for storing money, they give out loans to individuals and the government. Sure someone can always make a bank that uses only bitcoins but since people can store their bitcoins in their wallets anyway, there's less incentive in letting others handle one's bitcoin unless the interest is high enough.

[hahay]

Not quite yet. Remember banks are more than just places for storing money, they give out loans to individuals and the government. Sure someone can always make a bank that uses only bitcoins but since people can store their bitcoins in their wallets anyway, there's less incentive in letting others handle one's bitcoin unless the interest is high enough.

That is why and it seems unlikely that cryptocurrency can replace old financial institutions, banks continue to innovate and banks continue to keep abreast of developments in the era that make them continue to be strong. Nothing can replace the currency in every country because it is part of the history of the country itself. Cryptocurrency does have advantages in this digital era, but replacing old financial institutions is not enough to only have high value.

[LeGaulois]

@hahay

banks continue to innovate and banks continue to keep abreast of developments in the era that make them continue to be strong

Not to be strong but to not fall the profits lower than that.

The banking sector market has to deal with a new type of banks for about ten years, the neobanks. While they weren't taken seriously in the early days they took a serious percentage of the market now. Banks started losing million and to face competition they had no choice but to adapt. By doing what the neobanks do(most banks have their own neobank as a subsidiary) and by looking for new ways to innovate so that the remaining customers do not leave.

[Lpim01]

Not quite yet. Remember banks are more than just places for storing money, they give out loans to individuals and the government. Sure someone can always make a bank that uses only bitcoins but since people can store their bitcoins in their wallets anyway, there's less incentive in letting others handle one's bitcoin unless the interest is high enough.

Banks we're so much to give than of Bitcoin, in terms of services and the securities. Bitcoin still to be considered as a store value but banks have doing it well. Its a price that bitcoin could ever surpass, even for gold and other precious thing around us. And with that, there is no reason why or in any aspects that Bitcoin wanting or could beat banks.