Bitcoin banking system

[Artemis3]

Hello! What's your opinion could BTC kill banking system? Bitcoin has an advantage over fiatbecause its amount is limited and it can't fall under inflation.Inflation usually is caused by monetary policies of our central banks. Bitcoin is free from inflation, governement control and high transaction fees.Banks can’t control BTC because it has no representative and is fully decentralized. That's why banks are afraid of BTC.

This is natural, because all countries system must have a central bank. The Central Bank institution that is responsible for maintaining the stability of prices of goods and services, as well as the exchange rate of a currency that applies in a country. If BTC is legalized and become a means of payment this will be difficult. Because the central bank cannot control. If it is legalized and regulated by an institution, the original nature of BTC is not decentralized. Moreover, the use of Bitcoin as a means of payment will collide with the scalability problem. So bank institutions in a country need to regulate issues regarding the legality of BTC.

This is not true, many countries do not intervene in the economy (are more liberal) and the real purpose of a Central Bank is to serve as a Bank for banks. They don't have to dictate monetary policy even if that's typical in many countries. A good example would be the role of a central bank in a country without a national currency.

And all of this is related to fractional reserve. If you don't understand fractional reserve, you just cannot understand why there are so many banks. And if you DID understand fractional reserve, you wouldn't be using banks in the first place.

The end result of the existence of Bitcoin. is that banks will need to shrink. There are just too many of them and they are redundant. They can shrink slowly, product of the natural disuse of them, or rapidly should the people of the world suddenly decided to withdraw their money which cannot occur under fractional reserve rules; your money is simply not there and most people remain ignorant of this.

With Bitcoin every coin is accounted for, you cannot do vapor money like banks do with fractional reserve. A bank can only work with Bitcoin with a full reserve, and that means you have to pay them to keep your money rather than the other way around (think bank vault). The Bank of Amsterdam used to work like this a century ago, such type of bank can never go bankrupt but makes far less money than the other banks doing the legalized ponzi scheme. In a similar fashion the Chicago school of economy needs the whole credit expansion system that this fake money provides. You will never understand Bitcoin place in the world without the Austrian school of economy where you grow slowly by saving, not quickly by getting in debt.

And yes, money that keeps its value overtime makes people save more, and you don't need a bank for that anymore.

[verita1]

We all have at least one bank account and after using BTCitcoin and cryptocurrencies we have realized that the banking system should be reformed. So I think banks should adapt to the time we live in and update their system. There is frequent talk of the creation of CBDC that has been successful in the banks that implemented it.
Commerzbank (Germany)
UBS (Switzerland)
JP Morgan (US)
ING (Netherlands)
Banco Santander (Spain)

Blockchain in Banking Industry Use Cases
https://changelly.com/blog/blockchain-in-banking-industry-use-cases/

[Ifra24]

This is not true, many countries do not intervene in the economy (are more liberal) and the real purpose of a Central Bank is to serve as a Bank for banks. They don't have to dictate monetary policy even if that's typical in many countries. A good example would be the role of a central bank in a country without a national currency.

Fractional Reserve is a banking system that allows commercial banks to make a profit by lending a portion of their customers' deposits, and only a portion of these deposits are stored in cash and available for withdrawal. Practically, the banking system makes money from nothing using a percentage of the bank's customer deposits.

But if you are in a country that does not recognize Crypto as a currency, what happens? Each country has a different policy regarding digital currencies. Moreover crypto currency is very volatile is not fixed. I think I will still need a bank, because not all countries of the world legalize digital currencies.

[Zionatin]

I think more than likely banks will hold on to fiat until they can no longer and then they will start using blockchain technology. It will be interesting to see what they will do or why people would use it over decentralized currencies. Perhaps for security and the ability to possibly reverse payments? I can't think of any other reason why someone would use centralized crypto over decentralised.

[Assface16678]

Today there are a lot of people right away are using the bitcojn and because of that they see the potential of the coin to make more money through the use of the investment, trading and gambling but still it depends on the person or the player how does they use their funds but what are the common request of them? Bitcoin is much better to have an atm by this some of the country already supported the use of the bitcoin make their way to produce these some of the country already have their bitcoin atm that is good because it is more convenience to their users. Now they are requesting the use of banking system in the world of the bitcoin but I think this may not happen because bitcoin is decentralized so at the first place the government does not have enough power to control and adaptation of the bitcoin because it takes a lot of process before this kind of action will support by the government still they want to secure all of the transaction and also the bitcoin has a volatile market unlike the market of fiat.

[Yatsan]

Hello! What's your opinion could BTC kill banking system? Bitcoin has an advantage over fiatbecause its amount is limited and it can't fall under inflation.Inflation usually is caused by monetary policies of our central banks. Bitcoin is free from inflation, governement control and high transaction fees.Banks can’t control BTC because it has no representative and is fully decentralized. That's why banks are afraid of BTC.

.If u like donate to my address :  19fCVjYVuppjhSvZc4fYimLSjTv63SyoYD

It would never kill banking. At some point where plenty of people with less prior crypto knowledge would all start using btc, banks would adapt and instead of i.e, usd saving accounts, they would make btc saving accounts. I pretty much think bitcoin will kill most fiat currency's. Governments dont like btc since they dont print it, we do.

Banking already upgraded, almost all(or all of them?) of the banking here in our country have online system now. So basically, Bitcoin being online is equal to online banking! The only thing that keeping them separated is the concept of those two currency but who cares! They are just both currency that have their own features. In my opinion, those those shouldn't be compared since, with cryptocurrency and banking system our economy are being upgraded and they are just working just fine as what they are right now.

[BitcoinsGreat]

Bitcoin is very strong , but another question we have to be asking ourselves is whether our government is going to let Bitcoin prevail?
Bitcoin gives us freedom, and to the government it is out of reach and cannot be controlled by them. So, do you think that they are going to allow people to go fully on Bitcoin? If they notice that majority of the people are starting to move away from fiat and moving into Bitcoin, they might start putting up a fight against it.

Some of them are now talking about creating their own cryptocurrency, and I saw news recently that China is close to releasing theirs, even saw someone that posted the Chinese cryptocurrency wallet, what it looks like in this forum.

This trend has already been started and china officially launched their first cryptocurrency. You can read more about it https://fortune.com/2019/10/29/china-digital-currency-facebook-libra-languishes/

If this trends continues, we will see every country developing its own digital currency and that currency will be managed by that respective state so it will be a centralized currency.

[imstillthebest]

I do not think BTC can kill the banking system because there are still millions of people making use of traditional fiat currencies that is being controlled and regulated by the government through banks. The fear must be because the government cannot control it and probably it will be very difficult to trace users in case of Money laundering

and for what they have implemented the kyc ?  kyc on btc/cryptos can prevent money laundering  but of course a good criminal can still escape no matter what  .

banking isnt about using fiat but banking means your storing money and your applying for credit/debit card stuffs like that but i think btc and btc related service or business can also do it too  so there is a potential that btc can kill the banking system in the long run  .

[online73]

Hello everybody. The modern banking structure has evolved for a very long time. Bitcoin is just beginning its journey. I would very much like cryptocurrency to force banking and government circles to change their vector of protection and service not of the interests of the people, but of the interests of the ruling class. But, unfortunately, the situation is more prone to the fact that if the ruling circles do not figure out how to bite off a huge tidbit from a cryptocurrency pie, they will try to drive even any mention of cryptocurrency deeper into the underground. Time will tell.

[ampere]

Hello! What's your opinion could BTC kill banking system? Bitcoin has an advantage over fiatbecause its amount is limited and it can't fall under inflation.Inflation usually is caused by monetary policies of our central banks. Bitcoin is free from inflation, governement control and high transaction fees.Banks can’t control BTC because it has no representative and is fully decentralized. That's why banks are afraid of BTC.

.If u like donate to my address :  19fCVjYVuppjhSvZc4fYimLSjTv63SyoYD

I do  not think bitcoin can kill the banking system. One of the core features of fiat is that it can be used locally in the local markets, There are several unlearned peeps in the local market who will always request for fiat as payment mode. There are some stuffs we buy that will always require fiats in cash no matter what.

Banks can indeed control bitcoin, by regulating the amount your credit / debit card can spend on crypto currency if need be.
Let us stop with the comparisons, both the bank and bitcoin will thrive together in the crypto sphere.

[coupable]

I think, this funny picture will give my opinion without additional words.
https://i.imgur.com/mXjCvkE.png

In fact, this picture represent how the bitcoin system is integrated within the banking system. Bitcoin as an additional element to the banking system provides much more anonymity to fiat transactions, and fiat transactions also provides a stable price to the btc at the exact time of transaction. There is no other options to take unless one of them leave his place forever to the other .

[coupable]

I think, this funny picture will give my opinion without additional words.
https://i.imgur.com/mXjCvkE.png

In fact, this picture represent how the bitcoin system is integrated within the banking system. Bitcoin as an additional element to the banking system provides much more anonymity to fiat transactions, and fiat transactions also provides a stable price to the btc at the exact time of transaction. There is no other options to take unless one of them leave his place forever to the other .

they are both interrelated, we want the bitcoin system but the bank system will never disappear
so they will continue to be like that until both systems are destroyed by the destruction of this world

I don't really like your pessimist opinion. If both systems coexist in interrelation, then its too late to banks to ignore bitcoin and bitcoin succeeded to take place in the real world and may replace fiat in a long term (maybe many decades). Bitcoin adds more anonymity to classic transactions, this doesn't mean it will replace the old system by any sort. Some banks even try to go with the crypto wave and try to adopt with it as a solution for many needs and as a method of paiement that is used by custmers.

[princesspoppy]

Banks do know now the advantage of bitcoin because of the blockchain technology it uses. Sooner or later, these banks will surely adjust and adopt this kind of technology but that doesn't mean that bitcoin will destroy the whole banking system itself. Traditional currencies like fiat will also be there, people will still use those currencies as well as cryptos cause that will be there best option to do. If you can't destroy something, why don't you just ride along with it and use it for your own benefit as well, right?

[TheGreatPython]

I don't really know about this. But I'm thinking that Bitcoin might overtake Fiat in becoming a research currency. I have already seen a lot of countries that are talking about using Bitcoin as their reserve and these are mostly countries that were sanctioned by the US.

But in the case of replacing fiat completely, I don't really think that's going to happen, because we are all not going to be using the same currency. Every country will always have their own currency. So I am guessing that the government will create their own crypto version of fiat, and then Bitcoin will still be at the top as a reserve currency or something.

[K4C]

Actually bitcoin banking system is too much good system in crypto market. Bitcoin is a cryptocurrency that utilizes the peer to peer protocol to function with no mediator like the Banking system. According to many crypto enthusiasts, Bitcoin has the potential to destroy the banking system. Bitcoin's primary function is not store of value that's a result of its primary function. Its bank would reduce the amount of deposits in the consumer's account by the value of the credit card bill, thus destroying all of the newly created money so its fully decentralized crypto market syatem.

[BitcoinsGreat]

Hello! What's your opinion could BTC kill banking system? Bitcoin has an advantage over fiatbecause its amount is limited and it can't fall under inflation.Inflation usually is caused by monetary policies of our central banks. Bitcoin is free from inflation, governement control and high transaction fees.Banks can’t control BTC because it has no representative and is fully decentralized. That's why banks are afraid of BTC.

.If u like donate to my address :  19fCVjYVuppjhSvZc4fYimLSjTv63SyoYD

Yes, bitcoin is far better than fiat based system but unfortunately not many people or institutions realize this.
By the way, why should anyone denote you ? This is not a right way to beg for help or donation. I hope you understand it.

[abel1337]

Both Bitcoin and bank have advantages and disadvantages, Everyone knows that banks are centralized and there are people who hates it because of their own reasoning about centralization. On the other hand, for us bitcoin users, a decentralized system is the system that we want to use. Knowing that we have full control with our assets, has a quality of transparency. Even if we have bitcoin on us, We can't really deny that banks are still useful in terms of cashing-out cryptocurrency into fiat.

[simonkn0wsbest]

The Banks are aware, that's why they discourage the use of BTC, but they still support BTC at the back end because they don't want to go out of business, why would we need Bank if flat will be a thing of the past. It is so early to say, I am just stating that it is not impossible. Flat started somehow in the history, why not BTC.

[MCobian]

It is true that bitcoin can kill the banking system, but the government will not allow that to happen. That's why fiat will
still exist, even though bitcoin has managed to defeat fiat. Because the government needs tax revenues obtained from fiat,
while from bitcoin can't get tax. Therefore most likely bitcoin and fiat are running side by side and supporting each other.
That's the best way that might become reality in the future.

[dunfida]

Hello! What's your opinion could BTC kill banking system? Bitcoin has an advantage over fiatbecause its amount is limited and it can't fall under inflation.Inflation usually is caused by monetary policies of our central banks. Bitcoin is free from inflation, governement control and high transaction fees.Banks can’t control BTC because it has no representative and is fully decentralized. That's why banks are afraid of BTC.

.If u like donate to my address :  19fCVjYVuppjhSvZc4fYimLSjTv63SyoYD

Yes, bitcoin is far better than fiat based system but unfortunately not many people or institutions realize this.
By the way, why should anyone denote you ? This is not a right way to beg for help or donation. I hope you understand it.

I dont know on what he do smoke on asking for out some donation after he do talk about Bitcoin and banking system.  Well setting that non-sense aside,
people here on this place or community does know that basic thing when it comes to decentralization aspect of btc and thats why adoption is on the move
but i dont really believe into the thing that it can surpass fiat system anytime soon.We can rather have an option but not totally replacing a system that had been
hardly established and supported by government itself.