The Indian Bank System is Faulty, and Bitcoins will be it’s replacement.

[Juggy777]

I often invest in Indian companies using my friends accounts as I don’t live there, and I was advised to invest in the banking sector by them but luckily I didn’t because I wasn’t confident about the bank’s operating there. Further it was a gut call not to invest in Indian banks and so far I have been proved right as a big bank called PNB defaulted their customers, and now RBI which oversees all the Indian banks has imposed a withdrawal limit on Yes Bank by claiming there’s financial irregularities.

Due to these incidents I believe that people will soon give up on banks, and move to bitcoins since it’s suddenly become legal to own it in India. Also I know that we often say both supplement each other but in my personal opinion Bitcoins is safer and better to use as you'll no longer need to worry about your bank closing down or putting surprise withdrawals in place.

If you live in India what do you’ll think will majority of people shift to bitcoins, and avoid keeping money with banks or will they keep trusting banks as usual?.

Sources:

https://en.wikipedia.org/wiki/Punjab_National_Bank_Scam

https://www.moneycontrol.com/news/business/yes-bank-withdrawal-limit-heres-the-full-text-of-governments-notification-5008291.html

https://news.bitcoin.com/bitcoin-legal-india-supreme-court-verdict-cryptocurrency/

[Hydrogen]

Do you remember when chess masters were defeated by computers. People remarked upon how artificial intelligence was improving and how robots would soon be taking our jobs.

Someone should make a bitcoin commercial about banks being defeated by bitcoin in a similar vein.

"Did banks make a mistake costing you precious time and money." Use bitcoin instead, it will solve every problem you ever had using a bank. "No late or hidden fees. No balance minimums. No bouncing checks. No debiting of your account without permission by sneaky 3rd party apps with your financial info."

Bitcoin and crypto still have so much raw potential. Perhaps someday we will see it realized.

[fiulpro]

Replacement for a banking system?
No
Banking system is faulty in every country , the government itself is.
Till the time corruption doesn't go away for good nothing can be taken as 100% efficient , unfortunately a volatile Currency cannot replace a banking system , banks means security , if you tried to take our 10$ today , you would have to pay fee more than the 10$ itself in transferring and selling and the price might die any moment and you will have to wait for the correct time to encash.

[igglyboo92]

I would think Indias demonetisation of large banknotes would also encourage distrust of the Indian rupee currency and banking system. Will they turn to Bitcoin though?? That is a big stretch.

There is not that much trust in Bitcoin yet. Its still very young.

[Findingnemo]

Defaulted loans are the only reason why Indian banking system is under risk, so if their central bank regulates the loan categories then everything will be resolved there but this can be a sign for people why we shouldn't trust our banking system for large amount of money deposits and savings.

[Lucius]

People in India first need to know about Bitcoin, then they need to know how to use crypto wallets, and they need to have places to pay in Bitcoin. Given that the vast majority of Indians live in very underdeveloped areas, are uneducated, and lack the necessary infrastructure, how can we expect them to adopt new technology and reject banks?

The fact that something is not forbidden does not mean that people actually want it, and perhaps the best example of this is countries that have completely legalized Bitcoin, and no drastic changes have taken place in relation to banks and the financial system. Of course, drawing a parallel between Japan or Germany towards India may not make much sense given the level of economic development and educational level, but it shows us that it is very difficult for people to give up their old habits, and that they will continue to use the banks because no matter what, they still have confidence in them (or perhaps better to say, they do not have too much choice).

[joniboini]

I would think Indias demonetisation of large banknotes would also encourage distrust of the Indian rupee currency and banking system. Will they turn to Bitcoin though?? That is a big stretch.

They still have the monetary and fiscal tools to temporarily fix that, and hopefully, it won't be as bad as Venezuela. But the problem is there[1][2].

Bitcoin would be a good alternate currency but the whole fiat system is too powerful. If it ever changes, it will take a lot of time.

[1] https://theprint.in/opinion/deposits-after-demonetisation-rose-by-rs-6-trillion-and-yet-bank-credit-fell-study-shows/375880/
[2] https://www.firstpost.com/india/44000-jobs-lost-in-maharashtra-in-demonetisation-year-says-state-economic-survey-document-red-flags-reducing-number-of-industries-8122851.html

[Darker45]

The Indian banking system, as with all other countries' banking systems, is definitely faulty. Everybody knows that, but is Bitcoin perfect enough to replace the banks? Bitcoin is definitely much better than banks, but going as far as saying Bitcoin will replace the banks might be too much for now.

There are several pros and cons in banks as there are in Bitcoin. The central banks are shadier than commercial banks as they are the ones involved in printing money out of thin air, putting up unfair regulations and policies, and so on. But overall, there are so many banking services that Bitcoin cannot give for now. Taking care of your savings with interest and insurance is a service the banks give that Bitcoin cannot, at least for now. Offering micro and macro loans with or without collateral is another service the banks offer which Bitcoin cannot. Offline services with or without sophisticated technological equipment are offered by banks, too. These are just a few things that I would say the banks are somehow good at which Bitcoin lacks for now.

[Yatsan]

Too early. Banks are faulty no matter where you go, and it's really just a matter of how the government helps the banks with their processes and stuff. As for bitcoin replacing banks, like what I said, it's way too early. We're just halfway into the development of it's system to integrate to the world, maybe not even half. India is an entire country, a remodel of the entire system would take years if not decades. I'm not saying it's impossible, just that it'd either be very difficulty or it'd take a long time.

[abhiseshakana]

The Indian banking system, as with all other countries' banking systems, is definitely faulty. Everybody knows that, but is Bitcoin perfect enough to replace the banks? Bitcoin is definitely much better than banks, but going as far as saying Bitcoin will replace the banks might be too much for now.

There are several pros and cons in banks as there are in Bitcoin. The central banks are shadier than commercial banks as they are the ones involved in printing money out of thin air, putting up unfair regulations and policies, and so on. But overall, there are so many banking services that Bitcoin cannot give for now. Taking care of your savings with interest and insurance is a service the banks give that Bitcoin cannot, at least for now. Offering micro and macro loans with or without collateral is another service the banks offer which Bitcoin cannot. Offline services with or without sophisticated technological equipment are offered by banks, too. These are just a few things that I would say the banks are somehow good at which Bitcoin lacks for now.

For variations in the completeness of the type of transaction to date, the bank is still in the lead. Especially is banking services such as letters of credit and cross-border business transactions with great value.

It's just that the bank is a sunset business because now the bank's work or services are replaced by banking 5.0, namely by non-bank online platforms such as (Skrill, Paypal, Alipay). In addition, the banking system with interest is something that causes economic inequality in society. We can learn how the internet kills the newspaper industry, how the market place kills many retail companies, if banks don't evolve, sooner or later it can't exist not only because of blockchain technology but because competitors from banking 5.0 (online payment platforms).

India is a country that is fast absorbing technology and they are very open to technological developments, so if bitcoin is adopted in India, its development will be very rapid. It's just that the demographics of the Indian population today are still dominated by older generations so it will be difficult for them to accept change. Maybe some private banks have a poor track record, but the older generation still assumes that the bank is the safest place to stray money, let alone state banks provide compensation if there is a loss caused by the bank.

[exstasie]

People in India first need to know about Bitcoin, then they need to know how to use crypto wallets, and they need to have places to pay in Bitcoin. Given that the vast majority of Indians live in very underdeveloped areas, are uneducated, and lack the necessary infrastructure, how can we expect them to adopt new technology and reject banks?

You underestimate India. They are already the second largest market of digital consumers in the world, not to mention the second fastest growing. Here are some metrics to consider:

560 million internet subscribers in 2018, second only to China.

Indians have 1.2 billion mobile phone subscriptions and downloaded more apps--12.3 billion in 2018--than residents of any other country except China.

"Our analysis of 17 mature and emerging economies finds India is digitising faster than any other country in the study, save Indonesia"

"India will increase the number of internet users by about 40 per cent to between 750 million and 800 million and double the number of smartphones to between 650 million and 700 million by 2023," it said, adding the potential for India's internet subscriber base could reach 835 million by 2023.

Internet subscriptions and smartphone usage are surging. Meanwhile there are 200 million unbanked in the country and increasing distrust in the banking system. If BTC can continue its bull market for the next year or two, this could all result in a perfect storm that encourages a rush of BTC adoption in India.

Who knows? I wouldn't rule it out.

[hatshepsut93]

Due to these incidents I believe that people will soon give up on banks, and move to bitcoins since it’s suddenly become legal to own it in India. Also I know that we often say both supplement each other but in my personal opinion Bitcoins is safer and better to use as you'll no longer need to worry about your bank closing down or putting surprise withdrawals in place.

People were saying that Bitcoin will soon™ replace fiat 3 years ago, 5 years ago, and pretty much as soon as Bitcoin started. But adoption is still low and grows very slowly, there was countless number of events in the recent history that were hoped to boost Bitcoin adoption - wars, economic problems, political turmoil, epidemics and so on, and still nothing happened. Why should this time be different?

[Harlot]

Considering the legal aspect the cryptocurrency industry in India in I don't think this is a big possibility.  The Indian government particularly the RBI are well known to be against cryptocurrencies as well as businesses related into it, they have pushed away crypto businesses out of business with their bank bans as well as trade restrictions to give in favor of their future state-issued crypto. So I wouldn't expect them to just become pro-Bitcoin just because of this banking incidents they have when their own RBI is against it. Right now there have seem no developments with Zebpay and other crypto businesses regarding their issues against RBI and all they just do is delay and delay their decisions. When legality is the issue here I won't expect their citizens to mass adopt Bitcoin at this instant.

[Findingnemo]

Due to these incidents I believe that people will soon give up on banks, and move to bitcoins since it’s suddenly become legal to own it in India. Also I know that we often say both supplement each other but in my personal opinion Bitcoins is safer and better to use as you'll no longer need to worry about your bank closing down or putting surprise withdrawals in place.

People were saying that Bitcoin will soon™ replace fiat 3 years ago, 5 years ago, and pretty much as soon as Bitcoin started. But adoption is still low and grows very slowly, there was countless number of events in the recent history that were hoped to boost Bitcoin adoption - wars, economic problems, political turmoil, epidemics and so on, and still nothing happened. Why should this time be different?

Whole banking system is not collapsing in India,its just one bank called YES and it already got support from other banks so there is no big issue in the near future but other few private sector banking also in the same situation so if more banks go crisis then people will lose trust on the private sectors and will choose government based banks so bitcoin is still not an option for them yet.

But these things might change the people slowly which is the real adoption for that few more decades required.

[yoshka]

It seems to me that this is quite possible. But at the moment, society is not yet fully prepared for this. Although I fully admit that in the near future events may unfold in this way.

[Harlot]

I have only a common idea about Indian banking system. It isn't very different from any central bank in the world. I can't support the idea of giving your money to banks.
Interest rates close to zero, centralized control, and no guarantees sometimes aren't cool.
Cryptocurrency is a conception of being your own bank, who needs a third party in 2020?

The RBI has actually more control than you think. They don't just lend and print money they also control what mode of payment their citizens can be use in their country. Like what I said in my above post they are also against crypto in terms of it being a legal tender in the country and they did a lot of things to keep it that way as well as to be unfair on crypto related businesses. Yeah sure that the part where you can keep your money on your own is there but banks have other functions like lending out money as well as underwriting acitivities, Bitcoin cannot simply make banks lose their businesses just because othe rpeople start storing their money in Bitcoin.

[exstasie]

People were saying that Bitcoin will soon™ replace fiat 3 years ago, 5 years ago, and pretty much as soon as Bitcoin started. But adoption is still low and grows very slowly, there was countless number of events in the recent history that were hoped to boost Bitcoin adoption - wars, economic problems, political turmoil, epidemics and so on, and still nothing happened. Why should this time be different?

People make the mistake of assuming Bitcoin adoption is event-driven, that some fundamental change is going to magically drive everyone towards BTC all at once. A "killer app" or some other nonsense like that. That's the wrong approach in my opinion.

This will be an organic process based on network effect. A better approach is modelling technology adoption curves. Here are some historical examples of other technologies that were adopted by the masses:



Where does BTC fit into that chart? I would say we are still below 10% market penetration, in the "early adopter" phase, which means adoption has yet to go vertical:

[hatshepsut93]

This will be an organic process based on network effect. A better approach is modelling technology adoption curves. Here are some historical examples of other technologies that were adopted by the masses:

Comparing Bitcoin's adoption with hugely successful inventions is cherrypicking, there's no guarantee that Bitcoin will ever be as adopted as they are, because not every new technology gets widely adopted - some maintain stable and rather small level of adoption, other just flop completely. Take something like Linux as an example - it was invented so long ago, and people were also saying that soon we will enter the era of open source software and things like Windows or MacOS will become obsolete, but still Linux has only a small share of desktop platforms.

[exstasie]

This will be an organic process based on network effect. A better approach is modelling technology adoption curves. Here are some historical examples of other technologies that were adopted by the masses:

Comparing Bitcoin's adoption with hugely successful inventions is cherrypicking, there's no guarantee that Bitcoin will ever be as adopted as they are, because not every new technology gets widely adopted

I don't mean to say Bitcoin is guaranteed to achieve mass adoption.

I'm pointing out that if Bitcoin is adopted by the masses, then past price performance isn't useful for extrapolation at all. Adoption and price would follow a completely different model. The notion of mass adoption implies an S-curve with exponential growth.

This is an important possibility to prepare for, and it's why I believe one should never sell all their BTC no matter how high the price goes.

[avikz]

Due to these incidents I believe that people will soon give up on banks, and move to bitcoins since it’s suddenly become legal to own it in India. Also I know that we often say both supplement each other but in my personal opinion Bitcoins is safer and better to use as you'll no longer need to worry about your bank closing down or putting surprise withdrawals in place.

If you live in India what do you’ll think will majority of people shift to bitcoins, and avoid keeping money with banks or will they keep trusting banks as usual?.

After seeing the market today, do you still think bitcoin can be a viable replacement of banking system? I don't think so!

Bitcoin is a speculative asset where people from all around the world perticipates and make money out of the bumpy rides of pricing fluctuation.

Bitcoin has not yet matured enough where it can be seen as a viable solution to replace banking system. Every system is faulty and it needs to change itself in order to cope-up with the changing needs of the consumer. Banking system in India is going through such kind of time. But the trust is still intact because there is no other option available.