Bank's loss crypto's gain?

[Wysi]

Apart from the corona if you look at other world affairs banks going bankrupt is common, in countries like India due to waiver of bad loan banks are losing it's reputation and had to be merged with other banks and set a limit for withdrawal, same goes with Lebanon as well. As per one of the source the banks in Lebanon have only 1/4th the about deposited by civilians which is enforcing them to set a weekly limit for withdrawal until they find a way out. If this continues then people will stop trusting banks and turn towards crypto as a form of digital banks.

Kindly share your opinions?

[btc_angela]

I'm not familiar with Lebanon, but government have bailout plans to help out, like the US stimulus bill of record proportions. It's supposedly a relief package so probably the government of Lebanon might go that route, or worst print more money. And yes, this could also create more demand to bitcoin and the rest of the crypto, and with unlimited cash, we might see people going to hedge it against BTC, so I expect the demand grow higher with this kind of bailouts from governments around the world.

As far as trusting banks, the institutions have been with us for centuries, and most crypto enthusiast doesn't trust them anyways.

[exstasie]

Apart from the corona if you look at other world affairs banks going bankrupt is common, in countries like India due to waiver of bad loan banks are losing it's reputation and had to be merged with other banks and set a limit for withdrawal, same goes with Lebanon as well. As per one of the source the banks in Lebanon have only 1/4th the about deposited by civilians which is enforcing them to set a weekly limit for withdrawal until they find a way out. If this continues then people will stop trusting banks and turn towards crypto as a form of digital banks.

Kindly share your opinions?

Sure, eventually. You have to consider how hard it is to break established cultural norms though. Banking goes back at least to 1,500-2,000 BC (4,000 years ago). It will take a lot for the world to transition to a new monetary paradigm. Banks have been failing for centuries and even millennia, and many currencies have been reset over the years by central banks. Regardless, the paradigm continues to persist.

"Being your own bank" may eventually become the new paradigm, but that could be decades or even centuries away. One thing I've learned over the years is to never underestimate the likelihood that the status quo will persist. Humans invariably tend towards stability first and foremost until they are pushed to the limit, which is when revolutionary change finally happens.

[Darker45]

First, if the banks have much larger withdrawals than deposits, then that would simply mean they should be closing. If the money going out is bigger than the money coming it, then there is no profit to begin with. These banks should cease operating. This is not a failure of the banking system; this is a failure of the particular banks caught in such a situation.

Second, crypto is in a way personal banking. Those who have crypto accounts or wallets are, in one way or another, already banked. They have a storage, a currency they can spend and withdraw anytime, and a payment system. They don't need banks anymore with that.

[boyptc]

I think they're putting limits so that they will still have enough funds. You know that this situation is understandable and people are in panic that's why setting up a limit per withdrawal is a must.

What if those huge deposits will start withdrawing their money at the banks at the same time? The advantage of holding bitcoin is that you hold your own funds and there's no need for a third party.

[davis196]

Apart from the corona if you look at other world affairs banks going bankrupt is common, in countries like India due to waiver of bad loan banks are losing it's reputation and had to be merged with other banks and set a limit for withdrawal, same goes with Lebanon as well. As per one of the source the banks in Lebanon have only 1/4th the about deposited by civilians which is enforcing them to set a weekly limit for withdrawal until they find a way out. If this continues then people will stop trusting banks and turn towards crypto as a form of digital banks.

Kindly share your opinions?

I'm sure that India and Lebanon have central banks,that will try to save their banks,if they fail to save the banks,there will be bankrupts.However,the disaster inside the fiat financial system won't lead more people into using cryptocurrencies.If a bank goes bankrupt,all the people who have deposited money there will lose their savings,so they won't have the money to buy cryptocurrencies.
Many merchants still aren't accepting cryptocurrency payments for foods and remedies(which are the most important good in a crisis).What's the point of buying crypto coins,if we can't use those coins to purchase food and remedies?

[FaisonSiu]

Many places bitcoin beginning to announce the withdrawal from the system. Is there anywhere that has not encountered this problem?

[abhiseshakana]

I personally think there are a number of reasons why banks experience bankruptcy, so I start to explain things that are the most rational to things that are ignored because they are religious.

1. The banking business is a sunset business because of banks 5.0. Banking can now be done by non-bank institutions such as Paypal, Skrill, Alipay, and other payment platforms and market places. So far, banks are synonymous with institutions that can provide loans when customers need capital, now many online applications that provide loans in a matter of hours starting from a small nominal up to USD 10,000.

2. Saving is already considered millennial as an old-fashioned thing, they prefer investment through an equity crowdfunding company, with an investment value that is not too large.

3. The majority of banks use a fractional reserve system, in simple language the amount of money printed is many times more than the real collateral owned. So, when there is a massive withdrawal of money by bank customers, will collapse. Not the wrong bank but the system used is wrong.

4. The majority agree that all religions teach goodness, regardless of whether it is right or wrong to only explain the phenomenon that occurs. In the Islamic religion, the system of interest imposed by banks is included in the category of very large sins. Conditions that occur in the world today are a significant increase in the number of Muslims throughout the world equally. the forecast of the end of time is growing religious awareness so that many Muslims avoid conventional banks and keep their money in Islamic banks.

The momentum of fear of using physical money because of the potential to spread the coronavirus can have a positive impact on the education and development of digital currencies (E-Money, cryptocurrency, virtual currency). It's just that in these uncertain conditions, people need guarantees so that the electronic money (e-Money) will be more an option than a cryptocurrency.

[fiulpro]

It is not the gain of any party here , nor bank , nor cryptocurrencies .
The cryptocurrencies can only work , if the bank is actually in tune with them , it is all connected .
People buy and sell according to their banks and they play an important role in letting people involved with the cryptocurrencies so I do think , if bank falls , cryptocurrencies will also have a major setback .
Yes people might be switching to cryptocurrencies for buying and selling but at the same time the banking system is really really important and for the time being , where people are not able to return loans and pay off, I think this will pass and people will be able to return things to normal very soon .

[avikz]

Apart from the corona if you look at other world affairs banks going bankrupt is common, in countries like India due to waiver of bad loan banks are losing it's reputation and had to be merged with other banks and set a limit for withdrawal, same goes with Lebanon as well. As per one of the source the banks in Lebanon have only 1/4th the about deposited by civilians which is enforcing them to set a weekly limit for withdrawal until they find a way out. If this continues then people will stop trusting banks and turn towards crypto as a form of digital banks.

Kindly share your opinions?

Your statement is not entirely true here, especially about Indian banks. Recently we had two cases - PMC Bank and Yes Bank. While Yes Bank has now come out of problems because it is getting funds from the government and other big banks, PMC bank is still facing the crisis. But you need to understand what happened to PMC Bank. It is a classic example of fraud management.

The management of PMC bank lent 87% of their deposits to only a single company called HDIL. The company failed big time and hence PMC is facing the heat. They are still in talks with the government for bailout funds but things don't seem to materialize yet. It has nothing to do with the overall financial crisis.

Ideally, in such scenario, cryptos should have got immense popularity. But they aren't getting that either. Because of the worldwide uncertainty during this virus outbreak, a lot of people have lost their jobs. Millions had to close their business. So the world is now walking through a very tough time. So I don't think we will see an immense gain in crypto prices anytime soon. It's all about time, mate! Things will become normal but as of now, nothing really looks very strong for cryptos, nor for the economy in general! 

[bits4books]

TS you overestimate the majority of people thinking that if they are disappointed in the banks, then everyone will run to cryptocurrency.
There are enough examples in history for this - in the end, banks just changed a LITTLE/just changed their name/reorganized, people were a little dissatisfied, and then everything went back to its place.
Fiat reject is too radical a step - at the level of abandoning the gold standard

[Gozie51]

I think the banking system and cryptocurrency business are related some how that a boost in one would have an effect on the other. Bank might have lost from crypto because investment in crypto was reduced drastically and of course, gains were not made and monies won't get to banks.

[Wysi]

I think they're putting limits so that they will still have enough funds. You know that this situation is understandable and people are in panic that's why setting up a limit per withdrawal is a must.

What if those huge deposits will start withdrawing their money at the banks at the same time? The advantage of holding bitcoin is that you hold your own funds and there's no need for a third party.

Yes exactly that's where it leave an opening for crypto as users don't have control over their funds when they save it in banks which they have started to realise and Bitcoin can be their next choice especially of those who don't mind taking risks and those who just wants control over their money but don't wanna make any profit or loss ou of it can opt for stable coins.

[boyptc]

I think they're putting limits so that they will still have enough funds. You know that this situation is understandable and people are in panic that's why setting up a limit per withdrawal is a must.

What if those huge deposits will start withdrawing their money at the banks at the same time? The advantage of holding bitcoin is that you hold your own funds and there's no need for a third party.

Yes exactly that's where it leave an opening for crypto as users don't have control over their funds when they save it in banks which they have started to realise and Bitcoin can be their next choice especially of those who don't mind taking risks and those who just wants control over their money but don't wanna make any profit or loss ou of it can opt for stable coins.

Having our wallets, we can fully have control with our money.

Just never forget to use wallets that gives your private keys so that you can access it anytime you want. Avoid the wallets that doesn't provide seeds.

[el kaka22]

Banks are actually dealing with such thin margins on the billions of dollars they have that people are forgetting how big their budget is. I mean when you want to invest 1 thousand dollars that is quite easy, you can find multiple stuff, when you want to invest 1 million its still quite easy, 10? easy, 100? gets harder.

When you want to invest ONE BILLION DOLLARS into anything, that is too much, that is leaving you with only few options you can use and banks are dealing with only those options and we are talking about trillions here, trillions of dollars trying to keep churning up profit for the shareholders is not something easy. What do they end up doing? They literally just risk it all to make more money, they do very risky moves and that results with them going bankrupt as soon as things turn out nothing like they expected.

[arowana33]

Bank get down now after corona virus and need time for recovering and back to higher price, bitcoin need the same way how effective get many investors want to hold and buy bitcoin then holding more than one or two year to get back bitcoin with higher price, although halving just few weeks later but bitcoin still down.

bitcoin will be up in a few weeks, just after halving, we all wait for it
answering the main question - imo no, crypto is in the same economical boat as banks, so if banks will lose a lot - we'll meet crypto at the bottom of the sea

[Twentyonepaylots]

I think they're putting limits so that they will still have enough funds. You know that this situation is understandable and people are in panic that's why setting up a limit per withdrawal is a must.

Obviously, banks are setting a higher bar on withdrawal since people are panicking and you can already see it on different countries that is hardly hit by the virus and economic crisis, mostly in major part of europe. It is a MUST for a bank to survive a hell of the time, not just for them but also for their clients not to overly get their cash. Banks are not just for storing but also for controlling money flow.

What if those huge deposits will start withdrawing their money at the banks at the same time? The advantage of holding bitcoin is that you hold your own funds and there's no need for a third party.

I guess that is not possible. Bitcoin have so much potential in this kind of situation, on top of that is the ease of third party in every transaction what only you need to think of is the fee.

[mdgabrielzim]

In general, everyone loses, without money, no market works. But this is a good opportunity for people to see the advantages of using cryptography (here in my country people are flocking to banks to withdraw money).

[kooboat]

The banking situation is almost the same in many developing countries across the globe. I guess there is still more to be done by the traditional banks otherwise they would keep on collapsing or breaching financial laws that cause them to merge. The world financial economy is changing and is about time banks in developing adapt before they are left behind.

[Japinat]

With the situation, no doubt bank are losing money.

There is a panic happening, people will deposits will certainly withdraw their money to secured the funds needed during the home quarantine and we don't know when the quarantine will be over or the life to be back on normal. When there is a massive withdrawal, banks will be short on its cash inflows as they can't also collect loans now as people are losing their job and business establishment are close.

Hopefully this would result to the growth of bitcoin, one will suffer, the other should benefit and that is bitcoin IMO.