Bank's loss crypto's gain?

[imstillthebest]

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.

i heard banks are on quarantine too  . i mean they wont allow people to withdrew but some give small withdrawals only  .

lets say if there is no crisis and banks dont do this idea  i think many people will still switch on cryptos because they realized that cryptos can also work just like a bank while other crypto users will prefer banks more than crypto because they are not confident with the volatility  . so your right with your last sentence  . one loss is anothers gain  .

[CHENIEN]

the major impact of coronavirus was bringing more worries to many branches of banks, the truth is, it is not easy as crypto-traders because it also strongly affects cryptocurrency, because the panic movement has existed so there is a possibility of finding more different options for our daily basis, even if we can say that cryptocurrency is the tough and central bank can't handle it I think it is suitable to support them at the same time of need that we are all in place of risk because the bank is also guides us.

[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.

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.

They have to control it so that there will be no influx whenever the majority of their customers start to panic withdrawal. It's also a bad time for them because they shouldn't stop working despite the lockdown.

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.

I think you don't get what I'm saying.

[stopwatch]

Thanks
stopwatch

[Dilerium90]

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?

The banking crisis has long matured in the world and in individual states. We see that the banking system turned out to be ineffective. You may only look at the most powerful country - United States. It has a huge national debt, but you can print as much money as you like and flood the economy with dollars. Deutsche Bank in Germany is a huge minus. It is not normal. Therefore, the crisis of the banking system is inevitable. And many banks will go bankrupt in 2021.

[yhiaali3]

I think this is an important reason but it is not the only reason why people leave banks and go towards Crypto, there are sure to be many banks that have declared or will bankrupt, in addition to you mentioned there are banks that do not have sufficient balance and do not allow people to withdraw their balance as they want, Like the Bank of Lebanon.
There are other reasons, the most important of which are the centralization of banks and their complete control by governments and the ability to monitor or freeze the balance of any customer in these banks without sufficient reasons and so on.
Soon people will realize that this banking system is corrupt and they have to replace it with Crypto, but that needs more time because there are also problems in the Crypto System, the most important of which is the refusal of governments to deal with Crypto so far.

[jademaxsuy]

Of course not. No one can match the central bank that if all of them around the globe combine. Bitcoin may be one of the largest money involve but it can't also take away the fact that fiat is the original and the basis for the value of a certain countries economy. I cannot attest to this claim but I am pretty sure that bank could not loss to cryptocurrency or bitcoin.

But in terms in individual gains the  bitcoin is better than anything elese.

[BrewMaster]

If this continues then people will stop trusting banks and turn towards crypto as a form of digital banks.

i don't know, these things mentioned here are too tiny when you compare them with the horrifying corruption that has been going on in banking system for decades. it even became public after it led to 2008 recession but nothing changed!
people still continue trusting and using the same corrupt banking system and only a very small percentage of them have moved towards bitcoin.

[thesmallgod]

I still believe it is a long way if this revolution is going to occur. People leaving banking and adopt crypto means they will need to be educated about how to use crypto. If you check very well, there still millions of people that can't still access internet not to talk of learning what crypto is. In my country market traders are still putting money at home and still remain unbanked. This category of people are far from adopting crypto

[boyptc]

I still believe it is a long way if this revolution is going to occur. People leaving banking and adopt crypto means they will need to be educated about how to use crypto. If you check very well, there still millions of people that can't still access internet not to talk of learning what crypto is. In my country market traders are still putting money at home and still remain unbanked. This category of people are far from adopting crypto

The pandemic could be one reason why they're leaving their cash at their homes.

Cash / ATM withdrawals have lines due to social distancing and for them to avoid that hassle, they have chose not to put it on the banks.

[so98nn]

This has also happened with the banks which lost their assets due people fading away with huge loans in millions. We know very well how kingfisher company put the bank into debts. Unless and until bank doesn't recover the money from their property everything is jeopardise.

Anyways, the fact that people will start moving towards the cryptocurrency is not much true. Considering country like India, we don't share much of the awareness regarding the cyrpto world.

Only recently people have started using the digital modes of payment when country's PM put-forth the vision of Digital India. I guess India is naive in terms of using electronic payments, and in that how we could expect them to trust whole new world of transactions and virtual currency! 

That will take time.

[Kakmakr]

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?

Banks are not supposed to have 100% of the deposits in reserves, because the government allows them to loan those deposits to other people in the form of short term loans or even home loans. The liquidity of Banks only becomes a problem when the Banks are loaning more money than what they have in deposits... and then too many people rush to the Banks to withdraw their money.

Fractional-reserve banking is the most common form of banking practised by commercial banks worldwide. It involves banks accepting deposits from customers and making loans to borrowers, while holding in reserve an amount equal to only a fraction of the bank's deposit liabilities. Source : https://en.wikipedia.org/wiki/Fractional-reserve_banking

Bitcoin cannot solve that problem, but people might decide to save their money in Bitcoin, if they do not trust their Banks.  

[Rengga Jati]

Money in banks are only about digit, they are about the numbers. But, they are not really existed in the world. So, when everybody wants to withdraw their fiat into cash, this is happening, probably the banks will be bankrupt. And there will be financial problems or crises in the country. however commonly, there is a centralized bank in the country regulated and stated under the government that has the main and big role of the entire banks in the country. So they can help each other. however, if there is no, so, it will be probably for them to go bankrupt. Because they can't meet with the needs of the cash. they only have and save the digits.

[iv4n]

I agree with op and with the topic headline, everyone disappointed will search for alternative, and crypto is that alternative. It's a question who can move completely to crypto, there're many legality questions, but even little by little people will move from banks to crypto eventually.
It's something that happens every day, more people are joining and crypto community is growing, little by little there're more of us, and one day the whole world will be crypto, it's how I see the future, because crypto is better in many ways and it's why crypto will win the race.

[bitbunnny]

I think this is an important reason but it is not the only reason why people leave banks and go towards Crypto, there are sure to be many banks that have declared or will bankrupt, in addition to you mentioned there are banks that do not have sufficient balance and do not allow people to withdraw their balance as they want, Like the Bank of Lebanon.
There are other reasons, the most important of which are the centralization of banks and their complete control by governments and the ability to monitor or freeze the balance of any customer in these banks without sufficient reasons and so on.
Soon people will realize that this banking system is corrupt and they have to replace it with Crypto, but that needs more time because there are also problems in the Crypto System, the most important of which is the refusal of governments to deal with Crypto so far.

This is not completely true, at least not in countries of western democracy. Banks don't babkrupt over night and governments don't have the insight in.customers data without any reason and without regulatory body.
Yes, cryptocurrencies are alternative to banking.system however ww still can't rely fully on.crypto and ignore banking services. Everything has good and bad sides and so cryptocurrencies and banks also, there is no black and white situation.

[Kasabus]

I think it's the same because the actual use of crypto is still not widely applied even by the digital market, if bank withdrawals are limited then that will also apply to those who cash their crypto still through banks, because even withdrawals in local exchanges have limits as well because withdrawals are still related to banks. So I don't think things like this can be a boon for crypto unless the actual use of crypto has already been widely applied so maybe people will easily switch to crypto.

If certain banks will continue to cease their operations due to bankcruptcy, then it will develop more urge for people to have their own way of banking like what crypto has bee offering. This might not be realized nowadys but i'm postive that in the next decade, more people will be interested in it since they will be controlling their own money without the presence of banks.

[Zackgeno96]

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?

Banks always have less than 10% of what people deposit right there in the banks in the physical form, rest of the money is paid to the people in form of loans on which banks gain interest and then pay a small percentage of that interest to the depositors who had money deposited in their savings accounts. Now in the pandemic people are not able to pay loans, banks aren't working efficiently and on top of it the general population needs cash for their survival so how can banks pay the people what they are asking as whole. But this only makes the crypto a preferable choice over cash and not that the demand for crypto banks will increase because people are still afraid of cryptocurrencies because of the number and magnitude of scams related to cryptocurrencies.

[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.

i heard banks are on quarantine too  . i mean they wont allow people to withdrew but some give small withdrawals only  .

I don't think so, this is the time that people need money, so they will have to give what their client is withdrawing.
They can;t be in quarantine as they offer basic service, yes, banking belongs to the basic service but they are imposing the proper measures when going in the bank, to tell you, I just withdrawn some funds recently, and the new normal was what I witnessed.

[yohananaomi]

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.

i heard banks are on quarantine too  . i mean they wont allow people to withdrew but some give small withdrawals only  .

I don't think so, this is the time that people need money, so they will have to give what their client is withdrawing.
They can;t be in quarantine as they offer basic service, yes, banking belongs to the basic service but they are imposing the proper measures when going in the bank, to tell you, I just withdrawn some funds recently, and the new normal was what I witnessed.

all return to the role of the government to provide an explanation so that there is no large-scale withdrawal of funds at the bank, because it will clearly trigger a large loss to the state no longer to the bank whose customer funds are taken.
because the state must provide bailouts to banks for all transactions that result, so banks are unable to pay customer funds.

but if there is a role for the government and can provide explanations that are acceptable and willing to go down to provide assistance. will provide peace for customers not to simultaneously take their funds at the bank.
information and explanations in difficult times like this are needed so that there is no neglect from the government of its citizens

[Heart18]

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.

This is absolutely right. You had made such great and very comprehensive answer, mate. And I agree every words you said, that's actually true.