Bank's loss crypto's gain?

[cabron]

Good for crypto users. The pandemic had really exposed the vulnerability of the financial system which is why this needs to be replaced by crypto which everyone can bank their own funds in their own wallet that they don't have to submit anything forcing individuals to pay something while their money is already with them. 

There are also banks in my country that ironically declared bankruptcy despite them that can legally launder money.

[Latviand]

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.

Bank will probably become bankrupt if that is what is happening in their operations. Huge outgoing than incoming money is really unprofitable for the banks. But the banking system should do more and become flexible so that they minimize the losses that they are experiencing when that happens.

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.

That's what is good in using and manipulating cryptocurrency, it is centralized and you have full control of your assets. They are the one who are making their own fate towards their money and they can balance their withdrawals and deposits through their personal crypto wallets.

[Japinat]

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.

Bank will probably become bankrupt if that is what is happening in their operations. Huge outgoing than incoming money is really unprofitable for the banks. But the banking system should do more and become flexible so that they minimize the losses that they are experiencing when that happens.

Why would the bank become bankcrupt if due to withdrawals only, as long as they have investors, I think they can pay the withdrawals.
Besides, when someone withdraw, they deposit first, so I don't see the sense here, and if they ran out of funds, the central bank are ready to bail them out.

Enlighten me please.

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.

That's what is good in using and manipulating cryptocurrency, it is centralized and you have full control of your assets. They are the one who are making their own fate towards their money and they can balance their withdrawals and deposits through their personal crypto wallets.

The thing is only few people trust crypto, there's no massive adoption first, so even if crypto looks better as we can do banking without a bank, but without the trust and confidence of people, bank will remain on top.

[radjie]

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?

if there is no solution to solve the problem, chances are people who are very familiar with crypto will leave the bank, they will switch to crypto because crypto itself has the freedom to make transactions, withdrawal in any amount can be done by crypto. even if someone needs money some services on crypto can provide loans and of course over time if there is no solution that can solve this problem, most people will definitely prefer crypto

[shoreno]

if there is no solution to solve the problem, chances are people who are very familiar with crypto will leave the bank, they will switch to crypto because crypto itself has the freedom to make transactions, withdrawal in any amount can be done by crypto. even if someone needs money some services on crypto can provide loans and of course over time if there is no solution that can solve this problem, most people will definitely prefer crypto

depends on the crypto service you are using . on the wallet that i use there are restrictions but i can lift these limits the higher the level my account gets  . when it comes to loans there are loaning service here but they all require a collateral because of our anonymity that fraudsters can easily get away if given an oppurtunity  . on some loan service they need more , more than a collateral such as kyc and others.  those are the problem that people will look out before they decide to switch

[jrrsparkles]

After there is a vaccination for corona I am sure that banks are going to make lot of money because people don't have any money to recover their lost business so they should have to go for loan as their only choice by that time banks will be making their profits of life time.Some banks might go bank rupt but in general they are going to stay here for sure post covid.

[Naida_BR]

After there is a vaccination for corona I am sure that banks are going to make lot of money because people don't have any money to recover their lost business so they should have to go for loan as their only choice by that time banks will be making their profits of life time.Some banks might go bank rupt but in general they are going to stay here for sure post covid.

Maybe coronavirus was a trick to transfer money from people to the banks.
Obviously people all around the world have become economically weakened during the pandemic crisis and their incomes are shrunk. If they want to keep living they have to get loans or sell their wealth in order to continue living on the same pace as before coronavirus.

[AjithBtc]

Myself from India, the government is acting at its worst. The reserve fund that has been kept aside for emergency needs were taken and has been diversified to different plans. As banks weren't able to withstand the situation banks were unified and functioning under RBI.

Banks were losing as people have begun to go on different other form of investments than just saving. Majority of the public sectors which were under the government's control were sold to corporates. Someway people are made to suffer out of the ongoing governance.

[Mauser]

After there is a vaccination for corona I am sure that banks are going to make lot of money because people don't have any money to recover their lost business so they should have to go for loan as their only choice by that time banks will be making their profits of life time.Some banks might go bank rupt but in general they are going to stay here for sure post covid.

Don't forget that the bank business is very skewed, as we have seen in the last 20 years. If bank become in trouble (for example for giving out to many bad loans which start to default all at once) then the losses are to big for the banks to handle. In an economy it might be acceptable to let one bank go broke. But if the all banks do the same trades and become insolvent. Than the government has to bail out banks and the losses are transfered to the government.
So when banks make money it for their employees and shareholders, but when the bank losses a lot of money, it's for the average Joe. Who will have to take over the losses through higher taxes in the future when the government bails out all the banks.

[Twinkledoe]

After there is a vaccination for corona I am sure that banks are going to make lot of money because people don't have any money to recover their lost business so they should have to go for loan as their only choice by that time banks will be making their profits of life time.Some banks might go bank rupt but in general they are going to stay here for sure post covid.

Don't forget that the bank business is very skewed, as we have seen in the last 20 years. If bank become in trouble (for example for giving out to many bad loans which start to default all at once) then the losses are to big for the banks to handle. In an economy it might be acceptable to let one bank go broke. But if the all banks do the same trades and become insolvent. Than the government has to bail out banks and the losses are transfered to the government.
So when banks make money it for their employees and shareholders, but when the bank losses a lot of money, it's for the average Joe. Who will have to take over the losses through higher taxes in the future when the government bails out all the banks.

I have to agree that banks will rise again once this vaccine is available for public. And they are one of the businesses that is in continuous operations even during this pandemic. But I don't think bank's loss is crypto's gain, because not many people even up until now are familiar with crypto. Not many of them will go to crypto as they have no idea how to transact business in crypto.

[abhiseshakana]

Don't forget that the bank business is very skewed, as we have seen in the last 20 years. If bank become in trouble (for example for giving out to many bad loans which start to default all at once) then the losses are to big for the banks to handle. In an economy it might be acceptable to let one bank go broke. But if the all banks do the same trades and become insolvent. Than the government has to bail out banks and the losses are transfered to the government.
So when banks make money it for their employees and shareholders, but when the bank losses a lot of money, it's for the average Joe. Who will have to take over the losses through higher taxes in the future when the government bails out all the banks.

Yup, the government will save banks by using bailout funds. In almost all countries, banks are indeed prima donna and are considered the economic pulse. The government also issued a series of policies to protect bank business. By reason of the stability and safety of the country's economy, the government will save banks from destruction. Banks are a sunset business because banking transactions can now be done by non-bank institutions. At this time there should be an awareness that the banking is old and the fact that there is something about the bank that is causing economic problems and the bank is actually controlled by plutocrats who perpetuate oligarchs throughout the world. We must agree that if the old system cannot work, then the new system applied by several countries that have been proven to work can be applied.

[verita1]

At this time of coronavirus banking activities are decreased in my country Venezuela. Fortunately, we have already implemented the use of electronic banking and payments to businesses and individuals through mobile payment. Because if we did not have these services, banking would play an almost null role at this time.

The future of banking needs a restoration from now on because crypto is responding to the gap they have left by not offering services fairly.

[romero121]

Banks were termed to be the backbone to an economy. So, without doubt governments will try to keep the banks on the safer side. Looking the market condition of cryptocurrencies it looks like pure gain and banks and stocks keep failing. Everyone are clear about the recovery period, none knows how long it'll take. Upon the same countries will plan to be on the safer side without much of downward deviation in the growth rate.

[Kabul]

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 no expert of finance but isn't this is the bank's managament's fault?
In my opinion, civillians do have their choice picking the bank they want to use. Even though there are tons of tired banks but there is or will be other bank to start operation. Crypto currencies aren't in the position of trust enough for people to start putting trust in them and say goodbye to physical banks.

[Sanugarid]

Good for crypto users. The pandemic had really exposed the vulnerability of the financial system which is why this needs to be replaced by crypto which everyone can bank their own funds in their own wallet that they don't have to submit anything forcing individuals to pay something while their money is already with them. 

The current financial system is heavily damaged because this is what we use now, imagine if we are using crypto don't you think that the economy won't go down? same fate will happen because there is no solid financial system with a global catastrophe like this pandemic. Every thing becomes vulnerable when there is a huge cloud covering the city. Now the alternative is rising, I don't think we are going to adopt the crypto, banks are introducing a new form of currency (CBDCs) which we might use in the future alongside with the fiat currency. As I see now, there is no government that will support, fully, the crypto.

There are also banks in my country that ironically declared bankruptcy despite them that can legally launder money.

Could you explain this? How did you know bout this?

[Salauddin1994]

There are many banks whose management system is very bad. Banks don't work properly so many people leave the bank and their existence goes down a lot. In that case, the bank incurs losses and the demand for crypto increases. In crypto, everyone can trade independently. Stocks are more likely to fail because they do not depend on the economy. In the case of banks, if the economy suffers, the rate of the bank decreases but there is no effect on crypto.

[seamusdorakos]

There are many banks whose management system is very bad. Banks don't work properly so many people leave the bank and their existence goes down a lot. In that case, the bank incurs losses and the demand for crypto increases. In crypto, everyone can trade independently. Stocks are more likely to fail because they do not depend on the economy. In the case of banks, if the economy suffers, the rate of the bank decreases but there is no effect on crypto.

I would love to agree with your idea, but for me it seems too unrealistic.
There is no way for crypto to not being involved in global economy, because both of yours "bank" economy and "crypto" economy parts are tied up on people using them.
So if there is an economical issue, for instance people constantly loosing money due to quarantine, banks will suffer the most -> people will try to use crypto as safe haven -> crypto price increases -> shortly after "last" human that wanted to save funds will invest in crypto the price of whole crypto market will fall badly.
Thus being said I believe that crypto market bull run is going to last only if people will still use banks, if whole economy will bloom, otherwise its only a matter if time before whole crypto market will dam.

[CryptopreneurBrainboss]

At this time of coronavirus banking activities are decreased in my country Venezuela. Fortunately, we have already implemented the use of electronic banking and payments to businesses and individuals through mobile payment.

On a larger scales, the banks aren't actually lossing, the electronical banking you speak about in most countries are been operated by the bankers, they just made everything easier by digitizing it. Cryptocurrency isn't yet popular in comparison to the level of patronizers the banks has. In the future we might be able to get a clear comparison but don't think doing that now is of any use.

Don't think there's much connection between the price increase of bitcoin and the banks failing, even though the banks were succeeding in their own way, we'll still be recording success within the space.

[mersal]

There are many banks whose management system is very bad. Banks don't work properly so many people leave the bank and their existence goes down a lot. In that case, the bank incurs losses and the demand for crypto increases. In crypto, everyone can trade independently. Stocks are more likely to fail because they do not depend on the economy. In the case of banks, if the economy suffers, the rate of the bank decreases but there is no effect on crypto.

You mean the stock market will fall? No, it is also getting V shape recovery after the corona crash so no one actually is in loss except the salary class people who are the one ran out of money due to lockdown and big companies are still making the profits.Banks are always kind of bad with the middle class people and they will ask lot of documentation for the loan approval but we have no other choice than banks to get loans that is why they are going to survive even this corona crash.

[Axelseseclevz]

There are many banks whose management system is very bad. Banks don't work properly so many people leave the bank and their existence goes down a lot. In that case, the bank incurs losses and the demand for crypto increases. In crypto, everyone can trade independently. Stocks are more likely to fail because they do not depend on the economy. In the case of banks, if the economy suffers, the rate of the bank decreases but there is no effect on crypto.

You mean the stock market will fall? No, it is also getting V shape recovery after the corona crash so no one actually is in loss except the salary class people who are the one ran out of money due to lockdown and big companies are still making the profits.Banks are always kind of bad with the middle class people and they will ask lot of documentation for the loan approval but we have no other choice than banks to get loans that is why they are going to survive even this corona crash.

Of course, government will not allow banks to bankrupt. They are going to survive in any way. Many people rely on banks and banks is the brain of fiat money that's why government will make sure it will survive. Also crypto is not yet accepted in most country or it was not totally use as payment method like fiat money.