Bank's loss crypto's gain?

[rodskee]

I am not sure about this, even if some people decides to turn to crypto do you think they will be turning fully to crypto or just a small percentage of what they have will be going in that direction? It is difficult to be relying on cryptocurrency because the price can fall and it might be at a time when you will not be able to deal with such losses.

With this volatile behavior for sure not entirely will be place to this currency, those wealth wealth
will continue be stored to institutional financial system.
Wealthy individuals always look for secureness of their assets, they are not willing to gamble with
speculative market, if not all but most for sure.

So, anybody planning to rely on crypto should according to a level they can deal with it and not too much to the extent that they won’t be able to handle it. As for banks, in one way or the other you will likely be in need of making use of a bank.

It's the right mentality, you need to make sure that you are willing to stake the amount of investment
as there's no assurance while you are keeping it as crypto
Value may fall to the much lower level, taking the risk depends from how you understand the system
that you  choose.

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[Granxis]

Whatever banks do, they will not lose the trust of some people, because the meaning of the bank is authority, the meaning of paper money is the trust given by the state. Western European countries with strong banks are in a different situation. In the Middle East and Asia, they have been exposed to many bank frauds over the past 50 years. As a result, the bank's hand is strong.

[coinfinger]

Banks have been around for a long time but this amazing huge technology and the network and bribe enough to control the governments type of banking industry is probably not a hundred years old, sure if you check the history with things like medici family and so forth you would see that "banks" did controlled governments but that was mainly families or business's owned by people, not corporations.

Today a company could change the CEO have another one and continue their life that way without changing, so it is not really one person or a group of people or a family, it is the idea of the company that is crooked. I do not think that crypto could gain anymore than what is also gaining but banks has to continue to grow smaller and smaller in order to make us finally live a life without being under the heavy load of banks.

[Ecito]

I have never known the advantages of crypto but I am sure that in the long term crypto will go up why because digital currency will become the currency of the future

[panganib999]

It is still dependent on the country if cryptocurrencies will gain possession of the people's interest rather than getting engage into banking system because if crypto usage is illegal on that certain country, then people do not have any choice but just to stick into using banks and have no possibility for cryptocurrency usage to get in.

At times like this specially we are in the existence of the covid-19 pandemic, interest of getting into bank have been lessen due to the possible threat of acquiring the virus by going outside which makes people make use of keeping their cash on hand rather than putting it inside banks but this does not mean to be a direct bank's loss for the fact that people just wanted to take care of their money for it is always in need to have a cash on hand to be used for purchasing essential goods and services.

On part of crypto gaining which is possible as long as it is legally accepted in a certain country due to the fact that digitalization or cashless transaction is high in demand at times like this to prevent the possibility of spreading the virus, many people will engage on digital currencies which will probably get the attention of getting into crypto engagement making cryptocurrencies gain popularity and more usage at times like this.

[Twinkledoe]

Whatever banks do, they will not lose the trust of some people, because the meaning of the bank is authority, the meaning of paper money is the trust given by the state. Western European countries with strong banks are in a different situation. In the Middle East and Asia, they have been exposed to many bank frauds over the past 50 years. As a result, the bank's hand is strong.

Banks will always be here no matter what. It is already carved in our community. And not all people that are not using bank services are into crypto. Some just don't want to use bank or not capable of utilizing their services. So I won't say that if there's bank loss, it is always crypto's gain.

[ssamotoev]

Whatever banks do, they will not lose the trust of some people, because the meaning of the bank is authority, the meaning of paper money is the trust given by the state. Western European countries with strong banks are in a different situation. In the Middle East and Asia, they have been exposed to many bank frauds over the past 50 years. As a result, the bank's hand is strong.

So the conclusion to this - the banking era will only stop when current "grownup" generation will extinct.
Statistics shows that most of the crypto market usership age is below 27 or something.
Answering the main question tho - crypto is part of global economy now as well as banks, so there is no clear correlation between loss of one and gain of another

[elisabetheva]

Bank can't do that to their depositors, when they withdraw money, money should be available anytime.

Loans releases should not be taken from investors deposit but from the money of investors or from their borrowings in bigger institution.
It would certainly create a problem if they rely on deposits as most deposits are a simple savings account which is withdrawal anytime, and the definition itself, it should be given anytime.

I believe banks have an institution to help them, but since this is a global crisis, everyone wills struggle and banks not doing proper matching of their money will be expose as it will create a problem.

in my country banks are indeed protected by the state for a certain nominal value for customers if the bank experiences unavoidable losses. therefore the bank is closely monitored by one of the institutions created by the state to monitor every transaction at any time. however, something was overlooked, so that in the end the state had to bail out by providing assistance if the bank lost money.

[AicecreaME]

Majority of the banks around the world are facing bankruptcy. Some big companies even filed for one because this pandemic has put them in financial crisis.

Most people tend to withdraw than deposit these days to ensure their meals and needs at home during the lockdown. Some even applied for loans. With this, majority of the banks are suffering because withdrawal transactions are getting more often than deposits.

I think cryptocurrency would profit somehow since if banks would collapse, there's a high probability some would switch and trust crypto for saving and investing their money. However, crypto would also suffer since in my opinion, it comes hand in hand with central banks.

Central banks engage in different aspects of economy. If banks would collapse, everything will follow. It can create or destroy money which also has a certain reaction to the prices of goods in the market and how the market would behave.

[AjithBtc]

Governments were responsible for growth as well as the lack of development happening in a country. Based on the prevailing scenario around the globe very few governments were functioning active. Few of which are Canada, Vietnam and few more.

In my country banks are in the hands of corporate and government is supportive to the corporate. This makes the corporate people profit and the poor people suffer. Kia motors entered my state few months back, and due to the ongoing sales decline and political corruption they're leaving our state and moving to next state. Banks aren't facing loss, but an image is created in such a way.

[sabbir2world]

You are not 100% right in this. Crypto's goal is not to replace Banks but to enhance the sector with its decentralized model.

[Bezobraznike]

You are not 100% right in this. Crypto's goal is not to replace Banks but to enhance the sector with its decentralized model.

   Sabbir2world maybe OP is not 100% right about this, but I understand his point and I agree with his point. Crypto-currencies
will replace banks in the future, there will be no need for banks in my opinion. With decentralized model each of us will be able
to contribute and help. We have experience with centralized models and we know how banks works, I think most of us are
not satisfied, and when we are not satisfied we are looking for ways to replace that, it will happen with banks.

[Arkann]

Whatever banks do, they will not lose the trust of some people, because the meaning of the bank is authority, the meaning of paper money is the trust given by the state. Western European countries with strong banks are in a different situation. In the Middle East and Asia, they have been exposed to many bank frauds over the past 50 years. As a result, the bank's hand is strong.

So the conclusion to this - the banking era will only stop when current "grownup" generation will extinct.
Statistics shows that most of the crypto market usership age is below 27 or something.
Answering the main question tho - crypto is part of global economy now as well as banks, so there is no clear correlation between loss of one and gain of another

I believe that everything will happen exactly as already said. The fact is that many old people still have not even learned how to use bank cards and continue to prefer cash and I do not believe that they will understand crypto. But how many people will be able to use cryptocurrency today is generally very difficult to say, since the use of cryptocurrency requires certain knowledge to use and store cryptocurrency funds. But I believe that the situation will improve with more education of people, if, together with the introduction of cryptocurrency in a person's daily life, the corresponding knowledge will be taught even in primary schools. I believe that the situation with cryptocurrency will resemble the situation with the computer and the Internet, when with the growth of computerization all over the world, computers began to be installed even in rural schools, since this is a requirement of the modern world.

[goldade]

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 this continues, then Yes, people will eventually stop trusting banks and turn towards crypto as a form of digital bank. It is only natural to turn to other alternatives if an option is not working.
However, it will take quite a while if not years for such transition to take place. Throughout history, it has not been easy to break or change the norms of the society. I believe the Government wouldn't want that to happen too so it will be very difficult for that transition to take place fully.
Like I said, eventually we'll get there with time

[beerlover]

The moment people are capable of spending crypto everywhere they go without being forced to spend cash, if people are not forced to fiat, they will pick crypto a lot more. Even today there are tons of people who will actually keep their money in crypto but if they can actually spend it, I believe all those people who use fiat to buy crypto and wait for it to go up and sell it back to more fiat, all those people (well not all but most) will keep it in crypto and spend that instead of trying to make more fiat.

I believe new phone apps that would allow you to spend bitcoin on places that do not accept bitcoin could be way to start it, you will be spending bitcoin and that company will turn that crypto to fiat to pay the company, and everyone wins, obviously it will take some time to be there.

[ilovealtcoins]

Banks do business in the form of mobilizing capital from the people and on-lend to businesses and people. The biggest problem in the pandemic is that businesses do not have the money to repay their banks. This leads to a decrease in the liquidity of the bank. Once businesses default, they will have their assets taken away by the banks but the banks cannot immediately liquidate them. When a wave of people withdrawing money massively, banks do not have money to pay them. Historically there have been many banks that have gone bankrupt or have sold themselves to larger corporations.
To reduce the risk of bankruptcy they will have to find ways to less cash flow out of their banks.
I think if you want to be safe, you need to diversify portfolios and deposits to combat the risk of bankruptcy of banks.