Are people losing faith from centralized organizations?

[GideonGono]

For so long I think that yes people are losing faith from centralized organizations for a long time now that is why we are increasing here in crypto,
They want to move into decentralized and we have seen the number of people joining crypto has been increasing for a long time now.
I don't think that those people just want to gain profit because of the popularity of Bitcoin I am sure some of them wants the crypto because it is decentralized.

[South Park]

When I see the picture of our banks in my country's, it seems lots of people in the line to withdraw their funds. An analysis of my country says that people keeping funds on their hands instead of keeping into the bank. And it hasn't happened before where a huge amount of funds holding by population. Bank reports saying, clients are just withdrawing their money, deposits are very low by comparing with withdrawal. That's why people encountering lots of questions from the bank regarding withdrawal. Most likely due to the global pandemic, people want to keep funds on their hands.

I don't know if it is happening in your country as well. But seems people losing their faith from centralized organizations like a bank. It would happen due fair of bankruptcy or due to need money on emergency situations. On the other hand, gold and bitcoin movements saying that new investors getting in. Most probably people want to be their own bank.

What's your thought and what's the real situation of your country?

I am seeing something very similar happening in my country but that is to be expected, the performance of the economy has been really bad during the previous months and it is understandable that people are losing confidence in centralized institutions like banks and governments to deal with this crisis when we have seen that their management of the crisis is precisely what has allowed us to reach this point in which many people are desperate to try to find a job and a way to sustain themselves.

The only bad thing is that this is not enough to cause that adoption of bitcoin to really go up and unfortunately people will have to get really desperate for that to happen.

[adzino]

When I see the picture of our banks in my country's, it seems lots of people in the line to withdraw their funds. An analysis of my country says that people keeping funds on their hands instead of keeping into the bank. And it hasn't happened before where a huge amount of funds holding by population. Bank reports saying, clients are just withdrawing their money, deposits are very low by comparing with withdrawal. That's why people encountering lots of questions from the bank regarding withdrawal. Most likely due to the global pandemic, people want to keep funds on their hands.

I don't know if it is happening in your country as well. But seems people losing their faith from centralized organizations like a bank. It would happen due fair of bankruptcy or due to need money on emergency situations. On the other hand, gold and bitcoin movements saying that new investors getting in. Most probably people want to be their own bank.

What's your thought and what's the real situation of your country?

If they are losing faith from centralized organizations, then why is there such a huge "line" in the bank you use? Isn't it because they trust bank to store their money? And, there are ATMs, why would people want to stand in line to withdraw money (unless they are withdrawing huge amount. But cards do have higher limits. You will need to let your bank know first though).
They are now withdrawing money probably because due to some monetary policy change done by your government so that they don't keep their money deposited, but instead invest it somewhere.

[Yatsan]

Most likely the way I have observed the situation in the country where I reside, the reality speaks that people do really tends to hold their own money or physical cash instead of putting it into banks most specially because of the existence of the pandemic wherein having cash on hand is really in need to avoid falling in line for too long and prevent yourself from going outside just to make withdrawal transactions on bank counters or even at ATMs.

At this point of time, maybe the reason why people are doing such is not duly because they are losing faith on banks or other centralized organizations. It is just that at times like this, people only thinks of having cash on hand or if not, having cash balance on digital form using mobile apps to access their funds. Maybe people mostly think that storing money in banks are not necessary for now because there are lots of expenses that are needed to attend to and having a cash on hand will provide less hassle compared to storing it on banks. Maybe after this pandemic, people will find reason to store up and hold their moneys on banks but for now that cash is always in need most of the time to buy necessities, people will keep on withdrawing their money so that they would have something to spend for emergency purposes and other needs.

[bayu7adi]

Withdrawing money does not mean that he has lost confidence in a bank. During a pandemic like this, many people have lost their jobs and most of the rest have decreased their income.  That means, another option to stay survival in this life, then their savings will be the last aces that will be sacrificed to eat and pay bills ...

For now, maybe the existence of Bitcoin will experience an increase in trend.  That's because a lot of free time is owned by people who are definitely looking for additional income ... And Bitcoin must be one of the objects of their research, how can Bitcoin make money

[Botnake]

Withdrawing money does not mean that he has lost confidence in a bank. During a pandemic like this, many people have lost their jobs and most of the rest have decreased their income.  That means, another option to stay survival in this life, then their savings will be the last aces that will be sacrificed to eat and pay bills ...

True,  people withdraw money because they need cash at the current situation, the only thing that could lose their faith on bank is when bank can't fulfill their obligation to provide the money requested. These kind of banks should never be trusted, but banking industry is big, and it's global so I don't think a problem with few banks could affect its entirety.

For now, maybe the existence of Bitcoin will experience an increase in trend.  That's because a lot of free time is owned by people who are definitely looking for additional income ... And Bitcoin must be one of the objects of their research, how can Bitcoin make money

Bitcoin is good as an investment, however, people put money in the bank to save, not to invest and even if it's easy to withdraw your money from your wallet, but the volatility is going to affect your money, this does not happen in the bank as cash is stable.

[ethereumhunter]

People withdraw their money from the banks is because they need that money to buy foods and else to survive in this pandemic. They can not survive if they don't have money in their hands because not all countries using digital money (credit/debit card) in many stores, and many stores still use physical money. People are not losing their faith from centralized organizations, but these situations are very tough for them, and they still survive without knowing until when this is over.

[stompix]

What's your thought and what's the real situation of your country?

Well, a lot of people are going to be surprised probably but around here in Europe deposits have actually grown, almost all countries have seen savings increasing and bank account growing. My total surprise was Poland with an increase in banking savings of 10 billion PLN, that's 2.5 billion$ a month.

Also, I've seen a change in people's habits around here, probably because of the virus.
In the first days of the month, the workers from the sanitation department that is located about 2 streets from me usually come in the evening and make lines of 30-40 people to instantly withdraw money from the ATM machines in the mall close by, well, for 3 months I've seen them no more, a max of 1-2, probably they have started using their debits cards to actually pay for stuff in the stores rather than a mean to cash out at an ATM 1 hour after payment.

I don't think people are losing faith in centralized organizations,  but in banks and governments.
Centralized organizations are everywhere: bitcointalk, reddit, apple, Amazon, Facebook,  google.

Well said, but let's add a few more to the mix, binance, coinbase, gemini, blockchain, wirex, crypto.com...and so on.
If people would lose faith in centralized organizations centralized exchanges would be the first to take a hit, but it ain't happening.

[zasad@]

I have seen interesting statistics in Russia, which says that the number of bank deposits is growing by 10% per year, and salaries by 2% per year.
If the official inflation rate is 4-5%, then the real one can be from 10 to 30% per year, depending on the goods you want to purchase.
If at the beginning of the year the dollar was worth 61 rubles, now it is worth 74 rubles. A rise in price of 21% is our inflation for 8 months. And household appliances, televisions, telephones have risen in price even more, so the market is flooded with cheap Chinese counterparts.
The maximum interest on ruble deposits in Russian banks is no more than 12%, which is even less than real inflation.
Therefore, many people buy dollars and euros and keep their savings that way.

[bitgolden]

People have lost trust and fait into centralized government run economy long time ago but there is nothing you can do about it, you either double down or you just try to avoid it. If you ask people who like the leading parties and the person they voted won, even they would say that their tax is not used properly, even they would think that tax could be used a lot more efficiently to help people, however people who didn't voted for the winner would be even more furious and would be looking to get out of paying taxes even harder.

So, there is not a single person on earth that still believes that when you pay taxes you get something in return with 100% value, most of it goes to either into someones pockets or goes to waste because governments usually fail and deliver slowly and mismanage.

[jacafbiz]

I don't think there is anyone that believe Government again, this people are politicians and serve the need to selected few of the society. as more people learn about Crypto and understand it the more Central government lose control, the world is seeing a shift in the governance system and I expect this trend to continue

[DoubleEdgeEX]

I would argue people lose faith in fiat money, politicians and public media all together. The current man-made crisis showed perfectly how easy it is to subliminally manipulate people. Fortunately more and more do their own research and question the decisions of the government and the central bank. I think we need a decentralized media outlet that covers only news that got confirmed from at least 3 more trustworthy sources, that would help re-establishing trust in media. As for fiats, I think at this point it´s just limiting the damage and accept a digital decentralized future.

[AjithBtc]

Every people haven't lost faith over the centralized system, it is the few or a group of educated people. Through education people have learned the technology and as a part through analysis understood what the government is doing and how is decentralized system more effective. For this we can't term people losing faith on centralized organization. As everything is happening through connectivity, trust is much concerned and decentralized system tries to make use of it.

[arallmuus]

I don't think there is anyone that believe Government again, this people are politicians and serve the need to selected few of the society.

You shouldnt even be living in your country anymore if you simply have no trust on it anymore.

When I see the picture of our banks in my country's, it seems lots of people in the line to withdraw their funds. An analysis of my country says that people keeping funds on their hands instead of keeping into the bank. And it hasn't happened before where a huge amount of funds holding by population. Bank reports saying, clients are just withdrawing their money, deposits are very low by comparing with withdrawal. That's why people encountering lots of questions from the bank regarding withdrawal. Most likely due to the global pandemic, people want to keep funds on their hands.

I seem to be missing this important stuff, which country are you living in?

If mass amount of people actually withdraw their cash from the banks, that would mean your country is on the brink of economy crisis but if only a handful of people withdraw their cash for obviously no particular reason at all then dont sweat it. The number of funds deposits are low compared with withdrawal simply means that there are alot of people out there that are having hard time dealing with their business on the pandemic situation

The fact that people withdraw their cash from banks means nothing at all if the top brass on your country still living as wealthy as ever even in this pandemic situation.

[Salauddin1994]

The reason for the loss of trust from centralized companies is that the price of Bitcoin is rising. Bitcoin is a very good currency for investment and since it is not stable it is possible to earn a double profit if the price goes up. Centralized companies are under the control of the government and operate as they wish but Bitcoin is not under anyone's control. Everyone can work independently, so the demand for centralized companies is decreasing and the demand for crypto is increasing.

[enhu]

People need money to support their needs, they'd be withdrawing their funds but if its the big savers who are withdrawing their funds, its going to be a different story. There are banks already saying they are filing bankruptcy and then their clients are now withdrawing their funds.

The ones who are not losing faith the centralize are often the big savers who felt like their government had stolen money from them after printing trillions.

[Sanugarid]

What's your thought and what's the real situation of your country?

People are forced to use banks, especially if they are employed or have their own private companies - how else will you receive a salary or conduct business transactions? Throughout history, banks have always proven to be those who give little and take a lot - and if we only remember the recent past and the crisis that began in 2008, then it was the banks that saved themselves with public money and people were not happy about it.

This begins with being an employee, your company requires you to have a bank where your salary will be directly deposit into, you are free to choose what bank are you going to choose OR your bank will provide you the bank that is somehow associated with them, their sister company, or the company itself is a bank of course. By this way transactions are being handled by a third party, it is easier for the company to work without handling those salary distribution. In my opinion, intermediaries like banks are designed for having a smooth flow of money in overall, whether we want it or not we are going to use bank in most of the situations.

In my country the amount of money is constantly increasing due to the large number of people working in foreign countries who send part of the money to domestic banks. Also in some countries, as someone has already mentioned, clients' funds are insured by the state up to a certain amount - so the collapse of a bank does not necessarily mean a loss of money.

Same here, remittance inflows to our country is rising due to our countrymen who is residing and working abroad, we are fourth -highest in the remittance inflows after Mexico. And as have you mentioned, money in the bank is insured, they got golds backed up on your money, but it will still depends on the contract signed after having a deal with the bank, some are fully insured, some are just a half and so on.

[Wexnident]

Most of the issue that concerns banks and withdrawals right now is mostly due to the pandemic imo. Even if people are losing faith in Banks, most would still probably opt to use them since there's no better alternative that could help them be at ease as much as those. Ofc, if you just look up a bit and study a bit, there are ways that could replace them (crypto), but some people don't really have the time to do so and hence, would just opt to choose the one that the majority has chosen plus one that the Government is backing since most people think that having the Government means it's secure.

If there was a better alternative, sure, people would go to it. But on the idea that the alternative is recognized by a supreme backer, one that you can put your trust in, which the Government did initially, and well, pretty much lost in the current situation.

[Shasha80]

In my country, many people withdraw money from banks, but not because of losing faith from the bank. If the poor people do that,
it is because they have to buy daily necessities and for the rich people to move their money into investments that pay off far greater
than the interest given by the bank. Usually the rich people will invest in gold, stocks market and cryptocurrency.

[cryptoaddictchie]

In my country. People losing the sole faith on government due to the rubbish decision that has made for the past few months due to covid19 situation. But as far as I can see the reason people are withdrawing their money is for the necessities that needed to purchase. I cant say losing my interest on banks as I still have 60% of my funds locked out there.

Most response here have the same sentiment about it. Im curious if there is an actual survey per country if we could gathered an accurate result for a question like "Do you like centralized bank or new trend of decentralized crypto"? Maybe we can still have a score of 70% favor of banks cause people will never drop a long time tradition on using financial institution like banks.