Are people losing faith from centralized organizations?

[verita1]

In Venezuela we already suffered with long lines in front of the banks before the pandemic. We now queue to withdraw ~ $ 1 daily on the week of banking activity. Because they are variants (one week the bank works and the next week not). Generally, the poorest people line up to buy food cheaper. It is a sad situation!
There are people who do not keep money in banks, as there are others who prefer to use the bank to use the electronic channels of online banking.

[Del137]

The majority of people just didnt care at all about centralization. They just use services that like. Only geeks thinking about decentralization

[serjent05]

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?

That long line may be the result of people panic with regards to the COVID-19 escalating concerns.  I am sure they think that it is better or more convenient to hold their money than letting banks hold it for them in this time of crisis.  I do not think this is connected to the trust matters but rather the availability of funds when it is needed.  It is convenient for us to have an available fund in hand rather than going to the bank every time we need the money.  So I believe the actions of those people who is withdrawing their fund is more inclined to convenience than having no trust on banks.

[sedov1966]

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?

Imo it depends on the country and on its history especially. If people have an economy default on their memory or other economical catastrophe - they are most likely to withdraw funds now, because they're afraid of bad things to happen once again.
I'm pretty sure people from lets say Switzerland are way less likely to withdraw funds from their banks compared to US for instance

[teosanru]

Alternatively in my country the situation is absolutely inverse. Government is bolstering a cashless Economy so people are relatively more people are opening bank accounts and trusting the banks. There have been a few incidents which may have cast a significant doubt on the banking system but some incentives to account holders have motivated people to enter into the banking system.

On one side I don't think this is as a negative thing it's because this set of population was far away from modernization and entering into cryptos without a bank account today looks almost impossible. But yes there hasn't been any major negativity about the banks in my country atleast.

[Findingnemo]

Banks lose their customers when their stock value decreases on their stock market ....

Big banks have stocks, but small banks only rely on private investors and some are just even owned by family, or they call it a family business.
Their customers could be their depositors or their borrowers, but depositors doesn't care much about the bank as long as it can give the money anytime they withdraw, while on the part of the loans, I think Banks knows how to match everything, they also borrow the money they lend out, so they don't risk anything from their end and there's no reason they can't allow clients to withdraw the funds.

and due to the pandemic banks are not making much money because most of the revenues created by the banks are from loans and now they are not giving out enough loans because they are afraid that they may not pay back since all the business were hindered due to lockdown restrictions.

That's right, but they can still continue their operation, this might only result to removing employees (non regular) to adjust expenses accordingly.

Is there ay banks work like that? Banks needs to have huge economical activity even if it is a private sector bank or else people can't trust them with their longetitivity.Banks are making money from the interest rate only, if you deposit some amount into your bank they are going to lend it for more interest rate than your deposit interest and this is what we call they are making money out of nothing.If there is no more depositors then how banks can lend money to the people.

[Salauddin1994]

Not just Geeks but most of the countries in the world are thinking of decentralised exchanges. Here everyone can do everything on their own the central government has no control and the centralized agencies are shutting down many companies due to the effects of the epidemic and cutting the workers which is causing people to lose faith in the central agencies. That is why everyone is leaning towards decentralisation due to which the demand is increasing and many countries are giving legitimacy.

[wxxyrqa]

I think it's a stick with two ends that can hit the same way. On the one hand, we are afraid of the influence of the government and therefore because of this we very often advocate decentralization, But on the other hand, independent new projects are more and more trying to fraudulently attract investment funds. it is at this moment that investors lose their funds and have no way to bring to justice the developers of such projects, that is, scammers, since they do not belong to any country.

[Paycoinzzz]

the way you speak seems to be just some people's underground business. That is the type of loan with high interest rates. That only happens in a few places where there is no tight government control. In my country there are also many households that do the same but not many. The bank is still the most reputable lender with moderate interest rates, I have not lost confidence in my country's banks.

[Rune]

Some people may be losing faith in the current bank system but those people are not growing very fast.
I think being in the crypto space helps give you the echo chamber effect where you talk to people who already agree with you and you are subbed and follow people who are saying the same stuff.
If you go talk to some random person about how money is not safe in there bank account they will think your crazy.

[davinchi]

I think there is a lot more politics involved in the world right now, we are talking about Roman Empire for example and how ceaser was like this and how aurelius was like that but I feel like everyday regular farmer roman didn't really felt the politicians all that much, they were just doing whatever they were doing everyday when an imparator changed to someone else or even republic changed to empire.

So, right now I do not think that people actually can stay irrelevant like that, even if you say you are apolitic and not really vote anyone and whatever you still face the news and you still hear whats going on, even if it doesn't interest you, you are aware of the situation. Obviously the immense technological and communication improvements caused this but that did dropped the faith people have towards centralized organizations as well.

[sujon5]

I guess the main reason for people are withdrawing money isn't lost faith, it's negative interest rate policy. Why would a lender be willing to pay someone to borrow money?

[Latviand]

In my country many people withdraw their funds due to need money from this pandemic, not due to losing faith on centralized exchanges. Because they need to feed their family every day even though it's hard to find a job, and some people already got retrenchment.

Most of the people nowadays are having some trouble with their funds that's why they are pushed to their limit and their savings are getting withdrew out of their banks. This pandemic is unexpected and no one is prepared that this will hit humanity and affect the economy so hard. That's why people are keeping their money on their own instead of keeping it in their banks, so that it is much easier to manipulate and control.

Bitcoin still not get massive adoption yet due to volatility and high-risk investment.

We all know that, but this is the season where it could become more popular because during quarantine, we are into the use of social media and internet more. So probably, bitcoin will somehow become more popular and increase the people who are willing to engage to it.

The reason is clear, because all the centralized organizations are getting controlled by the governments and usually by some corrupted people they take advantage of the price manipulation and get famous and rich every day, also call themselves banks. Decentralized organization will help the privacy and in the other hand will help the security and economy by avoiding the price manipulation and abusing the governments and centralized traditional banks.

But as they collect taxes from us, government officials are not responsible in spending the money of its people. Most of them are corrupting our money and think of their own benefits only.

That's why during this pandemic, it is not guaranteed to let other people handle our money.

[imstillthebest]

I guess the main reason for people are withdrawing money isn't lost faith, it's negative interest rate policy. Why would a lender be willing to pay someone to borrow money?

people deposit on banks for other purpose and not only for loans  but sometimes banks are borrowing the money of the people and they are paying interest  but for lending companies thats different because people are taking loans for interest or for colaterals  which is sometimes high but they dont have a choice but to accept it because they also need the money for important use  .

Why would a lender be willing to pay someone to borrow money?

depends on the lender . a lender can be your close friend or neighbor too and they wont ask interest , they will just ask for repayment   .

[AniviaBtc]

There must be a reason, maybe it is because of our current situation or anything else,

In our country, people start to lose their faith in banks due to a lot of issues we encounter. A lot of people are losing their funds without knowing the reason, there are so many issues that we face that people started to stop using banks.

Probably, corrupt government officials are also the reason why people holding their own money instead of saving it into a bank. As you can see, the economy is really crashing and the only thing that we can do is to manage and budget our money to our needs. If we hold and have a full control of our money then I can say that it is much easier for us to sustain our needs. Banking is not really necessary nowadays especially that they have an increasing fees. Businesses are not in a good state, some of them are bankrupted and having a hard time to recover and I think that centralized organizations are not the only way where we can improve and secure our financial needs.

[South Park]

In Venezuela we already suffered with long lines in front of the banks before the pandemic. We now queue to withdraw ~ $ 1 daily on the week of banking activity. Because they are variants (one week the bank works and the next week not). Generally, the poorest people line up to buy food cheaper. It is a sad situation!
There are people who do not keep money in banks, as there are others who prefer to use the bank to use the electronic channels of online banking.

Venezuela was already in a difficult situation even before the pandemic came and I cannot imagine how difficult things could be now with the pandemic in place, but I will not be surprised if in the next decades something similar happens all around the world as the current system based on debt and fiat currencies collapses and people try to withdraw the money that they have in the bank only to discover that whatever they had for the most part has disappeared and now they can only withdraw a very small amount of money out of banks.

[bits4books]

This is a problem of the current time and not a global problem. Every crisis happens this way-people are afraid that banks will die and are ready to accept the fact that their money can be decreased by inflation while they are lying under the mattress. For them to keep money at home is safer than in a Bank that can just die taking all their savings to the grave.
When the economy finally recovers (and growth is already accelerating), the money will be back in the banks.

[AicecreaME]

<...>

In my country many people withdraw their funds due to need money from this pandemic, not due to losing faith on centralized exchanges. Because they need to feed their family every day even though it's hard to find a job, and some people already got retrenchment. Only few people want to invest on gold, because it's safe and reach new ATH few days ago.

Bitcoin still not get massive adoption yet due to volatility and high-risk investment.

Today with the rise of the bitcoin there is a lot of the number of supporters with the use of this coin. One of the reasons is you handle your money and you can monitor what is in and out of your money without less hassle of checking. Also, the reason why they want to adopt this kind of coin is the volatile they can get a lot of market income by just making an investment. The buy low and sell high just this simple you can get profit instead of holding your funds into your banks you cannot get these kinds of funds.

I agree with your statement. Some people have different issues about banks maybe because of personal experience or because of a gossip they heard about having one, so they opt to not trust their funds to them. It varies actually. Some just prefer having cold cash just in case an emergency happen, they wouldn't have to go to banks or atm machines to withraw their money. While some prefer to save their hard earn money to banks so it'll have an interest over time.

People really need money to be able to buy and pay for the necessities like food, water, and bills especially during this pandemic. The advantage of those people opt to hold their funds themselves is they could get and spend the money anytime using cash. The disadvantage, it could be easily spent since it's cash. There's no guarantee it would be properly saved unlike in banks.

For those people who chose to trust their funds in banks cons is sometimes they have to stand in line for couple of hours to withraw money. Though they could go cashless and just use their cards, but some prefer to buy in local stores and supermarkets (because it offers cheaper price) and these don't have such payment method.

[naikturun]

conditions in my country are still fairly reasonable unlike in your country, withdrawals do exist but naturally and banks are still working as usual, it's just that small and medium enterprises are the biggest affected here, gold is an investment from a long time ago, so it's no wonder people will put their money down there.

[bits4books]

conditions in my country are still fairly reasonable unlike in your country, withdrawals do exist but naturally and banks are still working as usual, it's just that small and medium enterprises are the biggest affected here, gold is an investment from a long time ago, so it's no wonder people will put their money down there.

By the way, I agree with this. Many people do not just withdraw money from their accounts and take it out of the banks - they either buy something for super-long-term use or invest in something that will always be in the price. They buy gold or land or real estate - anything that in the future will definitely be in demand for one reason or another and is minimally subject to inflation, for example.
As they say - no matter how much money there is in the world, there is no more land!