Online Banks should hold a large portion of your wallet

[Peter11kz]

It makes sense if online banks should hold a large portion of your wallet.

1. They give you interest on your money (which they can give to others for loans).
2. Can protect & give you insurance if the wallet/password is hacked = all your life savings gone.
3. Wallets are already charging fees, so small fees for #1&2 above is OK.
4. Other online Wallets don't give the above, and thus you lose all your hard earned money.
5. In case of fire or damage your hardware wallet (computer/phone/hard drive/USB stick/ back up) can all be lost.
6. Option: If you forget your password/key, an Online Bank can help you recover your password/key and therefore all your hard earned money.

Also Bitcoin.org is telling business they are not required to reimburse consumers for some transactions like credit cards force them to do, well that's a downside for the rest of us (the buyers). So again a similar credit card (or something of the sort) with a small transaction/insurance fee would be convenient.....

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[Poker Player]

You sound like someone who has a lot of opinions about Bitcoin but doesn't own much.

I'll keep my keys and my Bitcoin.

In any case, if I had to leave something to a bank, I would do it the other way around, I would leave them a small part.

[Mahanton]

So why you're here on the first place if you do hate crypto or bitcoin that much? Crypto does have its cons but on exchange the thing here is that
no one can control up your finances or simply you can be your own bank without any interference from 3rd party or simply decentralized plus
having that anonymity benefit then its no doubt that lots do really consider it as a plus.If people do look at the same into your inputs above
then crypto market wouldnt really grow this big for only a decade's time.

[20kevin20]

So you're basically suggesting that a bank should hold our asset that is supposed to eliminate the need of banks and third parties? This makes no sense tbh..

Wallets don't charge fees for transactions. If your wallet does, then you should definitely switch to a non-custodial one such as Electrum or Wasabi. Bitcoin charges mining fees, and you can change the fees depending on how fast you need it confirmed.

If you lose your hardware wallet, you should theoretically have a copy of your seed stored somewhere safe. You can have even multiple copies of it so that if one of the locations are compromised, you still have the other locations to restore your backups from.

Banks are evil. They don't help you - at best, they enslave you more than you've ever been. The interest rates are crappy enough for your money to still get devalued over the years through annual inflation rates. Bitcoin is here for you to avoid banks, not to tie you back to them.

[tabas]

Those reasons are vague and pointless. We are good and holding our own crypto is one of the reasons why it is being liked by many.
You hold your keys, you hold your coins, you are in total control with it.
And about the interest rates, you know banks are known for paying little interest for deposits.

[pawanjain]

It makes sense if online banks should hold a large portion of your wallet.

1. They give you interest on your money (which they can give to others for loans).

What if they start giving out bad loans to people who run away with the money. The bank will eventually end up going bankrupt and all our money will be drained.

2. Can protect & give you insurance if the wallet/password is hacked = all your life savings gone.

If the bank goes bankrupt then we will probably get nothing at all.

5. In case of fire or damage your hardware wallet (computer/phone/hard drive/USB stick/ back up) can all be lost.

Depends on how good we are at storing our keys. If a fire or natural calamity happens on the location of a bank then our money is lost anyway.

6. Option: If you forget your password/key, an Online Bank can help you recover your password/key and therefore all your hard earned money.

Storing backups is a good practice and in case we forget the password/seed/Keys the backups are the ones we look for.

[Vishnu.Reang]

New user in Bitcointalk, makes the first post telling why we should keep our BTC in bank. Hmmm.... that went well. I agree with insurance and all that. Even in my country, deposits up to $1,000 or so are insured. So if the banks go down, the government will reimburse you (but only up to $1,000). As the OP has mentioned, losing your password can be a big issue. But then, you should be careful while dealing with cryptocurrency.

Now I just want to ask just one question to the OP. I hope he have heard about the Cyprus bank deposit haircut of 2013. What happened is that the Cypriot government went for some big spending plans, and took out huge amount of loans. In the end, they realized that they are not capable of paying back the loans. So what they did? They just did a blanket haircut of all the bank deposits in their country, taking away 87.5% of the cash. I want the OP to give his opinion on this.

[LFC_Bitcoin]

I’m perfectly capable of looking after my own private keys to be honest. The whole point of bitcoin is financial independence, it’s decentralized. I can think of nothing worse regarding bitcoin than having bankers control my bitcoin. No thanks, I’ll pass.

[Jawhead999]

Lol

If you really like of centralized platform then this place isn't fit for you, go away and keep holding XRP or fiat money

In this case you're basically just talking about the advantages of holding in CEX, where the disadvantages?

Trusting third parties it means you're trust your money with them, they can stole your money and shutdown their sites, or the sites got hacked. As we can see exchanges always get hacked each year, so you only wait your turn to be hacked.

[buwaytress]

Not going to join the queue of people knocking you for your opinion... you should expect this if you come to a bitcoin forum and say we should start trusting online banks;)

But your opinions really aren't different to many I've encountered outside of the forum. People do want the exposure to Bitcoin, but actually would much rather locate a bank/service they trust or already use to help them protect them from themselves. We're talking about people who forget passwords, and for whom 2FA is too scary.

[BrewMaster]

i think you have confused this forum with "fiattalk" forum.

everyone who is here (apart from those who are with us shortly for the profit) believes is what bitcoin stands for and that is self sovereignty. not to mention that we have seen what giving control to the banks can do and how the very same banks turned corrupt years ago and have been ruining the economy.

[BlackHatCoiner]

It makes sense if online banks should hold a large portion of your wallet.

No, it doesn't and let me explain you why.

Besides the first one, there are already "Banks" for everything else you've written. They're called online exchanges. You have to understand that bitcoin was invented to prevent that middleman, not to require him. What would it differentiate with the modern financial system then? You wouldn't need it. For example, you say that it'd be nice if the online bank could help you recover your key. If there are two entities holding the same coins, then there are two owners. The banks can take them whenever they want from you and make their own excuses.  

2. Can protect & give you insurance if the wallet/password is hacked = all your life savings gone.

What stops me from pretending that I got hacked? Even worst, what stops the bank from pretending that I got hacked?

[kryptqnick]

I've been thinking about it for a while and saying that something like a crypto insurance could become very popular. Sure, some people will buy BTC and store their own keys, take and enjoy responsibility for their own money and stuff. But I think many people who're now fully into fiat but start thinking about Bitcoin would be more comfortable with storing BTC elsewhere and having someone else responsible for the safety of their coins. While this goes against the ideology of Bitcoin, it's still a form of crypto adoption, and it might become popular in the future.

[pixie85]

2. Can protect & give you insurance if the wallet/password is hacked = all your life savings gone.

Who is going to insure me from the bankruptcy of the insurer? If the bank goes down they're going to schrug their shoulders and walk away, leaving you with your pants down.

5. In case of fire or damage your hardware wallet (computer/phone/hard drive/USB stick/ back up) can all be lost.

Just buy a fireproof safe or buy a normal safe and put it in a concrete wall in the basement. Even if your whole house burns down that basement wall with your safe inside will survive. This is less risky than giving your private keys to someone.

[LTU_btc]

Sorry, but it just doesn't makes sense. Bitcoin is decentralised currency which let you to be more independent from banks.
1. Yes, but is it risks giving your savings to third party service is worth few % interest that you'll get.
2. Or if their website will be hacked or will make exit scam, your crypto will be lost .
3. Wallets aren't charging fees. It's blockchain trransaction fees. If your wallet is charging other kind of fees, then you're being ripped off.
4. Online wallets aren't supposed to be place where you keep your savings. Same as Bitcoin banks.
5. and 6. So, you're supposed to protect your private key or recovery seed. There is many methods how to do it.
What will happen if you will lose phone with 2FA key, how you will sign up to online bank/wallet.
It smells that OP is just one of many trolls here...

[achach]

I'd rather not do that. I keep my funds on Ownr and can buy major cryptocurrencies via Bitfinex. No problem.