Banks and Bitcoin- The needed change

[noormcs5]

Banks won't disappear anytime soon because people don't like change very much and it takes time to force any kind of lasting change in society.

Some people say that traditional banks will disappear due to the emergence of cryptocurrencies because it gives consumers another option when they need financial assistance; however, I think this is unfounded speculation.

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[jackg]

There are also a lot of people who don't trust banks, the same can be said for bitcoin too - especially when banks quietly underwent deregulation in a lot of countries without their consumers knowing.

Crypto has fees, as long as banks keep paying those for consumers I don't think people will care abut using bitcoin as a currency.

[fiulpro]

Banks won't disappear anytime soon because people don't like change very much and it takes time to force any kind of lasting change in society.

Some people say that traditional banks will disappear due to the emergence of cryptocurrencies because it gives consumers another option when they need financial assistance; however, I think this is unfounded speculation.

Banks are an essential component and I do think this is something that most people do realize already. Cryptocurrencies are something very different than the whole banking system and therefore one cannot compare these two things at any point of time.

-Most people are struggling with normal things like internet and mobile phones, old people being completely dependent on traditional systems, people living in places where even water is scarce, if everything disappeared, banks, fiat they won't be able to function.

They are very essential for the local businesses and also for many countries cryptocurrencies are not even considered important or are not even legal, therefore the whole economic system will take a turn for them.

-they need to integrate themselves with cryptocurrencies and make things easier for users. That would be better than them disappearing.

[BIT-BENDER]

You didn't tell us what is the needed change. In my thoughts the needed change here is FREEDOM, yes it's freedom, because am not of the believe of crypto-currency, discharging, banks out if financial operation, what we need now in essence of freedom is for government to free up it's restrictions and ban on Crypto-currency, and allow whosoever the freedom to make their choice on either of the two crypto-currency or banking, or even both of them as the case maybe.

[Upgrade00]

Some people say that traditional banks will disappear due to the emergence of cryptocurrencies because it gives consumers another option when they need financial assistance; however, I think this is unfounded speculation.

No, it won't. Cryptocurrencies cannot substitute for traditional banking, maybe in a futuristic Utopian society that could be possible, but that's quite a long shot.
Bitcoin which was the emergent cryptocurrency, was not created to replace fiat and banks, it was meant to be another option as you rightly pointed out, an alternative means of sending and receiving money which does not need third party validation. And while Bitcoin has great potential to grow and become globally adopted, a centralized system of banking would always exist.

[wxa7115]

Banks won't disappear anytime soon because people don't like change very much and it takes time to force any kind of lasting change in society.

Some people say that traditional banks will disappear due to the emergence of cryptocurrencies because it gives consumers another option when they need financial assistance; however, I think this is unfounded speculation.

While I also believe that financial institutions like banks will not disappear, I will say that changes in the behavior of the population can come in two forms, a slow change and a fast change.

Fast changes in the behavior of the people happen because of some crisis which forces them to adapt as to not do so could bring some serious consequences against them, and what better example of this than the pandemic, in which the behavior of most people had to change almost overnight in order to address the crisis, and something similar could happen to bitcoin, once a huge economic crisis comes and people try to find a way to protect themselves from it they could find in bitcoin a solution to their problems under those circumstances.

[stompix]

Banks won't disappear anytime soon because people don't like change very much and it takes time to force any kind of lasting change in society.

Banks will not disappear because banks are not just offering saving accounts or debit cards.

You will not be able to get a mortgage with bitcoin without an intermediary you will never be able to get a credit card without the same, what's even more interesting is that poeple associate banks with the old institution and don't realize they are doing a lot of things on centralized platforms that act just like banks themselves. Even if for transactions, staking, collateral loans you will switch to those you're going to practically use a bank, it's just a name change.
It's the same story with all those new FinTech companies, poeple think they are ditching their bank while in reality, they are just ditching a name.

Cryptocurrencies cannot substitute for traditional banking, maybe in a futuristic Utopian society that could be possible,

A utopian society is a society that is impossible to be achieved so, there is no such possibility by the definition itself.

Anyhow, we've had this discussion about banks so many times that is clear what everyone's opinion about is, only time will tell who is wrong and who's right, and by time I mean decades.

[KennyR]

Banks have its own way of functioning. When banks weren't able to meet the needs of people we can think of something taking its place. As of now there is nothing that could take the place of bank. Every country have got its reserve, and these are all managed by the banking system. Why is bank important, because common man who doesn't have much knowledge about technology too can use it.

Another thing nowhere bitcoin accepted as collateral for loans on banks. Maybe this can change in future, right now very few number of financial services providing it. The next generation will have a varied view on this, because those days technology will be the driving force of each and everything.

[SquirrelJulietGarden]

Banks and fiats are inflationary. Bitcoin is deflationary. I don't see difficult to choose one from the two. It is Bitcoin, it's my choice.

They will both be changed. With banks and fiats, they will be changed to CBDCs but their inflation won't change.

Bitcoin will be changed as well with upgrades. We have many upgrades in history and last two biggest upgrades are Segwit in 2017 and Taproot in 2021.

[ShowOff]

OP, Would you like us to change our assumption about the likelihood that bank will be replaced by bitcoin?
Banks will exist for a long time even though the government can try to make change to bitcoin or cryptocurrency regulations in their country. The banking system is not liked by everyone, and people are doing the same with bitcoin. I wouldn't even think that my country would abolish bank just because they can create their own cryptocurrency and in the end all this won't change so fast. Banks are needed by everyone who doesn't know or care about the existence of bitcoin, but I still want to know what to change.

[teosanru]

Banks won't disappear anytime soon because people don't like change very much and it takes time to force any kind of lasting change in society.

Some people say that traditional banks will disappear due to the emergence of cryptocurrencies because it gives consumers another option when they need financial assistance; however, I think this is unfounded speculation.

Obviously, it is merely speculation, people have always loved to keep middlemen in their transactions. Even with the emergence of blockchain and bitcoin banks would not disappear for sure, emergence of defi space is a big booster to the finance world, I am sure banks would realize this pretty soon and will focus their future developments on this space. They will try and make most of their products in such a way that they use defi technology but at the same time allow them to keep control of the overall transaction. Banks are very smart and they won't easily accept their defeat in this game.

[avikz]

Banks won't disappear anytime soon because people don't like change very much and it takes time to force any kind of lasting change in society.

Some people say that traditional banks will disappear due to the emergence of cryptocurrencies because it gives consumers another option when they need financial assistance; however, I think this is unfounded speculation.

Earlier, people didn't have any other options than banks to save money. Also in many countries, there is a law which prohibits their citizens to keep more than a specific amount of cash at home. So even if someone didn't like banks, they were kind of forced to use their service.

But with the emergence of cryptocurrency, now people have option to keep their money elsewhere. For sure, a majority of the population wouldn't opt from banking, but now they can. It takes time to change social behavior. So may not happen in near future, but banking system will be forced to evolve to suit their customer's need.

This change might be unimaginable right now, but not impossible!

[Imran232]

What is the nature of bitcoin? It is untraceable. Why do people use bitcoin? To stay anonymous If the only thing in crypto is to be anonymous, If these are the only reasons for using bitcoin, keep your portfolio private and use complete financial freedom.Then why do people go to the bank to keep it so that the bank can know about you, your holdings, and your activity too? Which is not the nature of bitcoin and we don't want it. We have our own banks, like hardware wallets, software wallets, etc.

[Vaculin]

Banks won't disappear anytime soon because people don't like change very much and it takes time to force any kind of lasting change in society.

Some people say that traditional banks will disappear due to the emergence of cryptocurrencies because it gives consumers another option when they need financial assistance; however, I think this is unfounded speculation.

Earlier, people didn't have any other options than banks to save money. Also in many countries, there is a law which prohibits their citizens to keep more than a specific amount of cash at home. So even if someone didn't like banks, they were kind of forced to use their service.

But with the emergence of cryptocurrency, now people have option to keep their money elsewhere. For sure, a majority of the population wouldn't opt from banking, but now they can. It takes time to change social behavior. So may not happen in near future, but banking system will be forced to evolve to suit their customer's need.

This change might be unimaginable right now, but not impossible!

Crypto will be in progress until massive adoption takes place. But crypto won't certainly take place the bank's position as its here for good. And same here for crypto. In fact, crypto is created not to eliminate banks but to serve as an alternative to fiat so banks are still needed even in the future. And for sure majority of the people would still prefer to use the traditional banking system than to use crypto alone.

However, crypto may be our future too so once it will be globally adopted, banks will start to integrate crypto transactions into fiat.  And that is the most possible scenario soon, not totally eliminating banks.

[Welsh]

Not everyone wants to be responsible for their money. Fiat actually has built in protection for users because of its reversibility, however the drawbacks for having that ability is much more of a con, than it's a pro for me. So, basically banks will always exist for these types of people.

I'll give a stereotypical example, though this isn't, and shouldn't be taken as representative of the population. Imagine, a person of the older generation who isn't very technical when it comes to computers, in fact they struggle to use modern computers, and these types of people are unlikely to understand Bitcoin. Bitcoin while the usability, as well as the accessibility has definitely improved over the years, since includes technical terms. This type of person I'm trying to give an example of isn't likely to understand mining, and isn't likely going to understand security on digital devices. Thus, a third party which manages their money will be beneficial to them, since it has added in fraud protection, security, as well as ease of use. This isn't going to happen with Bitcoin since the key element to it is you have complete control of your money, which results in you being completely responsible for your money.

Bitcoin, despite the wallet software being much more user friendly, is still difficult to use. For example, checking an address to make sure its accurate, checking fees so you aren't grossly overpaying, since most wallet software overestimate, and assuring you follow security protocols so you don't risk your funds, this isn't something which is easy to do for the typical non technical user.

Unless, Bitcoin becomes much more user friendly, and provides a idiot proof system of sending, and receiving Bitcoin its unlikely to suit everyone. Although, I believe banks will always have a place in the world, they'll only be used by certain people with certain goals, the vast majority will likely see the benefit to having complete control over their wealth. However, what's clear is banks will need to adapt to this, they'll definitely be losing business in the future, and they'll likely need to adapt the way they work to fit this certain demographic that will require their services.

What is the nature of bitcoin? It is untraceable. Why do people use bitcoin? To stay anonymous If the only thing in crypto is to be anonymous, If these are the only reasons for using bitcoin, keep your portfolio private and use complete financial freedom.

Not really accurate. Bitcoin certainly isn't untraceable, in fact Bitcoin is more traceable than cash. The public ledger makes it possible to see every transaction ever made with Bitcoin. I think what your getting confused about is; Bitcoin is pseudonymous, and therefore it isn't obvious who made that transaction i.e the identity of that person. So, while there are more privacy oriented cryptocurrencies than Bitcoin, cash is fairly good for anonymity itself. This isn't the major selling point to Bitcoin, far from it.

[Ryker1]

^[snip]
however, I think this is unfounded speculation.

Well, you already mentioned it and this is the answer.
There are too many cons and pros about this when we are talking and comparing banks and cryptocurrencies which is also no one will remain to stand of them, it should always be there. When you want to save your money that is under your control we have crypto and if we compared it to a bank, which is the tradition of saving money by most people and investors as well --its totally different because you are under monitoring by your government and you should be pay tax on it. However, these arguments I always ever heard since the start of bitcoin, why we don't accept the fact that it should be both of them will remain.

[TimeTeller]

^[snip]
however, I think this is unfounded speculation.

Well, you already mentioned it and this is the answer.
There are too many cons and pros about this when we are talking and comparing banks and cryptocurrencies which is also no one will remain to stand of them, it should always be there. When you want to save your money that is under your control we have crypto and if we compared it to a bank, which is the tradition of saving money by most people and investors as well --its totally different because you are under monitoring by your government and you should be pay tax on it. However, these arguments I always ever heard since the start of bitcoin, why we don't accept the fact that it should be both of them will remain.

We have to accept the fact that traditional banking will still remain.
Not seeing in our lifetime that crypto will replace the banking system.
Traditional banking is under the government's supervision and they are centralized.
Whereas, when you talk about crypto, they don't have the full control of it, so it is not in their interest to prioritize this over the current system.
Just be grateful that in most countries, one can transact both, crypto and traditional banks.

[AliMan]

Banks won't disappear anytime soon because people don't like change very much and it takes time to force any kind of lasting change in society.

Some people say that traditional banks will disappear due to the emergence of cryptocurrencies because it gives consumers another option when they need financial assistance; however, I think this is unfounded speculation.

They're just saying things out of reality, most people who got their freedom on cryptocurrency were too aggressive to say against banks. But that's not right in the first place, we needed banks to process our digital money transactions. Without them we can't bridge crypto towards fiat money.
Speculations like this considered as hoax, banks and btc got a strong bonds.

[TravelMug]

Banks won't disappear anytime soon because people don't like change very much and it takes time to force any kind of lasting change in society.

Some people say that traditional banks will disappear due to the emergence of cryptocurrencies because it gives consumers another option when they need financial assistance; however, I think this is unfounded speculation.

Banks is already an institutions on every country and has been in existence for centuries now. I doubt that will simply disappear just because crypto is here to stay for good.

As much as we hate the banks, maybe there are still people in crypto who still uses them. Although banks customers might dwindle because there are going to be a influx to crypto, they are still integral part of every nation.

[Darker45]

Banks won't disappear. This will never happen. It is not as if Bitcoin and banks are mutually exclusive. It does not mean that you cannot have both. It does not follow that because you are using certain banking products and services you cannot anymore participate in the promotion or adoption of Bitcoin.

I wonder how many people who have Bitcoin and are very actively and passionately arguing for Bitcoin also have bank accounts at the same time. I even think that many of the Bitcoin maxis also have bank accounts.