Bank’s failure

[SNX01]

Today we have witnessed how easy is for the banks to freeze all assets that people rely on. The economy across the globe will change, trading will be much more difficult given the current situation. Over the last few years a lot of people have been affected by disrupting events and virus outbreak being unable to work and earn to support their families. It comes to the point where trusting the banks will no longer apply. Even there is war or not, the population still needs to work, travel and move money where needed. Other people have to travel from one country to another and if credit/debit cards are suspended, there will be no trade. The problem occurred in 2008 is just around the corner waiting to burst again but this time is different. We have to look at alternative ways to produce and distribute energy.

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[Charles-Tim]

Be it as it may, people will always still depends on bank and the local currency issued by government. Truly it is centralized and banks have the full control (but do not forget this is the same as crypto centralized exchanges and centralized wallets), the money can be seized at anytime. As their are alternatives now which is bitcoin (on noncustododial wallet) and other decentralized currencies, fiat will still survive because people still see it as a means of easy spending as they are use to it.

But investment wise, I am still seeing it very annoying to see people having their fiat in bank for over many years without touching it and the banks encouraging people to invest in fiat with annual profit return which is actually not a profit but a loss as the fiat depreciates over time.

For having full control, decentralized currencies like bitcoin can be a good option but people that are buying it nowadays prefer its speculative value and also being a store of value over long term period. But there are still some people that wants freedom, full control over their own money and asset, some people wants privacy, the reason few people are making use of bitcoin.

There are alternatives now which is even better but people look more towards profit making and ease of use but best to for go privacy and full control. Some altcoins are even not totally decentralized and some are worst than fiat.

[Gozie51]

The support for banking is still felt all over the world even in Russia that they got banned from Swift, you can still see queues around the bank and ATM despite the awareness that Russian banks don't have money. The banks still relevant another instance with the banks in Russia, after the remover just recently the Russian government now making plans to trade with China. The bank is still a huge institution that the world is relying on for global trading.

[Dunamisx]

Today we have witnessed how easy is for the banks to freeze all assets that people rely on.

For sure, they will place an embargo on ones earned finances because they have control over it even than you the owner and remember you've signed their conditions and term of service which serve as their policy which give them more authorization over you. but the way out is available, which is cryptocurrency (bitcoin).

The economy across the globe will change, trading will be much more difficult given the current situation.

This is more simple and practical using Russia and Ukraine war, consider the Russian economy now, things were not the way it used to be, the swift ban has place Russia on economy inflation and at the verge of recession.

Over the last few years a lot of people have been affected by disrupting events and virus outbreak being unable to work and earn to support their families.

The world is suffering the pandemic effect of covid yet another human version is enacted through engaging in war, all this are part of the factors affecting economy stability and livelihood.

Now you can see that majorly it's not the banks but governments and individual's responsibilities.

[Poker Player]

I think the OP is partly right, although I would not call it "failure" on the part of the banks. Banks provide necessary services for a large part of the population. Let's think for example of direct debit bills and the advantage they brought at the time. Today with the Internet and Bitcoin, we have the opportunity to be our own bank but I think most people will continue to use traditional banks, which will have to adapt and are already doing so. Even many of us will continue to use traditional banks and part of our wealth will be in our own bank, which is the Bitcoin, keeping our private keys ourselves.

[davis196]

The support for banking is still felt all over the world even in Russia that they got banned from Swift, you can still see queues around the bank and ATM despite the awareness that Russian banks don't have money. The banks still relevant another instance with the banks in Russia, after the remover just recently the Russian government now making plans to trade with China. The bank is still a huge institution that the world is relying on for global trading.

1.Not all Russian banks are excluded from Swift.AFAIK,the biggest Russian bank Sberbank wasn't excluded from the SWIFT system.
2.The banking system will remain strong in the upcoming decades.People will always have the need to borrow money.
3.People aren't really that dependent of the banks.You can deposit money into a bank,if you want to.Nobody is forcing you to do that.You can use bank loans and credit cards if you want to.Nobody is forcing you to borrow money and use credit cards.Saying that the people are innocent victims of those greedy predatory bankers is pretty much an oversimplification.There are greedy bankers for sure,but nobody in the world would force you to use a bank.Probably your employer could force you to make a bank account,in order to receive your salary,but you could just withdraw the money.

[Reid]

I don't trust banks. But, not going through them will get you in trouble and trusting them will do the same. So what do you do? Just let it be.
Government used their service for a long time and it is a tradition that cannot be cut down just like that. Even with cryptocurrencies being offered it won't suffice to be grounds on seizing them.
Use what you can at your best knowledge and if you think the bank is not the right place then go research for a new one. Only be sure that the other end sender or receiver also know the option you chose.

[XUR_TIP]

It's easy to see that Fiat isn't going away any time soon, only those who are into crypto will understand that the world is craving for decentralization but millions of people still find FIAT as a easier way of spending than crypto this is why I believe that crypto still have a long way to go if truly it's going to be a better easier means of making payments in future, all we have to do is keep supporting this technology and hope for the best, since the government will always be in our world centralisation will keep ruling.

[Rruchi man]

Be it as it may, people will always still depends on bank and the local currency issued by government. Truly it is centralized and banks have the full control (but do not forget this is the same as crypto centralized exchanges and centralized wallets), the money can be seized at anytime. As their are alternatives now which is bitcoin (on noncustododial wallet) and other decentralized currencies, fiat will still survive because people still see it as a means of easy spending as they are use to it.

The bitter but unfortunate truth, The banks regardless of their failures repeatedly are not going anywhere anytime soon. It is how deep the majority have been brainwashed by the government to sticking completely with fiat banks and not giving cryptocurrency a chance at all. It is definitely in the plan of the government so as to keep people under it's control. Exchanges may still seize your money as banks can but the chances of it happening with them is less as you know most exchanges are owned by individuals of other Nationalities not necessarily your own, and they may not directly be under the influence of the government of your country.

[Charles-Tim]

Exchanges may still seize your money as banks can but the chances of it happening with them is less as you know most exchanges are owned by individuals of other Nationalities not necessarily your own, and they may not directly be under the influence of the government of your country.

The chances of it happening depends on the level of KYC, in a fully verified exchange account like Binance,  everything needed is for any governmental organization responsible for crime and investigation to seek for freezing of a customer's account from Binance, Binance will immediately comply. But there are still some exchanges that people can still withdraw without KYC required, exchange like OKX and Kucoin, the chance of freezing a customer's account will be low, but it can still happen in fraud cases linked to the customer's account which can be traced on blockchain.

[Despairo]

The answer is Bitcoin, it's decentralized and no one can control it except you send to centralized platform. Bitcoin wouldn't crash as long as there's no something big happen entire the world. Look at the Bank failure, it's only affect to Ruble, though it give less effect to entire world too. If WW3 begin and all country are participated to defend their own country, all asset e.g. Fiat, Precious metal, Stock, Bitcoin will crash and become worthless since anyone only want foods and weapons to survive.

[AmoreJaz]

Exchanges may still seize your money as banks can but the chances of it happening with them is less as you know most exchanges are owned by individuals of other Nationalities not necessarily your own, and they may not directly be under the influence of the government of your country.

The chances of it happening depends on the level of KYC, in a fully verified exchange account like Binance,  everything needed is for any governmental organization responsible for crime and investigation to seek for freezing of a customer's account from Binance, Binance will immediately comply. But there are still some exchanges that people can still withdraw without KYC required, exchange like OKX and Kucoin, the chance of freezing a customer's account will be low, but it can still happen in fraud cases linked to the customer's account which can be traced on blockchain.

in centralised exchanges where kyc is compulsory, freezing of the account is still very possible to happen esp under the government's mandate. however, it would take more time to put into effect unlike with traditional banking sector. because the traditional banks are directly tied to the government, they can easily implement the mandate. whereas, if the crypto-exchange is not under their jurisdiction, they will need strong reason and documentation why they need to freeze the acct of their customer.
if you are just a small crypto user who doesn't want your govt to interrupt your crypto txs, you can opt using nonkyc exchanges like kucoin.

[Ryu_Ar1]

A few years ago I worked at a bank in my area and it sounded pretty bad at it but we can't forget one important thing here.
The influence of the bank is still very large and even though what you say is true, many people still believe in the bank because they do not feel the effect at this time, it is only temporary.
There are still many benefits that are felt by those who believe in banks and that is proof because they are still quite strong in terms of support

[Vaskiy]

A few years ago I worked at a bank in my area and it sounded pretty bad at it but we can't forget one important thing here.
The influence of the bank is still very large and even though what you say is true, many people still believe in the bank because they do not feel the effect at this time, it is only temporary.
There are still many benefits that are felt by those who believe in banks and that is proof because they are still quite strong in terms of support

The banking system is much followed, because one can reach the respective bank and request support. This works good with a common person who isn't much into technology. The same can't be expected to happen with cryptocurrency, because we don't have physical support centres. Maybe in future this could get implemented depending on the massive adoption taking place.

[batang_bitcoin]

It is not a failure, it's a known mechanism from the banks because they are centralized and they're in full control of money deposited into them. If you're using a banking service then you expect them to be showy that you're at their mercy and you can't do anything with every decision they make.
Good thing that we have bitcoin where we can transfer our wealth and hold it within our hands. Unlike putting your wealth in the bank, they might even give you hard time claiming your own money and wealth if it's sums of amount.

[adaseb]

Yes and this is why I am surprised Bitcoin isn’t going up when all the evidence is present. Banks can and have frozen assets on a whim. So if people hold Bitcoin they are free from this happening.

Look at what is happening in Russia now. There is a bank run and there is a limit on the amount of money you can withdraw. Basically not enough physical money inside a bank to process withdraws.

Bitcoin fixes all of this and the fact that it’s not leading and rising is surprising.

[Tony116]

No matter what, banks are still indispensable to our lives. BTC has opened up a decentralized future where everyone can be their own bank but using bitcoin sometimes requires you to have some tech knowledge, if we accidentally transfer money to someone by mistake, the possibility of us getting it back is almost zero. And with banks, they provide a variety of user support services. We may need to borrow money, claim when there is a dispute, complaints when disputes arise...They will be the ones to help us out, obviously banking is a necessity.

[Strongkored]

I don't trust banks. But, not going through them will get you in trouble and trusting them will do the same. So what do you do? Just let it be

Institutions are hard to trust but also difficult for us not to use, even when transacting with cryptocurrencies we still need banks to be able to withdraw our fiat and transact normally for daily needs.
For now it even looks impossible to replace banks with other financial systems but who knows there will be a replacement even though it still looks impossible.
As CEX rules over our assets so do banks that must be done carefully in using them. I don't think it's a bank failure but it's a system they have to run in accordance with every country's regulations.

[mu_enrico]

Yep, I thought freezing account is only for serious crime, but then I see more than enough case where an authoritarian government freeze people's account simply because of politics. I don't think banks can detach from the government, and be more neutral/outside the system. Perhaps only Swiss Bank can serve this purpose, i.e. to save money and be rather free of politics, but it won't be practical for average joe. Therefore, we need Bitcoin more than ever, and now its value proposition become clear as day. Bitcoin is bigger than banks.

[Husires]

Banks are one of the important points or arteries in the body of the global economy, you can withdraw your money in the form of cash and stay away from using banks but you are still linked to this economy.

Devaluation of the local value of your currency, printing money, inflation and other problems you will face even if you do not deposit your money in the bank or support the banking sector.

Therefore, the use of alternative systems, such as the return to gold, silver and other metals, which gain its value and purchasing power in all countries.
Or try to buy bitcoin and experiment with digital decentralized systems.

Other type of investment is linked directly to Fiat money.