Why Bitcoin cannot be a Bank?

[Falconer]

All payments are possible with bitcoin even if your government prohibits it. The problem is you only have to make the transaction with those who accept bitcoin as a means of payment, and in this case both parties agree on the medium of payment used. After all, your bitcoin are your bank, meaning you are free to send them wherever you want, at any time, in any amount without the need for approval from other parties. But that's only if you have independent custody of all your bitcoin.

But anyway you do not need to commit offenses when your country's government does not allow bitcoins to be used as currency. But of course you can get around this by converting your bitcoins to fiat and you make legal payments according to the provisions of your country.

[Mr.sprin]

many countries do not legalize bitcoin so how can bitcoin be used as a bank, if it is opened as a bank then will permission be granted in that country of course not the more important thing is bitcoin is legalized after that the bitcoin discussion will be made like a bank or not?

[so98nn]

I think these strategies have been studied already and peeps are already using it on the micro level. Now and then  I have seen hundreds of threads published by different locals who shown the pictures of shops, businesses, crypto banks and much more. That already proves peeps around the world has started accepting bitcoin irrespective of what local laws are stating.

Isn’t this acceptance is pleasuring to us already?

Does it need to be physical offices? Does it have to have the list you have mentioned? Not necessarily and I think the question is weird.

[Adams0001]

I believe that in some countries Bitcoin cannot functions as a bank transactions, because they pose as high-risk to financial institutions, and that the Bitcoin price is volatile and unsecure.
Bitcoin is a decentralized currency with robotics that regulates economic policy in the same way that any government does.

[bosede1]

Bank is not a cryptocurrency in the first instance, I don't see any need for the two comparisons. People who invest in Bitcoin didn't do so to keep bitcoin safe but for investment purposes. Many people today keep money in a bank for saving purposes and a minority for investment purposes. The two is a parallel line which cannot meet

[lionheart78]

I read this tweet by Michael Saylor and I think it is not practical. I believe this guy was pretty high when he started comparing Bitcoin with Bank. Let's compare most of what he tweeted and then let's discuss the real problem. We all know the positive aspect of Bitcoin and to an extent, I agree with what he tweeted. I still would like to ask in general:

• Can you pay your Mortgage with Bitcoin?
• Can you pay your house rent with Bitcoin?
• Can you pay all your bills with Bitcoin?
• Can you pay your medical bills with Bitcoin?

This list tells about the function of money or currency.  Bitcoin can do that function.  Bitcoin can be used to pay our Mortgage, can pay for house rent, can pay bills with bitcoin and also medical bills.  Bitcoin is already acknowledged by many countries as a mode of payment including my country. So definitely Bitcoin can be used to pay for these things.

Deceiving newbies with such a statement won't get Bitcoin the required recognition. It would only lead to more confusion and uncertainty as Banks have done for so long. Such a statement from a Bitcoin influencer would only tarnish the image of Bitcoin. Mcafee was known for such statements.

Holding Bitcoin means being our own bank. It means we can transfer our funds anywhere just like how banks become intermediaries when we transfer our money.  I don't find it wrong to say that being our own bank with Bitcoin is way better than bank services.  It is cheaper in terms of global transfers, we are free to send our money to any part of the world without the needs for 3rd party services we just need to pay for the transaction fee and not the processing fee which is often times much expensive than Bitcoin tx fees.  And most of all we control our funds.


This is one[1] short videoclip explaining what it means to be our own bank with Bitcoin.



[1]  https://www.youtube.com/watch?v=M2-GUu6tQu8

[panganib999]

Saylor's not coming from a place of ignorance and providing wrongful information in order to mislead and coax people into investing in bitcoin. As a matter of fact at the current times bitcoin acts more like a bank as it acts like a currency at the same time. For instance, one must note that bitcoin is a store of value, meant to put your money into to prevent impermanent losses, banks do this too. As a matter of fact banks are designed to collect and protect your money the same way bitcoin protects your money as well. What they differ the most is how they protect it. Bitcoin protects the valuation of your money, so inflation is something that has little to no effect on it. Banks protect the denomination of your money as well as deterioration due to physical wear and tear.

[romero121]

Crypto-Backed Mortgages: How They Work, Benefits, Risks. Everything have got solution. We need to search and find the possibility. For each and everything mentioned we've got the access and the guidance how to do it. Any payment is possible with bitcoin and it is upto the person. Here is an example how a person have travelled around just using bitcoin almost 7 years back. When this is possible surely everything is possible. This Man Traveled Around The World For 18 Months Spending Only Bitcoin

[samcoin]

I read this tweet by Michael Saylor and I think it is not practical. I believe this guy was pretty high when he started comparing Bitcoin with Bank. Let's compare most of what he tweeted and then let's discuss the real problem. We all know the positive aspect of Bitcoin and to an extent, I agree with what he tweeted.
Deceiving newbies with such a statement won't get Bitcoin the required recognition. It would only lead to more confusion and uncertainty as Banks have done for so long. Such a statement from a Bitcoin influencer would only tarnish the image of Bitcoin. Mcafee was known for such statements.

You know the most popular phrase about Bitcoin since its inception was (be your own bank), so Bitcoin was designed and produced as a substitute to banks that do whatever they want with people's money, and in return don't give them what they deserve of ROI. Indeed, we can feel the importance of Bitcoin these days with a few banks in the USA are going bankrupt and the number seems to be on the rise. Therefore, I agree with Saylor in his statement, and I think Bitcoin and  the other reliable crypto currencies will replace the traditional banking system that's starting to collapse.

I still would like to ask in general:

• Can you pay your Mortgage with Bitcoin?
• Can you pay your house rent with Bitcoin?
• Can you pay all your bills with Bitcoin?
• Can you pay your medical bills with Bitcoin?

Have you heard about the real state companies in the UAE and Bahrain that started to accept Bitcoin as a means of payment for all of their services? So yes, Bitcoin will become one day a payment option in all of these services you mentioned above. The success of Bitcoin will force companies to accept it to remain in competition with the other ones which accept Bitcoin.

[Mr.right85]

• Can you pay your Mortgage with Bitcoin?
• Can you pay your house rent with Bitcoin?
• Can you pay all your bills with Bitcoin?
• Can you pay your medical bills with Bitcoin?

Deceiving newbies with such a statement won't get Bitcoin the required recognition. It would only lead to more confusion and uncertainty as Banks have done for so long. Such a statement from a Bitcoin influencer would only tarnish the image of Bitcoin. Mcafee was known for such statements.

I think the only thing that really has got nothing to do with Bitcoin there is the mortgage. There isn't a structure or any governing body for Bitcoin or cryptocurrencies and as such, in the event that your getting payment in Bitcoin, you can expect any regular deductions to settle for your mortgage. It just can't happen. The whole idea is, your in total control of your crypto portfolio and so, nothing leaves until you initiate it.

Other than that, I think you can make just any payment in Bitcoin supposedly the organisation is Bitcoin friendly. They've got to have a department to handle that by the way. Someone not just good at balancing accounts but, understand and could make some good predictions on the cryptocurrency charts to know when to take advantage of the price movements and when to prevent liquidation of coins and in turn, lose.

[Yatsan]

• Can you pay your Mortgage with Bitcoin?
• Can you pay your house rent with Bitcoin?
• Can you pay all your bills with Bitcoin?
• Can you pay your medical bills with Bitcoin?

These are only possible if Bitcoin would be regulated under governments of a certain country. Unless, the function you are trying to do could be altered in such way. Perhaps with paying your bills using Bitcoin. If the shop would accept Bitcoin as an alternative mode of payment then it is possible but expect for high fees and this cannot be avoided in countries wherein this technology is not that supported. Tendency is that merchant are happened to be investors as well of cryptocurrency and they will just be taking advantage of the opportunity but will not allow to be paid less than their ideal in every transaction. They would more likely put an interest to the normal billing and that is to compensate fees in withdrawing their funds through fiat. This is the downside of this possibility of accepting Bitcoin and other crypto as a mode of payment on countries wherein it is not that supported. Same experience is what I had in my country.

[Xampeuu]

• Can you pay your Mortgage with Bitcoin?
• Can you pay your house rent with Bitcoin?
• Can you pay all your bills with Bitcoin?
• Can you pay your medical bills with Bitcoin?

These are only possible if Bitcoin would be regulated under governments of a certain country. Unless, the function you are trying to do could be altered in such way. Perhaps with paying your bills using Bitcoin. If the shop would accept Bitcoin as an alternative mode of payment then it is possible but expect for high fees and this cannot be avoided in countries wherein this technology is not that supported. Tendency is that merchant are happened to be investors as well of cryptocurrency and they will just be taking advantage of the opportunity but will not allow to be paid less than their ideal in every transaction. They would more likely put an interest to the normal billing and that is to compensate fees in withdrawing their funds through fiat. This is the downside of this possibility of accepting Bitcoin and other crypto as a mode of payment on countries wherein it is not that supported. Same experience is what I had in my country.

on the other hand outside the country it hasn't been legalized yet, I think shops that accept payments with bitcoin will certainly be careful if transactions are made during a bull run, because the value of bitcoin is very volatile, and risky, especially for shops that don't have double capital, of course the existing financial circulation very tight. for now I think it is also a weakness if it is currently applied in my country, besides that it is also against the law because there is no legality of payment using bitcoin

[borovichok]

on the other hand outside the country it hasn't been legalized yet, I think shops that accept payments with bitcoin will certainly be careful if transactions are made during a bull run, because the value of bitcoin is very volatile, and risky, especially for shops that don't have double capital, of course the existing financial circulation very tight. for now I think it is also a weakness if it is currently applied in my country, besides that it is also against the law because there is no legality of payment using bitcoin

Bitcoin have been existence over the past decades and there's more chances of it been legalized in most of the developed countries other than the developing ones. Bitcoin is legalized and controlled in a country like El Salvador who are very tactical in using the project as a means of payment, and it's working extremely excellent for them, however not all countries can expand the use of bitcoin because some government find it to cause instability in their fiat currency and they issue strong restriction commands on the project to be banned. Moreover currency circulation is strong and starting to develop bitcoin as a means of payment is solemnly outside the box of budgets, bitcoin is volatile with high risks in the market, anything that will disrupt the system is none to be void.

[Farma]

all of these questions are possible if we sell the bitcoins that we have. however, if we were to question the matter, then bitcoin would have to be converted to Fiat first. the same question as "Can you pay your medical bills with gold ?" then in general the answer is yes, if the gold is converted into fiat.
However, it is very difficult to compare banks with bitcoins because basically the systems are different, if banks have a centralized system, then bitcoin has a decentralized system. if you compare banks with bitcoin, then the difference is very clear.

[StarKay]

Yes, in my opinion, all of the above current payments can be made if you convert bitcoin to fiat currency on a monthly basis. 

Banks are basically for deposit, transfers, and withdrawals, they also offer other broad financial services such as Savings, Loans, Mortgage and Investment banking.

I agree with the OP that we should stop confusing newbies about Bitcoin being a bank because it is obviously not. No one calls the USD, GBP, JPY, EURO a bank for instance because they are not. I agree with you that Bitcoin is a store of value.

[KingsDen]

Re: Why Bitcoin cannot be a Bank?

Bitcoin is more of a currency than a bank. The idea behind bank is centralisation. And that is exactly what bitcoin is opposing. I do not always understand it when people compare bitcoin to bank. What is like a bank is like the exchanges in cryptocurrency.
What the exchanges are to cryptocurrency is what bank is to fiat.

Therefore Bitcoin is a currency and in other words. It has been used and is being used as an investment asset and not as a bank.
However, it is banking the unbanked in the sense that with bitcoin you can take good care of your wealth and money without the intervention of second party.

[GreatArkansas]

Deceiving newbies with such a statement won't get Bitcoin the required recognition. It would only lead to more confusion and uncertainty as Banks have done for so long. Such a statement from a Bitcoin influencer would only tarnish the image of Bitcoin. Mcafee was known for such statements.
(....)

Why are people just things complicated? Let's say for example Bitcoin is just the same as fiat currencies where you can use it to pay for something. You can use it just like how you use your fiat to pay for something like goods, services, etc. So for me yes among the list is also included like mortgage, medical bills, etc.
For me, I can consider Bitcoin as banks also, you can have your own bank as long as you have Bitcoin which comes with Bitcoin wallet ofcourse.

[Kgdktac]

While it is true that Bitcoin has its limitations and cannot yet be used to pay for everything,
 there are already many merchants and businesses that accept Bitcoin as a form of payment.


That being said, it is also important to be realistic about the current limitations of Bitcoin and not oversell it as a solution for all payment needs

[The Cryptovator]

Why do you think Bitcoin won't become your personal bank? Your non-custodial Bitcoin wallet is what I mean by your Bitcoin bank. Owning a non-custodial Bitcoin wallet entitles you to any assets contained therein as well as ownership of the wallet itself. Wherever that accepts bitcoin, you can pay. If not, you must convert to fiat. It resembles the USD, a global currency. You must carry USD when visiting other nations, but you cannot use it anywhere. Consequently, where you are staying is where you must convert it for local cash. Bitcoin is similar. Although you must trade it for local cash, you can use it.

[hannahB4]

Bitcoin can be a bank but does not necessarily means performing all the functions of a bank. In the banking sector, we have some who are into mortgage, insurance, and microfinance and each has its specialty and diversification, so bitcoin can serve as a bank with its uniqueness.