Why Banks are Failing and Crypto adoption is at its Highs

[Maxre]

As you guys know that Silicone valley bank became bankrupt and that was Disaster for the banks world and also there is an alarming pressure on European banks cause they might have not funds other than they claim that they have. That's why crypto us a good thing just hold your worth too you without knowing that how much money do you have and it's a game changer. And I like it's very much.
And  I think that in future we might see more banks to crash and tit would nit be good for the banks. As banks use people's money to invest in business and jn return they get a lot of money by just holding people's funds. That's why I never put my money in banks either.

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[kryptqnick]

Banks fail occasionally, in some periods more than in others, but it doesn't generally make people believe in a world without banks. Banks are so tightly integrated into the economy in many countries that I don't think they'll go away soon. I hope banks will become more regulated, required to actually store the majority of funds of their customers. As for Bitcoin, it is an alternative, but it comes with many inconveniences like being unable to pay for most things directly in it or how a bear market can significantly decrease the value of one's salary or savings. As for centralized crypto services, they can fail pretty much like banks, which we've seen most recently with FTX.

[Cuenta Alternativa]

That's why I never put my money in banks either.

Really? You're the only one I know who doesn't do it. Well, who says he doesn't.

And  I think that in future we might see more banks to crash and tit would nit be good for the banks.

I wouldn't get too excited about it. If the financial system does go bust, I hope it does so slowly because it is the ordinary, working people who are going to suffer. The banks, especially the people at the top, are going to suffer very little. They may see their net worth reduced by half, but those who are going to lose their jobs, have their houses repossessed, and have many other problems will be the working class.

[avikz]

And  I think that in future we might see more banks to crash and tit would nit be good for the banks. As banks use people's money to invest in business and jn return they get a lot of money by just holding people's funds. That's why I never put my money in banks either.

Banking is a business and like any other business, it can fail too. However, in many countries, governments usually step in to revive a failing bank by providing them access to liquidity and by providing them provisions to write off bad debts. This is a part of the economy and this is nothing new. I wonder why US government didn't come to rescue SVB. Probably they are saving budget for another war against another oil rich country. But that's a different debate!

You are probably the only person I am seeing who doesn't access banking services. It's your call but cryptocurrency is not enough to support your life and expenses unless you are living in El-Salvador.

[Freddie Boyer]

Of course. The recent bankruptcy of Silicon Valley Bank and the pressure on European banks highlight the challenges the traditional banking system faces in today's rapidly changing financial landscape. Cryptocurrencies, like Bitcoin, have gained popularity due to their decentralized nature and their ability to maintain value without relying on a central authority.

I think maybe it's important to know that cryptocurrency is very volatile and comes with its own risks, such as hacking and fraud. In addition, while banks may use people's money to invest in businesses and generate profits, they also provide essential services such as loans, savings accounts and financial advice. In conclusion, it is important to carefully consider the advantages and disadvantages of traditional banking systems and cryptocurrencies when making investment decisions.

[Ndabagi01]

In some countries, for a commercial bank to be fully established and operational in holding people's funds, they must save a large amount of money known as reserve in the central bank. This is usually done so that the banks can settle their customers in the event of bankruptcy and the bank closing down. I'm not sure about the Silicon Valley bank you mentioned or how their operations are regulated, but if all banks adopt this, bankruptcy will no longer be a nightmare for those unfortunate customers who lose their money.

You are probably the only person I am seeing who doesn't access banking services. It's your call but cryptocurrency is not enough to support your life and expenses unless you are living in El-Salvador.

Even in the case of El-Salvador, the country has not seen much change as a result of the adoption. Due to market volatility, the country's use of bitcoin is low. Although there have been improvements in the issue of violence and crime, the citizens' economic lifestyle has remained the same even after one year of adopting bitcoin.

[Dunamisx]

As you guys know that Silicone valley bank became bankrupt and that was Disaster for the banks world and also there is an alarming pressure on European banks cause they might have not funds other than they claim that they have.

Anyone using a bank should by now understand the needs to change to the digital currency with preference on bitcoin because when you consider the whole lot of risks associated to using banks then you will see more need to change the entire system to a digital decentralized technology or currency, if you're having your bitcoin in a centralized exchange then you're unsafe, if you're having your bitcoin on a decentralized exchange then it's yours and you own your asset.

[Flexystar]

Eh, I don't think this can be called a failure to banks. That's just a couple of banks that are getting failed and such bankruptcy has been reported many times in the past. Bank is one thing that can never fail because they have the backing of Reserve Banks which are whole and sole of printing the money in any nation. The amount of money that moves in the national and international transfers is just unlimited and can not imagine the income from it for any particular bank. In the case of SVB or any bank that failed, there was some spurious activity or a person who led it in the wrong direction and failed at the job. I highly doubt that the comparison given in the OP is valid. You can't compare it with the crypto at all. Two different domain for sure.

[stompix]

That's why I never put my money in banks either.

Really? You're the only one I know who doesn't do it. Well, who says he doesn't.

It has become a bragging thing, nobody uses banks, nobody uses CEX, and everyone is keeping his coins in cold storage but the moment you change the question everyone has 3-4 accounts on CEXs and do daily wire transfers to cash out profits! I always laugh when I see those kinds of statements and the silence that fallows the question of how they have bought their coins or how they pay for p2p deals.
As much as we would like to dream cryptos haven't put any kind of serious dent in banks' profits, more over they have allowed them to earn millions in fees.

that was Disaster for the banks world

Disaster? No! Or at least not yet!
To label that as a disaster it would have needed a full collapse and no FDIC limits payments, but all was contained for now, emphasis on for now.
A lot of enthusiasm for the price going the right way as it should have after the news but it didn't trigger "adoption", more like speculation on those wanting to earn some quick bucks on the news after this prolonged bearish period.

In some countries, for a commercial bank to be fully established and operational in holding people's funds, they must save a large amount of money known as reserve in the central bank. This is usually done so that the banks can settle their customers in the event of bankruptcy and the bank closing down. I'm not sure about the Silicon Valley bank you mentioned or how their operations are regulated, but if all banks adopt this, bankruptcy will no longer be a nightmare for those unfortunate customers who lose their money.

Banks can't deposit every single penny in a reserve fund because if they would do that they would be unable to operate not be able to attract deposits with interest above the markets and on the other hand they would be unable to give out loans either. They have turned into something different and are no longer that much of a place where to keep your money safe and more a combination of payment gateway, quick loans cc provider, and every other kind of service with less and less focus on safekeeping. No, with the current model banks can't be made fully one hundred percent safe and they will never be, so either trust them at most with a sum under the FDIC limit or not put a single penny in it if you're that much concerned.

[livingfree]

And  I think that in future we might see more banks to crash and tit would nit be good for the banks.

That's really possible. When everyone understands that their money is no longer safe to be kept in a bank, everyone will just come at their own convenience and will keep it to their own vaults.

While the banks might still exist but they'll only be visited just to take some loans. Also, with some changes in economic policies and alliances, we'll get to see a certain huge change in the near future.

That's the reason why if anyone who's longing to invest in bitcoin still don't have it but eager in having it, don't waste any moment now and start buying bitcoin.

[Distinctin]

And  I think that in future we might see more banks to crash and tit would nit be good for the banks. As banks use people's money to invest in business and jn return they get a lot of money by just holding people's funds. That's why I never put my money in banks either.

Banking is a business and like any other business, it can fail too. However, in many countries, governments usually step in to revive a failing bank by providing them access to liquidity and by providing them provisions to write off bad debts. This is a part of the economy and this is nothing new. I wonder why US government didn't come to rescue SVB. Probably they are saving budget for another war against another oil rich country. But that's a different debate!

You are probably the only person I am seeing who doesn't access banking services. It's your call but cryptocurrency is not enough to support your life and expenses unless you are living in El-Salvador.

Bankruptcy is never new to us especially in banks where they can’t be revived anymore, and can’t never serve its clients purposefully. But I believe before they end up like that, there are also some measures taken to recover the lapses but maybe in this case, the bank has totally gone out wrong. However, that does not mean that if ever banks are closing, crypto is on high. It’s just that some banks were unable to meet the requirements, and so they end up failing and eventually closed.

[BITCOIN4X]

Bank failures are nothing new in the wake of economic uncertainty. In the past there were many cases where banks collapsed but then got up and grew strong and expanded their network. One of the things that makes a bank collapse is government intervention which is increasingly irrational, it will affect the psychology of customers so that many people withdraw their money from the bank.

I think there is a good correlation as to why bitcoin has had a positive impact from bank failures. Bitcoin is a decentralized crypto that allows users to maintain good financial privacy. Bitcoin is also not subject to ridiculous government intervention so that on the one hand bitcoin is well regarded as a store of value asset. But I don't think everyone will regard the same thing, especially when they consider price volatility to be the underlying risk.

[coolcoinz]

I'm looking at that picture OP posted and get a feeling that even a sith lord came for SVB  

Banks are failing because they were running on the edge for a long time, especially it was hard for them during covid lockdowns when people had problems paying back their loans. Now the governments are making it even harder for the banks to continue, by throwing rocks at them in the form of rate hikes. Then there was that FTX scam that banks were financing which created some strong headwinds for some of the US banks.

I feel like it would be great for bitcoin if the financial system underwent a purge, the dollar became much weaker, some more banks collapsed and scared people away from the traditional fiat system. I don't want people to lose their money but this could wake up some of them and start thinking that the money isn't safe with the banks and by holding fiat you're exposing yourself to government manipulation.

[The Cryptovator]

Traditionally, storing large amounts of funds in banks was considered unsafe due to the possibility of bankruptcy. As a result, many cryptocurrency enthusiasts prefer to store their funds in crypto assets and embrace the motto of "be your own bank." This is achievable by storing crypto assets in a non-custodial wallet, rather than a centralized wallet or exchange. To ensure the safety of my crypto assets, I typically use hardware wallets when involved with cryptocurrencies. However, I do keep some funds in the bank for daily expenses, thus managing my assets effectively.

[Uruhara]

Changes in the economic business model before the pandemic and after the pandemic have occurred so quickly. Some companies that are not ready to adapt will encounter difficulties so that starting with many companies going bankrupt, unemployment is also increasing and the economic crisis is also exacerbating the situation plus the issue of a recession.

Those are the triggers in the first place. And grow big. so many people withdraw money from the bank. even coupled with the economic crisis caused by the war also made people or small companies more careful in maintaining the value of their assets. so many of them decide to withdraw large amounts of their money from the bank and maybe change their money to assets that can better retain value. and here many banks are increasingly short of their liquidity. and currently people's trust in banks is also decreasing.

so that every day the bank must continue to serve the withdrawal of money from their customers. and some banks that do not have sufficient funds in their safes are caused perhaps because the business that runs behind the bank is not running smoothly. so that the Bank does not have sufficient reserve funds. and this is what will be the beginning of an indication of bankruptcy for a bank. and it is true that now more and more banks are showing indications that lead to bankruptcy. even we all might not have thought at first that big banks like Silvergate Bank, Silicon Valley Bank (SVB) and Signature Bank would be in a situation like now. and actually there may be more small banks that have also collapsed but are not exposed to the public.

and when Many Banks collapsed. so be prepared for the gold price to be a positive trend and I think this will also be a good impact for the bitcoin bull market. but on an overall economic basis then this would also be quite bad. because behind the bankruptcy of a large company it will certainly make more and more people lose their jobs.

[Hyphen(-)]

To some extent, I consider this banking system to be similar to Centralized exchanges because the way they operate appears similar; however, due to their lack of transparency, the management/teams do make some decisions that may backfire due to their lack of transparency, especially if the plan goes wrong.

I conducted additional research and discovered that the bank management implemented some investment rules with some high interest, but when their plan failed to work properly, they were forced to raise money to cover up their lapses that went wrong and to force their Tech team to switch the plan, causing their customers to panic and withdraw their funds before the bankruptcy.

The banking system also involves high risk, and this case is one of them; as a result, people will be forced to seek alternative means of securing their funds. Bitcoin investment may be a viable solution for them because it is transparent, does not involve a third party, and will provide you with more financial freedom, particularly if you do not keep your Bitcoin in an Exchange that can perform the same functions as banks.

[Fullcoinese]

many aspects that make the Bank eventually have to go bankrupt. The world economy is currently unstable after the impact of the virus was added to the effects of war. several business sectors became constrained. export and import costs become uncontrollable. This is bound to affect the world's finances. for Banks that do not have good support power, this will have a bad impact.
Bitcoin adoption is getting pretty good. it makes trust in Bitcoin even better. they hold their own money. no need to deposit money in a bank to be safer. and Banks become richer with the people's money that has accumulated in them.