Bank vs Crypto: Are they opposites?

[jeraldskie11]

Maybe bank is not opposite from crypto but they're not totally the same. Banks is a place where you can safely put your funds and gain small profit in the future, while in crypto, you can also keep your fund safely and earn a potential high profit from staking or from holding the price. Banks is only best at holding physical money since it can guarantee you its security. But in crypto, the level of security is also best if you knew what you are doing. More over, you can possibly gain a lot just by holding.

[Smartvirus]

In short, the answer is no. Banks and crypto are not opposites, but they have different purposes and ways of working. Banks are traditional financial institutions that provide services such as savings, loans, and money transfers. Crypto is a digital currency that uses blockchain technology.

If you say they have different purposes, I wouldn’t be in very much agreement with you but, when you look at it from the way it’s operates, there you can find some real difference.

I suppose your contest to banks as in the OP is you referring to fiat currency otherwise, if your referring banks as a financial institution, then you would be making a lot of mistakes trying to put cryptos and banks in contrast.

Having the above in view, fiat and cryptos are both currencies and means to finance. Hence, it’s hard for them having different purposes.

When it comes to means of operation, there remains a difference between a decentralized system and centralized systems. While one is more privacy concern and can serve variety of purposes, the other is limited by boundaries.

Fiats and cryptos aren’t meant to be exclusive, I always tend to view them for a fill up on the limitations of the other.

[SamReomo]

Additionally, banks are concerned that crypto could be used for illegal activities such as money laundering and terrorist financing.

I don't know where you got that information but I have never heard something like that coming from banks. I have heard that from other governmental authorities but I have never heard that from banks. IF it comes to money laundering than banks know better that fiat can also be used for money laundering and even those so called banks can't stop those money launderers. Yes, I agree that there has been allegations against crypto-currencies that they can be used for money laundering but those allegations are largely biased because as already discussed that fiat can also be used for illegal activities like money laundering and in fact fiat is more used for that purpose than crypto.

It is important to note that the relationship between banks and crypto is still in its early stages. As both technologies continue to develop, it is likely that we will see new and innovative ways for them to work together

I don't think that till today banks have any good relationship with crypto currencies other than just a few ones. The one I know is XRP which has some kind of collaboration with banks. If we talk about Bitcoin then I haven't heard that any bank has collaboration with it and I'm sure there won't be any bank that may have any kind of collaboration with it ever because it's decentralized and unregulated while banks work based on the centralization principles. Of course in crypto-currencies XRP is the favorite one for the banks and surely in coming times the CBDC's will have more dominant position with the banks, but for now we can say that XRP is accepted by some banks if not all.

[SatoPrincess]

Banks are institutions, cryptoCURRENCY is digital money. There can be a collaboration between the two, banks have been issuing fiat to their customers for many years, they are a corporation heavily invested in making profits and are open to accepting other forms of money. The cryptocurrency wave is already here and I believe the banks will not be left out in this innovation since there is profit to be made. I think the only cryptocurrency the banks have a problem with is bitcoin and privacy coins. If there is going to be any crypto-bank relationships, it’s going to be CBDCs.

[Zanab247]

In short, the answer is no. Banks and crypto are not opposites, but they have different purposes and ways of working. Banks are traditional financial institutions that provide services such as savings, loans, and money transfers. Crypto is a digital currency that uses blockchain technology.

Banks are control by the government while crypto are decentralized currency that is not control by government.you can hold fiat physical to buy what ever you want to buy from the market and pay with Fait for the seller to see and touch the money at the moment while you can't use crypto physical but you can use it as form of transfer to the seller before you can go with the goods is some country that is legal tender.

There are some potential conflicts between banks and crypto. For example, banks are concerned that crypto could reduce the use of fiat currency and reduce their revenue from services such as credit cards and loans. Additionally, banks are concerned that crypto could be used for illegal activities such as money laundering and terrorist financing.

Yes, banks has failed people through bad network and other things that is making people to fall in love with crypto despite the condemned the banks users are condemning crypto in the front of their customers but Many people still prefer to invest their money in crypto than leaving the money in the bank. Crypto transaction is safe and secured which is part of some of the things that made me to prefer it than bank transaction despite it is not legal tender in my country.
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[Wiwo]

You tried in your definitions of both topics of discussion but you have not really taken the time to discuss the underlying relationships between bitcoin vs banks but for as much as I know,  cryptocurrencies are best alternative to traditional paper currency and more so also,  blockchain technology is the best alternative to banking systems,  but both institutions work hand In hand with each other and that is something that we have to acknowledge at all time.

But between the two, banks have been a little hostile towards Bitcoin since there have been several attacks coming in from the banks towards Bitcoin,  with some central banks making restrictions between bank involvements in cryptocurrency transactions.

[Asuspawer09]

For sure there are a lot of differences between banks and cryptocurrency, we can already see crypto as decentralized and banks are centralized platforms, the technology is different since cryptocurrency operates on the blockchain and they do transactions differently with the banks, where everything is just centralized which is actually not something that I would definitely recommend. I mean for sure back in the day these two were just completely different and there are some saying that cryptocurrency is going to kill banks in the future because there is just no one that would actually want a centralized platform or just put your money in savings where you dont really have complete control about it right.

But right now I can already see how the cryptocurrency adapt to a lot of countries even here in my countries cryptocurrency already adapted to the point where it is already available to a lot of platforms or banks, some of the banks here in my country already allowed users to buy cryptocurrency using there platform, I mean for sure this banks or companies already realize that they cant really stop Bitcoin so they probably just need to adapt on it because its probably one of there competitors if they didn't do something a lot of money is going to be put on cryptocurrency,

[Minecache]

Maybe bank is not opposite from crypto but they're not totally the same. Banks is a place where you can safely put your funds and gain small profit in the future, while in crypto, you can also keep your fund safely and earn a potential high profit from staking or from holding the price. Banks is only best at holding physical money since it can guarantee you its security. But in crypto, the level of security is also best if you knew what you are doing. More over, you can possibly gain a lot just by holding.

What you describe sounds like cryptocurrencies are completely superior to banks and they appear to be risk-free. Don't forget, the higher the return, the higher the risk, and if you say holding cryptocurrencies can bring high returns, don't forget to emphasize that their risk is also higher than that of banks.

Many people are comparing the two because they only look at the returns and think crypto is better. But banks are not only a place to save money, but also a place to provide insurance services, custody, mortgage loans... many services that cryptocurrencies do not have. Each field has different use cases, comparing the two seems unfair.

[Negotiation]

There are some differences between banks and crypto people keep money in banks to secure their future by investing in crypto for the long term. While regulated banks offer stability and security cryptocurrencies offer the possibility of decentralized transactions and financial freedom. Bank's activities are accepted as legal tender by government regulation based on economics. Hence, it may lose its value or become worthless in case of hyperinflation. Cryptocurrencies are decentralized in nature and hence there is no government intervention. It depends on the blockchain technology and has no impact on the economy individuals invest independently.

[Ayers]

There are some differences between banks and crypto people keep money in banks to secure their future by investing in crypto for the long term. While regulated banks offer stability and security cryptocurrencies offer the possibility of decentralized transactions and financial freedom. Bank's activities are accepted as legal tender by government regulation based on economics. Hence, it may lose its value or become worthless in case of hyperinflation. Cryptocurrencies are decentralized in nature and hence there is no government intervention. It depends on the blockchain technology and has no impact on the economy individuals invest independently.

Only bitcoin is decentralized, the remaining cryptocurrencies are not decentralized at all and are also under government management, no assets can escape government control except bitcoin. Another thing, other than bitcoin, there are no projects with technology worth using. Crypto is just a speculative market so it is also greatly influenced by the economy. Evidence is that inflation, rising interest rates and economic crises all have negative impacts on the cryptocurrency market, including bitcoin.
In general, I use both banks and crypto, I don't take sides, no one forces me to choose one of the two.

[rat03gopoh]

as Crypto can't do without banks but banks can do without crypto.

I think it's the opposite, bitcoin/crypto doesn't need a bank, users need a bank role simply because they can't immediately migrate the financial system for some reason.
Banks need crypto if global adoption rates gradually increase, or they will lose their business to competitors in the industry.

[Smack That Ace]

as Crypto can't do without banks but banks can do without crypto.

I think it's the opposite, bitcoin/crypto doesn't need a bank, users need a bank role simply because they can't immediately migrate the financial system for some reason.
Banks need crypto if global adoption rates gradually increase, or they will lose their business to competitors in the industry.

Cryptocurrency is just a financial market and to exist it needs investors and investors need fiat to invest to drive the market, so cryptocurrency really needs banks. Bitcoin can operate without banks or fiat currency, but the value of bitcoin is measured in fiat currency, hence the connection between banks and cryptocurrencies.

Banks are considered the government's backyard to manage fiat money and the economy so it cannot be said that as cryptocurrencies become more popular, banks will depend on cryptocurrencies. Does that mean the government will depend on what it approves to operate?

[n00ber]

as Crypto can't do without banks but banks can do without crypto.

I think it's the opposite, bitcoin/crypto doesn't need a bank, users need a bank role simply because they can't immediately migrate the financial system for some reason.
Banks need crypto if global adoption rates gradually increase, or they will lose their business to competitors in the industry.

Bitcoin and crypto don't need banks but you, me and everyone needs banks. How do you invest in bitcoin if you don't have a bank account? Bitcoin is not free and we need money to own it and how do you use bitcoins for everyday payments if you don't convert them to fiat? Banking is necessary and it existed thousands of years before bitcoin was born. How will banks need crypto in the future if governments do not legalize crypto?

[rat03gopoh]

Cryptocurrency is just a financial market and to exist it needs investors and investors need fiat to invest to drive the market

Again, bitcoin(satoshi) didn't need investors from the start, it needs Hal as a adopters/contributors/users. In conclusion, bitcoin needs more people like Hal Finney.
And that's what I said that users can't migrate completely from conventional systems because one of the reasons is long-standing dependency. Fiat is only a standard for assessing all entities and activities that have unconsciously become common practice.
Bitcoin can actually also value goods and work relatively, a simple example in a small scope (points for @n00ber also how to invest in bitcoin without fiat without a bank): Almost all campaigns run by @icopress in the service section give a standard flat value for each post is B0. 00008 ~ B0.0001 (ignoring fluctuations). Anyone who doesn't mind can take it. If all managers, sellers of goods and services on this forum implemented the same thing, then slowly the reference standard value on this forum specifically would become only bitcoin.

Bitcoin is not free and we need money to own it and how do you use bitcoins for everyday payments if you don't convert them to fiat?

I accumulated my own bitcoins from the signature campaign and some past jobs. I didn't ever invest into bitcoin with even a cent), if regulations doesn't prohibit me from buying all my necessities with bitcoins and local shops accepted bitcoins, I'd do it as needed.

[Mame89]

Banks are never honest. They take advantage of customer deposits to be rotated which can bring profits through interest percentages.
The central bank does not like the uncontrolled bitcoin system.
Do banks need to be trusted? everyone has the answer.

The central bank must be trusted not to debase the currency, but the history of fiat currencies is full of breaches of that trust. Banks must be trusted to hold our money and transfer it electronically, but they lend it out in waves of credit bubbles with barely a fraction in reserve. We have to trust them with our privacy, trust them not to let identity thieves drain our accounts. Their massive overhead costs make micropayments impossible.

If I read your post, my enthusiasm immediately flares up and I want to say that evil people have ruled the world for 70 years through banks and paper money. As you have said, banks use customer savings, they use customer money to spin money to make a profit, so they don't like bitcoin technology that cannot be controlled. However, God Almighty has come to help by giving birth to intelligent people like Satoshi Nakamoto who created blockchain. Maybe it's time for the world to look for a better solution than the current traditional financial system.

If I look at why Bitcoin was created, I am more confident that one day this dream will be achieved. Bitcoin will remain Bitcoin. Will be used for massive buying and selling. But it's different with Fiat.
So what happens in the future?
Physical Money (FIAT) will no longer be used because it is troublesome. The same story as the disappearance of the Barter system in ancient times.

[Blitzboy]

For sure there are a lot of differences between banks and cryptocurrency, we can already see crypto as decentralized and banks are centralized platforms, the technology is different since cryptocurrency operates on the blockchain and they do transactions differently with the banks, where everything is just centralized which is actually not something that I would definitely recommend. I mean for sure back in the day these two were just completely different and there are some saying that cryptocurrency is going to kill banks in the future because there is just no one that would actually want a centralized platform or just put your money in savings where you dont really have complete control about it right.

But right now I can already see how the cryptocurrency adapt to a lot of countries even here in my countries cryptocurrency already adapted to the point where it is already available to a lot of platforms or banks, some of the banks here in my country already allowed users to buy cryptocurrency using there platform, I mean for sure this banks or companies already realize that they cant really stop Bitcoin so they probably just need to adapt on it because its probably one of there competitors if they didn't do something a lot of money is going to be put on cryptocurrency,

Banks joining crypto doesnt mean they're abandoning their controlled systems. Its more like they're covering all bases. You're right that banks are dipping their toes in the cryptocurrency pool Both centralized and decentralized approaches have pros and cons. Avoid black-and-white stories. Centralized systems monitor behavior, protect customers, and simplify policy changes. However, cryptocurrency decentralization appeals to financial authority and privacy advocates, but it also fosters fraud. Change or die is the game. As bitcoin gains popularity, banks want a piece of the digital pie. However, they're adding it as a service, not to replace their prior methods. Its unclear if crypto will kill banks.

[n0ne]

For sure there are a lot of differences between banks and cryptocurrency, we can already see crypto as decentralized and banks are centralized platforms, the technology is different since cryptocurrency operates on the blockchain and they do transactions differently with the banks, where everything is just centralized which is actually not something that I would definitely recommend. I mean for sure back in the day these two were just completely different and there are some saying that cryptocurrency is going to kill banks in the future because there is just no one that would actually want a centralized platform or just put your money in savings where you dont really have complete control about it right.

But right now I can already see how the cryptocurrency adapt to a lot of countries even here in my countries cryptocurrency already adapted to the point where it is already available to a lot of platforms or banks, some of the banks here in my country already allowed users to buy cryptocurrency using there platform, I mean for sure this banks or companies already realize that they cant really stop Bitcoin so they probably just need to adapt on it because its probably one of there competitors if they didn't do something a lot of money is going to be put on cryptocurrency,

Banks joining crypto doesnt mean they're abandoning their controlled systems. Its more like they're covering all bases. You're right that banks are dipping their toes in the cryptocurrency pool Both centralized and decentralized approaches have pros and cons. Avoid black-and-white stories. Centralized systems monitor behavior, protect customers, and simplify policy changes. However, cryptocurrency decentralization appeals to financial authority and privacy advocates, but it also fosters fraud. Change or die is the game. As bitcoin gains popularity, banks want a piece of the digital pie. However, they're adding it as a service, not to replace their prior methods. Its unclear if crypto will kill banks.

Banks joining cryptocurrency have been increasing with time. Centralized exchanges nowadays does the banking functionality in the cryptomarket. Even the financial authorities have begun to be positive, which were earlier against the cryptocurrency usage. Banks feared of cryptocurrency and quite often statements say that bitcoin usage have eaten the revenue of banks. Beyond some point the banks understood the need of technology. One country have adopted bitcoin as legal tender amidst hard opposition. More countries watching the move of the country so that they can further use bitcoin legally.

[Bushdark]

Maybe bank is not opposite from crypto but they're not totally the same. Banks is a place where you can safely put your funds and gain small profit in the future, while in crypto, you can also keep your fund safely and earn a potential high profit from staking or from holding the price. Banks is only best at holding physical money since it can guarantee you its security. But in crypto, the level of security is also best if you knew what you are doing. More over, you can possibly gain a lot just by holding.

I don't see anything like opposite here since bank had been in existence before Bitcoin and Bitcoin does not have anything to do with Bitcoin that affect it. The bank houses the traditional way of using money which encompasses monetary regulations. The government has more active force on the bank and controlling it in a way that she like which can be full of corruption. Bitcoin is decentralized which the bank is centralized and can not stand alone without the government policies biding it in the way it ought to be.

[molsewid]

Maybe bank is not opposite from crypto but they're not totally the same. Banks is a place where you can safely put your funds and gain small profit in the future, while in crypto, you can also keep your fund safely and earn a potential high profit from staking or from holding the price. Banks is only best at holding physical money since it can guarantee you its security. But in crypto, the level of security is also best if you knew what you are doing. More over, you can possibly gain a lot just by holding.

I don't see anything like opposite here since bank had been in existence before Bitcoin and Bitcoin does not have anything to do with Bitcoin that affect it. The bank houses the traditional way of using money which encompasses monetary regulations. The government has more active force on the bank and controlling it in a way that she like which can be full of corruption. Bitcoin is decentralized which the bank is centralized and can not stand alone without the government policies biding it in the way it ought to be.

I agree, banks are more regulated and I think in this country there is only 1 physical bank that accepts crypto. Some banks doesn't accept crypto too, if you will going to say that you will need bank for crypto purposes or investment they will surely not allow you to open account I know this thing when my uncle try to open a savings acc in a bank. In crypto all are accepted worldwide it just that there are some limitations in country.

[Dr.Bitcoin_Strange]

For sure there are a lot of differences between banks and cryptocurrency, we can already see crypto as decentralized and banks are centralized platforms, the technology is different since cryptocurrency operates on the blockchain and they do transactions differently with the banks, where everything is just centralized which is actually not something that I would definitely recommend. I mean for sure back in the day these two were just completely different and there are some saying that cryptocurrency is going to kill banks in the future because there is just no one that would actually want a centralized platform or just put your money in savings where you dont really have complete control about it right.

Yeah, cryptocurrency is different from banks because banks store their information on a different database, while cryptocurrency information is stored on the blockchain. But it's not correct to think that all cryptocurrencies are decentralized because some cryptocurrencies are fully centralized and have offices where they operate. I know of a project that is registered and licensed under the UK government, and the project has offices in the UK and employees working every day. That is to say that not every cryptocurrency is decentralized; quite a lot of them are very centralized.