Bitcoin will do to bank what Email did to post office

[Versatile_choice]

Technology has been one of the factors that has made things very easy for everyone, gone are days when people were finding it very difficult of sending letters from one person to another do to the lack of internet, so however for a message to be send across it must go through postal office and before it gets to the recipient it takes up to days. But however the arrival of internet changed everything and made it very easy everyone to convey messages from a person to another through emails.

So Boiling it down to Bitcoin and banks, actually the existence of Bitcoin has greatly improved the mindset of people especially on investment diversification such as profits making because is obvious that any money we put or save on the bank will not yield any profit so instead of people saving much money on the bank when there is a great opportunity offered by Bitcoin to channel all our money with the possibility of making or multiplying our capital in the future. So perhaps do you guys think the reason why most countries are having some restrictions on Bitcoin is because of the effects it has on the bank that people prefer to invest there funds on Bitcoin instead of banks?.

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[NotATether]

I dunno, I don't like that analogy. Now with email, spam has increased by 100x. Also it has spawned phishing, but I guess Bitcoin has also spawned all kinds of scams utilizing it as well.

Email also became centralized. In that Google, Microsoft, Apple and Yahoo own all the large email servers. Everyone else's servers are classified as spam pretty much.

[stompix]

Technology has been one of the factors that has made things very easy for everyone, gone are days when people were finding it very difficult of sending letters from one person to another do to the lack of internet, so however for a message to be send across it must go through postal office and before it gets to the recipient it takes up to days.

Have you actually made a transaction on chain lately with Bitcoin? Do tell us the experience of  grabbing my popcorn and waiting for it!

As for Bitcoin replacing banks, banks offer loans, how could Bitcoin offer you loan when you don't have a penny?
All you can do is go for a thirds part, deposit (lol) a collateral which means you have money in the first place and then pay that guy up, meaning you're still using a 3rd party.

Seriously, we're batting jpg monkeys right now and you talk of killing banks!

[Odohu]

I do not agree with this because Bitcoin and banks work side by side. The case of email and post office is totally different because Bitcoin needs the bank to make much impact whereas emails does not need post office rather it was an outright replacement. 

Majority of Bitcoin investors did that via their bank which will always play a role at the entry and exit point of crypto to fiat conversion.  The day Bitcoin will destroy the banks like email did to post office will be when all the countries of the word will abandon their currencies to use Bitcoin a lone.

[Nwada001]

This won't be possible; Bitcoin can't completely take down the banking system. Many might argue otherwise, but that's the fact.
 
Bitcoin has its purpose, and banks also have their purpose. We can't completely say one can replace the other; there are situations where even the highest bitcoin supporter will still have to make use of the traditional banking system.
 
When it comes to decentralisation, privacy, and all that, bitcoin will be top-notch. It's understandable, but there are areas where we still need the banking system in order to run a smooth transaction, such as salary payments for civil servants and all that, to mention but a few, adding to the recent increase in fees that one is experiencing right now.
 
Just so you know, if Bitcoin is to replace the banking system, it will equally mean that there might be no use of local and traditional currency, which bitcoin can't serve. Bitcoin is not designed to take over the global currency; it can't serve as the fiat currency.

[m2017]

"Bitcoin will do to bank what Email did to post office" - I doubt that bitcoin will get this role. Most likely it will be something like CBDC. Undoubtedly, traditional banks will very soon cease to exist in the form in which they exist now, but they are unlikely to disappear completely. Even the post office still continues to exist, although its influence is completely different from what it used to be. The same will happen with banks.

So perhaps do you guys think the reason why most countries are having some restrictions on Bitcoin is because of the effects it has on the bank that people prefer to invest there funds on Bitcoin instead of banks?.

The reason for the restrictions imposed by various countries on bitcoin is that control over the financial flows of citizens is lost. Now whoever controls this controls the world. Bitcoin creates a lot of problems for governments: you can’t find out the owner and recipient of a wallet, you can’t freeze or ban a transaction, you can’t understand who and to whom, and also why you sent the transaction (of course, with reservations). From their system's point of view, everything that happens on the BTC-network is below their radar. And the fact that money flows from traditional banks to bitcoin thanks to investment is secondary.

[Darker45]

I find your argument wrong. If banks will one day perish because of Bitcoin, it's not actually because Bitcoin is profitable. It's not about profit. People don't keep money in the banks because of profit. People having savings accounts in banks are not investing their money. If there are people who do this, they do it wrong. How much do banks give to account owners? That's even less than 0.3% per year. Some are even as low as 0.1%.

Banks are for safekeeping. If saving in Bitcoin is more profitable, then Bitcoin is the better choice in that aspect. But I'm sure even Bitcoin supporters keep money in the banks. And it's not because of profitability but simply because it's safer to keep money there.

[NeuroticFish]

So perhaps do you guys think the reason why most countries are having some restrictions on Bitcoin is because of the effects it has on the bank that people prefer to invest there funds on Bitcoin instead of banks?

I will start with the fact that stompix is right: you give too much attention to worthless memes on twitter.

Banks are old enough to adapt. Of course, some few die in the process, but if you know where to look you will see a lot of changes from the last years, from lowering the fees and speeding up transactions to facilitating bitcoin buying and storage or even steps towards merging banks with exchanges (I don't know though if this last one became reality).

Yes, only few do this, most are still afraid and push towards Bitcoin ban. But I find JPMorgan a great example: while Dimon is talking all the crap against Bitcoin his bank does all the steps to become a big player in offering Bitcoin or BTC ETF to other institutions.

The restrictions are there for two reasons: politicians and bankers are on the same side (of course, most politicians don't take a side for free) and while some banks are afraid of losing some market share, the other problem is that the really smart Bitcoin users' funds are difficult to track and link, leaving governments out of ideas in some issues they know to handle only by tracking the money transfers.

[EarnOnVictor]

I'm sometimes surprised by the reason why you guys will just wake up and come up with something that can never happen. Is it for the fact that you do not think or what? Liken Bitcoin with banks just in comparison to email to a post office is just pointless to me because many people can do without a post office and still share their messages, as long as there is internet and an email platform, the deed is done. This can be done entirely for the rest of the lifetime of the person without feeling it or missing the post office service. But the same can't be said of Bitcoin and banks if you are truly sincere. How can Bitcoin be substituted entirely for banks? If you do not know, banks are part of the economy of the world but bitcoin is not. That is why Bitcoin transactions are always a loss for countries, they can't be accountable for it when their citizens transact because of the decentralization nature of the coin.

And you think the world government will let that replace banking entirely? Even if cryptocurrency were substituted for banking, it would definitely not be a decentralized Bitcoin because no responsible government will allow a decentralized system to do that, and even the world economy would collapse in that arrangement. Not to say that the circulation supply is another issue for Bitcoin in this regard. Fine, Bitcoin is good for many things that fiats can do, but it can never do without fiat. But on the contrary, fiat can do perfectly well without Bitcoin. So who is the boss here? Or can you entirely keep your Bitcoin alone, use it to buy goods and services and not use fiat/bank at all? If you have to continue to use fiat, you will have to continue to use banks, because you can't keep all your money at home. Perhaps, you store all your money and entirely rely on Bitcoin for your entire life? Such a view of yours has not happened and will never happen. You guys should cool down and think well before you write, or else you will continue to misrepresent things and mislead the weak in mind.

[Charmekkd]

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If you briefly remember the progress of the times, the existence of the internet has really helped a lot. However, that doesn't mean everything can be done using just the internet.

Previously, the post office was the first choice for sending messages, but now there are many platforms that can be used to send messages. But even so, the role of the post office still exists today. In fact, there are still very many visitors. Although currently this service is widely used to send money. But the post office remains strong.

So perhaps do you guys think the reason why most countries are having some restrictions on Bitcoin is because of the effects it has on the bank that people prefer to invest there funds on Bitcoin instead of banks?.

This could indeed be a strong factor why many countries restrict bitcoin. Additionally, most countries may worry that their national currencies will be replaced by bitcoin. Although this is considered impossible, because the government in a country will definitely prohibit this.

[348Judah]

Such is life, we keep on evolving round about whatever thing it offers us, the more we go the more the technology advancement we are seing, if we are to look back from where we were coming from to where we are right now, things have drastically changed alot, bitcoin is now the currency to rule the world, we are expecting to see it as the mainstream of global adoption as digital cryptocurrency, everyone is interested in knowing about bitcoin because they want to make use of it to help realised the change needed in their financial economy, so we must tune to it adoption because it's time to experience something new and different from before.

[Franctoshi]

Banks will not totally stop existing or running of their business because of the existence of Bitcoins, if Bitcoin becomes that problem for today's banks, rather banks would find a way of tapping into the Bitcoin system to continue their operations. I don't think if there's gonna be time that the government would totally get rid of fiat currency and if that did not happen banks won't get replaced by Bitcoin. Therefore, I see Bitcoin as something to be used mostly for cross border payments and carrying out of large transactions globally because of its security and a more of being the digital Gold and a store of value and not replacing banks totally.

[Natsuu]

Well internet totally changed the way we talk to each other. No more waiting for days to send letters because now, it's all about those instant emails. Bitcoin's like the rebel cousin of traditional banking, shaking things up. It's got people thinking about making money moves beyond the old-school banks and I think some countries aren't feeling the Bitcoin vibe, maybe because it's messing with the usual banking scene. They're worried it could throw off the balance and make things a bit too wild. It's like a whole new money game and the rules are still getting figured out. People are afraid things they dont know, right?

[franky1]

bitcoin will not replace fiat banking

governments will always self control their patented money and licence its utility to citizens via min wage, tax, fines and debt laws

governments however always have migrated to different systems.
no longer are coins made of silver.
no longer do bank notes printing cost their face value
no longer are bank notes backed by rare metals
no longer does bank balance have bank notes/coins in reserves

governments next endeavor is CBDC. which is not bitcoin, but used the code of ELEMENTS of bitcoins subnetwork projects to prototype their new fiat currency network.

bitcoin wont replace fiat systems.. the fiat systems will replace their own predecessor design

[Mpamaegbu]

So perhaps do you guys think the reason why most countries are having some restrictions on Bitcoin is because of the effects it has on the bank that people prefer to invest there funds on Bitcoin instead of banks?.

Each time I get to read about Bitcoin replacing fiat, I laugh. Even with mass adoption I don't think it will ever get to that point where fiat will disappear from the scene for Bitcoin. Come to think of it, Bitcoin transactions can't exist where Internet facilities aren't available. Bitcoin isn't even easy to use and that's going to be huge problem for the illiterate and elderly ones. Again, and most importantly, the recurring Blockchain congestion which is now the achilles heel for Bitcoin will continue to resurface. This continues to make Bitcoin usage frustrating. With this ceaseless congestion going on, there are many transactions not confirmed for several days now. How can such a system replace fiat?

[Lucius]

I find your argument wrong.
~snip~

It's not his argument, but he got the idea from people who posted that thesis years ago, and we even have an identical topic title on the forum. This idea, or rather the question, is attributed to a certain Rick Falkvinge, whose article you can search for, although there is nothing particularly clever to read.

Will Bitcoin do to Bank what email did to the post office?

[Mate2237]

Op, bank does not charge when making transaction but they charge small money monthly but Bitcoin charge is very high in each transaction though all the two have their advantages and disadvantages. Bitcoin increase in value when your hodle it while banks does not though banks does but it is very slow and low. But for now I don't think Bitcoin will over take bank the way internet mailing system took over Post Office.

Bitcoin can dominate the internet and not the physical. Then fiat will be still controlling the physical because many people don't know how to use the internet to make payment.

[rachael9385]

Let's keep the transaction fees outside this discussion but to be straightforward, Bitcoin is not in a competition with fiat currency or the CBN, it is just the government and some other people that's thinking the adoption of Bitcoin in the world will make a lot of citizens not to recognize the the fiat currencies again.

But truth be told that we can not keep the transaction fees outside the discussion, however, I can say that the only little problem that crypto currency is having now is just the transaction fees. Which means the transaction fees are what is making a lot of people not to hold anymore.

[Bushdark]

I don't still get the way op really define it looking at how important the bank had been. Even though Bitcoin is generally accepted everywhere, does not mean that individual banks would in be in existence? We need to understand the reason behind the creation of Bitcoin. Bitcoin being in existence does not mean that the local banks would not operate again. The government are majorly incahege of the bank and I don't think the government would allow banks to cease operation and Bitcoin to take over. I belief the two can work together.

[Pokapoka124]

Banks won’t go obsolete, they are smart enough to evolve with the times. I can’t envision a society without Banks. Where will private businesses and startups get money to build their businesses? The banks are more than just financial institutions where people save their money, the banking sector is crucial to the economy of any country. What you’re proposing is not realistic, there is so much that needs to be done for that to happen.