Can bitcoin completely erase the Traditional Banking System?

[#Greatest]

For one, I would say that moreover that Bitcoin has gained popularity and also disrupted the financial industry , it is only safe to say that it is unlikely to replace the traditional banking system in the nearest future. I mean , mortgages , loans and financial services are functions that are carried out by these traditional banking systems. But then, Bitcoin and other cryptocurrencies have the potential to provide alternative options and challenge certain aspects of the traditional banking system .. What do you think?

[ImThour]

Not really, I mean it can work as an alternative to what is being used by millions on our planet but it will not be able to overtake and become what traditional banking systems are.
I am sure it says Be your own bank however you surely relate every Bit of Bitcoin with a intrinsic value of a dollar which is based on the real cash, hence Banks control it either way.

[_act_]

What do you think?

This is what we have discussed over and over again on this forum. Bitcoin is existing not to be a substitute but an alternative to fiat and banking system. Fiat has some characteristics that bitcoin do not have. Also bitcoin has some characteristics that the banking system and fiat do not have. They are alternatives to one another but bitcoin is far better and worth holding as an investment.

[Z-tight]

Take note that BTC was not created to erase the traditional banking system, that is where people seem to get it wrong; fiat and the traditional banking system will continue to exist for a very long time.

BTC was created to be a censorship resistant and permissionless alternative to that system, and for people who want to control their finances. But obviously not everyone would want to do that, there will surely be more people who are totally comfortable with the present order of things and do not want a change. Then even for the people who want to control their finances through BTC, they must still have a certain percent of it in fiat for spending and other necessary payments.

[Poker Player]

I'm sorry to say that I think you're asking the wrong question. The relevant one today is whether the banking system, especially central banks and public authorities, are going to be able to get their hands on Bitcoin. Not to wipe it out but to control it with ever stricter regulations involving KYC and transaction censorship.

[kryptqnick]

As much as I like Bitcoin, I don't think it can replace the traditional banking system. Bitcoin is a good alternative, something that can allow people to bypass banks in many ways. But Bitcoin doesn't come with assurances that the money will be safe, doesn't come with centralized responsibility for funds (and someone people can blame if things go wrong), doesn't come with customer support, loans, insurances, etc. So while it's an alternative, it doesn't cover all the things that banks do. More importantly, banks have established themselves over the years, and a lot of people trust them.

[iBaba]

What do you think?

I understand your point, you are looking at it from the perspective of the much fascinating evolution of currencies from the Barter form of exchange to the transformation of the currencies over the centuries.

The very known first form of money was through the trade by barter system where people engaged in the direct exchange of goods and services. During this period, the people value worths of goods to be exchanged by their desired goods or services. But because there was inefficiency and limitations in this form of exchange or transaction, people of the ancient time thought of the need to migrate to the commodity money.

In this kind of transaction, exchanges where done with items that had value in the eyes of the people of then, such items included precious stones, cattles, etc and these commodities which also included salts were widely known, valued and accepted in markets. From these commodity money, there was the introduction of the metal coins which were the currencies we all experienced at a point in time and are still experiencing today in some parts of the world. Governments also adopted and started minting these currencies for the market and individual use.

At a point in time, the government then introduced the paper money to ease trading since most of these metal coins where heavy and there was a monumental thought that the metals could also be transformed to just paper monies where you have the value of the money printed on currencies. These improvements also led to the invention of banknotes and the banking system itself which is yet one of the most valuable industries in the world now.

Now, with the advancement in the emerging internet, information technology and the fintech, these notes have been digitalized which brought about the advent of the cryptocurrencies through the invention of the Bitcoin currency by Satoshi Nakomoto as another digital currency that have its own value based on the decentralized blockchain technology. These cryptocurrencies operate independently and are only valued or devalued by its users making in it possible for more transparent and universal transactions.

Having journey through the abovementioned evolution of currencies, I think it is only normal for a curious mind to ask if it will replace the current paper money and banknotes. The most sincere and straightforward answer to give to such question is that the future of Bitcoin is still very much unpredictable and it will not be a decision that will be taken by people alone but governments of different nations, and with the current realities, that won't be possible any moment from now.

[moneystery]

even though bitcoin has experienced increasing adoption in recent years, that is not the reason that bitcoin is able to eliminate banking globally, the reason is; firstly bitcoin was developed to be a digital currency not for banking, secondly most people globally still depend on banks for their various needs, thirdly banking is one of the main pillars in the global economy, the fall will have a massive impact, and finally banking will not allow their services are replaced by bitcoin.

these reasons alone can refute the statement that says that bitcoin or other altcoins can eliminate the role of banking, because banking is still relevant for people to use as a place to fulfill their various financial needs and bitcoin/altcoin is not yet suitable for that.

[dzungmobile]

Bitcoin has never erased traditional banking system, not now and will not be able to do this in future.

Be realistic and if you need examples.

You can see paper books/ newspapers and e-books, e-newspapers and you will see the same with paper/ polymer fiat currency, digital bank transfers, cryptocurrency transactions includes Bitcoin transactions. Soon even with CBDCs (Central Bank Digital Currencies), Bitcoin will only co-exist with other currencies, in bank system and in cryptocurrency.

[franky1]

governments (patent holders of traditional money) want to retain control of their economy
they have laws protecting it
tax, minimum wage, valuations of income, court fine settlement, etc

bitcoin will not replace fiat, but bitcoin is an open choice to have besides fiat
..

its the same argument as will EURO replace dollar.. no, america will stick to using the dollar for american citizens and american government. but people can choose to have some euro and spend it with euro accepting businesses.

governments themselves can patent their own new money design. EG CBDC which they can introduce and work beside their paper bank note money and eventually over take it. but by remaining their patent they get to control the circulation and rules for how people bearing their money use it

[Aanuoluwatofunmi]

For one, I would say that moreover that Bitcoin has gained popularity and also disrupted the financial industry , it is only safe to say that it is unlikely to replace the traditional banking system in the nearest future.

Never doubt the ability in change, you could experience something totally different from you what you least expect, one thing am sure about is that the future will tell more of this, but from what we are currently seeing, there's high probability for digital currencies prevailing over time.

I mean , mortgages , loans and financial services are functions that are carried out by these traditional banking systems.

And who want to remain in debt with these financial banks anymore, when all they could do is to inflict us with high demand on everything they offer us, while cryptocurrency can make us have the opportunity of getting the profitability that can help us clear all our debts.

[Justbillywitt]

The main purpose for Bitcoin creation was for people to have alternatives rather than depending on the fiat system alone. Bitcoin and Fiat are in no competition on who will extinguish each other. But for the first time in history people are now presented with opportunity to choose which means they like to interact with their peers aside the traditional banking system of Fiat . So I don't think Bitcoin will erase the traditional banking system.

[avikz]

For one, I would say that moreover that Bitcoin has gained popularity and also disrupted the financial industry , it is only safe to say that it is unlikely to replace the traditional banking system in the nearest future. I mean , mortgages , loans and financial services are functions that are carried out by these traditional banking systems. But then, Bitcoin and other cryptocurrencies have the potential to provide alternative options and challenge certain aspects of the traditional banking system .. What do you think?

Nope! Bitcoin cannot replace the traditional banking system in any way. It can provide some alternatives to some small number of people for sure. But Bitcoin doesn't have the capability to handle the scale of a mainstream banking system. So if you are under any such kind of influence please come out of that. Bitcoin cannot handle the volume that that traditional banking system handles in 1 hour. So let's not daydream about the capacity of Bitcoin and use it as a parallel currencies system like it is now.

[Synchronice]

For one, I would say that moreover that Bitcoin has gained popularity and also disrupted the financial industry , it is only safe to say that it is unlikely to replace the traditional banking system in the nearest future. I mean , mortgages , loans and financial services are functions that are carried out by these traditional banking systems. But then, Bitcoin and other cryptocurrencies have the potential to provide alternative options and challenge certain aspects of the traditional banking system .. What do you think?

Bitcoin can't erase the traditional banking system because Bitcoin has nothing to do with it. What is a traditional banking system? Banks give loans, receive repayments and also accept deposits to give away money again with interest. How can Bitcoin replace that? Do you think that loans in such a volatile currency is a good idea? Or do you think that banks will lose their control and influence? Bitcoin can't handle large volume of transactions and how do you think that it will handle massive volume that banks have? Bitcoin was not created to erase the traditional banking system, it was created to offer you P2P payment method but it wasn't meant for widespread acceptance too. Read Bitcoin Whitepaper, understand how Bitcoin works and you'll understand that Bitcoin doesn't have the potential to challenge the aspects of traditional banking system. It's a different thing.

[Z-tight]

Never doubt the ability in change, you could experience something totally different from you what you least expect, one thing am sure about is that the future will tell more of this, but from what we are currently seeing, there's high probability for digital currencies prevailing over time.

This is not so true, there is no probability of BTC replacing fiat or the BTC blockchain replacing the traditional banking system. BTC is a decentralized system, and so i don't think it is possible to have a centralized government in control but with a prevailing decentralized financial system. The government have to be accountable for financial matters, both in decision making and issuing currencies, and they can only do that with a currency and system they control.

And who want to remain in debt with these financial banks anymore, when all they could do is to inflict us with high demand on everything they offer us, while cryptocurrency can make us have the opportunity of getting the profitability that can help us clear all our debts.

Debt, loans, insurance, mortgages are all very important and so many people need them in their businesses and personal life.

[uneng]

For one, I would say that moreover that Bitcoin has gained popularity and also disrupted the financial industry , it is only safe to say that it is unlikely to replace the traditional banking system in the nearest future. I mean , mortgages , loans and financial services are functions that are carried out by these traditional banking systems. But then, Bitcoin and other cryptocurrencies have the potential to provide alternative options and challenge certain aspects of the traditional banking system .. What do you think?

Bitcoin isn't going to erase or replace traditional banking system. As far as I can see, banks are actually introducing Bitcoin and crypto assets to their offerered services to customers, so they are bringing crypto to the traditional banking system in a centralized way. It means you won't have total control over your assets, like you would in a decentralized system. You buy Bitcoin, but who controls it are the banksters. You can't even send your BTCs to another wallets and addresses, as they only allow you to sell it for fiat and then use the fiat as you wish.

Mortgages, loans and financial services can be offered through Bitcoin currency, but not by autonomous individuals inside a decentralized system. Rather, such BTC services will still be offered by banks. The system adapts itself to the current conditions to remain untouchable and ruling the masses. The idea we, independent citizens, are going to be "free" someday in this world from financial institutions and centralized parties is just an illusion.

[abel1337]

I don't think so. Bitcoin is created to be an alternative to ever controlling banking system but it doesn't mean that it will replace it. There are so many reason why banking system/fiat system couldn't be demolished, one reason of it is the laws that currently exists in each of our countries. I also don't think that 100% of humans would want the ever comfortable banking system be demolished by bitcoin which most likely a new thing to them. There is a fear of the unknown, and I believe that most of the humans are still haven't tried or don't have any bitcoin knowledge.

[Zaguru12]

As much as I like Bitcoin, I don't think it can replace the traditional banking system. Bitcoin is a good alternative, something that can allow people to bypass banks in many ways. But Bitcoin doesn't come with assurances that the money will be safe, doesn't come with centralized responsibility for funds (and someone people can blame if things go wrong), doesn't come with customer support, loans, insurances, etc. So while it's an alternative, it doesn't cover all the things that banks do. More importantly, banks have established themselves over the years, and a lot of people trust them.

It’s definitely not replacing it. Satoshi had the craziest idea to create this huge project if he with such vision didn’t see it totally overthrowing the bank system then there is a pick there that it can’t. In as much as bitcoin has many advantages that many of us have adores it is will want it to be the main currency for exchanges there are demerits of it that isn’t taking it to that level of total replacement of the traditional currency. A clear example of this; is the ongoing crisis surrounding the congestion on its network making transactions slower except if you wish to pay the erroneous fees to get it confirmed in the next available block.

Also bitcoin might look a bit confusing for old age and less educated people and also works in areas where they are only internet network. All this wouldn’t allow it take the center position someone like me will want but honestly I like it been an alternative and a better one like this to ease my problems that the traditional system couldn’t solve, like easy cross boarder transactions and a very good store of value

[Queentoshi]

For one, I would say that moreover that Bitcoin has gained popularity and also disrupted the financial industry , it is only safe to say that it is unlikely to replace the traditional banking system in the nearest future.

Never doubt the ability in change, you could experience something totally different from you what you least expect, one thing am sure about is that the future will tell more of this, but from what we are currently seeing, there's high probability for digital currencies prevailing over time.

Even if digital currencies and cryptocurrencies will become more popular with time, the traditional banking system will still be in usage and not completely erased. There are people who have never tried investing in bitcoins or using bitcoins as a means of payment and they would never use it, we have to accept that, and there are also people that use bitcoins currently but later on will abandon it and switch back to the traditional banking system for use maybe due to reasons special to them. Not all investors and people who use bitcoins now will continue using it, that is normal.

[kaka_Shipai]

It has everything to shake the core of the traditional banking system. And if the banking system doesn't revolutionize their system, then it is bound to be erased by cryptocurrencies. People will move the more affordable and taxfree system eventually and the govt can't stop you from doing that, so either the traditional system upgrades and move on the standards of bitcoin and cryptocurrency or it'll be gone.