Bitcoin Bank - Safely store your bitcoin

[Peanutswar]

Why make a Bitcoin bank if you have a full authorization with your bitcoins, you can sell, trade, and invest at any time without having the KYC, restrictions to hold, minimum withdrawals, etc like other banks doing, also the use of the bitcoin will neglect with those rules those proposals not applied with the real use of the bitcoin itself. Your idea is creative but it's not applicable as you expect.

[Churchillvv]

When I read the title of this trade I thought it would be some nice content but here it's not. This is the worst proposal I have seen in BTT.

What's the difference between your proposal and a centralised exchanges? Infact a centralised exchange is even better than yours because they don't charge as much as you want to charge for holding a coin (my assets) for me.

Why will I keep my bitcoin with someone in the first place? That's against my doctrine, I'm a privacy advocate and why will I like to give someone who I don't know my bitcoin when a self custodian wallets exist. Every terms stated here is absolutely ridiculous in my perspective so I wouldn't patronize that.

[Antotena]

My idea would be to create a bank to safely store people's bitcoin and other crypto for people who just want to hold for a lot of time.
They would register with the passport or ID, it would cost 100 GBP + 1% to deposit and verify people's identities.
Then, to withdraw, it would take 3 months, they would have to show the passport and have a meeting via zoom once a month during 3 months stating they would want to withdraw, it would cost 300 USD plus 1% of the value.
It would compensate for people who want to hold for a lot of time without having security concerns.

It's either you are new to Bitcoin and don't know the relevance of Bitcoin yet or you know about Bitcoin but you haven't use it before that's why you are saying meaningless solutions for Bitcoin storage. Like don't you know that Bitcoin is decentralized and by that it means that nobody controls it and nobody hold anyone private keys. If you give your Bitcoin to any person and they run away, that means your Bitcoin is gone because no private keys to your Bitcoin and you can't spend it.

I will advice you, don't keep your Bitcoin in any platform that doesn't have private keys, it means you are losing ownership of your Bitcoin if anything happen tomorrow, in fact I will advise you to get a hardware wallet and put your Bitcoin there, it's as simple as that and not difficult thing to do but you need some money to get them and they are affordable.

[Y3shot]

My idea would be to create a bank to safely store people's bitcoin and other crypto for people who just want to hold for a lot of time.
They would register with the passport or ID, it would cost 100 GBP + 1% to deposit and verify people's identities.
Then, to withdraw, it would take 3 months, they would have to show the passport and have a meeting via zoom once a month during 3 months stating they would want to withdraw, it would cost 300 USD plus 1% of the value.
It would compensate for people who want to hold for a lot of time without having security concerns.

I think this is not the reason bitcoin was created. If bitcoin should have a bank the people will help you to store your bitcoin that means their is no different between bitcoin and fiat. One of the reason why we have bitcoin is for freedom, you having access to it whenever you want. You can bank your bitcoin yourself by hodling it with a non custodial wallet that is very reliable. Bitcoin is personal and have nothing to do with any other person.

[umbara ardian]

Bitcoin was born from a desire for decentralization, a rebellion against the perceived inefficiencies and regulations of traditional financial institutions.  Imagine a revolution against a centralized monarchy, advocating for individual liberty.

This core principle – bypassing third parties – makes Bitcoin attractive for those seeking financial freedom.  Non-custodial wallets, as you mentioned, offer a way to hold Bitcoin without relying on banks.  This empowers individuals, especially those in regions with limited access to traditional financial systems.

However, the complete absence of regulation is a double-edged sword.  While it fosters individual control, it also creates a Wild West atmosphere susceptible to scams and illegal activities.  Imagine a society without laws – freedom can quickly devolve into chaos.

[Kristiyana]

My idea would be to create a bank to safely store people's bitcoin and other crypto for people who just want to hold for a lot of time.
They would register with the passport or ID, it would cost 100 GBP + 1% to deposit and verify people's identities.
Then, to withdraw, it would take 3 months, they would have to show the passport and have a meeting via zoom once a month during 3 months stating they would want to withdraw, it would cost 300 USD plus 1% of the value.
It would compensate for people who want to hold for a lot of time without having security concerns.

It's either you are new to Bitcoin and don't know the relevance of Bitcoin yet or you know about Bitcoin but you haven't use it before that's why you are saying meaningless solutions for Bitcoin storage. Like don't you know that Bitcoin is decentralized and by that it means that nobody controls it and nobody hold anyone private keys. If you give your Bitcoin to any person and they run away, that means your Bitcoin is gone because no private keys to your Bitcoin and you can't spend it.

I will advice you, don't keep your Bitcoin in any platform that doesn't have private keys, it means you are losing ownership of your Bitcoin if anything happen tomorrow, in fact I will advise you to get a hardware wallet and put your Bitcoin there, it's as simple as that and not difficult thing to do but you need some money to get them and they are affordable.

Talking about creating a bank to safely store people's bitcoin, how about those people who have been storing most of their asset's in crypto wallet?and those assets has been there for a very long time. And  is save and secured reason been that those crypto wallet has a passphrase which is also known as private key if you don't disclose this private key to anyone there's no way anybody will have access to your wallet either.however bank have the access to do whatever thing they wish to do in your account reason is because bank doesn't have private key, that is to tell you that crypto wallet is even more secured than bank.

[Ayers]

So why do centralized exchanges exist today, and by the way, are you using them? It is true that using centralized services to store bitcoins is not a good idea because we have abandoned banks for bitcoin also because we do not like centralization. But centralized exchanges and services still have a large number of customers using their services.

Centralized exchanges are there for you to trade your coins and not to store it, it is easy to understand this. After trading on centralized exchanges, the funds should be moved into your self custodial wallet, i know that there are a lot of people who still store their funds in exchanges, but they are doing it wrong and that is why they make up the victims of ftx, celsius, Genesis, 3AC, mt. Gox, etc, who are still waiting to recieve some portion of their money back. If people do not want to be a part of these victims, they should use self custodial wallets to store coins.

I understand what you're saying, but you also acknowledge that even though storing assets on centralized exchanges is risky, many people are still doing it. And what I'm trying to say is that just because we don't like centralized services and we're trying to protest the OP from implementing his idea isn't right. Some people still need centralized services, which means the OP should still try implementing his plan. Don't stop him just because we don't like his ideas, and OP shouldn't give up on his dreams just because of people's opinions.

In the past, cryptocurrencies were not recognized and regulated by the government, so there were quite a few scams happening, but things are gradually changing and bitcoin ETFs is the start of it all. I know this will gradually take away the decentralized nature of the cryptocurrency market but it is inevitable and once there is government regulation, scams will also decrease. Things are changing and we should adapt and not use historical data to judge the future.

[bettercrypto]

Why make a Bitcoin bank if you have a full authorization with your bitcoins, you can sell, trade, and invest at any time without having the KYC, restrictions to hold, minimum withdrawals, etc like other banks doing, also the use of the bitcoin will neglect with those rules those proposals not applied with the real use of the bitcoin itself. Your idea is creative but it's not applicable as you expect.

That's what I don't understand because we can control our bitcoins ourselves through the Electrum wallet or hardware wallet that we will use. I don't see the logic why putting it in the bitcoin bank if we ourselves are the bank of the bitcoin we hold, right?

If we put it in the bank, we have removed or ignored the existence of bitcoin's decentralization, which has its features. The government is powerless to control it, so we will do it anyway. It's just common sense, right?

[Cricktor]

OP, what's the point of opening a thread with your proposal and not responding to replies at all so far. Your idea has flaws and probably most of them have been addressed by others here. Is it only me who finds it an annoyance that thread starters, especially newbies, abandon their threads for whatever reason?

To stay on-topic myself: why should someone trust your centralized custody, what safe custody expertise do you have and can prove it? What you propose is the opposite on many levels what Bitcoin stands for.

[dzungmobile]

To stay on-topic myself: why should someone trust your centralized custody, what safe custody expertise do you have and can prove it? What you propose is the opposite on many levels what Bitcoin stands for.

Bitcoin is unique and it gives everyone keys (private keys) to their bitcoin. They no longer have to rely on any custodian to store their money, in this case store in bitcoin.

Idea from OP is simply against this strength of Bitcoin protocol. Without black swan events, people feel safe by storing bitcoins on centralized exchanges but if anyone experienced this market in times of Terra, FTX, Voyager, Celsius, Three Arrow Capital, they would have known about this risk.

Later, bank collapse in the USA. and some banks in Europe, would have given them more warnings.

[bayu7adi]

To stay on-topic myself: why should someone trust your centralized custody, what safe custody expertise do you have and can prove it? What you propose is the opposite on many levels what Bitcoin stands for.

One or two people might believe it for some reason, but it's not going to have a big market here, given that knowledge about privacy and asset security among forum users is getting better and better.
We often read "Not your key not your Bitcoin" which means there is no one else we can trust but ourselves... even the history of hacking of exchanges and wallets is the reason some people cannot trust centralized companies to secure assets.

With a personal wallet, someone can store it for free, with a hardware wallet you only need to buy it once to secure your assets for life.
Withdrawing assets or exchanging them into fiat is easier, no need to wait 3 months.

In fact, we are given freedom and even simple things are free, but why is OP giving something that doesn't show excellence in the service they are trying to offer?

[Marvell1]

To stay on-topic myself: why should someone trust your centralized custody, what safe custody expertise do you have and can prove it? What you propose is the opposite on many levels what Bitcoin stands for.

Bitcoin is unique and it gives everyone keys (private keys) to their bitcoin. They no longer have to rely on any custodian to store their money, in this case store in bitcoin.

Idea from OP is simply against this strength of Bitcoin protocol. Without black swan events, people feel safe by storing bitcoins on centralized exchanges but if anyone experienced this market in times of Terra, FTX, Voyager, Celsius, Three Arrow Capital, they would have known about this risk.

Later, bank collapse in the USA. and some banks in Europe, would have given them more warnings.

To be fair, not all centralized platforms are useless or scams. Take a look at Coinbase, it was founded in 2012 and is still one of the good trading platforms to date. We should not equate them all as equally bad, and the problem is that some investors are abusing these centralized platforms, the exchange is a place to buy and sell, not a place for us to store bitcoin or cryptocurrency assets. We don't need to hate centralized services too much because I believe the majority of us are still using them to convert bitcoin to fiat and vice versa.

Regarding the OP's idea, I don't have anything outstanding and I also find it unfeasible when he charges so much for his service and not to mention his reputation.

[Woodie]

My idea would be to create a bank to safely store people's bitcoin and other crypto for people who just want to hold for a lot of time.
They would register with the passport or ID, it would cost 100 GBP + 1% to deposit and verify people's identities.
Then, to withdraw, it would take 3 months, they would have to show the passport and have a meeting via zoom once a month during 3 months stating they would want to withdraw, it would cost 300 USD plus 1% of the value.

Don't you think ETF's share the same concept as you, as the idea behind ETFs is to have a third party do the buying of actual Bitcoin on our behalf so as to remove the risk that comes with handling cryptos such as Bitcoin...I guess with the reputation they have they might get more clients, but doesn't hurt to give it a shot.

Btw , reading about your idea, this looks like a cat and mouse chase in the making as I see that so much effort has gone into the KYC process and all the data collection of users and not really investing in the platform itself to guarantee a secure platform... otherwise looking forward to seeing this idea brought to life.

It would compensate for people who want to hold for a lot of time without having security concerns.

I don't know about this, do we have platforms that take full responsibility of cryptos incase something happens 

[dezoel]

My idea would be to create a bank to safely store people's bitcoin and other crypto for people who just want to hold for a lot of time.
They would register with the passport or ID, it would cost 100 GBP + 1% to deposit and verify people's identities.
Then, to withdraw, it would take 3 months, they would have to show the passport and have a meeting via zoom once a month during 3 months stating they would want to withdraw, it would cost 300 USD plus 1% of the value.
It would compensate for people who want to hold for a lot of time without having security concerns.

I think this is not the reason bitcoin was created. If bitcoin should have a bank the people will help you to store your bitcoin that means their is no different between bitcoin and fiat. One of the reason why we have bitcoin is for freedom, you having access to it whenever you want. You can bank your bitcoin yourself by hodling it with a non custodial wallet that is very reliable. Bitcoin is personal and have nothing to do with any other person.

I agree with that. What is the meaning of decentralization if you hand over your funds to a centralized entity to hold them for you when you can do that yourself? Bitcoin provides us with financial privacy, which means that we can store our money ourselves without involving any central authority or third-party because we have non-custodial wallets where you hold your keys, phrases, and everything important.

Besides, if there is a Bitcoin bank and you keep your funds with them, you will need to declare and explain everything you do with your Bitcoin. You make a deposit, you are asked about the source, you ask for a withdrawal, you are asked for a reason, and why would one want to go through all that if they can avoid them by storing them with themselves?

[pinggoki]

No one in here would take on your offer, that's a bad idea anyway. Look at all the people that have bitcoin, they all have been storing their bitcoins in their own wallets and they don't even need to pay for it or anything like that, just need that they've got their attention to it, not click on suspicious links and be vigilant about their activities online and that they don't forget the seed phrase and they'd be good to go.

This idea is also the antithesis to what bitcoin is, a way to get away from banks, how can we get away from banks if we become banks ourselves?

[Cricktor]

This idea is also the antithesis to what bitcoin is, a way to get away from banks, how can we get away from banks if we become banks ourselves?

Controlling your own keys and wallet(s) is somewhat being your own bank (just without the funky financial products that traditional banks emphasize on). Your keys, your coins, your own vault. Sounds nice to me. Additionally I'd recommend reading the interesting PDF at https://smartcustody.com/, depending on how much coins you want or need to secure, proper risk assessment is crucial.

[bitterguy28]

your idea seems to be just a bad idea mate

first of all what would be so unique about your “bank”
that people can’t just store their bitcoin on their own wallets
where no one else has access to aside from themselves?

second i know lots of people won’t be as enthusiastic with the thought of having to provide a passport or any identification when they can store their own btc without any of that

third what do you mean it would take them 3 months to withdraw? are you joking or is this a genuine post? don’t you see anything wrong and inconvenient with that at all?

[Nrcewker]

The idea of Bitcoins was to get rid of the banking system and manage our finances independently. Now you want the bank to come back and store Bitcoins in it? Moreover people used bank in order to store their money safely instead of storing it in their homes. But bitcoins can be easily stored in a person wallet with full security. So there is no reason for using a bank I must say. This idea is very much useless according to me.

[Vladv26]

Why would anyone use a third party to to store their Bitcoin when they can just store it themselves in their own bank? We are in 2024 and I'm sure anyone who invests and plans to hodl their Bitcoin for a long period of time has enough resources to learn how to do that safely by themselves. Bitcoin is a digital asset, meaning it does not need protection from regular thieves such as fiat money or tangible assets do,therefore there is no need for a bank to store it and protect it. What would your bank protect, my private keys? That's just a silly idea.

[DanWalker]

The idea of Bitcoins was to get rid of the banking system and manage our finances independently. Now you want the bank to come back and store Bitcoins in it? Moreover people used bank in order to store their money safely instead of storing it in their homes. But bitcoins can be easily stored in a person wallet with full security. So there is no reason for using a bank I must say. This idea is very much useless according to me.

Yes, this idea is quite meaningless because bitcoin is essentially a decentralized network so creating any centralized service to serve bitcoin doesn't make much sense. But I'm not in a hurry to judge OP's idea, what I care more about is OP's reputation. Who is he, if he founded a business and what guarantees that he is not a scammer intentionally creating a project to steal people's bitcoins?

Regarding evaluating OP's idea, there will be many things he needs to prepare before starting to implement his ideas. In terms of coming up with ideas that are not too creative and different, any of us can think of them.