Can Bitcoin eliminate local banks?

[CamilaStar]

Some dude asked me if Bitcoin could eliminate local banks, I thought of it,
I told him that no
From my own point of view, banks have alot to give more than just money transfers, they offer loans and mortgage, business banking services, costumer service and dispute resolution. So this banks are really doing a good job and I don't think they can be eliminated soon. Bitcoin is not widely used for dally payments yet, so volatile prices makes it difficult to use as a stable currency
I hope I made a good point there

[Don Pedro Dinero]

I don't think so. In a hypothetical future where bitcoin becomes a globally used currency it could, but it is very hypothetical and there are too many drawbacks to reach that future such as scalability, ease of payment with other alternatives and that it is increasingly used as a store of value.

[EL MOHA]

Whenever a question like this about bitcoin eliminating anything comes up the straight answer is always that bitcoin isn’t here to eliminate anything but rather to provide alternative to those monetary or financial market shortcomings.

As you have rightly said banks still offers many options to users most especially those who do not care much about privacy. Loans can also be issued with bitcoin but sometimes it not easy like the one you would have with banks because of identity issues.

People should stop the narrative of bitcoin looking to take out anything from the market it is simply an alternative for people who seeks its utility

[SilverCryptoBullet]

Some dude asked me if Bitcoin could eliminate local banks, I thought of it,
I told him that no
From my own point of view, banks have alot to give more than just money transfers, they offer loans and mortgage, business banking services, costumer service and dispute resolution. So this banks are really doing a good job and I don't think they can be eliminated soon. Bitcoin is not widely used for dally payments yet, so volatile prices makes it difficult to use as a stable currency

Bitcoin gives a Bitcoin bank for a Bitcoin user but it does not eliminate any central bank or commercial banks at national or global scale. You can see such too optimistic and bullish prediction on Bitcoin future but it is only from Bitcoin maximalists.

Realistically, it is not too realistic prediction and I believe in an opposite future that central banks, commercial banks, Bitcoin and altcoins will exist together. People love to have options and choices, so they don't want to live in a future with only Bitcoin to use. At government side, they simply can not kill Bitcoin globally while Bitcoin network is decentralized to make it very strong against any attacks from hackers and governments.

[m2017]

Some dude asked me if Bitcoin could eliminate local banks, I thought of it,
I told him that no
From my own point of view, banks have alot to give more than just money transfers, they offer loans and mortgage, business banking services, costumer service and dispute resolution. So this banks are really doing a good job and I don't think they can be eliminated soon. Bitcoin is not widely used for dally payments yet, so volatile prices makes it difficult to use as a stable currency
I hope I made a good point there

CBDC will replace local banks, not bitcoin. We'll see.

All those banking functions that you described will be performed by the central bank (of each country) using CBDC and blockchain. In a world where everything is automated, there will be no need for an intermediary in the form of local banks.

[Joy- maker]

Some dude asked me if Bitcoin could eliminate local banks, I thought of it,
I told him that no
From my own point of view, banks have alot to give more than just money transfers, they offer loans and mortgage, business banking services, costumer service and dispute resolution. So this banks are really doing a good job and I don't think they can be eliminated soon. Bitcoin is not widely used for dally payments yet, so volatile prices makes it difficult to use as a stable currency
I hope I made a good point there

buddy bitcoin can't eliminate Banks, because we still need those shits. Just as you said there are things Banks can offer to us, things like loans and mortgage, business banking services, costumer service and dispute resolution just as you have listed them, but bitcoin can't offer them to us, beside bitcoin is decentralized no central authority control it to offer those stuffs Banks can offer to us, so you see why we need Those shits called Banks. Secondly there are  people out there who still prefer the banking system than that of bitcoin system, but all the same even as bitcoin is not yet accepted all over the world as payment method, bitcoin still remain a safe heaven for storing our wealths.

[Helena Yu]

I would say, some people can live without banks if they live in a country where the merchants accept Bitcoin payment, but not all people can live without banks, which mean Bitcoin can't eliminate local banks.

It would be a total chaos if every banks went bankrupt because the rich will hold their coins while the poor have no way to get coins because the supply is limited. If situation where the rich hold their money, the government can print more money to donate the poor, Bitcoin can't.

[Frankolala]

Banks control the fiat distribution and they're supported by the government, because the government uses bank to give the people hope that fiat is safe to store. Banks don't only store fiat, but they also keep valuable treasures for owners. As long as we are in a centralized world, banks will always exist because the government uses banks to monitor their citizens financial spending and extort them through loans. Fiat is the government itself.

[Floxynice]

Trust me, alot of people would prefer to stick to the traditional system than having to deal with bitcoin for every day payments. You can imagine not have any central authority to run to when you mistakenly send bitcoins to the wrong address. People would still prefer traditional banks just like we here would prefer Bitcoin.

That being said, this shows both Bitcoin and the banks will coexist together. Moreover, just as you've noted, bitcoin does not solve all economic problems.

[bitbollo]

I am not using "Local banks" since 10 years.
Each time I give to them a "second chance" it's like a crazy and dismal experience (in one case they just closed my bank account!)
Nowadays it's full of online option and even big foreigners group could offer service worldwide.
Mostly they know WHAT is bitcoin and they are accepting it. Plus there are many new services that thanks to crypto can offer advatange that you could just dream just few years ago.
Did you still need to be kind and submissive with a local bank account, or you have all instruments to be completely free in your economic life?

[cabron]

Banks may still be relevant even in crypto space. More than likely the banks are going to launch their own stablecoins like few other entities and will probably be able to accumulate Bitcoin as well. Banks probably will innovate themselves into a Defi platform also. Innovation doesn't stop and if it has to evolve into something that crypto users would need, then they will evolve.

[qwertyup23]

This question has been asked several times already but to answer it again, the short answer is: NO.

Local banks are created in order to store the amount of money in a given country. They also have a factor in managing the inflation of a country given that they control the interests rates whatever money comes into their possession. Additionally, banks provide loan applications to its users which in return gives them more access to their purchasing power.

The heart of banks is currency- or what we call "fiat" or "paper money." If you think that BTC can eliminate local banks, then this highly implies a shift to a different form of payment; a digital platform where ALL people would have to transact digitally.

Given that there are developing and third-world countries that struggle to prioritise shifting to a digital form of payment, the thought of eliminating local banks by cryptocurrencies seems to be far-fetched and highly improbable given the current circumstances.

[Bitcoin Smith]

I am not using "Local banks" since 10 years.
Each time I give to them a "second chance" it's like a crazy and dismal experience (in one case they just closed my bank account!)
Nowadays it's full of online option and even big foreigners group could offer service worldwide.
Mostly they know WHAT is bitcoin and they are accepting it. Plus there are many new services that thanks to crypto can offer advatange that you could just dream just few years ago.
Did you still need to be kind and submissive with a local bank account, or you have all instruments to be completely free in your economic life?

You mean you are not using banks at all for anything?

I understand the negligence of baking staff when it comes to customer support but where I live everything has to be paid online so I need bank account for sure and I haven't visited any bank for like five years since I can do everything online from opening the account, KYC verification, Check and card application and anything and even personal loans too but if I need other bigger loans then I may need to visit the bank physically so what is your option if that's the case?


OP even if we assume everyone moved to bitcoin but bitcoin network can handle such amount of incoming transactions? The answer is no.

[lionheart78]

I don't think so. In a hypothetical future where bitcoin becomes a globally used currency it could, but it is very hypothetical and there are too many drawbacks to reach that future such as scalability, ease of payment with other alternatives and that it is increasingly used as a store of value.

Even in a hypothetical scenario, I do not think Bitcoin can eliminate banks.  Banks, aside from financial transfers, also offer lots of services beyond Bitcoin capability.  Bitcoin is only known for direct fund transfers and safekeeping of its own currency, but it does not offer lending services, safekeeping or custodial services(aside from money), exchange, and so on.  These services are crucial in the financial world, so no matter how good Bitcoin is, it cannot replace many services that banks offer.

[Merit.s]

Government wouldn't allow bitcoin eliminate local banks because they're still finding it difficult to control bitcoin which is impossible. Bitcoin cannot handle large volume of transactions and that's will be a big challenge for bitcoin if majority of people adopts bitcoin for daily use.

Currently, majority of bitcoin enthusiasts are more of holders who are using bitcoin as a long-term asset than a currency, and this number will continue to increase in future, because the value of bitcoin increases overtime.

[KingsDen]

I am now very convinced that the question of whether or not bitcoin will obsolete banks will not stop to be asked as long as this industry is concerned.
Op, can you briefly explain to me how banks resolve disputes in your country. If so, do you guys have court in your country? And what is their dut(ies).
Meanwhile, the purpose of creating bitcoin is neither for it to eliminate fiat nor banks.

[retreat]

Bitcoin will not eliminate banks, because the function of Bitcoin itself is to serve as an alternative to the current banking system. Additionally, banks still play an important role in society, such as providing a place for savings, handling local transactions, offering financing, and more. This means there are still many features of banking that cannot be fully replaced by Bitcoin. Governments also do not appear to support the idea of Bitcoin replacing the role of banks, which is why the use of Bitcoin remains limited and is not recognized as a fully legal means of payment in most countries.

[Awaklara]

Some dude asked me if Bitcoin could eliminate local banks, I thought of it,

Now, the situation is that more people have Bitcoin as a means of storing value, rather than as an alternative payment tool. I really want to see Bitcoin truly used as a legitimate payment tool for everyone, but we know some of the challenges. Banks will not be replaced, this system has already been created and used for a very long time. It will be difficult and will take quite a long time to change all of that.

[abaeze]

Some dude asked me if Bitcoin could eliminate local banks, I thought of it,
I told him that no
From my own point of view, banks have alot to give more than just money transfers, they offer loans and mortgage, business banking services, costumer service and dispute resolution. So this banks are really doing a good job and I don't think they can be eliminated soon. Bitcoin is not widely used for dally payments yet, so volatile prices makes it difficult to use as a stable currency
I hope I made a good point there

Bitcoin and banks are two different things, one is a currency and the other is an institution, so it is not possible now, nor will it be possible in the future. You already know that "banks have a lot to give more than just money transfers, they offer loans and mortgage, business banking services, customer service and dispute resolution". so don't worry about it but In the future, banks will change monetary policy in line with the decentralized economy. Banks will also change and modify their services or add or subtract in line with the changes in the socio-economic structure.

[Oshosondy]

You can also think that banks can start offering their customers bitcoin and crypto if their central banks allow it. Compare bitcoin to fiat and not bank. Also bitcoin is an alternative to fiat and not a replacement. Just know that bitcoin can not replace bank at all. Also it can not replace fiat but you can use it as alternative.