Can Bitcoin eliminate local banks?

[salad daging]

How is that possible? Local banks will not disappear because of Bitcoin, as banks are already too powerful under government supervision, so they have become a part of everyday life for many people in any country, meaning that banks cannot be replaced.

People hope that Bitcoin can replace banks, but that will never happen, even if you hate it, as there are still many countries that do not accept Bitcoin as a means of payment, making it difficult to eliminate banks.

[Josefjix]

Even Bitcoin do not create it's system to eliminate banking sector but come to safe people from centralized banking oppressions, literally, banks and Bitcoin works interchangeably in the case of depositing and withdrawing Fiat to Bitcoin and vice versa, so it's no way Bitcoin can remove Bank from it's operations.

[Mrbluntzy]

What even the flex in comparing Bitcoin to bank demanding to know which will eliminate the other? If bank cease to exist today, how about those countries that doesn't approved of Bitcoin as a legal tender, how can they spend their fiat and the question is, would government allow Bitcoin to eliminate banks? That's not going to be easy and possible, though many people are transacting via Bitcoin but that doesn't mean banks should not exist.

[cryptotact11]

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.

You get it. Bitcoin is money, banking is a type of service. You can't compare these two at all. What can only happen is that banks adopt Bitcoin for everything as well, but not as a replacement of fiat but an addition. It would be similar to just like adding another fiat currency to the portfolio that they already have.

[Ryu_Ar1]

Some dude asked me if Bitcoin could eliminate local banks, I thought of it,
I told him that no

You already answered that because the answer is no, bitcoin will not be able to replace the role of banks, including local banks.

We must remember the purpose of bitcoin from the beginning was only to be an alternative not a substitute so that even though the development of bitcoin is getting bigger and more and more people are literate in bitcoin, bitcoin will not replace anything for the existing system because their goal is only to be an alternative and will forever be like that.

Maybe this idea will be slightly refuted by several things such as adoption from several countries but of course we also have to realize that even if there is adoption for bitcoin from several countries including large countries in the end the role of fiat and banks will still remain and bitcoin will only perfect by being optional for transaction tools. It does not necessarily replace of course because from its condition those who become optional will still be optional not as a substitute for the system that has been around for a long time.

[Ivystar5]

You could have just joined one of those threads that are discussing this than a new thread asking same questions again, personally I think that we are past those stage where overzealous people start creating a delusional enemity between bitcoin and fiat and banks, bitcoin didn't exist to fight against them but to provide assistance to those 1% people who will disagree with the financial system run by centralisation and opt for bitcoin a decentralised currency and digital with a cap that can't be printed as fiat.

Know this and know peace ✌️

[Stalker22]

People love to run wild with the idea that Bitcoin is just gonna steamroll over banks and make them obsolete. Thats not really how it works, though.

You said it right, banks do way more than just hold your cash. Stuff like loans, mortgages, or handling business accounts... Yeah, good luck doing all that with Bitcoin alone right now. You still need some trusted middleman for those things, at least for the next, I dunno, few decades? If anything, Bitcoin is more like a complementary technology to the current system, not some magic bullet thats gonna wipe banks off the map. Not yet, anyway.

[yudi09]

Some dude asked me if Bitcoin could eliminate local banks, I thought of it,
I told him that no

As an alternative currency for the foreseeable future, that's enough.

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.

They also provide interest to the government and other benefits that keep them protected for as long as the country exists.
Banks are doing well for them. They try to be good to their customers, but there are many customers who are not satisfied for some reason.

Bitcoin is not widely used for dally payments yet, so volatile prices makes it difficult to use as a stable currency

Bitcoin is not a stable coin.

[Botnake]

Bitcoin is not created to compete with any centralized banks so I don’t see any reason why bitcoin needs to eliminate local banks. Banks have been serving the people in their best possible ways so I don’t think it need to be stopped just for bitcoin to steal the spotlight.

Bitcoin is bitcoin, and banks are banks, they serve different purposes to the people around. While bitcoin is used as a decentralized currency, banks on the other hand are used in alignment with its fiat currency rules and policies.

[cryptotact11]

Bitcoin is not widely used for dally payments yet, so volatile prices makes it difficult to use as a stable currency

Bitcoin is not a stable coin.

To be fair the user didn't say a stable coin, but as a stable currency. Bitcoin is not stable enough to use it for some purposes, but that is to be expected when its value is massively appreciating. One day this may change.

Bitcoin is not created to compete with any centralized banks so I don’t see any reason why bitcoin needs to eliminate local banks. Banks have been serving the people in their best possible ways so I don’t think it need to be stopped just for bitcoin to steal the spotlight.

You are confusing central banks with local banks. Unless you mean something else with this centralized banks, but nobody refers to them as this because they are inherently centralized by their nature.

[Perfectbaby]

I must tell you something about banks and cryptocurrency... Look, bank is like the tools that fuels bitcoin increase, people funds their exchange through bank by either using their ATM card to purchase and bank gives people easy access to make use of any cryptocurrency you may want. For instance; my first investment on cryptocurrency (bitcoin) started when I used my card to make deposit, when you know that banks are also important on the space then they wouldn't be thinking that bitcoin will eliminate bank, this same reason are making some people not to just store their asset into bank rather uses crypto to store investment and whenever they want fiat they will trade back to their respective local banks.

[yudi09]

-snip-

Bitcoin is not a stable coin.

To be fair the user didn't say a stable coin, but as a stable currency. Bitcoin is not stable enough to use it for some purposes, but that is to be expected when its value is massively appreciating. One day this may change.

It is not stable. Whatever you want to call it, it is still not a stable currency or coin.
1 Bitcoin is 1 BTC.

Go back to the white of Bitcoin. That's the answer. Now. Don't wait until tomorrow to read it.

[Japinat]

How is that possible? Local banks will not disappear because of Bitcoin, as banks are already too powerful under government supervision, so they have become a part of everyday life for many people in any country, meaning that banks cannot be replaced.

People hope that Bitcoin can replace banks, but that will never happen, even if you hate it, as there are still many countries that do not accept Bitcoin as a means of payment, making it difficult to eliminate banks.

Exactly. Bitcoin is just a single currency, while banks can offer different centralized currencies if you ask for it. So there’s no way that bitcoin will replace the position of banks, as banks have been here already before bitcoin has come to its existence. And the fact that it’s strongly backed up by the government, the more that bitcoin cannot eliminate banks.

Bitcoin and banks offer different services to the people, so they need to co-exist with one another, and not that bitcoin will eventually replace the local banks because that’s actually very impossible to happen.

[cryptotact11]

-snip-

Bitcoin is not a stable coin.

To be fair the user didn't say a stable coin, but as a stable currency. Bitcoin is not stable enough to use it for some purposes, but that is to be expected when its value is massively appreciating. One day this may change.

It is not stable. Whatever you want to call it, it is still not a stable currency or coin.
1 Bitcoin is 1 BTC.

Go back to the white of Bitcoin. That's the answer. Now. Don't wait until tomorrow to read it.

It seems that you don't understand basic English, go back to English classes instead and read the book economics for dummies.

Bitcoin and banks offer different services to the people, so they need to co-exist with one another, and not that bitcoin will eventually replace the local banks because that’s actually very impossible to happen.

Bitcoin does not offer any services, Bitcoin is not a business. The rest of the post is alright.

[Patikno]

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

As far as I know, according to the whitepaper, Bitcoin was created as an alternative currency, meaning there is no indication of eliminating banks. Therefore, I believe Bitcoin will be adopted by banks as part of their transaction medium or as an alternative, however, I believe banks will still prioritize fiat as their primary currency. Furthermore, I believe Bitcoin's price is indeed volatile, but in the long term, we can conclude that Bitcoin's value will continue to rise, consistently achieving new peaks each period or cycle, one of the reasons being the halving period, so it shows that Bitcoin will attract everyone's attention including banks, companies, and even countries or institutions.

[Distinctin]

I don’t see it happening now and even in the future. Bitcoin is never intended to act as a bank completely and eliminate the local banks. This is too far to happen, because first and foremost banks are fully backed up by a centralized government, second banks can offer services that they can’t do with bitcoin, and lastly people have been used already going into banks or digital banks and get used of their transactions every now and then, while leaving bitcoin that can only be beneficial as a currency and as an investment purposes.

[goldkingcoiner]

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

Too many people cannot get away from the old system, mentally. They want someone to take the responsibility of watching over their money. While the philosophy of Bitcoin is to "be your own bank", some people cannot adapt to it out of fear of taking responsibility for holding on to their own money. And this means that if they lose their wallet access, nobody can get it back for them. As long as people believe passing the responsibility on to others is safer, Bitcoin will not be able to overthrow banks. At least until they realize what a third party holding your money really means in practice.

[peter0425]

Bank is what issues a country’s currency. So, no they will not be eliminated. Exchanges nowadays can hold stablecoins and not just cryptocurrencies but some people might be still more comfortable with holding fiat in banks. Crypto is not ti replace fiat and this narrative should be changed.

[Mpamaegbu]

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.

You're right. Even if hypothetically it does become a globally used currency, we still also have to rule out a certain percentage of the globe that won't use it. There are nations where electricity is a huge problem. Nations like that will have a hard time assessing Bitcoin. Again, that something is globally recognized doesn't mean everyone will use it. Take for instance, the US dollar is a global currency but not every nation of the world use it.

On Bitcoin eliminating banks, I'm of the opinion that won't happen. Even those who use Bitcoin in most cases will convert it to fiat before spending it. How do you get fiat if not through banks?

[Marvell1]

The role of banks is huge, they provide important financial services and applications to the economy, they do not only provide payment methods, so bitcoin will not be able to replace banks.

Maybe many people here do not have the need and often borrow capital to do business, invest or need financial advice, insurance. But billions of people out there, including households, merchants, and businesses large and small, need those things, and bitcoin doesn't provide those services. How can it eliminate or replace local banks?

Bitcoin was created to be a currency, and right now it is only used as an investment. Meanwhile, the role of commercial banks is to comply with the central bank's instructions to implement monetary policy, manage the economy and provide all financial services. They are completely different so let's stop thinking bitcoin will replace banks when it wasn't designed to do those things, and replace someone. Bitcoin is just an alternative.