Can Bitcoin eliminate local banks?

[jumptheramp]

Not until "using Bitcoin," is obfuscated in the UI/UX.  People like us have to remember that 99% of people are "normies."  As in they operate on a steady diet of social media, their 9 to 5 job, immediate family, and McDonald's.  They can barely (and more and more often not even) operate a computer.  People's personal digital privacy and security is an afterthought to almost everything, and even when they're reminded of it, they could care less.  Totally apathetic.  If they were trusted to handle their finances like we handle custodying Bitcoin, they would be damn near immediately ruined.  Banks will always play a role in my opinion, it's how we integrate it all together is what's going to be interesting.  Maybe the banks morph into custodians?  Only time will tell.

[reagansimms]

Based on my understanding from the use of the title in the topic, Bitcoin cannot completely replace the role of banks, but Bitcoin has the potential to change the role of banks in the financial system. Banks have a very broad role, apart from being intermediaries in conducting transactions, banks also provide other services such as loans, investments and asset management.

A solid infrastructure foundation and a crucial role in ensuring the security and regulation of the financial system make banks difficult to replace entirely. However, banks are also acutely aware of the threats facing them, and they have begun to adopt blockchain technology and crypto assets, including Bitcoin. Banks openness to crypto assets demonstrates that decentralized Bitcoin can complement the current financial system, not replace it.

[Bitcoin_people]

I would say that Bitcoin will never eliminate banks, but Bitcoin may pose a strong threat in the future, but banks will not be eliminated. It is not possible to completely eliminate banks, because the government of every country is engaged in lending, investment, savings, financial control and more important services through banks. Every country can improve their financial position through banks, and it will always be there and will not be destroyed, people still do more transactions through banks. Moreover, we know that Bitcoin is still illegal in most countries of the world, so Bitcoin will never eliminate banks. Although transactions through Bitcoin are much easier and more confidential, I prefer to do transactions with Bitcoin more than banks.

[CageMabok]

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

Let's say banks can't be eliminated now or in the future, but it's not impossible that they will be replaced by others. Another thing is that banks can also go bankrupt if no one deposits their money, preventing them from circulating funds to support their services, as you said. So, we can't really compare banks to Bitcoin because they are two very different entities with their own characteristics. But if you compare fiat money to Bitcoin, I think there's still a fair balance to be drawn. Meanwhile, banks are almost like exchanges, offering various services for their users. So, in this case, the clearer counterpart to banks is exchanges, not Bitcoin.

[Hannah$]

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.

Yes, it is true that Bitcoin is not recognized as a means of payment in most countries. However, Bitcoin should not be compared to banks, but to a fitter, I think it can be used as an alternative. Although banks currently play an important role, they have some features that cannot be completely replaced by Bitcoin.

[fuguebtc]

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.

Not really, there are still plenty of overzealous investors, and as long as there are people who see bitcoin as a cult to worship. The belief that bitcoin is a magic wand that can solve all the world's problems, the thoughts and ideas that bitcoin will one day replace banks will never go away.

But unfortunately, their illusion will never come true. Because as you said, bitcoin only exists to support people who disagree with the centralized financial system and that number is only a very small part of this world. Bitcoin is becoming more and more popular and organizations, funds, companies are investing in it just for profit, speculation, they do not care about the privacy it brings. Not many people care about privacy, decentralization, and need bitcoin as much as we think. They won't ditch banks for bitcoin just because it makes them money.

Know this and know peace ✌️

Bitcoin was once hated and even considered an archenemy by governments and banks. I think the reason is not only because bitcoin is decentralized but also maybe because many investors have a hostile mindset, spreading that bitcoin will replace banks, governments. That makes them even more hostile to bitcoin.

[Eternad]

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

This is the main reason why I don't think bitcoin will replace fiat and elimate banks. Even if our fiat currency is decreasing in value over the past years because of inflation, it will still continue to exist together with banks since using bitcoin on a daily basis is still very difficult.

Aside from its volatility, businesses also not want to accept it on their payment system since they avoid conflict with the authorities.

[purple_sparkles]

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

This is the main reason why I don't think bitcoin will replace fiat and elimate banks. Even if our fiat currency is decreasing in value over the past years because of inflation, it will still continue to exist together with banks since using bitcoin on a daily basis is still very difficult.

Aside from its volatility, businesses also not want to accept it on their payment system since they avoid conflict with the authorities.

If banks start to control their users' money more and more, ask for every transfer, block suspicious, in their opinion, payments and accounts, then the transition to alternative options is not so far away, regardless of what the government thinks about this. If people start to be restricted, they will look for a way to bypass these obstacles, and bitcoin and other cryptocurrencies together with exchangers can become a good alternative in this case.

[Swordsoffreedom]

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

This is the main reason why I don't think bitcoin will replace fiat and elimate banks. Even if our fiat currency is decreasing in value over the past years because of inflation, it will still continue to exist together with banks since using bitcoin on a daily basis is still very difficult.

Aside from its volatility, businesses also not want to accept it on their payment system since they avoid conflict with the authorities.

Even if bitcoin becomes stable or becomes faster and has cheaper transaction fees, it is unlikely to replace or completely eliminate banks. As some members mentioned, banks play a much larger and more important role in the economy than bitcoin. It is no coincidence that the banking industry is considered the backbone of any economy and if we want to replace it, we need a similar or better entity. We cannot expect a financial asset/instrument that only has transaction, payment or investment functions, and cannot provide services such as lending, implementing monetary policy to replace a bank.

Bitcoin can replace banks in some aspects such as payments, value storage but cannot completely replace banks because it cannot take on the tasks and roles that banks bring to the economy.

[Proty]

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

To be frankly speaking I don't think bitcoin can be able to eliminate local banks. Just like what the op has outlined here , banks there functions isn't just for sending and receiving money. There are lots more of services being carried out in the banks. Aside that volatility is also one thing that will make it impossible for bitcoin to be used as fiat. There are countries, especially under developed countries it will be difficult to eliminate local banks in such countries since those countries are not that technically inclined. There transacting with bitcoin will be difficult. Finally transaction fees is also one factor that will impede bitcoin from eliminate local banks.

[SATWAT]

There is no possibility Bitcoin will eliminate banks in near future because its completely different things and bitcoin is supposed to be payment system with few good options which are now working and giving good opportunity to have used them for better future.
Currently, banks are important part of lives in many countries which are working for them and giving good ways of having their daily life I am sure it's not going to happen in any part of world Bitcoin will replace as bank and provide services.
Few things which are surely not helpful for common users as they needed banks for fixing this Bitcoin is having no features to settle this as they needed even in near future it's not going to happen.

[Danica22]

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.

The central bank is the only entity that has the right to issue currency, local (commercial) banks are just businesses operating under the management of the central bank. Their job is simply to implement monetary policy on direct instructions from the central bank. That is why sometimes there are bankruptcies of many large and small banks but they do not affect the monetary system of a country.

Cryptocurrency in general or bitcoin in particular will never be able to replace banks or the fiat currency system. It’s a fundamental truth, only ignorant people think and claim that bitcoin can threaten or replace banks.

[AmoreJaz]

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

This is the main reason why I don't think bitcoin will replace fiat and elimate banks. Even if our fiat currency is decreasing in value over the past years because of inflation, it will still continue to exist together with banks since using bitcoin on a daily basis is still very difficult.

Aside from its volatility, businesses also not want to accept it on their payment system since they avoid conflict with the authorities.

And besides, the government won't just accept any other currency other than their fiat. It is like their identity that can separate from others. Traditional banking will stay as they have purposes that ordinary people need like banking services for mortgage, real-estate loans among others. For now, I don't see that btc or any other alt will replace the traditional banking that we have. They are still vital in the financial aspect of the government. And we all know that everything is connected with financials when it comes to the economic aspect of any individual, or any entity. So in short, we can't eradicate the traditional banking so fast, it will remain vital in the financial ecosystem.

[Rockstarguy]

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

The essence of why Bitcoin was created is not to eliminate local banks or fiat currency; as long as the government exists, these things will still exist because they are owned and controlled by the government.

Bitcoin is just there to play its role; it was created to serve as an alternative currency, not to completely eliminate fiat. The purpose of Bitcoin is to provide freedom and value. People keep fiat in the bank for a long time, which depreciates in value, but Bitcoin is here to add value to money. This doesn’t mean it will cause people to completely abandon fiat. Fiat will still have its place when people need it to play its own role.

[icebar]

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

Yes, banks are not just providing money transfer services, but they are also working as a medium to provide customers with various types of financial services and to facilitate various matters. Moreover, no matter how much cryptocurrency improves or how much its price increases, no matter how much its use increases, the traditional banking system will never be able to change it. Banks are providing loans in various ways, which can never be done with cryptocurrency. Moreover, to provide loans, it is also observed whether the borrower's repayable assets come against it. But these works are never possible to do with Bitcoin. Moreover, in the case of gold, no matter how valuable we think it is, it never competes with fiat currency. The purpose of Bitcoin is also not to take a position against fiat. So, banks will always exist.

[Issa56]

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.

Some people don’t really know why bitcoin was created. Bitcoin was created to serve as alternative currency, bitcoin wasn’t created to fight local banks. We all should just know that bitcoin can’t eliminate banks so we should stop having that kind of mindset. Am so sure that even the government won’t want to do anything that’s going to affect local banks. We are just fighting for bitcoin to be an alternative currency, but most governments are not still in support of bitcoin.

I will say higher percentage of the world population doesn’t even know about bitcoin yet, and even the ones that know about bitcoin, some don’t really have interest in bitcoin yet, and as we can see you going to find it difficult to see stores accepting bitcoin as their payment method in different parts of the world, and also just few people are ready to spend their bitcoin, everyone wants to hold just for the price to increase.

Before we going to see different stores, and small scale businesses accepting bitcoin, i don’t really think that’s going to happen now, so if small scales are not accepting bitcoin, then you don’t have choice than to pay them with fiat currency, so you still going to be making use of banks.

[Fredomago]

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

This is the main reason why I don't think bitcoin will replace fiat and elimate banks. Even if our fiat currency is decreasing in value over the past years because of inflation, it will still continue to exist together with banks since using bitcoin on a daily basis is still very difficult.

Aside from its volatility, businesses also not want to accept it on their payment system since they avoid conflict with the authorities.

And besides, the government won't just accept any other currency other than their fiat. It is like their identity that can separate from others. Traditional banking will stay as they have purposes that ordinary people need like banking services for mortgage, real-estate loans among others.

Indeed, those factors will keep the existence of traditional banking as there are many people who still not fully aware about bitcoin, and same  with what you said, fiat is an entity of a country they will keep that way and traditional banking is what most businesses are using to keep their money safe, both banks and bitcoin will co-exist if more and more people around will accept and start using Bitcoin.

[finaleshot2016]

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 will coexist with traditional banks, nothing can defeat their purpose and their innovations are non-stop, we've made to the point where digital wallets exist with easy payments too so yes, bitcoin will not eliminate those but will exists with them. Also, there are benefits in banks that crypto can't offer and that's the reason why we should diversify since there's no problem with that. Some people might say that we should go all bitcoin but as a legit and wise investor, diversify your money and don't go all in on a single asset. Mall and stores might accept crypto payment soon but still, there are features where banks have the advantage, like what you've said such as loans and of course the pointing system of the rewards ATM and many more.

[₿itcoin]

I would say that Bitcoin will never eliminate banks, but Bitcoin may pose a strong threat in the future, but banks will not be eliminated. It is not possible to completely eliminate banks, because the government of every country is engaged in lending, investment, savings, financial control and more important services through banks. Every country can improve their financial position through banks, and it will always be there and will not be destroyed, people still do more transactions through banks. Moreover, we know that Bitcoin is still illegal in most countries of the world, so Bitcoin will never eliminate banks. Although transactions through Bitcoin are much easier and more confidential, I prefer to do transactions with Bitcoin more than banks.

Your correct Bitcoin won't end the central bank system but it's forcing them to evolve. United states governors with the OCC Interpretive letter 1183 now officially allow domestic banks to possess and exchange bitcoin and federal banking companies are creating a controlled structure for Bitcoin. You know this year , global holders like BNY Mellon, State Street,Citi, and JPMorgan (wtf JPMorgan ??  ) are opening bitcoin custody and trading sites. In fact financial service companies and Chase now implant digital currency services by using Coinbase connection in their banking apps. Banks still have loans ,  note issuance power and settlement but now they are working to become trustworthy frameworks not enemies to the decentralised system.

[SatoPrincess]

The question I usually see people asking online is “will Bitcoin replace fiat”. Bitcoin isn’t going to eliminate traditional banks neither will it “replace” fiat, the reality is that bitcoin can coexist with banks. Some big banks have relaxed their strict rules on crypto and are now letting their customers buy bitcoin unlike before when they called bitcoin a scam.