Can Bitcoin eliminate local banks?

[Churchillvv]

~~~

Of course you made a good point by letting them know that banks have more details they offer than just merely money transfers, but however a more solid point to dispute such inquiry is that bitcoin originally was not created to have such impact in the system, though bitcoin users seems to put such narrative about bitcoin but according to Satoshi it's an alternative currency that those who are not satisfied or who experienced the financial crisis of 2007/08 with distrust in fiat financial system can use and trust, so it's more likely to work Viz vice (side by side) with fiat.

[LogitechMouse]

Re: Can Bitcoin eliminate local banks?

While the main reason why Bitcoin was created in the first place was "to provide a secure and independent means to hold value and transact with anyone around the world without the assistance of banks, payment processors, or currency exchanges.", it doesn't mean that Bitcoin can eliminate the banks already.

Throughout the years, we've seen those anti-crypto banks way back a few years ago that are already changing their stance and they're trying to integrate crypto to their system through stablecoins. Bitcoin can't even eliminate banks in the first place because not all people are using Bitcoin. Not all people have access on Bitcoin, and not all people have the gadgets that they can use to have access on it. Most especially those older generation prefer storing their money on banks than investing in other things because that's the only way that they know.

I guess it's time for us to forget about this question because it will not happen, and it will never happen at all. If a bank gets eliminated, it's not because of Bitcoin, but because of other things.

[irhact]

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.

Bitcoin can't eliminate the Banks but they can make the banks to adopt them because the duty of Banks in our society are very important. Banks helps in circulation of money in areas that they aren't well developed or have the internet. Bitcoin haven't fully convinced people to make use of it instead of local banks. The local banks aren't that complicated to understand and people can recover their money after they might have been victim of scams but when that happens in Bitcoin, the money isn't always recovered because it's hard to recover stolen Bitcoin. Bitcoin transaction are decentralized therefore you can't get the information of those behind the scams.

[uchegod-21]

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

This is not a matter to be deliberated on. Bitcoin has not shown signs that it would wipe out the banks in no distant time. Infact, from observation, you would see that a good number of people who claim to be Bitcoin enthusiasts are just there to invest and make money. To them, it is just a speculative asset and not money. With the majority of bitcoiners thinking this way, fiat will still be available for use as means of payment and ofcourse we all know that it is the duty of the banks to regulate the fiat. Moreover, right from the beginning, it was made clear that bitcoin wasn't created to replace fiat.

[Donneski]

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.

You make some valid points especially about the big roles banks play beyond just transactions. But I think the real disruption comes over time. Bitcoin and decentralized finance are still in their early phase and we might be underestimating how much ground they can cover in the long run.
Yes, banks have deep roots in regulation and trust but so did a lot of industries that eventually got disrupted. I don’t think Bitcoin will replace banks completely either at least not anytime soon  but I do believe it can render some of their roles unnecessary or less dominant especially in areas like cross-border payments, custody, and savings. So while banks may adapt, they might not remain at the center as they used to be. That's my own take.

[kawetsriyanto]

I guess it's time for us to forget about this question because it will not happen, and it will never happen at all. If a bank gets eliminated, it's not because of Bitcoin, but because of other things.

Yes, this is a step that will be very difficult to achieve, perhaps in the next few decades. But for now, or perhaps even in the next 10 years, banks will remain the primary player, and Bitcoin still hasn't been able to replace them. But we hope that Bitcoin can become a legal currency in more and more countries; that's the current target.

Because currently, many countries still restrict the use of Bitcoin as a means of payment or as a currency; it's illegal. And governments even have very strict regulations regarding this. Therefore, the potential for displacement is still very remote. Moreover, banks involve many authorities not only domestically but globally, so there are many vested interests involved, so it will be difficult to displace them.

[GeorgeJohn]

From what I have observed in cryptocurrencies I don't think that in cryptocurrencies especially bitcoin can dominant a banking system, because bitcoin is yet to become a legal tender across so many nations, so I believe that bitcoin has it's paths and flat currency has it's own paths, the reasons been that bitcoin can't eliminate traditional currency because bitcoin is that rooted to the grassroots in so many nations,  whereas banking system is rooted in different nations, so from my perspective banking system is more granddad than bitcoin and it's not going to be possible for bitcoin to dominate the banking system.

[Fivestar4everMVP]

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

You did made a good point to be honest, and one thing worthy of note is that so long as fiat currencies continue to exists, banks will continue to function normally because people will still need a place or means of storing and managing their money from.

And i have always been of the opinion that Bitcoin wont be the reason why fiat currency will go obsolete or disappear, because as a matter of fact, aside we having bitcoin today as a better alternative to our traditional currencies, fiat is still very important and still playing a very important role in our lives and in the economy of different nations, so even with bitcoin adoption happening at a great speed, I believe fiat and bitcoin will co-exist for a very long time even from now, and banks will still be here to manage fiat as usual.

[Publictalk792]

You did made a good point to be honest, and one thing worthy of note is that so long as fiat currencies continue to exists, banks will continue to function normally because people will still need a place or means of storing and managing their money from.

And i have always been of the opinion that Bitcoin wont be the reason why fiat currency will go obsolete or disappear, because as a matter of fact, aside we having bitcoin today as a better alternative to our traditional currencies, fiat is still very important and still playing a very important role in our lives and in the economy of different nations, so even with bitcoin adoption happening at a great speed, I believe fiat and bitcoin will co-exist for a very long time even from now, and banks will still be here to manage fiat as usual.

You are right about Bitcoin and traditional currencies or fiat will likely exist together for long time. Even with Bitcoin growing popularity as better alternative for things like store of value or fast payments fiat money is still important for daily life and global economy. As long as people need banks for things like loans and managing their regular money banks will continue to be important. This means that instead of Bitcoin replacing fiat two systems will probably work alongside each other with banks even starting to offer their own crypto related services to bridge gap between two worlds.

[Faazs]

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.

=True,, things Bitcoin could do to reduce people's need for banks include;

1. Provide a greater reach, i.e with just a phone and network you can get access to your Bitcoin anywhere in the world reducing the need to go to a bank per say.

2. Allow direct transactions amongst users without the need of a middle man, i.e another body to aid the transaction.

3. Bitcoin grants you full access to your funds without strict regulations or policies like banks and it cannot be inflated by a regulatory body like the central bank, unlike currencies that can be inflated.

=Why Banks are still very difficult to replace;

1. Bitcoin stability is in question hence it's risky to save money their unlike traditional banks.

2. Banks also can provide lending services and mortgage, Bitcoin has not been able to do that yet.

3. The banking systems is in sync with government policies which is a regulatory body, businesses as well as the judicial system all built around the traditional bank, hence very difficult to replace.

4. The cost of carrying out transactions using Bitcoin is higher than traditional banking system and also transactions using Bitcoin is a bit slow unlike current payment facilities like mobile banks.

5. Unlike traditional banking system if you lose your pin or something you can easily request for another and your money is still safe but with Bitcoin once you lose your private key just start crying.

However, I feel the idea of Bitcoin replacing banks is still a talk for another day, but I think coexisting together for now is likely with banks accepting that Bitcoin has come to stay and also offering crypto-related services. Bitcoin cannot remove the traditional banking system, at least not yet.

[GigaBit]

When it was unthinkable to complete any transaction on a financial platform outside of banking services, Bitcoin gave freedom in money transactions. Using it, people are able to make transactions anywhere in the world in a short time and at low cost. Currently, Bitcoin is working as a store of value. Despite all the advantages of Bitcoin, it is not yet approved by most governments around the world, which is why its formal use is limited. But if someone thinks of it as a competitor to the banking system, that is not possible because many tasks are completed in a banking system that can never be done by Bitcoin. Rather, banks will try to adopt Bitcoin in the future.

[roemer]

crypto banks will take over local banks as a place to hold bitcoin so nothing will change

[davis196]

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 is NOT a bank, so Bitcoin doesn't compete against banks. Bitcoin is a currency/financial asset and it should be compared to other currencies/financial assets. This guy probably doesn't know what Bitcoin actually is and how it works. He is clearly asking stupid newbie questions. The fact that Bitcoin is NOT a bank nor a corporation has been stated a million times on this forum during the last 15 years.
Local banks are doing a good job for the economy, because almost every small local business needs loans. I'm against consumer debt, but consumer demand is what keeps the economy growing.

[fruktik]

Today, some countries are faced with the problem of economic sanctions. They are unable to directly use cross-border transfers in fiat, which greatly limits the possibilities of importing goods. So what to do in such a situation? That's right, use an alternative such as Bitcoin. And the most interesting thing is that it has already proven its effectiveness. There are no restrictions and the beneficiaries of the transaction remain completely anonymous. This is the solution found by those states that are in isolation. In this way, they support the scaling of crypto payments, which is already a positive trend. Yes, not always for the good, but still, the fact remains a fact.

[SatoPrincess]

crypto banks will take over local banks as a place to hold bitcoin so nothing will change

Lol this is never going to happen. “Not your keys, Not your coins”, no sensible bitcoiner will entrust their coins with a third party. Bitcoin is decentralized and cuts out the middleman. Why would anyone want to leave their bitcoins in the custody of banks (which are regulated by the government)?

[Marvell1]

When it was unthinkable to complete any transaction on a financial platform outside of banking services, Bitcoin gave freedom in money transactions. Using it, people are able to make transactions anywhere in the world in a short time and at low cost.

You are right in saying that bitcoin gives us freedom because we can make transactions at any time without having to ask permission or wait for approval from a third party (bank). But using bitcoin for transactions and payments isn't necessarily faster or cheaper than banks. This is only true for cross-border transactions, foreign money transfers, but not when you use bitcoin for domestic transactions.

I don't know if it's different for every country but domestic transactions or transfers in my country are almost instant and there are no fees for every transaction. Using banks is much more convenient and easier than bitcoin for domestic transactions like payments, money transfers.

[Ojinga]

I don’t think we should be in a haste of wanting bitcoin eliminate local banking services because satoshi didn’t intend that and I stand corrected but I think bitcoin was created to serve as an alternate currency which would help enhance privacy without a third party intervention but in recent times, people have chosen to make bitcoin more of a store of value than it’s actual purpose of decentralization and believe me, that would also make it very difficult for bitcoin to replace the banking system if there’s any possibility to that.

I do not even think the top government officials would easily want to see bitcoin replace the local banking systems because most of their looting and corruption stealing are done through the local banking systems and it is more easier to cover their tracks through paper money than cryptocurrency which could be monitor through a blockchain.

[john_egbert]

crypto banks will take over local banks as a place to hold bitcoin so nothing will change

Lol this is never going to happen. “Not your keys, Not your coins”, no sensible bitcoiner will entrust their coins with a third party. Bitcoin is decentralized and cuts out the middleman. Why would anyone want to leave their bitcoins in the custody of banks (which are regulated by the government)?

Only those that are - too new - in the space to understand that..

[God Of Thunder]

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, you made a good point. I don't think Bitcoin can eliminate banks, though. Banks have different purposes. Bitcoin cannot give you a loan when you need one. But the importance of banks may decrease in the future. People won't use Banks for every transaction. The number of banking transactions will decrease, but it will still be part of your daily life until Bitcoin is accepted everywhere in the world.

I personally keep my money in Bitcoin or cash. I don't keep more than a thousand dollars in banks. The banks are terrible when it comes to cash withdrawals. You have to tell them why are you withdrawing your own money, which is totally bullshit. So I mostly use ATM to withdraw cash.

[Smack That Ace]

~~~

Of course you made a good point by letting them know that banks have more details they offer than just merely money transfers, but however a more solid point to dispute such inquiry is that bitcoin originally was not created to have such impact in the system, though bitcoin users seems to put such narrative about bitcoin but according to Satoshi it's an alternative currency that those who are not satisfied or who experienced the financial crisis of 2007/08 with distrust in fiat financial system can use and trust, so it's more likely to work Viz vice (side by side) with fiat.

Well, anyone who takes the time to read the bitcoin's whitepaper. We will learn that satoshi's purpose in creating bitcoin was simply to be an alternative for those who lost faith in the traditional monetary system. He never mentioned that it would replace or compete with the traditional monetary and banking system.

The idea that bitcoin can eliminate or replace banks and fiat money is an idea that over-excited bitcoin investors came up with and spread, not Satoshi's. That inadvertently creates misconceptions and misunderstandings for the community later on, even creating unnecessary hostility between bitcoin and banks.