Can Bitcoin eliminate local banks?

[DanWalker]

Firstly most businesses as of today don't accept Bitcoin and that is the number one challenge that Bitcoin have in regards to eliminating the banking system. Banking system had been in function for ages and people feel very comfortable to do their financial transactions through them. It is sad that people who use Bitcoin for financial transactions are flagged as money launderers, their transaction history can be traced at anytime as if traditional currencies are not mostly used for money laundering. This is one of the major reason why people hodl Bitcoin as investment to make profit, I don't think that Bitcoin can rival the use of fiat in the future.

The main reason why we want to hold bitcoin as an investment is because we are attracted by the huge returns it can bring. Let's not blame and make excuses that because bitcoin transactions are often considered money laundering or businesses don't accept it, we can't use bitcoin as a currency.

I bet even if businesses accept bitcoin or governments allow it as a legal means of payment. You, me and many others will not want to use and spend our bitcoins either. Simply because for us, bitcoin is an asset, an investment that will make us rich and no one wants to spend it.

[pancelot]

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

I actually feel that if we look at the technical aspects, Bitcoin has many advantages that could rival banks, such as decentralization which can make it censorship-resistant, global transactions that are very possible to be done without intermediaries, and with a layer-2 system like the lighting network, the use of fees and speed in the transfer process also makes it more efficient, so that's why in my opinion, yes, this is also my analysis of its development if it is widely adopted, it is very possible that Bitcoin will replace the basic function of banks as a store and sender of value, but this is only my argument and analysis

[Man of peace]

Of course no,the point is that Bitcoin didn't come to eliminate any other monetary transactions team, rather to Inhence in providing a suitable alternative means of transaction, what I'm trying to say is that both of them will continue to exist, but it is likely to draw alot of people's attention to trade or invest on Bitcoin other than Banking, because of the profit and easy accessibility.

Bitcoin is going to reduce large numbers of people engaging themselves into banking system into trading and investment ,but that doesn't mean that the banking system is going to be eliminated no it will not, just that it will be few people, mostly old people who cannot or may no longer trade or invest due to the old age or lack of illiterate..

[Cookdata]

I actually feel that if we look at the technical aspects, Bitcoin has many advantages that could rival banks, such as decentralization which can make it censorship-resistant, global transactions that are very possible to be done without intermediaries, and with a layer-2 system like the lighting network, the use of fees and speed in the transfer process also makes it more efficient, so that's why in my opinion, yes, this is also my analysis of its development if it is widely adopted, it is very possible that Bitcoin will replace the basic function of banks as a store and sender of value, but this is only my argument and analysis

Unfortunately the banking system isn't built to be decentralized. It's an ownership of government which consists of some powerful people that control the arm forces, federal, the state and the local governments. Everything they say and pass a law is the final and any other person that dear to go against it is breaking the law, they also create this law, revise it when they like and enforce them as they like, this is how government operate in all levels but this isn't what Bitcoin is about.

Bitcoin and Banking system has some relationship, but Bitcoin is never control. Bitcoin work with protocols, some predefined rules that has to be followed which are simple, that no one can manipulate or change and it's as simple as that. This is what make Bitcoin special, you don't have to worry about questioning of your money where it comes from and why you have the money, you can't do such things in bank that might even cap the maximum amount that should be in your account otherwise you are going to be flagged and reported.

[CryptoYar]

[...]

That is right that major problem is that most businesses do not accept it which makes it hard to use for daily purchases. Traditional banking system has been around for long time and people are mostly preferring that. Also negative idea that using Bitcoin is linked to illegal activities like money laundering is a big barrier for people. This is a strange issue because unlike paper money all Bitcoin transactions can be traced. All of these factors lead to your main point Bitcoin is mostly seen as something to invest in for profit not as currency to replace cash.

[YOSHIE]

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

Of course it can't eliminate local banks, sane people will know that.
Currently everyone in the world is still doing bitcoin exchanged with fiat, you haven't been exchanged with bitcoin, I mean Fiat is still a local currency to spend, Bitcoin is not yet efficient to spend, you use Bitcoin exchanged into Fiat.

While the bank manages Fiat money, so bitcoin is still classified as a digital currency that is exchanged with Fiat, almost the same as gold, you exchange gold to Fiat through the bank, you cannot spend gold with gold in terms of goods such Buy vegetables, meat and so on, the same as bitcoin, so local banks side by side with bitcoin need each other bitcoin need a local bank and vice versa, two things are interrelated no one is eliminating each other, just like day and night.

[Mame89]

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

It can't, and probably never will.

Because local banks are a product of a country, and fiat is a legal tender or means of payment in every country, it's impossible for Bitcoin to eliminate local banks; in fact, the two will continue to coexist.

Bitcoin was created to address the massive problems of banking, which is rife with crime. Bitcoin exists as an alternative for everyone who realizes that fiat is a trick the elite continually create. While the technology offered by Bitcoin is indeed superior to other assets, especially fiat, we know that every country has its own currency. Using Bitcoin as a currency would be tantamount to violating its own laws. Therefore, in my opinion, Bitcoin will remain an asset for investment, not a tool to defeat banks, even though the banking system is very corrupt.

[r_victory]

I think it's very unlikely that this will happen. Banks are well-established institutions and receive significant government investment, in addition to dictating many rules and having a certain degree of influence over the global economy. They're more likely to coexist than replace each other.

[moneystery]

Bitcoin has no competition and therefore cannot compete against BTC, those who have made this a cliché are wrong, that BTC can eliminate banks, fiat money, gold, no, BTC is not for that, it is to give us the freedom that was taken away from us since the beginning of the corrupt global financial system that exists, it is the only way out, so BTC is authentic, it has no need to compete against Anything.

Bitcoin is essentially an alternative to banking. It’s not intended to eliminate banks, it’s simply an option for people who want complete control over their assets without relying entirely on traditional financial institutions. The 'framing' that bitcoin has the potential to eliminate banking and disrupt global finance is just an exaggerated narrative that makes bitcoin seem like a threat, when in reality, it isn’t. It is simply a decentralized asset that allows people to have freedom over their own wealth.... that in itself is not wrong, but governments dislike this, which is why they often restrict or even ban the use of bitcoin.

[Odusko]

Why do this kind of question keep pooping up every now and than, it make no sense to keep comparing Bitcoin and traditional banks, because in most cases both have nothing in common why then comparing them every time, Bitcoin is an alternative to the traditional financial system so what then do we need to compare both for?

[Fivestar4everMVP]

Why do this kind of question keep pooping up every now and than, it make no sense to keep comparing Bitcoin and traditional banks, because in most cases both have nothing in common why then comparing them every time, Bitcoin is an alternative to the traditional financial system so what then do we need to compare both for?

It is not really a bad thing for some persons to from time to time compare bitcoin with the traditional financial system many of us were born into and are used to, but to always come up with this question like if bitcoin will send the traditional banking system packing their bags to their respective villages is what I personally assume to be a very naive question.

Like I have always and would always say in matters or discussions like this, bitcoin and banks can co-exist simply because fiat aren't going extinct anytime soon, in as much as many are interested in starting to make use of bitcoin for their every day expenditures, there are still many who are yet to get acquainted with bitcoin and when they even do, they may never learn and be able to transact using bitcoin due to their lack of education, a person who doesn't know how to spell his or her own name may have a very hard time operating the bitcoin network and this is one of the reasons it's not wise to take fiat away now.

[Odusko]

Why do this kind of question keep pooping up every now and than, it make no sense to keep comparing Bitcoin and traditional banks, because in most cases both have nothing in common why then comparing them every time, Bitcoin is an alternative to the traditional financial system so what then do we need to compare both for?

It is not really a bad thing for some persons to from time to time compare bitcoin with the traditional financial system many of us were born into and are used to, but to always come up with this question like if bitcoin will send the traditional banking system packing their bags to their respective villages is what I personally assume to be a very naive question.

Like I have always and would always say in matters or discussions like this, bitcoin and banks can co-exist simply because fiat aren't going extinct anytime soon, in as much as many are interested in starting to make use of bitcoin for their every day expenditures, there are still many who are yet to get acquainted with bitcoin and when they even do, they may never learn and be able to transact using bitcoin due to their lack of education, a person who doesn't know how to spell his or her own name may have a very hard time operating the bitcoin network and this is one of the reasons it's not wise to take fiat away now.

Exactly both Bitcoin and Bank are designed to exist together and the aim is to give transactions alternative means, and also asset's holdings a whole different perspective, this is why some speculation are having the thought that Bitcoin could take over the role of the Bank whereas in reality Bitcoin can not exist independently of the Bank, that is what we need to clarify in all our decisions.

[Swordsoffreedom]

Why do this kind of question keep pooping up every now and than, it make no sense to keep comparing Bitcoin and traditional banks, because in most cases both have nothing in common why then comparing them every time, Bitcoin is an alternative to the traditional financial system so what then do we need to compare both for?

No offense, but I believe that if people read the Bitcoin whitepaper and understood Satoshi's real purpose in creating Bitcoin, they probably wouldn't ask these unnecessary questions. Or if they have proper financial knowledge, they will understand the role and importance of banking in our economy. They would also never compare bitcoin to banks, nor would they ever have any illusions that bitcoin could replace the role of banks.

Bitcoin is an alternative to the traditional monetary system in some aspects and is also just one option in the financial investment field. It is not created to replace, compete with or overthrow anything.

[Royal Cap]

Why do this kind of question keep pooping up every now and than, it make no sense to keep comparing Bitcoin and traditional banks, because in most cases both have nothing in common why then comparing them every time, Bitcoin is an alternative to the traditional financial system so what then do we need to compare both for?

I believe that most people make compare between Bitcoin and banks due to lack of digging deeper as they see the picture at its surface level. Banks and Bitcoin do not do the same thing and do not require the overlap. Bitcoin allows individuals to move and hold money without permission.

Banks are constructed to provide services and credit on a regulated system. Rather than making a comparison between them, it is better to view the way in which both can coexist and in which people can decide what suits them.