Possibility of Bitcoin replacing traditional banking

[BitGoba]

Bitcoin indeed challenge the option of centralized banking, but the idea of it total replacement of banks in 15 years time seems really unlikely. Governments, the regulation system, and the need for stability will make replacement difficult.

What's more true is that Bitcoin and other digital assets may operate side by side traditional banking, while in some countries with less currencies or insufficient banking infrastructure, crypto may have a huge part to play. Though banks are now adapting with digital currencies and blockchain combination.

Not in 15 years, but likely in 100 years. Every fiat currency eventually fails , all fiat currencies ultimately collapse through hyperinflation, because they can be printed endlessly . People who experience hyperinflation and bank failures will understand Bitcoin more easily and be motivated to use it.

We are moving into a digital age, and most fiat money today is already digital , about 90%, while only around 10% exists in paper form. Over time, paper  will almost completely disappear. This means ordinary people will find it much easier to understand Bitcoin and start using it. This process may take two or three generations, but eventually, everyone will use Bitcoin, and it will become the only form of money because it is the best form of money that exists

[GeorgeJohn]

Bitcoin indeed challenge the option of centralized banking, but the idea of it total replacement of banks in 15 years time seems really unlikely. Governments, the regulation system, and the need for stability will make replacement difficult.

What's more true is that Bitcoin and other digital assets may operate side by side traditional banking, while in some countries with less currencies or insufficient banking infrastructure, crypto may have a huge part to play. Though banks are now adapting with digital currencies and blockchain combination.

There is something that we are supposed to understand in cryptocurrency and banking system, I want us to know that the purpose of creating Bitcoin it's not for bitcoin to replace a traditional currency, satoshi nakamoto created bitcoin with his team because of international transactions that might be delayed and bitcoin can be a means of doing such transactions without a delay

So His purpose is not to make a Bitcoin a dominant of traditional currency but also make a bitcoin to be it own currency that will be used in the countries, but we do all misunderstand the purpose why bitcoin is being created some of us today who think that bitcoin may take over the world the next 20 years coming I think that is a fallacy from my own perspective

Just assume that if bitcoin is accepted worldwide as a currency can it be used to purchase something on the street with the minimum amount they answer is no because there's a limit that you can transfer to bitcoin wallet which that is not up to the minimum that we transfer in Bitcoin transaction wallet, so in summary bitcoin cannot be used as a a traditional currency but it will be used as a means of transaction and the exchange of goods and services.

[Swordsoffreedom]

Not in 15 years, but likely in 100 years. Every fiat currency eventually fails , all fiat currencies ultimately collapse through hyperinflation, because they can be printed endlessly . People who experience hyperinflation and bank failures will understand Bitcoin more easily and be motivated to use it.

I have heard this theory for years, but we need to accept the fact that fiat money and the banking system will never go away. Maybe at some point we will abandon fiat money and adopt a new currency, but it will eventually be an upgraded or improved version of fiat. They will be issued and controlled by the government. Decentralized currencies like bitcoin will never have a chance to become the main and only currency in the world.

We are moving into a digital age, and most fiat money today is already digital , about 90%, while only around 10% exists in paper form. Over time, paper  will almost completely disappear. This means ordinary people will find it much easier to understand Bitcoin and start using it. This process may take two or three generations, but eventually, everyone will use Bitcoin, and it will become the only form of money because it is the best form of money that exists

It is only a matter of time before paper money disappears and our world enters a completely digital age. But that doesn't mean bitcoin can replace fiat or banks and become the only currency even if it is the best currency at that time. Because when paper money disappears, the government will replace it with another currency and it could be CBDC or stable coins like USDT.
More importantly, as long as the government and banks exist, they will never let a currency they do not control dominate this economy.

[aoluain]

Re: Possibility of Bitcoin replacing traditional banking

I really cannot see it happening. FIAT is very convenient for central banks
because it allows them to manipulate the system, how could they do that with
Bitcoin?

Bitcoin was invested to side step the banks

In order for banks to replace FIAT every current  economic system would have
to change from street sellers, office workers, big tech companies etc. ditching
FIAT and adopting Bitcoin - I just cannot imagine it.

[Odohu]

Bitcoin will not replace traditional banks, not now, not in the near future because that was not the purpose for the creation of Bitcoin. As we know, even banks built on the basis of cryptocurrency failed, maybe because their function will make Bitcoin centralized which by design was not possible. Therefore, anyone comparing Bitcoin to bank is not doing a solid work because both are different things, serving different purposes and are never in any competition.

[RealNoblee]

In order for banks to replace FIAT every current  economic system would have
to change from street sellers, office workers, big tech companies etc. ditching
FIAT and adopting Bitcoin - I just cannot imagine it.

In my own view, Bitcoin is mainly a digital asset and a means of peer-to-peer transactions, but it doesn’t provide all the services that traditional banks offer. It’s more likely that both Bitcoin and traditional banking systems will coexist, each catering to different needs in the financial ecosystem.

Furthermore, Bitcoin has made impressive progress in the financial world. Bitcoin advantages, like faster transactions and greater financial inclusion, are undeniable.
Because the future of Bitcoin and its role in the financial world is still unfolding, and much depends on future technological developments.

[Promocodeudo]

Bitcoin will not replace traditional banks, not now, not in the near future because that was not the purpose for the creation of Bitcoin. As we know, even banks built on the basis of cryptocurrency failed, maybe because their function will make Bitcoin centralized which by design was not possible. Therefore, anyone comparing Bitcoin to bank is not doing a solid work because both are different things, serving different purposes and are never in any competition.

Of course it will not, although this is a discussion but at some point I think people are taking things too far, may be i have said what I want to say now or I have forgotten but I will have to say it again if I have said before, Bitcoin was created to serve as alternative to to our will known traditional currency, it was as never created to replace it, both currency will continue to exist since the have different functions, sometimes people make things look as if Bitcoin and fiat is fighting, they too currency are not in any dispute is just that individuals has come to understand that it will be useless if they don't make what they have to have value, thats why most people choose Bitcoin over fiat.

[hyudien]

I believe replacing the traditional banking system with Bitcoin will be difficult because in practice, bitcoin functions more as an asset than as a true medium of exchange.
Let's be honest most people involved in Bitcoin today hold it for profit, not for everyday use, bitcoin is more of a speculation and investment than a payment utility. Rather than envisioning a future where one replaces the other, it's much more realistic to see Bitcoin and traditional banking coexisting, covering each other's shortcomings.

[bitbollo]

In some places, people have no bank access and mostly everything is already on digital apps (if they are luck - similar to banks).
Bitcoin will provide the freedom to access anywhere antyime freely to a global payment network p2p that rely just on code.

Probably, countries or communities that have no options for using bank accounts will find it more convenient to use btc or (sigh ) some strange crypto freak alternative .
People of Western countries could choose the advantages of both crypto and traditional banks since it's really easy to access to many different options.

[d5000]

These threads pop up every now and then. I remember a megathread which lasted for years, "Can Bitcoin make banks disappear"

But they are based on a big misunderstanding. The main purpose of banks is not "to custody our fiat", even if many use banks for this purpose. Their main function, instead is to mediate between people who need money, and people who want to invest money.

The part "people who need money" is usually done via lending (traditional loans or things like bonds). And lending in a P2P or decentralized fashion is a problem that has not been solved in the Bitcoin/crypto world. For sure, you have DeFi lending. But for that to work, you must deposit one crypto-asset (cryptocurrency or token) as a collateral. So it doesn't help at all if you need money, e.g. to build your house.

You could of course start a private ICO if you need money. But I don't think you would have that much success if you need the money for a private endeavour, such as building your house.

There may be decentralized concepts which could work, but they would still need experts who can evaluate your credit risk. And while you need these experts, banks will still excel in that business.

Banks could hypothetically shrink a bit in the mid to long term if the need to "deposit fiat" without a real "investment" purpose decreases because people use crypto as a currency (currently that's a niche). But probably they would be using first stablecoins while Bitcoin stays volatile, and stablecoin issuers are also very similar to banks, or they are even issued by traditional banks (e.g. Societé Generale's stablecoins).

[crwth]

These threads pop up every now and then. I remember a megathread which lasted for years, "Can Bitcoin make banks disappear"

Is this the one you are talking about?

Can Bitcoin make Banks disappear?

Anyway, it always has been a comparison, but it's not going to be a replacement. It's just going to be side by side, as everyone has said. It's likely realistic to consider gold a preservation of value asset. See the world where everyone is using BTC. I don't think it's like a bank. Imagine the legal frameworks being established as well.

[Joy- maker]

Let's be realistic here and stop saying things all because we are all bitcoin enthusiast's, and  truth be told I don't see bitcoin replacing our traditional banking system. Bitcoin was created to act as alternative currency to the fiat and not to replace it. And reasons why bitcoin can't replace fiat are too many but few to be mentioned:
1, Bitcoin is still narrow in acceptance as payment method.
2, a lot of people out there are still afraid of holding bitcoin, because of risks of hacking, scammers and misplacing of seed phrase.
3, since bitcoin is volatile in nature it price can fluctuate dramatically, so therefore it volatility can make our everyday transactions very difficult.
4, we all who are bitcoin enthusiast's are not really using for our everything transactions, rather we buy and hold bitcoin's in our wallets, because we see bitcoin as a safe heaven for storing wealth.

[Jawhead999]

I think the chance is zero.

If Bitcoin replace the traditional banking, then it will affect the whole thing. Using Bitcoin doesn't make people will be rich/live in comfortable because the poor will have very tiny share of Bitcoin.

The government might not able to aid poor people because Bitcoin can't generate new coins, if the government stake their coins, they could lost the whole coins they have.

So, it's a big problem for the country to survive.

[yhiaali3]

It took us about 15 years to see Bitcoin reach its current status, and I think it will take another 10 years for Bitcoin to be accepted globally, but I don't expect it to replace traditional banks.

Unfortunately, few people view Bitcoin as a means of payment. Instead, they mostly view it as a profitable investment or a strategic reserve. Most continue to use central banks, so don't expect change.

[Rikafip]

We are moving into a digital age, and most fiat money today is already digital , about 90%, while only around 10% exists in paper form. Over time, paper  will almost completely disappear. This means ordinary people will find it much easier to understand Bitcoin and start using it. This process may take two or three generations, but eventually, everyone will use Bitcoin, and it will become the only form of money because it is the best form of money that exists

What you are forgeting is that people often avoid responsibility and choose comfort over freedom. True freedom means risk, discipline, and accountability, but most prefer the illusion of safety that comes from relying on authorities or systems that promise stability.

Bitcoin’s philosophy (taking control of your own money and decisions) requires exactly that responsibility. But many people are not willing to give up the security of banks and governments, even if it means losing personal freedom. With that in mind, I don't think that your scenario is likely to happen.

[el kaka22]

None. There is zero chance that we are going to see traditional banking be replaced anytime soon, it's just the best we have. Sure we have a ton of issues with it, nobody says it's perfect, in fact I hate banking system as much as any human can and I try to avoid them as much as possible.

But even I acknowledge the fact that humanity needs a system like this in the modern world to keep it going, without banks, we are going to be stuck a lot and everything will be harder. If you think banking is just moving money around, then yeah you could be naive enough to think that we could simply use bitcoin, because it moves money around and you have an account, but banking does far more than just that, and we all know it, so we are stuck with it.

[Hamza2424]

Bitcoin indeed challenge the option of centralized banking, but the idea of it total replacement of banks in 15 years time seems really unlikely. Governments, the regulation system, and the need for stability will make replacement difficult.

What's more true is that Bitcoin and other digital assets may operate side by side traditional banking, while in some countries with less currencies or insufficient banking infrastructure, crypto may have a huge part to play. Though banks are now adapting with digital currencies and blockchain combination.

Yep, the countries where wars and other economic or inflationary factors have made life worse for the citizens, they really can't rely on fiat or banking systems anymore. For them, crypto becomes the only way to get money and also send it abroad. Cryptocurrency has surely made things a lot easier for everyone haha.

Although Bitcoin is never going to replace traditional banking anytime soon, because banking systems are still functional in most countries. Only in some where the conditions are really severe, crypto takes over as the main option, but in every other place the traditional banking is still used.

[Sanitough]

I’m certainly optimistic with the future of bitcoin. But I also make sure that won’t lead me to unrealistic expectations. My point is, let’s just accept the reality that traditional banking won’t never be replaced at the present, or even in the future. The government is powerful, and it won’t allow bitcoin to take the position of centralized banks.

Also, bitcoin isn’t created to replace traditional banking, but it can co-exist with banks. That’s why we have seen some banks now that are open on bitcoin and future bitcoin transactions that would happen inside the banks.

[ultrloa]

I’m certainly optimistic with the future of bitcoin. But I also make sure that won’t lead me to unrealistic expectations. My point is, let’s just accept the reality that traditional banking won’t never be replaced at the present, or even in the future. The government is powerful, and it won’t allow bitcoin to take the position of centralized banks.

Also, bitcoin isn’t created to replace traditional banking, but it can co-exist with banks. That’s why we have seen some banks now that are open on bitcoin and future bitcoin transactions that would happen inside the banks.

They are over expecting on something that won't gonna happen. Bank business is would possibly be there and won't get replace by any revolutionary financial things. This institutions knows how to adopt and if they could able to see that Bitcoin is already hitting hard on the mainstream for sure there's a good chance that they open to accept it in their institution.

JP Morgan and other banking institution is slowly adopting BTC by allowing their clients to transact Bitcoin there.

People are over exaggerating and maybe its better for them to stay in real time so that they can avoid believing on things that hard to happen.

[Jewan420]

We prefer to be centralized even though we have decentralized facilities near us. In fact, we have become integrated with the banking system and have become accustomed to its rule. There are not many Bitcoiners who are very concerned about decentralization and try to remain decentralized. Bitcoin has not yet fully become a decentralized financial system, rather, Bitcoin is currently more known as an investment asset that is processed through centralized exchanges.

I do not see the emergence of a banking system very soon, maybe I will never see it. Yes, once there was no banking system, goods were bought and sold in exchange for goods, which was known as a barter system. Then people got acquainted with a monetary system and started buying and selling goods through metal coins. Since then, people have lost their independence and have become familiar with a centralized financial system. After the gold standard financial system, people have been ruled by the banking system. That is, people have been governed by a centralized financial system for about 350-400 years. We are in the early stages of getting back to a decentralized financial system, I don't see it being completely replaced anytime soon, it will take a long time.