Bitcoin discussion about banks and Bitcoin services

[TravelMug]

Would you allow such to happen? What can banks offer you as a Bitcoin holder thay can make you change your mind?

Why not? But then again, it will totally defeat the purpose of BYOB when you are into Bitcoin. So I don't know if there are Bitcoin holder, specially maximalist here that are willing to down to that path and have banks held their Bitcoin in their custody and in turn have a gold bar. But you are going to kept your gold bar in the bank too? If that is the case then you have nothing to hold and you allow the banks to have total control of your Bitcoin.

Then there is also the question of mnemonic phrase or private key, who will hold it then? Is it the banks or you're still gonna have it?

[Swordsoffreedom]

He said if banks can give a gold bar to every 1 BTC owners for keeping their Bitcoin and accepting their bitcoin services as a bank wouldn't Bitcoin holders change their mind? He claimed if one Bitcoin is worth half a million this is a possibility.

It sounds like 1 bitcoin deposited to a Bitcoin bank account will be pegged by 1 gold bar. It sounds unfair with me, as we know Bitcoin has better ROI than gold over the years since 2009, and I believe it will continue to have better ROI than gold in future years.

This depends on the size of the gold bar the OP is talking about, as by international standards 1 gold bar weighs up to 400 troy oz, which is 12.44kg. It is worth many times more than 1BTC when compared at current prices. 

This means if that bank has problems, you will receive an equivalent 1 gold bar with less value than 1 bitcoin. It's unfair and I don't need such service as I have bitcoin and only want to have bitcoin, full access to my bitcoin any time. While with Bitcoin banks, I can not have such things, so why do I need to choose Bitcoin banks rather than open-source and non-custodial wallets.

Bitcoin open-source non-custodial wallet, Bitcoin private key > my bitcoin, full access, that's enough.

Most bitcoin investors make similar statements and so do I. But if that really happens, if the bank offers attractive incentives like high interest rates along with other attractive incentives similar to what OP mentioned. I would be skeptical if the majority of people still insist on holding their bitcoins in custodial wallets and rejecting the incentives from banks. Since many of us are still using banks, saving money in banks, so it would be suspicious that many people still refuse to accept those attractive offers.

[goldkingcoiner]

I had a Bitcoin discussion with my relatives yesterday and one of them asked me a question about keeping Bitcoin safely, this discussion started with banks trying to provide crypto services to customers.

I told him I will never store Bitcoin in the bank or use their safes to keep my recovery seed, and now said what if the banks find a way to attract people to reconsider? I ask him to give me an example.

He said if banks can give a gold bar to every 1 BTC owners for keeping their Bitcoin and accepting their bitcoin services as a bank wouldn't Bitcoin holders change their mind? He claimed if one Bitcoin is worth half a million this is a possibility.

Would you allow such to happen? What can banks offer you as a Bitcoin holder thay can make you change your mind?

They can offer to freeze your money for any reason they want. And in the event that they lose your money they will probably come up with an excuse to not pay you anything. If you trust a third party, you are risking everything. And it does not matter how trustworthy banks seem. Everyone has a breaking point.

From my perspective, I am the only bank worth trusting. Any attempts to coerce, bribe or entice me out of my custodial priviledges should be considered as malicious actions meant to take my money away.

[Fiatless]

I had a Bitcoin discussion with my relatives yesterday and one of them asked me a question about keeping Bitcoin safely, this discussion started with banks trying to provide crypto services to customers.

I told him I will never store Bitcoin in the bank or use their safes to keep my recovery seed, and now said what if the banks find a way to attract people to reconsider? I ask him to give me an example.

He said if banks can give a gold bar to every 1 BTC owners for keeping their Bitcoin and accepting their bitcoin services as a bank wouldn't Bitcoin holders change their mind? He claimed if one Bitcoin is worth half a million this is a possibility.

Banks are profit-making organisations. I don't think they will ever offer customers something valuable just because they want to provide custody services. Banks will only offer services they would benefit from.   

Would you allow such to happen? What can banks offer you as a Bitcoin holder thay can make you change your mind?

Bitcoin is not just about profit-making or money. It's about freedom and privacy. My seed phrase will always be in my custody.   

[uchegod-21]

I had a Bitcoin discussion with my relatives yesterday and one of them asked me a question about keeping Bitcoin safely, this discussion started with banks trying to provide crypto services to customers.

I told him I will never store Bitcoin in the bank or use their safes to keep my recovery seed, and now said what if the banks find a way to attract people to reconsider? I ask him to give me an example.

He said if banks can give a gold bar to every 1 BTC owners for keeping their Bitcoin and accepting their bitcoin services as a bank wouldn't Bitcoin holders change their mind? He claimed if one Bitcoin is worth half a million this is a possibility.

Would you allow such to happen? What can banks offer you as a Bitcoin holder thay can make you change your mind?

If the banks will go to the extent of offering me something just to help me store my bitcoins, I shouldn't be getting excited yet, rather it is a sign that there is something fishy going on. Come to think of it, why are they so desperate to help me take custody of my bitcoins?

I will never fall for such an offer. If anyone wants to offer me anything to have access to my seedphrase, it means they have something they stand to gain from doing so. My seedphrase will only be in my possession!

[Man of peace]

[quote author=Somegory link=topic=5560358.msg65851477#msg65851477 date=1758939177

Would you allow such to happen? What can banks offer you as a Bitcoin holder thay can make you change your mind?
[/quote]
I will never allow such to happen to me.with the experience I have had with bank all this while that I am using their services,i regretted using their services,but it's because I was ignorance about Bitcoin before, but now that I have gradually going into Bitcoin and understanding it little by little, I don't think there's any offer coming from bank that will ever convince me to go back to bank service.and what we should know is that if bank offers you anything of that kind, mind you that they will take it back from you without you knowing and even if you know and bring complain to them,they will start teasing you around by telling you to come back after seven working days and at the end your money or your valuable asset has gone.. through different charges you will pay back whatever offers given to you by bank..so for me i will never accept any offer from bank,i prefer remaining into Bitcoin and no any other place..

[underwood77]

I had a Bitcoin discussion with my relatives yesterday and one of them asked me a question about keeping Bitcoin safely, this discussion started with banks trying to provide crypto services to customers.

I told him I will never store Bitcoin in the bank or use their safes to keep my recovery seed, and now said what if the banks find a way to attract people to reconsider? I ask him to give me an example.

He said if banks can give a gold bar to every 1 BTC owners for keeping their Bitcoin and accepting their bitcoin services as a bank wouldn't Bitcoin holders change their mind? He claimed if one Bitcoin is worth half a million this is a possibility.

Would you allow such to happen? What can banks offer you as a Bitcoin holder thay can make you change your mind?

If the banks will go to the extent of offering me something just to help me store my bitcoins, I shouldn't be getting excited yet, rather it is a sign that there is something fishy going on. Come to think of it, why are they so desperate to help me take custody of my bitcoins?

I will never fall for such an offer. If anyone wants to offer me anything to have access to my seedphrase, it means they have something they stand to gain from doing so. My seedphrase will only be in my possession!

I agree with you — banks never give anything away for free. Where I live, there’s a saying: “The dog never wags its tail for nothing.” 🙂

[S3300]

The advantage better be good, if I have to keep my Bitcoin in a bank they must be giving the likes of me a very good deal, or else I don't see any reason why anyone should do this, banks will probably lend your Bitcoin and use it for some business behind your back, they are very good at this.

[₿itcoin]

Would you allow such to happen? What can banks offer you as a Bitcoin holder thay can make you change your mind?

I would never trust a bank with my private key, hardware or recovery seed. You know, banks are always at risk, even though they promise to be responsible &  accountable to you, under pressure they can break accountability, get hacked, sometimes the entire bank could collapse. Even custodial banking has many problems, if the bank loses that key or someone steals it, keep in mind the blockchain does not forgive mistakes.

Again, as you said, if a bank does 'offer a gold bar for your BTC', it is just a show-off. They will add conditions, ask for identification, want to control, thus destroying the sovereignty of Bitcoin.

In my view, the only thing that can change my mind is a zero-trust custodial service. So my base layer will always be selfcustody.

[macson]

Would you allow such to happen? What can banks offer you as a Bitcoin holder thay can make you change your mind?

If they could give me gold equivalent to the amount of Bitcoin they hold, that would be fine, but if not, I would avoid placing my assets with them. Entrusting your Bitcoin to a bank is like giving them control over your assets. This means they're not just holding your Bitcoin, but they could also use it for other purposes. You just don't know because banks are typically not transparent about how they manage their clients' assets.

So, I feel like putting my money in an unreliable institution like a bank just isn't worth it. I'd rather manage it myself, and whenever I need it, I can access it without having to confirm with anyone.

[Jewan420]

Would you allow such to happen? What can banks offer you as a Bitcoin holder thay can make you change your mind?

I can never answer the question, since Bitcoin is a decentralized currency and gives customers complete freedom, why would customers give their Bitcoin to a bank to be held by them? This process is called independent custody, which is ridiculous. What does the bank even gain from it? If they charge a fee for holding your assets, I think my assets are safer with me. Whatever offers banks make, it may not be worth it to Bitcoiners, because ultimately the security of your assets is more important to you than to the bank.

[Odogwu-Blockchain]

Would you allow such to happen? What can banks offer you as a Bitcoin holder thay can make you change your mind?

Bank cannot promise you gold when they can't get something bigger than the gold from you. If bank are giving out such rewards, how would the bank generate income from Bitcoin by customers holding it, that's a question to ask.

Bank will eventually convert Bitcoin to xyzBTC to be used for savings, staking or lending where the highest customer that participates in it will be rewarded Gold, but the reward will be less than the amount such user had invested, that's how bank works.

They can't give you rewards for free, customers holding just Bitcoin won't give them what they want.

[Smack That Ace]

Banks are profit-making organisations. I don't think they will ever offer customers something valuable just because they want to provide custody services. Banks will only offer services they would benefit from.   

Yes, banks are businesses and their main goal is also profit. So they wouldn't offer big incentives or something valuable just to get more people to deposit bitcoin into their service if they don't get a bigger benefit from the idea. This scenario will never happen.

Bitcoin is not just about profit-making or money. It's about freedom and privacy. My seed phrase will always be in my custody.   

More precisely, bitcoin was created to help us become freer and protect our privacy. But the sad truth is that most people who are turning to bitcoin these days are primarily in it for profit. Not many people care about the freedom and privacy it brings. That's why the amount of money pouring into bitcoin is so huge, but mainly through centralized exchanges and ETFs.

[Darker45]

You mean the bank would literally give me a gold bar for every 1 BTC deposit? Which bar, the standard 400 troy ounce one? I'd go for it right away. I'd willingly deposit all my coins to the bank. I'd even get all the loans I can and sell all my properties for the sake of Bitcoin just to be deposited to the bank. Why not, right? My coin is worth $500,000 each. And how much does a gold bar cost, $1.5 million?

All puns aside, I don't see this happening. Banks have been around for millennia. That's not their behavior.

[michellee]

Those who really know that Bitcoin is about privacy will not be interested because it is still risky to store BTC in the bank. Besides that, the bank will not give a gold bar to every 1 BTC owner because what if someone has 10 BTC? Will the bank give that gold bar? That will be an expensive gift from the bank to us

I would prefer if banks and Bitcoin went their own separate way. We never let other parties control our Bitcoin because that will give us a risk especially if they don't know much about how to protect Bitcoin with the right precautions.