Bitcoin vs Bank

[Hewlet]

the process of doing things would be faster than that of our normal Banks. With all these, would the presence of Bitcoin Banks make our normal Banks sit up?

The first step in starting this kind of argument is to establish why you feel bitcoin bank will be different from the already existing bank and state clearly the reason why  bitcoin bank is even neccesary to start with.


There's already serious competition in the banking sector as a result of the migration into the fintech space and with more users preparing the use of fintech over the normal banks, that's even the real competition. Bitcoin stands on a totally different place and doesn't need to compete with the bank to gain her validation and certainly, fintech is enough threat to the banking sector which is the reason why they are already fighting it.

[purple_sparkles]

I think that as bitcoin and other cryptocurrencies become more popular, banks will also adapt and start adding services for working with crypto. However, for me the main drawback of banks is their excessive interference in users’ finances. They have too much power they can block accounts, restrict access to funds, or set limits that create unnecessary stress. In many cases, it feels like the client doesn’t have full control over their own money. That’s frustrating. I hope that the emergence of healthy competition in the form of decentralized finance organizations will lead to better services for customers.

[Majestic-milf]

If Bitcoin eventually owns a physical bank like the regular commercial banks it will be regulated by the same government that regulates the commercial banks we use. The same level of operation might like be seen because accountability still falls back to the management. The only way bitcoin will remain what it is will just be to retain it's decentralised nature. If there be adoption there should just allow users be their own bank. The centralised banking system has failed us again and again which might even make things worse if something like a bitcoin bank ever exists.  Not because of bitcoin itself it the people behind the counter attending to customers.

I agree with you. If a Bitcoin "bank" eventually exists, I don't think there'd be any difference from what we're seeing governments do with banks, the monopoly, the waking up and printing money just because they can. If anything, the competition physical banks have right now is Bitcoin because you're seeing governments struggling to keep up, trying to even introduce CBDCs but unfortunately, not all countries can keep up and they join the trend instead so I see no use for a "Bitcoin bank" to make these physical Banks sit up.

[Jessie2121]

When there is competition everybody becomes serious and at this point we haven't seen any thing that would make Banks sit up in some areas they are not doing well. Let's say every country in the world they have legalized the use of Bitcoin and it have a Bank like our normal Banks we know. There are some issues we face at the Bank that when it comes to Bitcoin Bank it won't be the same like Bitcoin Bank will gain more customers than the normal Banks, transactions will be faster than ever. The issue of standing for the whole day at the Bank won't be the same with Bitcoin Bank, the process of doing things would be faster than that of our normal Banks. With all these, would the presence of Bitcoin Banks make our normal Banks sit up?

Some banks offer efficient and close to reliable online services that you don't need to visit their physical offices. I think the major difference between Bitcoin and fiat is its decentralized nature. This is because there are some banks that offer cheap and fast transactions.

It can be achieved, what I'm saying is a comparison between Banks and Bitcoin Bank, who serves better, that is if one day it happens for we to start seeing Bitcoin having its own Bank. In Banks we have notes which we can store in the Bank and from how we have seen Bitcoin since it came to existence is only coin we have seen, some have but I haven't so that's how it will be or we say it should be a collaboration between the two of them, move you money from the Bank to Bitcoin Bank, it can be converted and you do whatever you feel like, maybe investment like you said. For Banks to have Bitcoin business is like promoting Bitcoin while they lose their customers and they will be left with no body to do business with them, is like using your own hands to spoil everything you have built.

Some banks in Europe and the US are offering crypto-related services. Apart from the centralized nature of the crypto services offered by these banks, I don't think they are finding it difficult. Integrating these two types of money has enabled these banks to increase their customer base. It is also important to state that Bitcoin might not totally replace fiat, It was created as an alternative.

Honestly I can't really rely on banks like 100% not even 90%, I still believe that Bitcoin can do better, fine I know nothing in this world is perfect but if I'm to chose between Banks and Bitcoin Bank that's if it has been approved I will go for Bitcoin. He disadvantages is much on our normal Banks. Yes in Europe they do offer such service by owning a physical place that if something goes wrong you could go and lay your complain or maybe track a transaction that was made by mistake I mean for Bitcoin Bank. If it happens that Banks can no long handle any crypto related services that Bitcoin Bank will do it themselves I believe it will reduce the amount of customers for our normal Banks.

[macson]

I don't think that the government allows the existence of a "Bitcoin bank" like what you mean. Most countries have already legalized Bitcoin, and until now the use of Bitcoin is limited only to trading and investment --- while financial functions remain with banking, and the government will continue to prioritize banking compared to Bitcoin, so that will continue to limit the use of more Bitcoin in a country's financial system and that will prevent the existence of "Bitcoin banks" like what you meant.

[aylabadia05]

<snip> With all these, would the presence of Bitcoin Banks make our normal Banks sit up?

No. Both will be busy with their respective activities in serving those in need.
Government-owned and private banks will operate as usual; in addition to providing the best possible service, they will work to generate profits that can be distributed to their employees in the form of salaries.

Fortunately, Bitcoin was not created to hinder fiat banks. As for users preferring Bitcoin over fiat money, that is entirely up to the individual, since Bitcoin is not intended to compete with fiat banks.

[uchegod-21]

When there is competition everybody becomes serious and at this point we haven't seen any thing that would make Banks sit up in some areas they are not doing well. Let's say every country in the world they have legalized the use of Bitcoin and it have a Bank like our normal Banks we know. There are some issues we face at the Bank that when it comes to Bitcoin Bank it won't be the same like Bitcoin Bank will gain more customers than the normal Banks, transactions will be faster than ever. The issue of standing for the whole day at the Bank won't be the same with Bitcoin Bank, the process of doing things would be faster than that of our normal Banks. With all these, would the presence of Bitcoin Banks make our normal Banks sit up?

@op, you need to study more about Bitcoin because, if you truly understand it, you would not have conceived this whole idea in the first place. Bitcoin doesn't need a central bank where people go to have their transactions and issues sorted out. Every Bitcoin user has the right to be their own bank, resolving issues by themselves, sending and receiving bitcoins independently, and having no fear of bans or restrictions; you become your own bank.

Go check out the Bitcoin concept of decentralization and you will see that you are contradicting what Bitcoin stands for by imagining a situation where there is a physical Bitcoin bank.

If you love how traditional banks operate, stick with them. With Bitcoin, you do everything yourself to protect your valuables and privacy. Don't you love that freedom?

[Lembo69]

Some banks in Europe and the US are offering crypto-related services. Apart from the centralized nature of the crypto services offered by these banks, I don't think they are finding it difficult. Integrating these two types of money has enabled these banks to increase their customer base. It is also important to state that Bitcoin might not totally replace fiat, It was created as an alternative.

Yes, I agree with you that some banks in Europe and the US are already offering crypto-related services. However, regulatory frameworks are still a major obstacle to their expansion. Crypto is not yet fully legal in many countries, which means that banks have to comply with various laws and regulations to offer these services, which complicates the process.

In addition, the crypto banking system has not yet been fully established due to government-determined policies and regulatory frameworks. Even in developed countries like Germany, Italy, Spain, and France, although progress has been made in this sector, they are still facing regulatory challenges.

In my opinion, Bitcoin will not completely replace fiat currency. Rather, in the future, these two types of systems will coexist to create more advanced and accessible financial services for users. This will allow investors to manage their investments in a more systematic and secure manner.

source: https://cryptonews.com.au/news/crypto-offerings-begin-shaping-bank-choice-in-europe-but-regulation-still-holds-back-adoption-133679/

[Hamza2424]

When there is competition everybody becomes serious and at this point we haven't seen any thing that would make Banks sit up in some areas they are not doing well. Let's say every country in the world they have legalized the use of Bitcoin and it have a Bank like our normal Banks we know. There are some issues we face at the Bank that when it comes to Bitcoin Bank it won't be the same like Bitcoin Bank will gain more customers than the normal Banks, transactions will be faster than ever. The issue of standing for the whole day at the Bank won't be the same with Bitcoin Bank, the process of doing things would be faster than that of our normal Banks. With all these, would the presence of Bitcoin Banks make our normal Banks sit up?

The competition angle is real, but bro, the premise needs a small correction, do not you think? A "Bitcoin bank" in the traditional sense is actually a contradiction of everything that Bitcoin stands for.

The entire point of BTC was to remove the banking system from the equation. The moment you create a Bitcoin bank with branches, accounts, and customer service desks, you have basically recreated the same centralized institution BTC was designed to replace.

What you are actually describing already exists in the form of centralized crypto exchanges and custodial wallets like Binance, Coinbase, and Kraken. They hold your BTC, process transactions, and offer services similar to banks. And guess what happens? They can get hacked, they can freeze your withdrawals when you need the money the most, and they can even face liquidity issues like the recent crash on 10th October on Binance.

The real competitive pressure does not come from BTC banks, bro. It comes from BTC itself, which is forcing these banks to modernize or lose relevance.

[Findingnemo]

<snip> With all these, would the presence of Bitcoin Banks make our normal Banks sit up?

No. Both will be busy with their respective activities in serving those in need.
Government-owned and private banks will operate as usual; in addition to providing the best possible service, they will work to generate profits that can be distributed to their employees in the form of salaries.

Fortunately, Bitcoin was not created to hinder fiat banks. As for users preferring Bitcoin over fiat money, that is entirely up to the individual, since Bitcoin is not intended to compete with fiat banks.

Banks will still exist because everyone needs to take out a loan and some people are doing it to even buy something that is worth $1000 or something, and that is why banks exist in the first place not really to move funds around, which used to be like the original cause but now the whole dynamics of banking has changed completely.

But with the concept of bitcoin bank, I don't see a space for loan here based on the credit profile or something it can be only based on collateral and it doesn't make sense to take out a loan when you got the actual asset that can be sold unless it is to avoid taxes like rich people do with their stocks.

[Stalker22]

Many people are not motivated (or are lazy) or are afraid of technological innovation so they would rather have their "Bitcoin” balance next to their bank savings account than be responsible for managing their own hardware wallets.  Banks understand that most people will not take the time or effort to learn how to do this and are capitalizing on this "laziness."

However, if you store your BTC with the bank then you dont actually have the asset in your possession, but rather just an IOU for Bitcoin issued to you by your bank.  If your bank freezes your account, your USD wallet and “decentralized” digital coin will both be just as frozen.

[mcdouglasx]

When there is competition everybody becomes serious and at this point we haven't seen any thing that would make Banks sit up in some areas they are not doing well.

Bitcoin was initially created as a payment system, theoretically intended for seamless transactions, but that perspective has radically changed. Now it's seen more as a store of value, like gold, than fiat currency. So currently, Bitcoin doesn't need to compete with banks; they can simply coexist. As long as Bitcoin remains secure and decentralized, it will continue to be a valuable asset, no matter how volatile the cryptocurrency market may become.

I assume you're referring primarily to the conflict between blockchains and Visa or SWIFT, but that's more general and doesn't directly affect Bitcoin.

[Maslate]

I assumed you are giving banks description based on how it operate a decade ago when technology is not that well-developed for them. But if you would make bank transactions these days, you will also experience how fast and efficient the transactions are as long you are complying with the requirements and strictly following the rules. So I don't agree with you that bitcoin has always been better than banks, bitcoin has also its own disadvantages if we are to be realistic.

However, if we can possibly make them both work or co-exist with each other, it would bring more service satisfaction to the people. Competition will never be avoided, but if we stop comparing them, people will see the real potentials of using bitcoin or using banks.

[Alphakilo]

When there is competition everybody becomes serious and at this point we haven't seen any thing that would make Banks sit up in some areas they are not doing well.

Bitcoin was initially created as a payment system, theoretically intended for seamless transactions, but that perspective has radically changed. Now it's seen more as a store of value, like gold, than fiat currency. So currently, Bitcoin doesn't need to compete with banks; they can simply coexist. As long as Bitcoin remains secure and decentralized, it will continue to be a valuable asset, no matter how volatile the cryptocurrency market may become.

I assume you're referring primarily to the conflict between blockchains and Visa or SWIFT, but that's more general and doesn't directly affect Bitcoin.

The banks is a system of economics and monetary services in today's modern society and Bitcoin is something different on its own both with it being a digital currency, a decentralized system, an asset on its own besides more than I fail to mention.
The best way is to make banks accept Bitcoin transactions but the government through any CBN would have to accept it as a legal tender or acknowledge it somehow first.
Bitcoin can exist without the banks or physical offices as long as the Internet is active and P2p is still enabled.

[HelliumZ]

Both banks and Bitcoin work to keep people's money safe, but banks may not be able to do what Bitcoin can do, but Bitcoin can do what banks can do. Bitcoin is an important issue in the age of inflation, where people are constantly afraid of losing their savings. If there is no inflation in Bitcoin, people plan to invest in Bitcoin for long-term holding instead of keeping money in the bank. The chances of getting profit by keeping money in the bank are very low, but if you invest in Bitcoin, the chances of getting profit increase significantly.

[tabas]

When there is competition everybody becomes serious and at this point we haven't seen any thing that would make Banks sit up in some areas they are not doing well. Let's say every country in the world they have legalized the use of Bitcoin and it have a Bank like our normal Banks we know. There are some issues we face at the Bank that when it comes to Bitcoin Bank it won't be the same like Bitcoin Bank will gain more customers than the normal Banks, transactions will be faster than ever. The issue of standing for the whole day at the Bank won't be the same with Bitcoin Bank, the process of doing things would be faster than that of our normal Banks. With all these, would the presence of Bitcoin Banks make our normal Banks sit up?

Then, we won't be needing the banks anymore if you're going to be putting up some transactions or deposits for Bitcoin. Because it is you that can do all of the task that they're going to do to you as they serve you. What these bitcoin banks can offer is probably the loans only. They're going to make money from letting their users borrow money in cash in collateral of the bitcoin that they own. Some other services might also be possible but if it's only about deposits and withdrawals, it doesn't make sense that a bitcoiner will use them for that.

[Patikno]

When there is competition everybody becomes serious and at this point we haven't seen any thing that would make Banks sit up in some areas they are not doing well. Let's say every country in the world they have legalized the use of Bitcoin and it have a Bank like our normal Banks we know. There are some issues we face at the Bank that when it comes to Bitcoin Bank it won't be the same like Bitcoin Bank will gain more customers than the normal Banks, transactions will be faster than ever. The issue of standing for the whole day at the Bank won't be the same with Bitcoin Bank, the process of doing things would be faster than that of our normal Banks. With all these, would the presence of Bitcoin Banks make our normal Banks sit up?

Maybe, the competition Banks towards Bitcoin isn't as pronounced, because bank users still rely on fiat currency. If Bitcoin legalizes Bitcoin use, as the OP said, then I think people will abandon banks, either slowly or drastically. Furthermore, banks still have close ties with governments, which have a role in regulating various matters, especially the use of Bitcoin. I think fiat currency will erode in value, if it is no longer used by anyone, and this will impact a country economy, especially when all global transactions can be made using Bitcoin. Therefore, it is not surprising, that we still haven't seen any countries that have completely legalized Bitcoin (without any heavy restrictive regulations).

Fiat currency is still widely used for illegal transactions, and maybe there are even transactions currently taking place involving fiat money (which we don't know about), and the serial number printed on fiat currency seems useless i think. So, isn't Bitcoin much more transparent than fiat currency? I think you know the answer.

By the way, I am so curious: are there any countries that have completely legalized Bitcoin? Some might argue, "Bitcoin regulations still exist, one of which is anti-money laundering". So, I ask again: "Can't fiat still be used for illegal transactions?".

Well, I don't want Bitcoin misused for money laundering or illegal transactions, but what I want is the same freedom to use Bitcoin as fiat. Fiat can be used for any transaction, and as long as it is not discovered to be in violation of the rules, it is not considered a violation (a well-known secret). So, wouldn't it be fair if Bitcoin were used the same way as fiat? I think this is where the injustice lies, and Bitcoin should be treated the same, but I don't think this thing will happen for the reason, as I mentioned above. In essence, banks will definitely be challenged, in my opinion. Cmiiw.

[Odogwu-Blockchain]

When there is competition everybody becomes serious and at this point we haven't seen any thing that would make Banks sit up in some areas they are not doing well. Let's say every country in the world they have legalized the use of Bitcoin and it have a Bank like our normal Banks we know. There are some issues we face at the Bank that when it comes to Bitcoin Bank it won't be the same like Bitcoin Bank will gain more customers than the normal Banks, transactions will be faster than ever. The issue of standing for the whole day at the Bank won't be the same with Bitcoin Bank, the process of doing things would be faster than that of our normal Banks. With all these, would the presence of Bitcoin Banks make our normal Banks sit up?

It's not the aim of Bitcoin to outsmart the purpose of traditional banking system, it's aim is for seamless p2p payment system between friends and relatives. The excessive usage of it make users sees it in a different way. Bitcoin wallet was initially made for users to be their own bank, nothing much.

Banks would've developed their system to blockchain based, to upgrade to beat their competitor, but nothing such is happening.

[r_victory]

As much as I believe in Bitcoin, there's still a lot to be done. Banks aren't perfect, but the argument about spending an entire day at a bank is outdated; practically everything can be done from home. I have accounts at several banks, and most are digital, without even a physical branch. I agree with @EarnOnVictor regarding the transaction confirmation time and the fees charged by many banks. In Brazil, we have Pix, instant and free money payments and transfers. I often prefer to convert Bitcoin to fiat currency when I need to pay bills or send money to someone else if speed and economy are required. And yes, coexistence will be the basis of the future economy, with banks integrating Bitcoin; in fact, this is already a reality.

[laijsica]

When there is competition everybody becomes serious and at this point we haven't seen any thing that would make Banks sit up in some areas they are not doing well. Let's say every country in the world they have legalized the use of Bitcoin and it have a Bank like our normal Banks we know. There are some issues we face at the Bank that when it comes to Bitcoin Bank it won't be the same like Bitcoin Bank will gain more customers than the normal Banks, transactions will be faster than ever. The issue of standing for the whole day at the Bank won't be the same with Bitcoin Bank, the process of doing things would be faster than that of our normal Banks. With all these, would the presence of Bitcoin Banks make our normal Banks sit up?

Having a decent Bitcoin portfolio means you become your own bank, an independent and self established financial system. Satoshi wanted to build the Bitcoin system for this very purpose. With success at the individual level, the Bitcoin system is spreading to the corporate and state levels. The use of Bitcoin is increasing in goods, services, and inter trade transactions. This expansion is happening because of Bitcoin's unique ecosystem and decentralized nature.

An independent financial system will not be adopted by every country, but some countries such as El Salvador will emerge in the future. Accepting Bitcoin as a strategic reserve is a bold step for several US states and is in the final stages of approving this process in several other states.