Bitcoin vs Bank

[BALIK]

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.

If I remember correctly, El Salvador passed a bill and established a bitcoin bank. The bank only accepts and uses Bitcoin and other cryptocurrencies. I do not think the government will ban it, and as Pablo-wood said above. If Bitcoin banks were to exist in physical form, they would eventually be regulated by the government. Even governments would like that idea because it would make it easier for them to control investors.

Therefore, Bitcoin banks are unnecessary.

[jcojci]

We don't need Bitcoin Bank as we can be our own Bank and we can saving our Bitcoin and will be more secure if we know . Bitcoin may not compete the bank, that is a fear of the government as they can't controlling Bitcoin.

No need to compare between Bitcoin vs Bank as that is different. But Bitcoin and Bank helps you to manage your finances without third party interfere. You can manage the source of funds in Bitcoin while use Bank to cash out the money.

Bitcoin and Bank will walk side by side only if the government know and realize the function.

[yhiaali3]

I don't know what you mean by Bitcoin banks, but this term is fundamentally wrong, because there is a complete contradiction between banks and Bitcoin in terms of the concepts of decentralization, privacy, and control of assets.

If you mean using Bitcoin in banks, it is better as a store of value and a safe haven in the long term, but unfortunately Bitcoin is still impractical for fast daily transactions. Bitcoin transactions sometimes take a few minutes to complete, and during peak times they can take hours, which is not suitable for banking transactions that require speed.

[MarjorieZimmermanGinger]

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?

Personally, I don't consider Bitcoin a bank because while it has advantages or characteristics that make it suitable for anyone to use as an alternative to banking, banking does have its drawbacks, as you mentioned, but they are different. When regulations restrict what we can do, it's not much different from banking, so this is what we really want to avoid and have alternatives to utilize. In the future, banks will undoubtedly evolve and innovate, so perhaps they will allow Bitcoin to be implemented in their systems. That's why people see Bitcoin as being able to coexist with banking and not just compare it to the weaknesses of each.

[MusaPk]

We don't need Bitcoin Bank as we can be our own Bank and we can saving our Bitcoin and will be more secure if we know . Bitcoin may not compete the bank, that is a fear of the government as they can't controlling Bitcoin.

No need to compare between Bitcoin vs Bank as that is different. But Bitcoin and Bank helps you to manage your finances without third party interfere. You can manage the source of funds in Bitcoin while use Bank to cash out the money.

Bitcoin and Bank will walk side by side only if the government know and realize the function.

The main aim of Bitcoin was to give the full authority of money into the hand of its owner by removing the middlemen. The reason why centralised Banks don't like Bitcoin is because Bitcoin eliminates the requirement of any Bank by allowing two parties to directly transfer funds with each other. Bitcoin since its launch has existed alongside Bitcoin and will continue to exists because it has a community that is present in almost every country of the world.

[Iranus]

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.

I cannot remember the exact last time I went to the bank. It could be three years or more, although I still use banking services daily.

I do not know if there are any differences between countries, but you are right, spending all day queuing at the bank is outdated.

To be fair, both bitcoin and banks have their own advantages and disadvantages. Neither is perfect. Each system has different use cases. Therefore, they do not need to compete with each other, they can coexist. What users like us need to do is not choose one over the other, but use them flexibly.

[JulBTCTalk]

Bitcoin already pushes banks to improve, even without “Bitcoin banks.” If Bitcoin becomes easier to use everywhere, banks will feel pressure to be faster, cheaper, and more user-friendly. People will compare both, and banks that are slow or expensive will lose customers. But banks still have advantages like loans, customer support, and regulations. So instead of disappearing, they will likely improve and adapt because of Bitcoin competition. 

[AprilioMP]

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?

With competition, each entity will strive to provide the best in terms of customer convenience and security. Take banks, for example: they will compete with one another for market share, because the bank that offers the easiest and most convenient experience will be one of the reasons why customers are drawn to open an account and save their money there.

Since Bitcoin’s inception, banks have viewed this as the era when they would begin to be left behind, as they consider Bitcoin to be their competitor. Fast transactions and low fees without the need for a third party, coupled with full control held by the owner, make Bitcoin a unique innovation in this internet-driven era.
It’s actually taken too seriously as a competitor, even though Bitcoin isn’t competing with banks.
Banks would operate as usual if Bitcoin were available through the banks themselves. Perhaps that’s the case.

[oradlitcer]

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?

I think it was already time to introduce crypto banks; it would have made it easier for many people to withdraw and deposit money, but it wouldn’t be in the authorities’ best interest.

[Lida93]

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?

Bitcoin is a nice alternative for traditional banking which I could recommend to anyone to try it out for themselves but I wouldn't say bitcoin is competing with the banks. Maybe the banks may think they have it as competition but not bitcoin. Although the banks has it many flaws as a centralized system but bitcoin is without its own flaws, one of which is error in transaction to wrong network address which the funds can't be reversed. A lot of persons including myself in the early days of much ignorance with cryptocurrency have experienced this flaw. Nevertheless, for many reasons and more, I would go for bitcoin more than I would for traditional banks.

[SquallLeonhart]

Banks are literally the reason why I got into bitcoin to begin with. While I understand that they do provide a service to the world and without banking we would be living a much worse life, it is also quite obvious that they are a shark and they are doing something that is shady as well. Giving loans to people who are obviously not be able to going to pay it back, and pressuring them into something much worse, is bad.

I understand when you absolutely need it, like healthcare or education or anything like that, then it makes sense but when it is for just having fun, like getting a new phone or anything like that, then it is bad to let them be, and not be able to pay it back later on. The process of being approved is too relaxed right now if you ask me.

[YellowSwap]

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?

I have two bank accounts and it's been 15 years since I visited the bank last, what do you mean about been faster? Banks this days are fast, like most problems can be fixed by calling customers representative.

You don't have to go down to the bank unless it's a fraud case or you got locked out of your bank account, let's not try to degrade banks here because of Bitcoin existence.

Banks are the ones trying to go for Bitcoin services and it's better without them, but the profits they can generate from Bitcoin won't let them take their eyes of it.

[fuguebtc]

Banks are literally the reason why I got into bitcoin to begin with. While I understand that they do provide a service to the world and without banking we would be living a much worse life, it is also quite obvious that they are a shark and they are doing something that is shady as well. Giving loans to people who are obviously not be able to going to pay it back, and pressuring them into something much worse, is bad.

I understand when you absolutely need it, like healthcare or education or anything like that, then it makes sense but when it is for just having fun, like getting a new phone or anything like that, then it is bad to let them be, and not be able to pay it back later on. The process of being approved is too relaxed right now if you ask me.

As far as I know, banks do not use knives to coerce or threaten people into taking loan. Borrowing money is based on the needs voluntary decision of each individual and business
Moreover, after all, they are businesses. They have spent billions of dollars building the system to provide services to us. We cannot expect them to provide all services for free.

If you no longer need to borrow money or use their services, you simply stop using them. You should not criticize bank just because they do not offer you any benefit. Because there are so many people and businesses out there who need banks.

Did you know that most startups, entrepreneurs, and many successful people out there receive support from banks? Can Bitcoin really do those things?

[aylabadia05]

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.

<snip>
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.

Perhaps there is no room for people to obtain loans unless there is mutual trust among those who already know one another, and that is also rare. Employees of fiat banks receive salaries from the profits generated by managing money, including lending, whereas in Bitcoin, compensation is based on transactions—specifically, the block rewards received by miners. That is, if I’m not mistaken, though those who have actually engaged in mining activities would understand this better.

Although Bitcoin isn’t intended to be a competitor to fiat banks, its existence as an electronic cash system makes fiat banks feel threatened. Once seen as a rival, fiat banks will naturally do their best—though I’m not very active in real life when it comes to dealing with banks. As of now, at my current age, I have no bank loans.

[AmaGold70]

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?

Bank has never been a good place to save money. As you keep money in the bank, the bank uses your money to do business, and also make more money for themselves, the value of your money even decreases while in the bank, you struggle to make use of your money, and many times, the bank conditions you on how to use your money.
This is entirely very different from bitcoin, and infact decentralization is the main motive why Satoshi Nakamoto created bitcoin. Bitcoin gives you total control over the use of your money, you also gain financial freedom through bitcoin investing, and long term holding.
In short, keeping your money in bitcoin is very much far better than leaving your money in the bank.

[goldkingcoiner]

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?

I do not think you can accurately describe something that was never meant to be like the thing you were comparing it to. Rather than that, it is meant to replace the system. The real questions you should be asking is how holding your money in Bitcoin in a non-custodial, private wallet is better than holding ever-devaluating fiat (paper money) inside a bank where everyone who works there knows who you are, where you live and how much money is in your account? Not only that, they can freeze that money. One day you have your life's savings, the other day you don't. That is why it is better to stick to Bitcoin.

[arzuo]

The truth is, Bitcoin will never surpass banks, but Bitcoin will be more popular than banks.
Bitcoin is about owning your own money and owning your own bank (your own money, your own bank).
So, there will be no competition, and if an institution like a bank wants to hold people's Bitcoin as deposits, then Bitcoin will no longer be decentralized or that bank will become like a crypto exchange.

However, if a bank takes the initiative to collect only KYC information or hard copies (hardware wallets like diamonds or gold held in the bank), then something might work in this case!!
I don't think that will happen, because those who understand Bitcoin will never accept it as a banking institution, and as Bitcoin grows in popularity, it will have some impact on bank transactions.

[cxtreenal]

We don't need Bitcoin Bank as we can be our own Bank and we can saving our Bitcoin and will be more secure if we know . Bitcoin may not compete the bank, that is a fear of the government as they can't controlling Bitcoin.

No need to compare between Bitcoin vs Bank as that is different. But Bitcoin and Bank helps you to manage your finances without third party interfere. You can manage the source of funds in Bitcoin while use Bank to cash out the money.

Bitcoin and Bank will walk side by side only if the government know and realize the function.

The main aim of Bitcoin was to give the full authority of money into the hand of its owner by removing the middlemen. The reason why centralised Banks don't like Bitcoin is because Bitcoin eliminates the requirement of any Bank by allowing two parties to directly transfer funds with each other. Bitcoin since its launch has existed alongside Bitcoin and will continue to exists because it has a community that is present in almost every country of the world.

All banks collect reserve assets from individuals and institutions as directed by the country's central bank. The decentralised nature of the Bitcoin financial system means that the government cannot control the system, so the government does not like Bitcoin. But investors are leaning towards an independent financial system and do not like any other institution as an intermediary over their assets. During times of financial distress in the country, the government prints paper fiat currency at their discretion, resulting in inflation. Due to Bitcoin unique feature and limited supply (21 million), the ecosystem of this digital asset is stay in consistent with market management and without third party intervention.

[uneng]

I think the question should be hardware wallet or bank?

You can store your money in both, but only in hardware wallet you have total control over your funds, as banks and governmnets can't seize your money that way.

Banks, on the other hand, are more popular and easier to be used, besides offering many extra features hardware wallets don't have, such as credit card, cellphone credits recharge, bonus points which can be exchanged into cashback or rewards, investment opportunities and so on.

[Findingnemo]

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.

<snip>
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.

Perhaps there is no room for people to obtain loans unless there is mutual trust among those who already know one another, and that is also rare. Employees of fiat banks receive salaries from the profits generated by managing money, including lending, whereas in Bitcoin, compensation is based on transactions—specifically, the block rewards received by miners. That is, if I’m not mistaken, though those who have actually engaged in mining activities would understand this better.

Although Bitcoin isn’t intended to be a competitor to fiat banks, its existence as an electronic cash system makes fiat banks feel threatened. Once seen as a rival, fiat banks will naturally do their best—though I’m not very active in real life when it comes to dealing with banks. As of now, at my current age, I have no bank loans.

Banks keep lending money to others which they don't have because these are all just numbers so nobody knows bank got the money but still they claim credit and debit to the users. However they have these interest rate system which also generate insane amount of money and most of the default loans can be recovered using auctioning the seized property but that's all not possible with bitcoin.

And who knows bitcoin doesn't want the debt to exists which is also a good thing in the long term.