In a bitcoin society! What is the role of banks?

[cuddaloreappu]

If bitcoin gets into every part and parcel of life like fiat money and you are able to get paid,pay your rent,buy, sell, raise loan and do  anything with bitcoin then what is the point and role of BANKS!

After all I put my money in a savings account banks because of these reason
1) security- cannot have large amount of money in home
2) for  online shopping

with bitcoin you can literally carry a billion dollar in your mobile wallet and it can be used for online shopping.

I am not able to figure out what is the point and role for banks to exist in a cypto society.

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[Chrithu]

IF such a dramatic change is ever to happen (which I doubt) then the major role of banks will still be the same as nowadays: give out loans and do investment banking. Most banks would get rid of savings and salary accounts rather sooner than later if they could but there is no money to be made from that. They just keep them because in most countries laws require them to back a certain amount of their investment banking (speculation) with actual savings and real money.

[cuddaloreappu]

why cant investment funds be given in bitcoin?

startups getting crowdfunded through cryptocurrencies i think will be the logical next step

[C.Steven]

Exactly as you said, there is no need for banks IMO.
I can't store millions USD (in banknotes) in my house, but I can do that easily in bitcoin with my old offline computer.
I can't send millions USD in a parcel to another country without worrying the parcel will be lost somewhere, but I can do that easily with bitcoin.

[cuddaloreappu]

So finally  bitcoin is one which will get rid of banks....

that will be the logical outcome...

[MegaHustlr]

why cant investment funds be given in bitcoin?

startups getting crowdfunded through cryptocurrencies i think will be the logical next step

Thats already starting over at bitcoinstartups I think its called, amazing!

[hilariousandco]

There is no role for the banks and I think that's one of bitcoin's biggest points. People don't need banks to help look after their money if you're safe.

[RUEHL]

Safety deposit boxes for paper wallets and other non-currency valuables?

Kinda scared tho', if I get sued or government comes after me they could seize my safety deposit box.

[jodybay]

So finally  bitcoin is one which will get rid of banks....

that will be the logical outcome...

you cannot get rid of the bank first is the remittance second is what about those people who is not using bitcoins and third i think the goverment will not allowed us from getting rid of the bank because they need it to steal from us

[C.Steven]

So finally  bitcoin is one which will get rid of banks....

that will be the logical outcome...

you cannot get rid of the bank first is the remittance second is what about those people who is not using bitcoins and third i think the goverment will not allowed us from getting rid of the bank because they need it to steal from us

If bitcoin becomes as big as OP described "bitcoin gets into every part and parcel of life like fiat money and you are able to get paid,pay your rent,buy, sell, raise loan and do  anything with bitcoin", then governments (except North Korea) can't stop it

[cuddaloreappu]

So finally  bitcoin is one which will get rid of banks....

that will be the logical outcome...

you cannot get rid of the bank first is the remittance second is what about those people who is not using bitcoins and third i think the goverment will not allowed us from getting rid of the bank because they need it to steal from us

a person goes to  work in other country and sends money as bitcoins directly to his family members, so  bitcoin  plays a role in remittance market

[jodybay]

So finally  bitcoin is one which will get rid of banks....

that will be the logical outcome...

you cannot get rid of the bank first is the remittance second is what about those people who is not using bitcoins and third i think the goverment will not allowed us from getting rid of the bank because they need it to steal from us

a person goes to  work in other country and sends money as bitcoins directly to his family members, so  bitcoin  plays a role in remittance market

not all the people who work abroad knows what bitcoin is and how it works so definitely they will sticking up into a fiat and send them to their family from bank to bank basis

[blatchcorn]

Unfortunately they will play a large and similar role to what they do today.  The only difference will be they will issue wallets instead of bank accounts.  The mainstreamers do not want to move away from banks.

[cuddaloreappu]

Unfortunately they will play a large and similar role to what they do today.  The only difference will be they will issue wallets instead of bank accounts.  The mainstreamers do not want to move away from banks.

you mean banks will have your bicoin wallets...what for?

why cant people transact directly to your wallet

[blatchcorn]

Unfortunately they will play a large and similar role to what they do today.  The only difference will be they will issue wallets instead of bank accounts.  The mainstreamers do not want to move away from banks.

you mean banks will have your bicoin wallets...what for?

why cant people transact directly to your wallet

People do not want that.  You can access your wallet through their website, an ATM or bank branch.  It will be kept simple for the masses.

[Peter R]

...the major role of banks will still be the same as nowadays: give out loans and do investment banking.

I would half agree with what Chrithu wrote above: banks will still give out loans but that is not their primary role nowadays.

The primary role of banks in a 100% bitcoin economy would be to assess the creditworthiness of prospective borrowers, lend depositor funds to them at rate of interest commensurate with risk, and profit from the difference between the interest rate charged to borrowers and the interest rate paid to depositors.  

[hilariousandco]

Unfortunately they will play a large and similar role to what they do today.  The only difference will be they will issue wallets instead of bank accounts.  The mainstreamers do not want to move away from banks.

The 'mainstreamers' will eventually realise how much they don't need banks if bitcoin ever gets to the point where itself is in fact mainstream, but the whole point of banks is we don't need them.

[hazek]

OP, look at Coinbase and you have your answer.

[bluemeanie1]

If bitcoin gets into every part and parcel of life like fiat money and you are able to get paid,pay your rent,buy, sell, raise loan and do  anything with bitcoin then what is the point and role of BANKS!

With the rise of modern consumer banking [1] most of the public has lost touch with the real purpose of banks.  Banks are supposed to act as creditor agencies and they still do, but we erected a lot of insurance structures to prevent loss to savings accounts.  I assume youre American(just going by your outlooks) - most of these things were created after the Great Depression.  You'll notice today that when you go to a consumer bank, eg. Wells Fargo, they concentrate on meaningless 'customer service', things you neither need nor want, rather than the *bottom line* ie 1) returns 2) access to capital.  Modern banks offer virtually none of those two critical things.

So in the future, I think there will be something of a return to 'wildcat banking', and riskier- but more profitable banking products.  Partially because it's obvious our system is broken and partially because they can't stop people from gaining access to these new instruments.  I wrote about how to create a P2P Savings Account and Credit Card here in this paper I wrote some time ago:  http://www.altchain.org/?q=whitepapers/paper3.html


[1] ie. FDIC and Glass-Steagall Act

[justusranvier]

What was the role of blacksmiths after the invention of the automobile?