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Author Topic: Banks have nothing to fear from the bitcoin network  (Read 1358 times)
Pietjebel
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October 01, 2014, 07:42:43 PM
 #1


When Alice buys bitcoins from Bob, fiat moves from Bank A(Alice) to Bank B(Bob), hence there is no loss for the banking system.
In other words banks have nothing to fear from the bitcoin network, right?

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Robert Paulson
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October 01, 2014, 07:45:21 PM
 #2

what if Alice and Bob both get their paychecks in bitcoin and don't need to convert any fiat for it.
what if no one uses fiat anymore.
the only reason banking is as profitable as it is today is because banks are allowed to print fiat money and loan it to people with interest.
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October 01, 2014, 07:53:48 PM
 #3

the only reason banking is as profitable as it is today is because banks are allowed to print fiat money and loan it to people with interest.

They will probably be able to continue to do so for a while.
RustyNomad
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October 01, 2014, 07:58:07 PM
 #4

The banks do have something to fear. International transfers make up a large portion of the fees that some banks earn.

If the bitcoin network becomes as prevalent as I believe it will, it would mean that a very large chunk of that income will no longer land up in the banks pockets.

Also, once people get used to using bitcoin they will start using it for more and more day-to-day activities meaning that the banks will become even more irrelevant.
Robert Paulson
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October 01, 2014, 08:10:20 PM
 #5

the only reason banking is as profitable as it is today is because banks are allowed to print fiat money and loan it to people with interest.

They will probably be able to continue to do so for a while.

if no one accepts their fiat money except the state, then it loses 99% of its purchasing power, in that case it doesn't matter that they are allowed to continue.
BittBurger
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October 01, 2014, 08:15:34 PM
 #6

Actually, I am of the opinion that banks have nothing to fear from Bitcoin because they can, and will just fork the blockchain and make their own coin, their own network, and steal the entire concept to save themselves billions of dollars in fees, and promote the acquisition of new customers by offering cheaper services.  And there will be Bitcion, sitting over there in the corner still.

-B-

Bitcoin's true purpose defined in Satoshi's message on the Genesis Block:
"The Times 03/Jan/2009 Chancellor on brink of second bailout for banks"
View it on the Blockchain | Genesis Block Newspaper Copies
Robert Paulson
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October 01, 2014, 08:26:30 PM
Last edit: October 01, 2014, 08:58:11 PM by Robert Paulson
 #7

Actually, I am of the opinion that banks have nothing to fear from Bitcoin because they can, and will just fork the blockchain and make their own coin, their own network, and steal the entire concept to save themselves billions of dollars in fees, and promote the acquisition of new customers by offering cheaper services.  And there will be Bitcion, sitting over there in the corner still.

-B-

the banks cannot survive if the people use an unprintable form of money.
forking the blockchain won't give them the ability to print money, only making BankCoin can do that (whats the point they already have paper money they can print).
Beliathon
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October 01, 2014, 08:48:32 PM
 #8

"Newspapers have nothing to fear from the internet!"

Remember Aaron Swartz, a 26 year old computer scientist who died defending the free flow of information.
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October 01, 2014, 08:51:31 PM
 #9

well the main principle of the current banking system is to guard fiat currency so virtual currency will scare them. my suggestion is to create a different banking system for BTC.

Meuh6879
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October 01, 2014, 08:55:31 PM
 #10

you pay your credit card
you pay the error of the bank
you pay the POS of your merchand
you pay the fractionnary reserve

no.

smart people build a network standalone ... that it work without maintenance.
bitcoin.

and banks crash ... like any other outdated industry.
zimmah
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October 02, 2014, 02:46:32 AM
 #11


When Alice buys bitcoins from Bob, fiat moves from Bank A(Alice) to Bank B(Bob), hence there is no loss for the banking system.
In other words banks have nothing to fear from the bitcoin network, right?



That only works as long as people use fiat.

Once enough people use bitcoin, those people can exit the fiat system forever.
Zer0p0inT
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October 02, 2014, 03:22:08 AM
 #12

Mark Cuban apparently thinks that bitcoin has no chance against the central banks
http://finance.yahoo.com/news/billionaire-entrepreneur-mark-cuban-bitcoin-191326116.html

SHITCOINS ARE THE FUTURE
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October 02, 2014, 04:36:04 AM
 #13

Actually, I am of the opinion that banks have nothing to fear from Bitcoin because they can, and will just fork the blockchain and make their own coin, their own network, and steal the entire concept to save themselves billions of dollars in fees, and promote the acquisition of new customers by offering cheaper services.  And there will be Bitcion, sitting over there in the corner still.

-B-

the banks cannot survive if the people use an unprintable form of money.
forking the blockchain won't give them the ability to print money, only making BankCoin can do that (whats the point they already have paper money they can print).

Banks are not able to print fiat but rather rely on the fact that people will not want to withdraw so much fiat that they will run out of money (eg will not have a run on the bank). The same concept could easily be applied with bitcoin, that if a bank were to engage in fractional reserve lending of bitcoin they could keep less then 100% reserves as long as people do not wish to withdraw all of the bitcoin they have on deposit

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Robert Paulson
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October 03, 2014, 12:01:15 AM
 #14

Actually, I am of the opinion that banks have nothing to fear from Bitcoin because they can, and will just fork the blockchain and make their own coin, their own network, and steal the entire concept to save themselves billions of dollars in fees, and promote the acquisition of new customers by offering cheaper services.  And there will be Bitcion, sitting over there in the corner still.

-B-

the banks cannot survive if the people use an unprintable form of money.
forking the blockchain won't give them the ability to print money, only making BankCoin can do that (whats the point they already have paper money they can print).

Banks are not able to print fiat but rather rely on the fact that people will not want to withdraw so much fiat that they will run out of money (eg will not have a run on the bank). The same concept could easily be applied with bitcoin, that if a bank were to engage in fractional reserve lending of bitcoin they could keep less then 100% reserves as long as people do not wish to withdraw all of the bitcoin they have on deposit

you are wrong, commercial banks today are able to print fiat.
if a commercial bank wants to print fiat all it has to do is borrow from the central bank something called base money, it is then allowed to loan to customers around 10 times more than the amount of base money it borrowed.

even if a future bitcoin bank will exist and do a fractional reserve there is a limit to how many fake bitcoins it can claim to have before enough people try to withdraw some of them and collapse the bank.
ticoti
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October 03, 2014, 12:20:12 AM
 #15

what they are afraid is that they lose their comissions because some can move from A B C D...
so it may be many movements before there is a fiat income to the bank
sublime5447
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October 03, 2014, 01:12:11 AM
 #16


When Alice buys bitcoins from Bob, fiat moves from Bank A(Alice) to Bank B(Bob), hence there is no loss for the banking system.
In other words banks have nothing to fear from the bitcoin network, right?



Exactly the banks have nothing to fear, the governments have nothing to fear, the status quo has nothing to fear, the ruling elite have nothing to fear... So why support it again? 
sublime5447
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October 03, 2014, 01:14:44 AM
 #17

what they are afraid is that they lose their comissions because some can move from A B C D...
so it may be many movements before there is a fiat income to the bank

That doesn't matter. They will just cut you off at the point of centralization the government will just say where did you get the funds from? did you make a profit and they will be able to look at the public record of your transactions. 
botany
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October 03, 2014, 01:52:25 AM
 #18

Actually, I am of the opinion that banks have nothing to fear from Bitcoin because they can, and will just fork the blockchain and make their own coin, their own network, and steal the entire concept to save themselves billions of dollars in fees, and promote the acquisition of new customers by offering cheaper services.  And there will be Bitcion, sitting over there in the corner still.

-B-

the banks cannot survive if the people use an unprintable form of money.
forking the blockchain won't give them the ability to print money, only making BankCoin can do that (whats the point they already have paper money they can print).

Banks are not able to print fiat but rather rely on the fact that people will not want to withdraw so much fiat that they will run out of money (eg will not have a run on the bank). The same concept could easily be applied with bitcoin, that if a bank were to engage in fractional reserve lending of bitcoin they could keep less then 100% reserves as long as people do not wish to withdraw all of the bitcoin they have on deposit

you are wrong, commercial banks today are able to print fiat.
if a commercial bank wants to print fiat all it has to do is borrow from the central bank something called base money, it is then allowed to loan to customers around 10 times more than the amount of base money it borrowed.

even if a future bitcoin bank will exist and do a fractional reserve there is a limit to how many fake bitcoins it can claim to have before enough people try to withdraw some of them and collapse the bank.

Your understanding of the fractional reserve system is wrong. Banks cannot lend out more money than they have (deposits, equity, base money, etc). It is just that they should have a fraction of their deposits in the form of reserves, to meet any contingency.
snappa4ever
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October 03, 2014, 01:54:35 AM
 #19

Bitcoin will aid the banking sector. Agreed with the title of this topic.

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chairoverflow
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October 03, 2014, 03:13:46 AM
 #20

the only reason banking is as profitable as it is today is because banks are allowed to print fiat money and loan it to people with interest.

They will probably be able to continue to do so for a while.
I think loan system is the main reason why bank's are making profit.
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