BitBank is now in Beta

[kjhd456]

To open an account PM me and I'll let you in.
Ill be taking a bitcent for every 10 BTC you deposit, and I'll take a bitnickel if you try to smartass your way out of it.
Loans will be available soon.

[1714893361]

1714893361

[1714893361]

1714893361

[1714893361]

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[1714893361]

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[rebuilder]

Would you like to tell us why we'd want to give you our money?

[carbonpenguin]

Would you like to tell us why we'd want to give you our money?

I was wondering the same thing...

[Drifter]

Ill be taking a bitcent for every 10 BTC you deposit, and I'll take a bitnickel if you try to smartass your way out of it.

  Not even opened yet and already sounds like a banker. Well at least my bank tries to make me feel all warm and fuzzy before they let me know they're taking money out of my pocket. You sure are a class act.

[sandos]

To open an account PM me and I'll let you in.
Ill be taking a bitcent for every 10 BTC you deposit, and I'll take a bitnickel if you try to smartass your way out of it.
Loans will be available soon.

Worst. Deal. Ever.

[Anonymous]

worst bank ever.

[PIO]

If you're trying to create a service, try to be polite and informative about your service.
I cant believe how nonprofessional you sound, you'll never get my money, that's for sure!

[edd]

Ill be taking a bitcent for every 10 BTC you deposit...

So I'd be paying you for the privilege of loaning my bitcoins out to someone else so you can collect interest?

[djex]

I don't see a need for a bitcoin bank. There is already a few sites out there that will hold your bitcoins anyways and are free.

[barbarousrelic]

The three reasons people use banks are:

1. for safekeeping one's money

2. To earn money by lending it out, with the bank acting as an intermediary between lenders and borrowers

3. To act as a convenient clearinghouse for transactions (paycheck direct deposit, automatic water bill deduction, etc.)


Reasons 1 and 3 are, imho, unnecessary as they are already performed by the standard Bicoin software. I particularly don't see why anyone would pay you for 1. But these are legitimate services for which a bank would charge account-holders fees.

If you're acting as function #2, that is great, but those should be done with clearly identified separate accounts from the accounts used for 1 and 3, and the bank should pay the account holder, not the account holder paying the bank. With this type of account it should be clear to all parties involved that the money will not be available for withdrawal during the time it is being loaned out.

[luv2drnkbr]

[Nesetalis]

third example of this very same naive banking concept ive seen this morning... rednecks who want to make money :| go do a bit of book reading before you try to talk finances.
A) You do not mention a single service or offering.
B) you are rude about it.
C) you put up front that you are just out to make money off us, assraping our wallets without lube is a worthless endeavor.

[Anonymous]

I just deposited 100 BTC. He told me he would keep it nice and safe in his cybero-3000 wallet CPU. Sounds legit to me.

[RustyShackleford]

Generally the idea of banking is that the DEPOSITOR is the one getting paid, not the bank. Though with modern banking and today's fees I can see how one might think otherwise.

[barbarousrelic]

You seem to be unable to understand that I cannot give out loans without any funding. I also would like to note that one bitcent for ten bit coins is a very low rate (0.1%) and does not apply to values less than 10BTC

Since you all seem so pessimistic, here's an incentive:
If you deposit at least 50 bitcents, than you will get a discount when loans go live.

I'm still working out the JavaScript, but a site will be up soon with accounts and so on.

What benefit or service do people get for depositing in your bank? People with bitcoins to deposit in a Bitcoin bank are not going to be the same people who desire to borrow bitcoins.  

[vuce]

This sounds ridiculous.

[lulzplzkthx]

You seem to be unable to understand that I cannot give out loans without any funding. I also would like to note that one bitcent for ten bit coins is a very low rate (0.1%) and does not apply to values less than 10BTC

Since you all seem so pessimistic, here's an incentive:
If you deposit at least 50 bitcents, than you will get a discount when loans go live.

I'm still working out the JavaScript, but a site will be up soon with accounts and so on.

What happens if I deposit 9.99 BTC... a lot of times... ?

[kiba]

http://mybitcoin.com

Go there instead. It's free and they don't charge you a single fricking cent.

[xf2_org]

http://mybitcoin.com

Go there instead. It's free and they don't charge you a single fricking cent.

How does MyBitcoin.com make their money?

Do we know that MyBitcoin is not fractional reserve?

[nanotube]

http://mybitcoin.com

Go there instead. It's free and they don't charge you a single fricking cent.

How does MyBitcoin.com make their money?

Do we know that MyBitcoin is not fractional reserve?

1. they claim they make their money from ads on the site, last i looked.

2. you don't, other than trusting their word for it.

nb: i don't use mybitcoin, and wouldn't really want to put any significant amount of bitcoin on any third-party site.

[Fiyasko]

We should lock this thread

[rebuilder]

You seem to be unable to understand that I cannot give out loans without any funding. I also would like to note that one bitcent for ten bit coins is a very low rate (0.1%) and does not apply to values less than 10BTC

Since you all seem so pessimistic, here's an incentive:
If you deposit at least 50 bitcents, than you will get a discount when loans go live.

I'm still working out the JavaScript, but a site will be up soon with accounts and so on.

I understand perfectly well you want us to finance your business. I just don't see why I'd want to. I don't want a loan. If  you can't loan to others, that's your problem. I see no profit in giving you money, so I won't.

[kiba]

We should lock this thread

Nobody in their mind will do business with this man unless he offer something of value. Losing bitcoin in a bitcoin ewallet is not something that most people call valuable.

[SgtSpike]

This is basically the perfect summary of this thread.

[caveden]

Do we know that MyBitcoin is not fractional reserve?

Have you ever seen people loaning bitcoins enough to make a fractionate reserve anywhere?

[xf2_org]

Do we know that MyBitcoin is not fractional reserve?

Have you ever seen people loaning bitcoins enough to make a fractionate reserve anywhere?

It would be straightforward for MyBitcoin folks to exchange 50% of their reserves for USD, then invest it in questionable, high-yield securities (or even a trip to Vegas).

[DustinEwan]

My question is, what would stop a client from taking out a loan and never paying it back?

Bank's IRL can take legal action against those who don't pay back their loans... how would this be handled in the bitcoin world?

[caveden]

It would be straightforward for MyBitcoin folks to exchange 50% of their reserves for USD, then invest it in questionable, high-yield securities (or even a trip to Vegas).

Bitcoin volatility would make it extremely risky to do so with investment goals. And just spending the money like that is quite dangerous...

On the other hand, it is true that they charge nothing and the last time I saw they had no ads... you have a point there, they could be financing themselves with a chunk of people's money. That would be fraud, since it's not advertised as such. But, if they just spend a small percentage, they might get away with it for a long while.

[Nesetalis]

the flaw... is not "not trying to trick and deceive"
the flaw is you have not created a system of value to the end user.

To any person who put money in your 'bank', it is practically a scam. They recieve absolutely no value, and spend money to do it.
if you want some one to spend 1% of their money on you, give them a reason, and in this much, bitbank has failed miserably. So miserably infact, that i suspect a very low intelligence score.

[yoyoceramic]

[bitdragon]

You need to reward deposits by paying them.
And you pay the depositors less than the % you charge on loans.

Charging depositors does not make any sense at all-

GLBSE seems to provide exactly this opportunity by the way for someone wishing to raise funds-

[SgtSpike]

What happens if I deposit 9.99 BTC... a lot of times... ?

That's called being a smartass.



You could also notice that bit-bank does not try to trick and deceive you, like most banks.
However, since this seems to not be a very good idea, I'll work this out to still be profitable, and make you more likely to lend.
I originally made this bank because I kept seeing threads on people loaning bitcoins, and it got annoying.

If you want the bank to work, you have to do something along these lines:
- Pay depositors 10% annual interest on their bitcoins
- Make loans for for borrowers at 20% annual interest on their bitcoins
- You take home the difference between the loan interest and the depositor interest, less any expenses for losses on loans not repaid.

The biggest issue, as several people have pointed out already, is that a bitcoin bank would have no recourse to go after someone who doesn't pay their loan back.  So there is an extraordinarily high risk that a borrower will not repay anything, and you would have to eat all of that cost.  An interest rate must be found that allows you to eat that cost on x% of loans, and still turn a profit.

You could always operate it like one of those "payday loan" shops, where you charge 20% interest every 2 weeks. 

[Anonymous]

You need to reward deposits by paying them.
And you pay the depositors less than the % you charge on loans.

Charging depositors does not make any sense at all-

GLBSE seems to provide exactly this opportunity by the way for someone wishing to raise funds-

Thats what it's there for.