Here in crypto ... you simply emit new token, create its value using profits from "improved production" and collect millions from investors which act like decentralized lender here. But if you want a real loan there are already bunch of projects that solve this. The only problem is collateral. So far there is no problem to borrow crypto using other crypto as collateral but sooner or later we will see companies that will offer lending using "real word" collateral, but there is no privacy anymore and most likely no decentralization.
If loaning requires a real world collateral then I would loan in non-crypto platform since the goal being anonymous or personal info free is defeated rather than loan in crypto platform which your identity can be link to other your crypto space. 
Topic: Are banks needed for crypto? - page 2. (Read 779 times)
We have very many features which should be focused on besides lending and borrowing. Yes, it depends on everyone's need. I feel much comfortable with current crypto features. Blockchain technology has been the best and secure enough to opt and use. Depending on a 3rd party is out dated to be frank. We have everything in hand to just experience hand in hand here in crypto. Feel much secured.
I actually think that in the future it will be very easy to find secure crypto lending services in various applications. And I have a guess in the future, e-commerce around the world will start looking at crypto as their payment. Because if I pay attention to the development of e-commerce in my country, I have tried all lines of business. At first it was only a third party that brought together merchants with buyers, there are already many services offered in one application. to provide loans for shopping and so on. So what is currently untouched is Crypto even though this is a sexy market.
The presence of cryptocurrencies no longer requires the services of third parties such as banks, cryptocurrencies are safe and fast transactions that can be done in a few seconds, and most importantly high security because we store in our wallets it is almost impossible to hack.
Technically, banks may not have anything to do with crypto, because judging from the system they have developed, they are very different 360 degrees, where they contradict one another.
but in a crypto partnership it will not be separated from banks and fiat even though the influence is very small but fiat will still be in crypto forever because they are actually seen as a symbiosis of mutualism, namely mutual need between one another.
The functions of the banking system are much broader than just making payments in fiat currency. Ideally, banks are enterprises that accumulate financial resources and carry out various actions with these funds in order to earn more. It has also long been the custom that the state is more accustomed and convenient to conduct its monetary policy through the involvement of banks. Therefore, when they say that cryptocurrencies can make the banking system unnecessary, this is an overly optimistic and greatly simplified view of things. In any case, banks will remain as enterprises with financial specialization and, in addition to financial actions with fiat currencies, banks can conduct the same operations with cryptocurrencies. but in a crypto partnership it will not be separated from banks and fiat even though the influence is very small but fiat will still be in crypto forever because they are actually seen as a symbiosis of mutualism, namely mutual need between one another.
If we can do all bank functions ourselves then we no longer need banks, the presence of banks in crypto is an obstacle which I'm sure one day will apply strict rules for withdrawals, moreover we can send crypto with large or small amounts in just a few seconds, banks don't needed for crypto.
That is basically what defi means. It is decentralized FINANCE, which means it is trying to do the absolute best in that regard and I believe it could definitely do that in the future as well. Sure there are some features that we are missing right now, but that doesn't mean that we are going to never have them. Eventually one by one there will be more and more products that will replace banks.One day we are going to have projects that replaces banks from our lives all together. Cards are the most hard part, it is hard to make cards that are accepted all around the world. However we are going to basically slowly and gradually that will end up with something that is as close to banks as it gets. I hope that it will happen very soon, in a few years, but at the same time it doesn't mean that we should be expecting others to fill the void we want filled.
the problem of most DeFi platforms is the credibility and the longevity of their business. as we have seen, a lot come and go already, abandoned, shelved, whatever you call it. and only few can really be trusted, but still, you have no idea if they can survive or will still be here after 5 years or so. so that's the big difference for me. traditional banking is still preferred because they already established their financial system and you have no worries about their disappearance. because if they are going bankrupt, you will know it before hand. but with defi, if they want to disappear, they can, even without informing their clients.
If we can do all bank functions ourselves then we no longer need banks, the presence of banks in crypto is an obstacle which I'm sure one day will apply strict rules for withdrawals, moreover we can send crypto with large or small amounts in just a few seconds, banks don't needed for crypto.
That is basically what defi means. It is decentralized FINANCE, which means it is trying to do the absolute best in that regard and I believe it could definitely do that in the future as well. Sure there are some features that we are missing right now, but that doesn't mean that we are going to never have them. Eventually one by one there will be more and more products that will replace banks.One day we are going to have projects that replaces banks from our lives all together. Cards are the most hard part, it is hard to make cards that are accepted all around the world. However we are going to basically slowly and gradually that will end up with something that is as close to banks as it gets. I hope that it will happen very soon, in a few years, but at the same time it doesn't mean that we should be expecting others to fill the void we want filled.
In terms of features that DeFi projects and Banks has, the twi has similarity. However, the collaterals are different. When you borrow in banks, you need physical assets like cars, houses or even property lots. In crypto, you also needs collaterals which is crypto assets that you have. My point is that, banks are institutions that has centralised system. It has vulnerabilities and strengths that rely on old monetary system. DeFi in the other hand is the future of banking. No more intermediaries. Only smart contract. So in short, crypto does not need banks. Banks needs crypto.
The sole purpose of crypto is to be your own bank if I'm not mistaken?
With the way you explained your side, there are similarities since both need collaterals, but banks still got the advantage since it
was the first option since many are relying with centralized system
But in due time, when more people embrace crypto, the advantages will be slimmer. DeFi is introducing how crypto will help
and for those who will take time to understand will enjoy the benefits.
Technically, banks may not have anything to do with crypto, because judging from the system they have developed, they are very different 360 degrees, where they contradict one another.
but in a crypto partnership it will not be separated from banks and fiat even though the influence is very small but fiat will still be in crypto forever because they are actually seen as a symbiosis of mutualism, namely mutual need between one another.
but in a crypto partnership it will not be separated from banks and fiat even though the influence is very small but fiat will still be in crypto forever because they are actually seen as a symbiosis of mutualism, namely mutual need between one another.
If we can do all bank functions ourselves then we no longer need banks, the presence of banks in crypto is an obstacle which I'm sure one day will apply strict rules for withdrawals, moreover we can send crypto with large or small amounts in just a few seconds, banks don't needed for crypto.
A special function of the bank is to turn the source of the money from the mysterious into legal and usable and to be able to replicate this functionality for crypto, we need government but the government might not be happy to give us permission for this function. Although the bank can hinder and exacerbate the principles on crypto but their regime still maintains equality and provides valid and safe funds as long as the scope and transactions of crypto are not disclosed to the outside, without licensing and conversion from a major bank, our crypto money is forever black money and must be operating illegally
In terms of features that DeFi projects and Banks has, the twi has similarity. However, the collaterals are different. When you borrow in banks, you need physical assets like cars, houses or even property lots. In crypto, you also needs collaterals which is crypto assets that you have. My point is that, banks are institutions that has centralised system. It has vulnerabilities and strengths that rely on old monetary system. DeFi in the other hand is the future of banking. No more intermediaries. Only smart contract. So in short, crypto does not need banks. Banks needs crypto.
If we can do all bank functions ourselves then we no longer need banks, the presence of banks in crypto is an obstacle which I'm sure one day will apply strict rules for withdrawals, moreover we can send crypto with large or small amounts in just a few seconds, banks don't needed for crypto.
The two are not in line with each other, crypto and bank are decentralized and banks rely on national entities with enforced costs to money via fixed interest rates. To say crypto requires banks would be to have the whole system require politics for funding and survival. If you want to interface crypto to FIAT trading then its going to involve banks within that exchange but the larger hope is crypto doesnt lean on dollars for an idea of value.
There is no actual alternative to loans we are taking in banks when it comes to crypto and its one of the disadvantage in the decentralized economy but its good for the long term since we wre not going to be trapped in the credit and repayment cycle forever if we know how to manage the funds we have and spend it effectively.
In some very famous banks, they have put cryptocurrencies, the most common case that I always like to put it as an example is JP Morgan, because his clients were demanding that they could operate with crypto and he had no choice but to put it, Not without first mentioning that I didn't recommend it because BTC wasn't trustworthy. Likewise, in Spain, BBVA is managing to operate with BTC and cryptocurrencies, and not only for Spain but for all BBVA subsidiaries worldwide, to be able to enter with this service.
We've seen several banks that had integrated or adopted crypto but doesnt mean that it will really be letting users to be that anonymous or cant be known which simply means that you do still in line with rules and regulations by the institution itself which means it did really remove out the essence of decentralization thats why i do really cross out that kind of consideration because crypto shouldnt really be regulatednor be ran off by centralized platforms/institutions or something like this.We dont need banks on the essence of anonymity and decentralization but still people do see the different way around
which it isnt surprising at all.
The integration of banks and crypto will help for a huge adoption. With their partnership, it becomes easier for the people to make a buy and use banks as their third party if possible and a secure transaction, unlike using non-reputed exchanger. I hope there is such realization and banks will become open to these changes.
Just started to learn about DeFi, and a question arose.
Fiats have a loan mechanism. Manufacturers use it to improve their production.
Is there something similar in crypto? How does it work then? And are such services in demand? Do manufacturers take loans in crypto?
Isn't that killing DeFi idea? Is there a future for loan mechanism in crypto?
Thanks everyone in advance for the answers.
Actually, there are plenty of defi-projects that can give you loans with small APRs. One that I can think about off the top of my head is Poloniex, so you can check this platform if you are interested. One people deposit crypto and get interests, others can take out loans there, so everything works in the same mechanism as in ordinary banks. Fiats have a loan mechanism. Manufacturers use it to improve their production.
Is there something similar in crypto? How does it work then? And are such services in demand? Do manufacturers take loans in crypto?
Isn't that killing DeFi idea? Is there a future for loan mechanism in crypto?
Thanks everyone in advance for the answers.
In some very famous banks, they have put cryptocurrencies, the most common case that I always like to put it as an example is JP Morgan, because his clients were demanding that they could operate with crypto and he had no choice but to put it, Not without first mentioning that I didn't recommend it because BTC wasn't trustworthy. Likewise, in Spain, BBVA is managing to operate with BTC and cryptocurrencies, and not only for Spain but for all BBVA subsidiaries worldwide, to be able to enter with this service.
We've seen several banks that had integrated or adopted crypto but doesnt mean that it will really be letting users to be that anonymous or cant be known which simply means that you do still in line with rules and regulations by the institution itself which means it did really remove out the essence of decentralization thats why i do really cross out that kind of consideration because crypto shouldnt really be regulatednor be ran off by centralized platforms/institutions or something like this.We dont need banks on the essence of anonymity and decentralization but still people do see the different way around
which it isnt surprising at all.
In some very famous banks, they have put cryptocurrencies, the most common case that I always like to put it as an example is JP Morgan, because his clients were demanding that they could operate with crypto and he had no choice but to put it, Not without first mentioning that I didn't recommend it because BTC wasn't trustworthy. Likewise, in Spain, BBVA is managing to operate with BTC and cryptocurrencies, and not only for Spain but for all BBVA subsidiaries worldwide, to be able to enter with this service.
Not needed, if we go into crypto then there is no need for third party services such as banks, with crypto all control is in hand, the presence of banks will only create dependence and they can use our money for business without notifying us and when we withdraw it takes a process Long story short, crypto doesn't need banks.
There is nothing wrong with commercial banks would be taking clients' money into custody. Those who don't want to be responsible for their money, those who are not very keen to learn the basics of how to manage and store the keys to their bitcoin wallet would happily engage banks' services. In this case, banks are going to be no different from mere warehouses that take a small fee for giving you a space to put in your stuff. There will be free and fair competition between different banks-warehouses, which means it will be in their best interests not to play with their clients' coins. 
Is there something similar in crypto? How does it work then? And are such services in demand? Do manufacturers take loans in crypto?
Isn't that killing DeFi idea? Is there a future for loan mechanism in crypto?
Implementing the lending feature in crypto is a not big deal which again does not guarantee that it will make banking system obsolete. Crypto will exist and fiats and traditional banking will exist to serve their own purposes until there would be some demand for these. I mean when no body prefer to use banks and fiats then it will be abandoned one day for sure.Isn't that killing DeFi idea? Is there a future for loan mechanism in crypto?
Crypto can boom with our without banks; When time moves-on people will choose the better one and this way we could expect banks may not be needed for crypto users in near future.
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