Are people losing faith from centralized organizations?

AndySt

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Quote from: Botnake on January 25, 2021, 05:49:11 PM

Quote from: Spaffin on January 25, 2021, 01:48:36 PM

Today people are tired not only of the banking system, but also of other financial organizations, such as Microfinance Organizations, which use the poor financial condition of people, squeeze the last funds from each person, providing loans under very bad conditions. Against the background of Microfinance Organizations, any Bank seems to be a kindergarten institution, where conditions and opportunities are much softer and easier for each client.

That's where the government will come in if these institution is offering loans that does not have a reasonable interest of the people. I think microfinance loans focus on the poor people to help them, but this loan does not come with collateral and therefore they need to educate people to use the funds in starting a business or additional capital of the existing business, without that and without proper monitoring, the funds will be diverted to other purposes and the problem will start.
Financial literacy is what the poor needs, for them to know their obligation and for them to manage the funds they borrowed effectively.

Financial literacy in general will not prevent anyone, including more affluent people, and not just the poor, because in the absence of financial literacy, you can turn from just wealthy to just poor Wink

Entrepreneurship also requires some talent and a certain mindset, and not everyone will necessarily succeed in this area, and vice versa, it is possible to ruin, so giving advice about the fact that borrowed funds should be spent only on business is quite risky advice.

Botnake

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Quote from: Spaffin on January 25, 2021, 01:48:36 PM

Today people are tired not only of the banking system, but also of other financial organizations, such as Microfinance Organizations, which use the poor financial condition of people, squeeze the last funds from each person, providing loans under very bad conditions. Against the background of Microfinance Organizations, any Bank seems to be a kindergarten institution, where conditions and opportunities are much softer and easier for each client.

That's where the government will come in if these institution is offering loans that does not have a reasonable interest of the people. I think microfinance loans focus on the poor people to help them, but this loan does not come with collateral and therefore they need to educate people to use the funds in starting a business or additional capital of the existing business, without that and without proper monitoring, the funds will be diverted to other purposes and the problem will start.

Financial literacy is what the poor needs, for them to know their obligation and for them to manage the funds they borrowed effectively.

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Quote from: The Cryptovator on August 10, 2020, 05:16:31 AM

When I see the picture of our banks in my country's, it seems lots of people in the line to withdraw their funds. An analysis of my country says that people keeping funds on their hands instead of keeping into the bank. And it hasn't happened before where a huge amount of funds holding by population. Bank reports saying, clients are just withdrawing their money, deposits are very low by comparing with withdrawal. That's why people encountering lots of questions from the bank regarding withdrawal. Most likely due to the global pandemic, people want to keep funds on their hands.

I don't know if it is happening in your country as well. But seems people losing their faith from centralized organizations like a bank. It would happen due fair of bankruptcy or due to need money on emergency situations. On the other hand, gold and bitcoin movements saying that new investors getting in. Most probably people want to be their own bank.

What's your thought and what's the real situation of your country?

It depends on the country. Once I had a presentation about banking culture in some post-soviet countries and from my research, I can say that they avoid deposit in bank accounts. The reason is that in some of these countries, back in 90s, a lot of people, the highest percentage of the population had deposit on banks account (there weren't commercial banks, banks belonged to the government). And one day, people lost deposits, government take it all, then happened inflation, currency was changed, etc. That's why majority of population don't trust to banks in some countries (younger population more likely trusts banks and makes deposits if they have).

Spaffin

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Today people are tired not only of the banking system, but also of other financial organizations, such as Microfinance Organizations, which use the poor financial condition of people, squeeze the last funds from each person, providing loans under very bad conditions. Against the background of Microfinance Organizations, any Bank seems to be a kindergarten institution, where conditions and opportunities are much softer and easier for each client.

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Quote from: Jemzx00 on January 25, 2021, 03:39:06 AM

Quote from: Wipeout2097 on January 19, 2021, 03:56:47 PM

I am not sure they are losing confidence in bank but or maybe due to the current financial emergency. Individuals have misplaced employments whereas a few are getting half compensation so by and large, individuals will make more withdrawal than storing cash that has not been winning amid the emergency. We can conversation around individuals lining to pull back their money. I think that's moreover anticipated additionally individuals need to have free get to their cash at any time they need it which is reason why numerous lean toward to hold their cash.

Most of the people have lost jobs and or have been on a skeletal workforce which may have force them to withdraw their fund instead of depositing. The pandemic is the caused of this and not the distrust of individuals to banks.

I agree with this point of view. People were surprised by this pandemic and with so many bills to pay every month they were forced to withdraw their economies from banks. And as jobs in general diminished, their monthly income was reduced as well. Others had to move from formal to informal market to acquire some income, what in many cases skip bank transactions.
Most people still believe in banks or don't have any opinion about it, while crypto currency is unknown to them, at least where I live.

Quote from: Jemzx00 on January 25, 2021, 03:39:06 AM

Regarding about the increase of investors on bitcoin compared to before, I might say that due to event or the bitcoin halving is one of the reason why investors are eyeing on bitcoin for some quick profit and may also be there for the long run.

I think in this case it makes some sense the real big investors (whales) seeing their fiat economies in recession made the smart move to put their funds in crypto currency to split part of their fortune, in case their countries economies become worse. And of course add this to bitcoin halving as you mentioned.

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Quote from: The Cryptovator on August 10, 2020, 05:16:31 AM

When I see the picture of our banks in my country's, it seems lots of people in the line to withdraw their funds. An analysis of my country says that people keeping funds on their hands instead of keeping into the bank. And it hasn't happened before where a huge amount of funds holding by population. Bank reports saying, clients are just withdrawing their money, deposits are very low by comparing with withdrawal. That's why people encountering lots of questions from the bank regarding withdrawal. Most likely due to the global pandemic, people want to keep funds on their hands.

I don't know if it is happening in your country as well. But seems people losing their faith from centralized organizations like a bank. It would happen due fair of bankruptcy or due to need money on emergency situations. On the other hand, gold and bitcoin movements saying that new investors getting in. Most probably people want to be their own bank.

What's your thought and what's the real situation of your country?

I think it's all about innovations. People are starting to find new ways on where they could keep large amount of money aside from banks. In my country, the emergence of digital apps where you can keep your money are becoming more convenient since you can use it to pay bills at the same time. Banks are being outdated already and it's not surprising actually. There's a possibility that banks will shut down as new system of fund keeping institutions or organization arises. Crypto might enter the game too since lots of people are already starting to acknowledge it considering the high value of bitcoin right now.

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We can't forget that there is a place for centralised institutional and Decentralised ones, human by nature are prone to corruption and it is not that these centralised governments are bad, they can work as they are intended to. Even the so called decentralised systems and platforms we are operating and championing in crypto how, decentralised are they? Ethereum still has element of centralisation involved in it, let Vitalik decides that he is quitting Ethereum today and moving to a new projects, you will see how this is going to affect the Ethereum ecosystem

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Quote from: PerfectCircle on January 23, 2021, 04:00:54 AM

Quote from: gentlemand on August 10, 2020, 05:58:39 AM

People may be losing faith in centralised organisations, but I've never personally heard one single person ever voice that ever, but they never had and never will have faith in a decentralised alternative. They will simply make the odd complaint and keep the status quo.

It doesn't help that many things that claim to be decentralised are fucking useless, mainly because they weren't.

Thank you, it's why I trust centralized more than decentralized, DEX looks more shady to me, you want the real transparency? Centralized entities got you covered, I'm not planing on holding my money, they are safer in the banks, everyone keeps shouting DeX but none really works

Centralized organizations we talk about are not the ones you think about. Binance is centralized but we are not talking about that, you could use that if you want and there is no problem for it. What we are talking about here is the banks and other places like insurance and whatever, those are really the horrible ones because they are not good at what they do and they are stealing everyone's money.

So, if you are not sure about binance versus uniswap that's fine, you can trust uniswap and I do not know why you don't because they are decentralized and open source so you have nothing to worry about, but even if you do not want to trust them that's fine it is a personal preference and you can go with binance. However if you consider banks versus binance, it should be binance all the way, they are not doing anything to hurt you and they are trying to make money while we all make money, that is a lot better for binance, if we get rich they get rich so they want what's better for us.

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Quote from: Wipeout2097 on January 19, 2021, 03:56:47 PM

I am not sure they are losing confidence in bank but or maybe due to the current financial emergency. Individuals have misplaced employments whereas a few are getting half compensation so by and large, individuals will make more withdrawal than storing cash that has not been winning amid the emergency. We can conversation around individuals lining to pull back their money. I think that's moreover anticipated additionally individuals need to have free get to their cash at any time they need it which is reason why numerous lean toward to hold their cash.

Most of the people have lost jobs and or have been on a skeletal workforce which may have force them to withdraw their fund instead of depositing. The pandemic is the caused of this and not the distrust of individuals to banks.
Regarding about the increase of investors on bitcoin compared to before, I might say that due to event or the bitcoin halving is one of the reason why investors are eyeing on bitcoin for some quick profit and may also be there for the long run.

Maxstl007

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Fear of bankruptcy? Well not me because no matter how smart I am or how good in trading I am I can't forever keep holding my coins and assets, to get fiat cash in hand I will still have to make deposits into my bank account first, it's only through bank you can have FIAT in hand, we are not in a world where you can buy everything using your smartphones yet, you are going to need cash and bank is the answer to that

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Quote from: oHnK on January 22, 2021, 12:24:59 PM

In my country, i see that people who take their money from the bank. It doesn't meant they distrust with the bank but because they need more money to fulfill their needs during pandemic. We know, because of the pandemic, Many people dont have any income to fulfill their needs, but they have to pay every expenses from their saving. Most of people in my city, doesnt interest to invest in crypto. They think that its too risky. They prefer invest their money in gold to crypto.

I agree with the first part of your post that people cashing money from bank does not necessarily show distrust but might be need of the time more than anything else. I don't agree with the later part though because I feel that more and more people are now investing into crypto and digital currencies instead of gold which was the traditional way of investing.

Yes, some people still feel a bit insecure when investing into Bitcoins or crypto as a whole but that is because they haven't understood how it works and because of the claims that bitcoin is a bubble some people are not ready to invest their hard earned money into crypto and understandably so, but data-wise more and more people are shifting from traditional methods of investing like gold towards digital assets like bitcoins.

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You can't escape inflation and deflation no matter where you decide to keep your money, bank or at hand or anywhere else it still doesn't make any difference, to me I'd still prefer centralized organization, they just works better, sorry to say I haven't seen real decentralized organization that works

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Quote from: GeorgeJohn on January 21, 2021, 11:53:42 PM

In my country here many people has stopped depositing money in the bank since last year because of corona virus lockdown that occurred within two months interval, I can see that the trust humans have with banking system of government has been depreciated, because instead of money kept in the money yield interest after been with bank some months the money have to depreciate due to their banking charges, so putting money in back is not helpful and humans has see a means or device that will yield positively to their money which is bitcoin investment, and I believe centralising system of money banking is no longer comfortable to people.

The problem banks have is that you lose your trust to them but you do not lose your money to them, there are still countless amount of money in banks that has no other option at all. Normally let's assume you are a business that deals with hundreds of thousands of dollars, there are so many of them, you need a loan in hundreds of thousands, there are a lot of them too and think about all those people who are way above that, people who deal with millions of dollars and even billions.

When you imagine those people, can you imagine them working with cash? That is impossible, they can't use cash and that means you have to basically just use a bank in order to carry that in a small tiny card, otherwise you would need to carry your money in a whole luggage or even few of them just to walk around, which is impossible. So poor people can remove their money from banks, but as long as huge corporations keep working with them, there won't be any problems for them.

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Quote from: Kong Hey Pakboy on January 20, 2021, 10:26:03 PM

The only thing why people are losing faith in centralized organizations because the decentralized method is a good way to have a more secured and fast transaction without authorities getting involved. Decentralization also solves trust issues because most people have their own sensitive data, money, and assets that they don't need to rely on authorities to protect them.

That's true and decentralization while solves a lot of problems, I always feel that certain things are good being centralized because when things are decentralized and some bug or scam happens then you cannot hold anyone responsible for that. I mean imagine investing in something where you don't know who is operating it and how it works, then getting scammed you have no option to lodge a complaint.

Lets say some data is stolen from Facebook then we know we can hold someone responsible but in a decentralized system we don't know whom to ask if anything goes wrong. I like the decentralization being implemented at most places now but still being a non-technical guy I have my own worries about the system.

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Quote from: PerfectCircle on January 23, 2021, 04:00:54 AM

Quote from: gentlemand on August 10, 2020, 05:58:39 AM

People may be losing faith in centralised organisations, but I've never personally heard one single person ever voice that ever, but they never had and never will have faith in a decentralised alternative. They will simply make the odd complaint and keep the status quo.

It doesn't help that many things that claim to be decentralised are fucking useless, mainly because they weren't.

Thank you, it's why I trust centralized more than decentralized, DEX looks more shady to me, you want the real transparency? Centralized entities got you covered, I'm not planing on holding my money, they are safer in the banks, everyone keeps shouting DeX but none really works

If we are talking about decentralized resources in the cryptocurrency market, then you also need to take into account the fact that decentralization carries a certain danger for the user, where the user does not undergo any verification of his identity. If something, somewhere happens, then the user will not be able to prove his involvement in any information, data or assets And thus will not be able to protect his property.

PerfectCircle

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Quote from: gentlemand on August 10, 2020, 05:58:39 AM

People may be losing faith in centralised organisations, but I've never personally heard one single person ever voice that ever, but they never had and never will have faith in a decentralised alternative. They will simply make the odd complaint and keep the status quo.

It doesn't help that many things that claim to be decentralised are fucking useless, mainly because they weren't.

Thank you, it's why I trust centralized more than decentralized, DEX looks more shady to me, you want the real transparency? Centralized entities got you covered, I'm not planing on holding my money, they are safer in the banks, everyone keeps shouting DeX but none really works

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Quote from: oHnK on January 22, 2021, 12:24:59 PM

In my country, i see that people who take their money from the bank. It doesn't meant they distrust with the bank but because they need more money to fulfill their needs during pandemic. We know, because of the pandemic, Many people dont have any income to fulfill their needs, but they have to pay every expenses from their saving. Most of people in my city, doesnt interest to invest in crypto. They think that its too risky. They prefer invest their money in gold to crypto.

Yeah some forced not to save their money in bank and pay the bank fee but instead they might have stopped depositing because they can't afford to save money anymore due to pandemic so the saying that people distrust centralized organizations might be a bit biased. However, as I've seen there's ongoing trend of not saving in bank but instead investing it to stocks because of the millenials. Still same thing though, trusting centralized organization howevewer the money is not too concentrated in one institution.

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Quote from: The Cryptovator on August 10, 2020, 05:16:31 AM

When I see the picture of our banks in my country's, it seems lots of people in the line to withdraw their funds. An analysis of my country says that people keeping funds on their hands instead of keeping into the bank. And it hasn't happened before where a huge amount of funds holding by population. Bank reports saying, clients are just withdrawing their money, deposits are very low by comparing with withdrawal. That's why people encountering lots of questions from the bank regarding withdrawal. Most likely due to the global pandemic, people want to keep funds on their hands.

I don't know if it is happening in your country as well. But seems people losing their faith from centralized organizations like a bank. It would happen due fair of bankruptcy or due to need money on emergency situations. On the other hand, gold and bitcoin movements saying that new investors getting in. Most probably people want to be their own bank.

What's your thought and what's the real situation of your country?

The banking system is heavily influenced and controlled by the VIP of our countries. When banks will force middle-class people to pay their loans back but they will not or unable to force high business class people to pay their debt. One of the largest banks in Indian Called " YES Bank" was going to shut down because of bad loans. This happens because of some corrupt people and shows us how vulnerable a centralized system can be where few corrupt people can destroy the whole system. How we can trust these types of systems when our money is not ours anymore if we put them in the system.

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Quote from: doomloop on January 22, 2021, 01:49:52 PM

How can a company make endless profits year after year every year if there is finite amount of money?
This means there needs to be money printed every year, and those companies make tens of billions of dollars each while regular people have few hundred increases every year, maybe few thousand if they are lucky. As you can see we started from first step and showed how they hurt regular people, that is another reason to hate them.

It's not as simple as you're trying to imagine and you're a little misguided or trying to mislead. According to your logic, it turns out that all financial organizations work efficiently and always earn a profit, but in a market economy, this should not happen. Because there is a constant struggle and some players win against other players. Some get rich, while others go bankrupt or become the object of absorption of a more successful competitor. The invisible hand of Adam Smith's market must be at work.

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Quote from: Lorence.xD on January 21, 2021, 02:23:03 AM

It's deeper than that to be honest, the reason that people are starting to lose faith in their banking institutions is because most banking institutions do not want this people in the first place, there is a reason why the paper work when you want to create an account is so time-consuming, they want those patient and docile enough to passively accept their TOS. Also, some people are getting more aware of the dark side and the unseen side of banking industry which is only fueled to a greater heights by movies that portray banks and other financial institutions as evil and unforgiving which is true by the way, this in turn makes the people aware that they are getting screwed up by these bankers that only works for the commissions.

Another big reason would be banking industry is not sustainable and thats why it has killed a lot of economies all around the world. The logic is this ; they get all of your money, then they loan others with it, then they repacakge thousands of loans together and sell that to each other, invest on it raise it lower it and a lot of things, then they invest into stocks, stocks tied to companies, companies make money but that means there is a finite amount of money right now and if they keep profiting all the time and make money then they will have all the money? How can a company make endless profits year after year every year if there is finite amount of money?

This means there needs to be money printed every year, and those companies make tens of billions of dollars each while regular people have few hundred increases every year, maybe few thousand if they are lucky. As you can see we started from first step and showed how they hurt regular people, that is another reason to hate them.

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