Topic: banks - page 2. (Read 1793 times)
I was observing to a friend, that maybe nobody is going to throw a huge lot of resources at "the fiat exchange problem", because they expect it to be somewhat temporary. Either because they think USD is going to hell in a handbasket, "real soon now", or because it suddenly hits the banks what a superior form of money bitcoin is, and they will lust after it, in either case, barriers will tend to melt away. So it might not seem to make sense to invest in a system that only has a year or two to pay off. We might still be having this conversation in 5 years time, in which case for future readers "Derp, they shoulda oughta done it back then!"
Just wondering what would be involved in founding a new bank that's friendly towards the interests of bitcoiners. Of course you'd still be dealing with the problems of having to trust a bank, but at least it would be better than trusting the big banks that are always closing bitcoin-related accounts. I'm just talking about a bank that would be willing to open business accounts for bitcoin traders, and where you wouldn't have to worry about telling them you're using your account for buying and/or selling cryptos.
How much capital would it take to start a small bank or credit union along these lines? Which country would it make sense to try it in, if any?
How much capital would it take to start a small bank or credit union along these lines? Which country would it make sense to try it in, if any?
Having a bitcoin bank would be a risk , and it will be against the decentralized nature of bitcoin.
Then other banks will start dissociating with that bank supporting bitcoin. Ultimately more vulnerability, same effect.
Pretty much.
The value in having a bank is it's ability to interoperate with other banks, to accept wire transfers and ETFs etc, to cash drafts and cashiers checks. If other banks are just going to see it's bitcoin associations and not play nice with it, then not really much point.
I made a thread about Bitcoin banks here and I think most people in the Bitcoin community think it's a bad idea. Personally, I think it's a necessary evil if Bitcoin has any hopes of ever becoming mainstream.
However, I think the OP here is talking about a traditional bank that deals mainly in fiat and is friendly towards those who trade cryptos. I see no problem with such a bank. I have no idea how much it would cost to form a bank and I'm not sure how successful it would be since crypto traders are a very small niche to cater towards.
Here in New Zealand, we have banks like ANZ and BNZ which are very unfriendly towards cryptos. If they catch you dealing with cryptos then they will suspend your account. But there are also other banks out like Kiwibank (ironically, a government-owned bank), Westpac, and ASB which aren't nearly as hostile. Even so, it is recommended to avoid using references to Bitcoin when dealing with large amounts of BTC (e.g. while trading on LocalBitcoins).
However, I think the OP here is talking about a traditional bank that deals mainly in fiat and is friendly towards those who trade cryptos. I see no problem with such a bank. I have no idea how much it would cost to form a bank and I'm not sure how successful it would be since crypto traders are a very small niche to cater towards.
Here in New Zealand, we have banks like ANZ and BNZ which are very unfriendly towards cryptos. If they catch you dealing with cryptos then they will suspend your account. But there are also other banks out like Kiwibank (ironically, a government-owned bank), Westpac, and ASB which aren't nearly as hostile. Even so, it is recommended to avoid using references to Bitcoin when dealing with large amounts of BTC (e.g. while trading on LocalBitcoins).
Major exchanges have done the same. How does it differ when its become the norm?
I understand we can maintain it ourselves but there comes a point where one needs to unload and the only other means is risking this on exchange which may end up having negative circumstances.
I understand we can maintain it ourselves but there comes a point where one needs to unload and the only other means is risking this on exchange which may end up having negative circumstances.
Yes, its true. Exchanges are indeed like banks (btw the same goes for web wallets). And you need to trust them to a certain extent to buy and sell BTC. Me myself have some $40 trapped in Bitstamp as we speak.
The point is that you don't need to trust them with *all* your BTC *all* the time. It seems that most people do but I hope they'll eventually learn not to do it, and by then they'll not be looking for a "BTC bank".
I'll try to keep it short.
All banks rob both their customers and the holders of currency in which they deal.
Bitcoins are designed to be easily* stored** on a individual basis without the need of a bank.
So no fucking Bitcoin banks.
* Admittedly it's a little bit involved atm.
** The only thing you store in your computer is your wallet's private key, in the same way that you keep you car keys at hand and the actual car can be parked on the street.
All banks rob both their customers and the holders of currency in which they deal.
Bitcoins are designed to be easily* stored** on a individual basis without the need of a bank.
So no fucking Bitcoin banks.
* Admittedly it's a little bit involved atm.
** The only thing you store in your computer is your wallet's private key, in the same way that you keep you car keys at hand and the actual car can be parked on the street.
Major exchanges have done the same. How does it differ when its become the norm?
I understand we can maintain it ourselves but there comes a point where one needs to unload and the only other means is risking this on exchange which may end up having negative circumstances.
I'll try to keep it short.
All banks rob both their customers and the holders of currency in which they deal.
Bitcoins are designed to be easily* stored** on a individual basis without the need of a bank.
So no fucking Bitcoin banks.
* Admittedly it's a little bit involved atm.
** The only thing you store is your wallet's private key, in the same way that you keep you car keys at hand and the actual car can be parked on the street.
All banks rob both their customers and the holders of currency in which they deal.
Bitcoins are designed to be easily* stored** on a individual basis without the need of a bank.
So no fucking Bitcoin banks.
* Admittedly it's a little bit involved atm.
** The only thing you store is your wallet's private key, in the same way that you keep you car keys at hand and the actual car can be parked on the street.
Jump to: