Topic: Banks and Bitcoin - page 3. (Read 3584 times)

No. Not at all. Banks won't collapse just because of that. They will find a way to suck it out of bitcoin as well. And to protect banksters governments will declare new set of idiotic laws just to keep these leeches alive.
I won't be surprised when in the future you could store your bitcoin private key in protected bank vault  for example.

if bank started to accepting bitcoin that i am really sure bank will be collapse

If you are law abiding citizen and you have no debts then there is very little chance that your bank's account will be freezed. I hate banks in general, they are part of old system designed to rip out every penny from people, but I did not see many cases of freezing accounts without proofs that this account is indeed owned by dishonest fraudster. I may be wrong tho.

that is about government and common people, so the financial control can't be given up by banks.

Hopefully banks in the UK would start this trend off, since the government is actively supporting a regulated Bitcoin and cryptocurrencies as part of the wider economy

Yeah I agree, the banking infrastructure is huge and they could use it to sustain bitcoin operations and forms of storage, instead of endlessly fighting it or remaining neutral at best.

Our entire existence has been about evolving and the banks will have to follow if they want to remain useful.

It's not mutually exclusive imo. They could launch services that simulate traditional banks to store your BTC, if you do not trust yourself. Xapo acts like a traditional bank for example.

Who sayed they can in the first place? Andreas sayed, they shouldn't profit much from financial services if systems works correctly.

Banks will evolve. They may not even be called banks any more. But they provide a market for credit and will be around in one form or the other, even if Bitcoin succeeds.

Where are these applications (presumably, applications a bank would be interested in) that aren't possible with fiat?

Vault with insurance: Isn't this one of the services banks have provided from the very beginning regardless of whether the currency is gold, silver, fiat dollars or whatever else?

Invest and/or loan: I put these two together because, between the two of them, this is how nearly every commercial bank in the world makes the majority of its profits. You deposit money, they loan it out or invest it, usually they loan out more than you actually deposit (sometimes up to 10x more). Bitcoin is far worse (for the bank) than fiat in this respect, since the bank can not create BTC it doesn't have and loan it out as if it really exists. I guess in theory they could operate a fractional reserve, but with a hard limit on the number of Bitcoins that can exist I see that scheme collapsing pretty quickly, Chase and Bank of America would be in no better position than MtGox because they still can't create these extra BTC out of thin air and unlike dollars, nobody is going to print more once we hit that hard limit. This also makes the "vault with insurance" service much less profitable for the bank than it currently is with fiat money.

I can't think of applications a bank would be interested in that aren't possible with fiat, but for those applications and services that a bank traditionally already provides, BTC would put the bank at a significant disadvantage compared to fiat.

I just don't see how the two are at all compatible. Banks exist for one reason: to control the money supply so they can tip the balance in favor the shareholders and owners. Bitcoin is neutral. You cannot manipulate it to enrich the few at the expense of everyone. If anything banks will see bitcoin as a threat and will launch a campaign that made the chinese fud last year look like a birthday party. Banks are the enemy. 

The banking system would have to revolutionize to keep up with Bitcoins.
Banks have the leverage in terms of currency,so if they're smart enough
they would be able buy,sell and mine at volume rates,within the system just like everyone else

The problem with the "theory decentralised exchange" is that it cannot be used FIAT value on it, because the banks aren't decentralized so there is the problem of the chargeback aka irreversibility. Maybe it could be possible a decentralised exchange with only the various crypto-currencies (I hope to see a dec. exchange in the next 1-2 years, here a possible valid example : Mercury - https://bitcointalksearch.org/topic/mercury-fully-trustless-cryptocurrency-exchange-looking-for-testers-946174).

The great thing about bitcoin is we don't need a bank. We are our own with btc.


Decentralized exchanges will probably get around this so you can keep your coins yourself right up until the actual trade. No more relying on third parties.

By buying all the Asic companies.

Or at least loaning them millions.

Banks could make profit selling bitcoin like exchanges. When the demand rises and there is a bigger volume banks could sell bitcoins in real life to the average Joe and make profit.

You could have banks providing Bitcoin credit cards.
People forget that you get up to 45 days of credit by using credit cards. That can't happen unless you have a bank.

A bank for bitcoin is a "stupid" thing, we should consider our wallet as bank not the contrary. Bitcoin bring back the "ownership of money" without the use of a 'bank' so I'm sorry but banks and bitcoin will never can be possible and I will trust only my wallet for store my bitcoin. Here some interesting articles:

- http://www.thebitcoinsociety.org/it/content/bitcoin-beauty-trustless-transactions
- https://bitcoinmagazine.com/6630/trustless-bitcoin-anonymity-here-at-last/

i mean they pay you interest in fiat, not bitcoin, you lock your bitcoin in their bank and for this they will offer an annual interest