Topic: Bank's loss crypto's gain? - page 2. (Read 791 times)

Why some governments needs to adapt it? Banks can bring more income to the country than crypto taxes that is why government supports banks more than the cryptos and the reason for the crisis of banks are lead by the world's economic crisis and it affected by many factors along with covid 19.So people lost the trust on banks and converting their savings into hard assets.

Banks are not reliable especially because FIAT itself is not reliable so yes I'd say in contrast crypto has some advantage in not being debased on a daily basis, it doesnt make it a success yet just less of a failure.     Its part of a bigger picture and some history going back decades to the second world war when at the same time a global agreement on monetary exchange between economies was being decided.    At that time, it was allocated to USA to be the major global reserve currency with the idea that all money would be gold backed ultimately via that connection and commitment from the central bank of USA, The Federal Reserve.   We know thats not the world we're in right now, hasnt been for many years but thats the legacy and reason why Dollar is so important.  
  Dollar has no link to gold and with such a large trade deficit anything else directly, its mostly based off politics and fiscal deficit spending.    Policy at present is very loose to try ensure events such as banks going bankrupt does not occur as this leads to losses and contraction between banks and in the economy overall.   All of this does and will effect BTC, we have inflation right now but deflation and losses from the ending to the historic FIAT system is inevitable.
  Overall the banks losses are going to be everyones losses, all we can speculate is that those with some holding BTC might do slightly better for being in a system isolated from traditional politics.    I dont expect BTC to be a life raft that saves us from all troubles, more a life jacket that keeps just above the waves of failure as excessive FIAT debt distributes and disintegrates its failed value.

It is true that several banks around the world suffer losses, the corona virus is the cause. Because customers have difficulty paying down
debt repayments, because some people lost their jobs. Several companies that use capital from banks are also bankrupt, this is indeed a heavy
blow for banks. Therefore the government helps banks by providing stimulus, it is hoped that banks can recover. It's very different from the
current crypto getting stronger, with Bitcoin continuing to rise in price. Perhaps many investors choose cryptocurrency because it is considered
a safe haven.

it is related to the supply of money in the bank. if the money in the bank runs out, the bank loses its power as a place to store and circulate money. I am sure the bank does not have malicious intentions let alone corruption.

Do you think anyone would run a bank and defraud the investors and get away without facing the law. If it is a legally registered bank then there is nothing much to worry and they offer protection even if there is a theft.

No idea why would a bank deny withdrawal, if you are not dealing with dubious activities then there is nothing to worry and a bank will not close your account without a reason.

The fact is that the banking sector and the cryptocurrency sector have to coexist.

true, even though the pandemic does not end, it will certainly have an impact on banks. but the government will clearly protect banks so that there is no crisis because banks are a form of government participation or presence there. obviously the government will still be able to keep the bank going well by all means, even if it takes action to intervene so that recovery occurs in the banking system.

the crypto market at this time likes or dislikes to appear to lead to improvement, of course, very much awaited for investors who play in the crypto field. unfortunately there are still many countries that do not recognize the existence of crypto itself. in a situation like this, of course if the state recognizes, they can intervene to be able to take tax from every transaction in crypto to cover the leakage because it must be used for pandemic mitigation.

it is clear at this time that the economic growth of every country affected by a pandemic will obviously be disrupted and it cannot be denied. then obviously the government will try to take actions that can make the country not collapse. of course, by not taking excessive action in using the existing budget.

Well, banks do end up bankrupting but that is mainly due to them not really doing their due diligence when giving loans and that means people are not paying what they should (well what did you expect if you loan to people who couldn't pay you back) and also one of the reasons is the fact that they are not regulated too hard.

If a government says that banks will be regulated like crazy, that would eventually result with banks not making that much profit, since they are not profiting their shareholders will not profit, since they do not have that much money they won't be loaning out or investing to other stuff, since they don't do that everyone will have hard time starting a new business or find investment, all of this cripples the economy. So, as you can see banks took all nation under their blackmailing if they fail.

Haven't heard anything yet similar to that problem in our country, I never had any withdrawal problem with my money.
Bank run their business through trust, so reputation is very important to them as no one would entrust their money in a bank with a bad reputation.

If a bank would deny withdrawal, there's something happening inside already and that is corruption.
When bank accept our money as deposits, there's no rules that we should let it sit for a while, anytime we can withdraw that, so they are obliged to give that to us. Maybe due to the pandemic banks profitability are affected but it's still not a good reason to deny withdrawal.

If we can't take bank anymore, crypto is always open.

Some government have no choice but to adopt the cryptocurrency in their economy so that they can take benefits from it through setting taxes from any crypto-related transactions.

But still they chose to not accept crypto above all, that's why banks experience crisis and crypto is not that affected. If governments are including crypto in their banks, people will surely try to invest and engage in this improved system in their economy. We all know that China is really good in terms of businesses related activities so probably they will not let their banks to become bankrupt, they have a huge economy.

Banks will be boycotted only if every government created their own crypto currencies which is already in the process of some countries like China, government is making huge money from the banks and banks are somewhat part of government but not entirely so for now government has no reasons to adapt to new system.

It's not far to happened as many countries from Southeast asia are in middle to third world countries,.

With this pandemic banking businesses are in declining positions.,

There are many loans that are not being paid and most of those banks really experiencing hardship due
to lockdown that being implemented by the government.

Millionaires who are keeping their money away from the banks and trying to find other means of investment, they are also affected of this pandemic thinking that collapse may take place.

The problem with this banks going down under is that they handle the situation lackadaisical which resulted in the mismanagement and control over the flow of cash in and out. Most banks in my country are faring well and I think the solution is that most of them have alternative that helped people from making transactions which gave convenience thus helping alleviating a total bank collapse. Crypto helped a lot of people in my country including me, this served as a source for me while there is still no schooling.

In my opinion, banks have started to lose money not only in India or Lebanon, but some countries have experienced this, especially in
Southeast Asian countries.This is caused by the effect of the corona virus which makes some people lose their jobs and cannot repay debt
repayments to the bank.Not to mention a few millionaires withdraw their money from banks and are transferred to investments such as gold
and cryptocurrency. Therefore the price of cryptocurrency is rising now.

The pandemic didn't stop people to withdraw or to save money.

While in the banks during this pandemic, they have to set limits to control the influx of their depositors for the withdrawals of cash. Because they were avoiding the shortage of cash on their ATMs or branches.

Even in my country, government has laid out big covid relief package plan to help the citizens out during this global pandemic. The relief package will surely be passed through the banks (centralized system) and not through something decentralized (like BTC etc).

I agree with your point that banks have been with us for decades and many people place their trust on them whereas crypto currencies haven’t been a part of the ecosystem for long. Therefore, it’s hard for people to place their reliance on such digital currencies during the time of pandemic and economic recession. Although, some might seek shelter in crypto market considering that it is acting as a safe haven in the bleeding markets.

Banks going bankrupt is a common thing to hear. But those are banks owned by private entity on a small scale (district etc). If you put your money in state banks or other well renowned banks such as Axis bank, your amount is secured, loans are passed with greater efficiency and there is no limited-on withdrawal except the fact that they will take some time for all the standard procedures.

But as the economy of the country is collapsing, nothing can be said about the scenario we will get to see of the financial structure of the country. Crypto can serve as a good alternative if everything is made convenient, scalable and efficient working product is delivered to solve financial problems. 

Of course, government will not allow banks to bankrupt. They are going to survive in any way. Many people rely on banks and banks is the brain of fiat money that's why government will make sure it will survive. Also crypto is not yet accepted in most country or it was not totally use as payment method like fiat money.

You mean the stock market will fall? No, it is also getting V shape recovery after the corona crash so no one actually is in loss except the salary class people who are the one ran out of money due to lockdown and big companies are still making the profits.Banks are always kind of bad with the middle class people and they will ask lot of documentation for the loan approval but we have no other choice than banks to get loans that is why they are going to survive even this corona crash.

On a larger scales, the banks aren't actually lossing, the electronical banking you speak about in most countries are been operated by the bankers, they just made everything easier by digitizing it. Cryptocurrency isn't yet popular in comparison to the level of patronizers the banks has. In the future we might be able to get a clear comparison but don't think doing that now is of any use.

Don't think there's much connection between the price increase of bitcoin and the banks failing, even though the banks were succeeding in their own way, we'll still be recording success within the space.

I would love to agree with your idea, but for me it seems too unrealistic.
There is no way for crypto to not being involved in global economy, because both of yours "bank" economy and "crypto" economy parts are tied up on people using them.
So if there is an economical issue, for instance people constantly loosing money due to quarantine, banks will suffer the most -> people will try to use crypto as safe haven -> crypto price increases -> shortly after "last" human that wanted to save funds will invest in crypto the price of whole crypto market will fall badly.
Thus being said I believe that crypto market bull run is going to last only if people will still use banks, if whole economy will bloom, otherwise its only a matter if time before whole crypto market will dam.