Topic: Bank's loss crypto's gain? - page 3. (Read 751 times)
There are many banks whose management system is very bad. Banks don't work properly so many people leave the bank and their existence goes down a lot. In that case, the bank incurs losses and the demand for crypto increases. In crypto, everyone can trade independently. Stocks are more likely to fail because they do not depend on the economy. In the case of banks, if the economy suffers, the rate of the bank decreases but there is no effect on crypto.
Good for crypto users. The pandemic had really exposed the vulnerability of the financial system which is why this needs to be replaced by crypto which everyone can bank their own funds in their own wallet that they don't have to submit anything forcing individuals to pay something while their money is already with them.
There are also banks in my country that ironically declared bankruptcy despite them that can legally launder money.
Could you explain this? How did you know bout this? 
Apart from the corona if you look at other world affairs banks going bankrupt is common, in countries like India due to waiver of bad loan banks are losing it's reputation and had to be merged with other banks and set a limit for withdrawal, same goes with Lebanon as well. As per one of the source the banks in Lebanon have only 1/4th the about deposited by civilians which is enforcing them to set a weekly limit for withdrawal until they find a way out. If this continues then people will stop trusting banks and turn towards crypto as a form of digital banks.
Kindly share your opinions?
I'm no expert of finance but isn't this is the bank's managament's fault? Kindly share your opinions?
In my opinion, civillians do have their choice picking the bank they want to use. Even though there are tons of tired banks but there is or will be other bank to start operation. Crypto currencies aren't in the position of trust enough for people to start putting trust in them and say goodbye to physical banks.
Banks were termed to be the backbone to an economy. So, without doubt governments will try to keep the banks on the safer side. Looking the market condition of cryptocurrencies it looks like pure gain and banks and stocks keep failing. Everyone are clear about the recovery period, none knows how long it'll take. Upon the same countries will plan to be on the safer side without much of downward deviation in the growth rate.
At this time of coronavirus banking activities are decreased in my country Venezuela. Fortunately, we have already implemented the use of electronic banking and payments to businesses and individuals through mobile payment. Because if we did not have these services, banking would play an almost null role at this time.
The future of banking needs a restoration from now on because crypto is responding to the gap they have left by not offering services fairly.
The future of banking needs a restoration from now on because crypto is responding to the gap they have left by not offering services fairly.
Don't forget that the bank business is very skewed, as we have seen in the last 20 years. If bank become in trouble (for example for giving out to many bad loans which start to default all at once) then the losses are to big for the banks to handle. In an economy it might be acceptable to let one bank go broke. But if the all banks do the same trades and become insolvent. Than the government has to bail out banks and the losses are transfered to the government.
So when banks make money it for their employees and shareholders, but when the bank losses a lot of money, it's for the average Joe. Who will have to take over the losses through higher taxes in the future when the government bails out all the banks.
So when banks make money it for their employees and shareholders, but when the bank losses a lot of money, it's for the average Joe. Who will have to take over the losses through higher taxes in the future when the government bails out all the banks.
Yup, the government will save banks by using bailout funds. In almost all countries, banks are indeed prima donna and are considered the economic pulse. The government also issued a series of policies to protect bank business. By reason of the stability and safety of the country's economy, the government will save banks from destruction. Banks are a sunset business because banking transactions can now be done by non-bank institutions. At this time there should be an awareness that the banking is old and the fact that there is something about the bank that is causing economic problems and the bank is actually controlled by plutocrats who perpetuate oligarchs throughout the world. We must agree that if the old system cannot work, then the new system applied by several countries that have been proven to work can be applied.
After there is a vaccination for corona I am sure that banks are going to make lot of money because people don't have any money to recover their lost business so they should have to go for loan as their only choice by that time banks will be making their profits of life time.Some banks might go bank rupt but in general they are going to stay here for sure post covid.
Don't forget that the bank business is very skewed, as we have seen in the last 20 years. If bank become in trouble (for example for giving out to many bad loans which start to default all at once) then the losses are to big for the banks to handle. In an economy it might be acceptable to let one bank go broke. But if the all banks do the same trades and become insolvent. Than the government has to bail out banks and the losses are transfered to the government.
So when banks make money it for their employees and shareholders, but when the bank losses a lot of money, it's for the average Joe. Who will have to take over the losses through higher taxes in the future when the government bails out all the banks.
I have to agree that banks will rise again once this vaccine is available for public. And they are one of the businesses that is in continuous operations even during this pandemic. But I don't think bank's loss is crypto's gain, because not many people even up until now are familiar with crypto. Not many of them will go to crypto as they have no idea how to transact business in crypto.
After there is a vaccination for corona I am sure that banks are going to make lot of money because people don't have any money to recover their lost business so they should have to go for loan as their only choice by that time banks will be making their profits of life time.Some banks might go bank rupt but in general they are going to stay here for sure post covid.
Don't forget that the bank business is very skewed, as we have seen in the last 20 years. If bank become in trouble (for example for giving out to many bad loans which start to default all at once) then the losses are to big for the banks to handle. In an economy it might be acceptable to let one bank go broke. But if the all banks do the same trades and become insolvent. Than the government has to bail out banks and the losses are transfered to the government.
So when banks make money it for their employees and shareholders, but when the bank losses a lot of money, it's for the average Joe. Who will have to take over the losses through higher taxes in the future when the government bails out all the banks.
Myself from India, the government is acting at its worst. The reserve fund that has been kept aside for emergency needs were taken and has been diversified to different plans. As banks weren't able to withstand the situation banks were unified and functioning under RBI.
Banks were losing as people have begun to go on different other form of investments than just saving. Majority of the public sectors which were under the government's control were sold to corporates. Someway people are made to suffer out of the ongoing governance.
Banks were losing as people have begun to go on different other form of investments than just saving. Majority of the public sectors which were under the government's control were sold to corporates. Someway people are made to suffer out of the ongoing governance.
After there is a vaccination for corona I am sure that banks are going to make lot of money because people don't have any money to recover their lost business so they should have to go for loan as their only choice by that time banks will be making their profits of life time.Some banks might go bank rupt but in general they are going to stay here for sure post covid.
Maybe coronavirus was a trick to transfer money from people to the banks.
Obviously people all around the world have become economically weakened during the pandemic crisis and their incomes are shrunk. If they want to keep living they have to get loans or sell their wealth in order to continue living on the same pace as before coronavirus.
After there is a vaccination for corona I am sure that banks are going to make lot of money because people don't have any money to recover their lost business so they should have to go for loan as their only choice by that time banks will be making their profits of life time.Some banks might go bank rupt but in general they are going to stay here for sure post covid.
if there is no solution to solve the problem, chances are people who are very familiar with crypto will leave the bank, they will switch to crypto because crypto itself has the freedom to make transactions, withdrawal in any amount can be done by crypto. even if someone needs money some services on crypto can provide loans and of course over time if there is no solution that can solve this problem, most people will definitely prefer crypto
depends on the crypto service you are using . on the wallet that i use there are restrictions but i can lift these limits the higher the level my account gets . when it comes to loans there are loaning service here but they all require a collateral because of our anonymity that fraudsters can easily get away if given an oppurtunity . on some loan service they need more , more than a collateral such as kyc and others. those are the problem that people will look out before they decide to switch
Apart from the corona if you look at other world affairs banks going bankrupt is common, in countries like India due to waiver of bad loan banks are losing it's reputation and had to be merged with other banks and set a limit for withdrawal, same goes with Lebanon as well. As per one of the source the banks in Lebanon have only 1/4th the about deposited by civilians which is enforcing them to set a weekly limit for withdrawal until they find a way out. If this continues then people will stop trusting banks and turn towards crypto as a form of digital banks.
Kindly share your opinions?
Kindly share your opinions?
if there is no solution to solve the problem, chances are people who are very familiar with crypto will leave the bank, they will switch to crypto because crypto itself has the freedom to make transactions, withdrawal in any amount can be done by crypto. even if someone needs money some services on crypto can provide loans and of course over time if there is no solution that can solve this problem, most people will definitely prefer crypto
First, if the banks have much larger withdrawals than deposits, then that would simply mean they should be closing. If the money going out is bigger than the money coming it, then there is no profit to begin with. These banks should cease operating. This is not a failure of the banking system; this is a failure of the particular banks caught in such a situation.
Bank will probably become bankrupt if that is what is happening in their operations. Huge outgoing than incoming money is really unprofitable for the banks. But the banking system should do more and become flexible so that they minimize the losses that they are experiencing when that happens.
Why would the bank become bankcrupt if due to withdrawals only, as long as they have investors, I think they can pay the withdrawals.
Besides, when someone withdraw, they deposit first, so I don't see the sense here, and if they ran out of funds, the central bank are ready to bail them out.
Enlighten me please.
Second, crypto is in a way personal banking. Those who have crypto accounts or wallets are, in one way or another, already banked. They have a storage, a currency they can spend and withdraw anytime, and a payment system. They don't need banks anymore with that.
That's what is good in using and manipulating cryptocurrency, it is centralized and you have full control of your assets. They are the one who are making their own fate towards their money and they can balance their withdrawals and deposits through their personal crypto wallets.
The thing is only few people trust crypto, there's no massive adoption first, so even if crypto looks better as we can do banking without a bank, but without the trust and confidence of people, bank will remain on top.
First, if the banks have much larger withdrawals than deposits, then that would simply mean they should be closing. If the money going out is bigger than the money coming it, then there is no profit to begin with. These banks should cease operating. This is not a failure of the banking system; this is a failure of the particular banks caught in such a situation.
Bank will probably become bankrupt if that is what is happening in their operations. Huge outgoing than incoming money is really unprofitable for the banks. But the banking system should do more and become flexible so that they minimize the losses that they are experiencing when that happens.
Second, crypto is in a way personal banking. Those who have crypto accounts or wallets are, in one way or another, already banked. They have a storage, a currency they can spend and withdraw anytime, and a payment system. They don't need banks anymore with that.
That's what is good in using and manipulating cryptocurrency, it is centralized and you have full control of your assets. They are the one who are making their own fate towards their money and they can balance their withdrawals and deposits through their personal crypto wallets.
Good for crypto users. The pandemic had really exposed the vulnerability of the financial system which is why this needs to be replaced by crypto which everyone can bank their own funds in their own wallet that they don't have to submit anything forcing individuals to pay something while their money is already with them.
There are also banks in my country that ironically declared bankruptcy despite them that can legally launder money.
I personally think there are a number of reasons why banks experience bankruptcy, so I start to explain things that are the most rational to things that are ignored because they are religious.
1. The banking business is a sunset business because of banks 5.0. Banking can now be done by non-bank institutions such as Paypal, Skrill, Alipay, and other payment platforms and market places. So far, banks are synonymous with institutions that can provide loans when customers need capital, now many online applications that provide loans in a matter of hours starting from a small nominal up to USD 10,000.
2. Saving is already considered millennial as an old-fashioned thing, they prefer investment through an equity crowdfunding company, with an investment value that is not too large.
3. The majority of banks use a fractional reserve system, in simple language the amount of money printed is many times more than the real collateral owned. So, when there is a massive withdrawal of money by bank customers, will collapse. Not the wrong bank but the system used is wrong.
4. The majority agree that all religions teach goodness, regardless of whether it is right or wrong to only explain the phenomenon that occurs. In the Islamic religion, the system of interest imposed by banks is included in the category of very large sins. Conditions that occur in the world today are a significant increase in the number of Muslims throughout the world equally. the forecast of the end of time is growing religious awareness so that many Muslims avoid conventional banks and keep their money in Islamic banks.
The momentum of fear of using physical money because of the potential to spread the coronavirus can have a positive impact on the education and development of digital currencies (E-Money, cryptocurrency, virtual currency). It's just that in these uncertain conditions, people need guarantees so that the electronic money (e-Money) will be more an option than a cryptocurrency.
1. The banking business is a sunset business because of banks 5.0. Banking can now be done by non-bank institutions such as Paypal, Skrill, Alipay, and other payment platforms and market places. So far, banks are synonymous with institutions that can provide loans when customers need capital, now many online applications that provide loans in a matter of hours starting from a small nominal up to USD 10,000.
2. Saving is already considered millennial as an old-fashioned thing, they prefer investment through an equity crowdfunding company, with an investment value that is not too large.
3. The majority of banks use a fractional reserve system, in simple language the amount of money printed is many times more than the real collateral owned. So, when there is a massive withdrawal of money by bank customers, will collapse. Not the wrong bank but the system used is wrong.
4. The majority agree that all religions teach goodness, regardless of whether it is right or wrong to only explain the phenomenon that occurs. In the Islamic religion, the system of interest imposed by banks is included in the category of very large sins. Conditions that occur in the world today are a significant increase in the number of Muslims throughout the world equally. the forecast of the end of time is growing religious awareness so that many Muslims avoid conventional banks and keep their money in Islamic banks.
The momentum of fear of using physical money because of the potential to spread the coronavirus can have a positive impact on the education and development of digital currencies (E-Money, cryptocurrency, virtual currency). It's just that in these uncertain conditions, people need guarantees so that the electronic money (e-Money) will be more an option than a cryptocurrency.
This is absolutely right. You had made such great and very comprehensive answer, mate. And I agree every words you said, that's actually true.
With the situation, no doubt bank are losing money.
There is a panic happening, people will deposits will certainly withdraw their money to secured the funds needed during the home quarantine and we don't know when the quarantine will be over or the life to be back on normal. When there is a massive withdrawal, banks will be short on its cash inflows as they can't also collect loans now as people are losing their job and business establishment are close.
Hopefully this would result to the growth of bitcoin, one will suffer, the other should benefit and that is bitcoin IMO.
There is a panic happening, people will deposits will certainly withdraw their money to secured the funds needed during the home quarantine and we don't know when the quarantine will be over or the life to be back on normal. When there is a massive withdrawal, banks will be short on its cash inflows as they can't also collect loans now as people are losing their job and business establishment are close.
Hopefully this would result to the growth of bitcoin, one will suffer, the other should benefit and that is bitcoin IMO.
i heard banks are on quarantine too . i mean they wont allow people to withdrew but some give small withdrawals only .
They can;t be in quarantine as they offer basic service, yes, banking belongs to the basic service but they are imposing the proper measures when going in the bank, to tell you, I just withdrawn some funds recently, and the new normal was what I witnessed.
all return to the role of the government to provide an explanation so that there is no large-scale withdrawal of funds at the bank, because it will clearly trigger a large loss to the state no longer to the bank whose customer funds are taken.
because the state must provide bailouts to banks for all transactions that result, so banks are unable to pay customer funds.
but if there is a role for the government and can provide explanations that are acceptable and willing to go down to provide assistance. will provide peace for customers not to simultaneously take their funds at the bank.
information and explanations in difficult times like this are needed so that there is no neglect from the government of its citizens
With the situation, no doubt bank are losing money.
There is a panic happening, people will deposits will certainly withdraw their money to secured the funds needed during the home quarantine and we don't know when the quarantine will be over or the life to be back on normal. When there is a massive withdrawal, banks will be short on its cash inflows as they can't also collect loans now as people are losing their job and business establishment are close.
Hopefully this would result to the growth of bitcoin, one will suffer, the other should benefit and that is bitcoin IMO.
There is a panic happening, people will deposits will certainly withdraw their money to secured the funds needed during the home quarantine and we don't know when the quarantine will be over or the life to be back on normal. When there is a massive withdrawal, banks will be short on its cash inflows as they can't also collect loans now as people are losing their job and business establishment are close.
Hopefully this would result to the growth of bitcoin, one will suffer, the other should benefit and that is bitcoin IMO.
i heard banks are on quarantine too . i mean they wont allow people to withdrew but some give small withdrawals only .
They can;t be in quarantine as they offer basic service, yes, banking belongs to the basic service but they are imposing the proper measures when going in the bank, to tell you, I just withdrawn some funds recently, and the new normal was what I witnessed.
Apart from the corona if you look at other world affairs banks going bankrupt is common, in countries like India due to waiver of bad loan banks are losing it's reputation and had to be merged with other banks and set a limit for withdrawal, same goes with Lebanon as well. As per one of the source the banks in Lebanon have only 1/4th the about deposited by civilians which is enforcing them to set a weekly limit for withdrawal until they find a way out. If this continues then people will stop trusting banks and turn towards crypto as a form of digital banks.
Kindly share your opinions?
Banks always have less than 10% of what people deposit right there in the banks in the physical form, rest of the money is paid to the people in form of loans on which banks gain interest and then pay a small percentage of that interest to the depositors who had money deposited in their savings accounts. Now in the pandemic people are not able to pay loans, banks aren't working efficiently and on top of it the general population needs cash for their survival so how can banks pay the people what they are asking as whole. But this only makes the crypto a preferable choice over cash and not that the demand for crypto banks will increase because people are still afraid of cryptocurrencies because of the number and magnitude of scams related to cryptocurrencies. Kindly share your opinions?
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