Topic: Bitcoin bank, Necessary? (Read 840 times)

Assuming banks always creates a image in our mind about the traditional methods of banking. Banking systems are been changing and getting more advanced. Banking sector is one of the most important sector in any country as the economic and financial situation of the country might wholly depend on the banks of the country.

Moreover, the circulation of money is been carried from each respective banks and banks are responsible for the developments faced by the country as each development needs finance which is been provided by the banks. Introducing blockchain into the banking sector can change a lot of things which we cannot even imagine. Banking would entirely change it's roots if ever blockchain enters the mainstream.

Precisely and it is a silly topic I think. Not having to rely on banks is the whole point of bitcoin and crypto and it is a main reason why I use it. Being paid is easy and you don't have to worry about someone reversing the payment or defrauding you. Once you are paid you are paid end of the story. If you need the ability to send payments back for a market or online store then you can use a payment processor and people can get a refund. YTo solves the issue of someone being paid and no item being sent you simply use escrow and the person who received the item can take a picture of it and then the escrow is released. It's brilliant and trustless.

As the centralized nature of Bitcoin is not accepted by us, it is not accepted by Bitcoin itself. Changing it into centralized will snatch the security and safety of Bitcoin, this would change the nature of it. The qualities that make Bitcoin attractive will be lost and there will be no value in it. That is why there is no need of Banking for crypto, it was developed in self-governing way and would remain the same.

Banking industry will never be decentralized, it will remain centralize and still win cater the people who are using fiat,  and of course fiat will never be lost in  circulation as it would still dominate since we have the government.

Bitcoin bank is just likely the exchanges that we are using now, and maybe there are banks that will start accepting bitcoin but that is going to be subject to the law of the government, if you want to be anonymous and you don't want to declare your assets, you don't use bitcoin bank.

Actually, creating bitcoin banks means centralizing bitcoins. This would never be something expected by us. We do not really want bitcoins to be centralized or by governed by any of the governments which actually you wanted to say. All those illegal transactions would only be stopped if even someone sits 24 hours in front of the screen monitoring each and every transaction.

This would not even make us feel secure and I am sure that the governments from all over the nations would get busy in blocking the wallets with excess amount of bitcoins. Bitcoins would never be meant to be safe again if this even happens so I am happy with what bitcoins are now and I am not really expecting bitcoin banks to be announced.

Community is composed of many sectors that coordinate as one for the country to develop. Banks financtial institution is one of the sectors that perform one of the vital roles which circulates currency for daily living. Incorporating bitcoin banks is one of the ideas they have which is for me, a way to continue their job but not completely a creation of banks intended for bitcoin. Here's why: for me, having banks intended for bitcoin is a waste of money, establishments doesn't need to be created because bitcoin is running over the metwork. In such a case that what we need is jist internet connection, a hardware wallet or other secured wallet to safely store our funds.

One of the things banks could consider to to is to just incorporate bitcoin to existing branches they have, and have a very secured node or  computer to store cryptocurrency and to process crypto for people. Though, the main function I can just see is when people tends to buy bitcoin, they could easily transfer their funds from that particular bank and accumulate bitcoin directly. In addition, banks might as well consider having huge bitcoin pool, incase people's deman increases.

As you can notice, I am just incorporating banks because I believe banks is one of the necessary sectors of our community, in fact, bitcoin alone with its nodes could survive, and provide better service at all.

On last idea I have about this is that,

Banks could possibly run bitcoin ATM, where people could cash out and cash in their funds, to make accumulation of bitcoins allot easier. But remember, with all these things, we could lose one thing, and that is our anonymity.

I do not like the idea of ​​introducing bitcoins into the banking system. Otherwise, this is not decentralization, but a bank, which will simply deal with cryptocurrencies instead of current currencies.

In my opinion, the idea is not very thought out.

You are right, if we refer to the fundamental reasons for the creation of Bitcoin then we will know that it is completely unnecessary, whereas cryptocurrency is for decentralization. So if you go back to the Bank system, it means that there is no change. And the expected privacy and anonymity will disappear. So let us maximize the existing order, whether there is legality or not, as long as it is not prohibited then we are free to express ourselves, right? so use this opportunity as best you can.

It is not neccessary at all to have that bank because if we will be having it, I am expecting that goverment will regulate us , a lot of files are needed to be done and to be pass , every move that we will be doing will need their approval, there are some atm machines, I think it is enough  , a private company without government rule is good.

Such talk is heresy.


Bitcoin already is a bank all over the work -_- That person is kind of an idiot. Lol they talking about things that bitcoin can't do. That would make it a whole other coin. It would not be bitcoin anymore if you could just reverse payments and things like that. lol then they talk about collecting everyone's personal details to use bitcoin? Such nonsense, that person should really learn the basics of bitcoin. Having everyones personal details one one large global network is the worse idea I have ever heard for a while.

I think bitcoin banks will not be effective in the world of cryptocurrency because what will be it's used ? If we can store all of our bitcoin and altcoins in our own crypto wallets because it will be much safer and secured. Even they will put a small interest in storing our bitcoins in bitcoin banks no one would entrust it.

Such banks who would allow people to store their bitcoins would only serve as a large scale cold storage. Bank actually means that they would entirely start regulating the transactions which would never keep bitcoin transactions secure. Bitcoins are meant to be decentralized so why do we even want them to enter the mainstream?

I personally hate the banking systems. Bitcoin serves us way better than the banking systems so why do we ever want to co-related them? I would personally oppose this because if banks are trying to start regulating bitcoins than they might even start implying taxes over each and every transaction excluding the transaction fees. This would soon turn out to be ridiculous.

bitcoin is not a centralized tool and decentralization is inherent in bitcoin.
if there is a bitcoin bank, it means you equate it like FIAT, and that won't be possible.

No, we don't always transfer to a bank account! There are gift cards and options to exchange for cash like ATMs.
If your local exchange cannot find a bank, go to a different exchange.

You want to keep your bitcoins in a bank because it will be easier to cash out? Bitcoin was made so you don't have to risk it and leave your money in the hands of other people!
How can you be a crypto enthusiast with that attitude?

The concept of the bitcoin bank is self-contradictory to the mechanism to the bitcoin. It is popular because of its decentralized nature, no one has the superpower to control it, this builds the trust among the people to use bitcoin. By making a bitcoin bank it will no longer different from the all traditional currencies.

And another thing is that, is there no illegal activities involved in case of the traditional government-backed coins? The bitcoin came into existence less than 20 years ago but the illegal activities are happening for years. So why to blame bitcoin for that and why it needed to be centralized, when the main cause is completely different?

There are who voted for the need when in fact we are our own wallet and Bitcoin was created to go against the policy of the bank we don't need Bitcoin bank, because we can take care of ourselves when securing our coins, we just need to educate yourselves on how to do it and if there's a bank who will run and where it will comply, will it acts like an exchange with KYC, which is a big no-no to majority of us here.

Bitcoin was born as a currency to control itself instead of banks.  Bitcoin cannot replace services like loans or deposits like banks but Bitcoin has better control over banks.  I think it is not necessary to create a centralized environment like Bitcoin bank.  There is now Binance that allows investors to mortgage other altcoins to lend their bitcoins to other investors.

A world BTC bank that no country will support? Bitcoin is decentralized and if a Bitcoin bank is created it must be controlled by someone to avoid fraud, so how you think someone will trust such a financial institute?

I don't see a big reason as to why people would need to create a bitcoin bank aside from the fact that they might want to pass the blame on to others when time comes and everything went bonkers. Bitcoins are decentralized cryptocurrencies, putting them on na bank defeats the whole purpose of being "decentralised". Aside of that, as you have mentioned, bitcoin promotes a user-based network where it's the users who do the work for themselves, no huge corporation needed. If anything, I see this bitcoin banks as big targets for cryptocurrency theft if ever they will be established.

Maybe he is pointing out regulation. But in the first place, cryptos are sometimes used in illegal transactions due to the anonymity blockchain technology is having. Decentralization is in nature of Bitcoin which contradicts the concept of banks , therefore it is quite impossible. Also, there are cryptowallets wherein a user may store his investments and holdings which is already secured. To sum it up, there's no need for a Bitcoin Bank.