Topic: Bitcoin banking system (Read 818 times)

This is correct. There will always be demand for private-key custodial institutions.

Most people would be better off keeping their coins on Gemini or Coinbase rather than stored locally. This is due to the technical incompetence of the vast majority.

Very true, let take some trip down memory lane, did drone kill the camera man using an helicopter to broadcast news event happening? No. Did Uber kill the local taxi driver driving everyday in the street to get his daily bread? No. Did email kill, sending and recieving of letter through the post office? No. Sure this new innovations did reduce the rate at which people use the formal but they're still operating fine. That's what will happen with bitcoin and banks. Non is replacing the other instead both with operate just fine and it's left for you to decide on which to give the upper hand.

I think the obstacle to Bitcoin is price fluctuations, while Fiat is inflation. I think both of them have risks. Investors are more inclined to the real value. Bitcoin is here, but world stock investment in Fiat is still high. Countries cannot take advantage of the value that is in Bitcoin, so they will never agree with Bitcoin. Moreover, America makes other countries dependent on the USD exchange rate. A concrete example with the Corona outbreak that is happening today. All other countries' currencies are low, while the USD is increasing. Even though America was also affected by the Corona pandemic.

Banking system mustn't be killed, that is a fact. Let's say most people use Bitcoin and it did killed the banking system. I think marginalized people and marginalized countries would have a huge problem. Not all people have the resources to have Bitcoin, and are not educated enough. Some relies on leases and loans in banks to aid their farms or for their children'a future. Bitcoin doesn't need to kill banks but instead can help the growth. Bitcoin can provide easy transactions and help in the some crucial emergencies of people.

Only if they go fully under regulations imo. Too much money laundering and shitty defi making only whales and criminals rich will lead to a Liberty Reserve like lock down of crypto quite quickly

The coinbase's of the world will become the new banks offering key custodial services. Banks won't go away, they will adapt.

I dont know on what he do smoke on asking for out some donation after he do talk about Bitcoin and banking system.  Well setting that non-sense aside,
people here on this place or community does know that basic thing when it comes to decentralization aspect of btc and thats why adoption is on the move
but i dont really believe into the thing that it can surpass fiat system anytime soon.We can rather have an option but not totally replacing a system that had been
hardly established and supported by government itself.

It is true that bitcoin can kill the banking system, but the government will not allow that to happen. That's why fiat will
still exist, even though bitcoin has managed to defeat fiat. Because the government needs tax revenues obtained from fiat,
while from bitcoin can't get tax. Therefore most likely bitcoin and fiat are running side by side and supporting each other.
That's the best way that might become reality in the future.

The Banks are aware, that's why they discourage the use of BTC, but they still support BTC at the back end because they don't want to go out of business, why would we need Bank if flat will be a thing of the past. It is so early to say, I am just stating that it is not impossible. Flat started somehow in the history, why not BTC.

Both Bitcoin and bank have advantages and disadvantages, Everyone knows that banks are centralized and there are people who hates it because of their own reasoning about centralization. On the other hand, for us bitcoin users, a decentralized system is the system that we want to use. Knowing that we have full control with our assets, has a quality of transparency. Even if we have bitcoin on us, We can't really deny that banks are still useful in terms of cashing-out cryptocurrency into fiat.

Yes, bitcoin is far better than fiat based system but unfortunately not many people or institutions realize this.
By the way, why should anyone denote you ? This is not a right way to beg for help or donation. I hope you understand it.

Actually bitcoin banking system is too much good system in crypto market. Bitcoin is a cryptocurrency that utilizes the peer to peer protocol to function with no mediator like the Banking system. According to many crypto enthusiasts, Bitcoin has the potential to destroy the banking system. Bitcoin's primary function is not store of value that's a result of its primary function. Its bank would reduce the amount of deposits in the consumer's account by the value of the credit card bill, thus destroying all of the newly created money so its fully decentralized crypto market syatem.

I don't really know about this. But I'm thinking that Bitcoin might overtake Fiat in becoming a research currency. I have already seen a lot of countries that are talking about using Bitcoin as their reserve and these are mostly countries that were sanctioned by the US.

But in the case of replacing fiat completely, I don't really think that's going to happen, because we are all not going to be using the same currency. Every country will always have their own currency. So I am guessing that the government will create their own crypto version of fiat, and then Bitcoin will still be at the top as a reserve currency or something.

Banks do know now the advantage of bitcoin because of the blockchain technology it uses. Sooner or later, these banks will surely adjust and adopt this kind of technology but that doesn't mean that bitcoin will destroy the whole banking system itself. Traditional currencies like fiat will also be there, people will still use those currencies as well as cryptos cause that will be there best option to do. If you can't destroy something, why don't you just ride along with it and use it for your own benefit as well, right?

I don't really like your pessimist opinion. If both systems coexist in interrelation, then its too late to banks to ignore bitcoin and bitcoin succeeded to take place in the real world and may replace fiat in a long term (maybe many decades). Bitcoin adds more anonymity to classic transactions, this doesn't mean it will replace the old system by any sort. Some banks even try to go with the crypto wave and try to adopt with it as a solution for many needs and as a method of paiement that is used by custmers.

In fact, this picture represent how the bitcoin system is integrated within the banking system. Bitcoin as an additional element to the banking system provides much more anonymity to fiat transactions, and fiat transactions also provides a stable price to the btc at the exact time of transaction. There is no other options to take unless one of them leave his place forever to the other .

I do  not think bitcoin can kill the banking system. One of the core features of fiat is that it can be used locally in the local markets, There are several unlearned peeps in the local market who will always request for fiat as payment mode. There are some stuffs we buy that will always require fiats in cash no matter what.

Banks can indeed control bitcoin, by regulating the amount your credit / debit card can spend on crypto currency if need be.
Let us stop with the comparisons, both the bank and bitcoin will thrive together in the crypto sphere.

Hello everybody. The modern banking structure has evolved for a very long time. Bitcoin is just beginning its journey. I would very much like cryptocurrency to force banking and government circles to change their vector of protection and service not of the interests of the people, but of the interests of the ruling class. But, unfortunately, the situation is more prone to the fact that if the ruling circles do not figure out how to bite off a huge tidbit from a cryptocurrency pie, they will try to drive even any mention of cryptocurrency deeper into the underground. Time will tell.

and for what they have implemented the kyc ?  kyc on btc/cryptos can prevent money laundering  but of course a good criminal can still escape no matter what  .

banking isnt about using fiat but banking means your storing money and your applying for credit/debit card stuffs like that but i think btc and btc related service or business can also do it too  so there is a potential that btc can kill the banking system in the long run  .

This trend has already been started and china officially launched their first cryptocurrency. You can read more about it https://fortune.com/2019/10/29/china-digital-currency-facebook-libra-languishes/

If this trends continues, we will see every country developing its own digital currency and that currency will be managed by that respective state so it will be a centralized currency.

Banking already upgraded, almost all(or all of them?) of the banking here in our country have online system now. So basically, Bitcoin being online is equal to online banking! The only thing that keeping them separated is the concept of those two currency but who cares! They are just both currency that have their own features. In my opinion, those those shouldn't be compared since, with cryptocurrency and banking system our economy are being upgraded and they are just working just fine as what they are right now.

Today there are a lot of people right away are using the bitcojn and because of that they see the potential of the coin to make more money through the use of the investment, trading and gambling but still it depends on the person or the player how does they use their funds but what are the common request of them? Bitcoin is much better to have an atm by this some of the country already supported the use of the bitcoin make their way to produce these some of the country already have their bitcoin atm that is good because it is more convenience to their users. Now they are requesting the use of banking system in the world of the bitcoin but I think this may not happen because bitcoin is decentralized so at the first place the government does not have enough power to control and adaptation of the bitcoin because it takes a lot of process before this kind of action will support by the government still they want to secure all of the transaction and also the bitcoin has a volatile market unlike the market of fiat.

I think more than likely banks will hold on to fiat until they can no longer and then they will start using blockchain technology. It will be interesting to see what they will do or why people would use it over decentralized currencies. Perhaps for security and the ability to possibly reverse payments? I can't think of any other reason why someone would use centralized crypto over decentralised.

Fractional Reserve is a banking system that allows commercial banks to make a profit by lending a portion of their customers' deposits, and only a portion of these deposits are stored in cash and available for withdrawal. Practically, the banking system makes money from nothing using a percentage of the bank's customer deposits.

But if you are in a country that does not recognize Crypto as a currency, what happens? Each country has a different policy regarding digital currencies. Moreover crypto currency is very volatile is not fixed. I think I will still need a bank, because not all countries of the world legalize digital currencies.

We all have at least one bank account and after using BTCitcoin and cryptocurrencies we have realized that the banking system should be reformed. So I think banks should adapt to the time we live in and update their system. There is frequent talk of the creation of CBDC that has been successful in the banks that implemented it.
Commerzbank (Germany)
UBS (Switzerland)
JP Morgan (US)
ING (Netherlands)
Banco Santander (Spain)

Blockchain in Banking Industry Use Cases
https://changelly.com/blog/blockchain-in-banking-industry-use-cases/

This is not true, many countries do not intervene in the economy (are more liberal) and the real purpose of a Central Bank is to serve as a Bank for banks. They don't have to dictate monetary policy even if that's typical in many countries. A good example would be the role of a central bank in a country without a national currency.

And all of this is related to fractional reserve. If you don't understand fractional reserve, you just cannot understand why there are so many banks. And if you DID understand fractional reserve, you wouldn't be using banks in the first place.

The end result of the existence of Bitcoin. is that banks will need to shrink. There are just too many of them and they are redundant. They can shrink slowly, product of the natural disuse of them, or rapidly should the people of the world suddenly decided to withdraw their money which cannot occur under fractional reserve rules; your money is simply not there and most people remain ignorant of this.

With Bitcoin every coin is accounted for, you cannot do vapor money like banks do with fractional reserve. A bank can only work with Bitcoin with a full reserve, and that means you have to pay them to keep your money rather than the other way around (think bank vault). The Bank of Amsterdam used to work like this a century ago, such type of bank can never go bankrupt but makes far less money than the other banks doing the legalized ponzi scheme. In a similar fashion the Chicago school of economy needs the whole credit expansion system that this fake money provides. You will never understand Bitcoin place in the world without the Austrian school of economy where you grow slowly by saving, not quickly by getting in debt.

And yes, money that keeps its value overtime makes people save more, and you don't need a bank for that anymore.

This is natural, because all countries system must have a central bank. The Central Bank institution that is responsible for maintaining the stability of prices of goods and services, as well as the exchange rate of a currency that applies in a country. If BTC is legalized and become a means of payment this will be difficult. Because the central bank cannot control. If it is legalized and regulated by an institution, the original nature of BTC is not decentralized. Moreover, the use of Bitcoin as a means of payment will collide with the scalability problem. So bank institutions in a country need to regulate issues regarding the legality of BTC.

To answer the question very simply, why would the king of a state let another entity to take control its territory? Of course government do not want any decentralized body to take over them to keep the order in people, It is either they are going to prohibit the use of it or adopt the use of it but most likely they cannot totally ban the crypto in a way that they are not going to sacrifice any thing. It is not a fight for the bitcoin to win, this is the common misconception about bitcoin and government, this is not a fight but instead this is an ongoing process of acceptance.

Digital Central Bank Currency are already present in some countries, and some are in testing to have their own actually I don't really see this fully working in 2 years but I hope this will be a good time to test it out and launch in the future.

Bitcoin is very strong , but another question we have to be asking ourselves is whether our government is going to let Bitcoin prevail?
Bitcoin gives us freedom, and to the government it is out of reach and cannot be controlled by them. So, do you think that they are going to allow people to go fully on Bitcoin? If they notice that majority of the people are starting to move away from fiat and moving into Bitcoin, they might start putting up a fight against it.

Some of them are now talking about creating their own cryptocurrency, and I saw news recently that China is close to releasing theirs, even saw someone that posted the Chinese cryptocurrency wallet, what it looks like in this forum.

Is there any purpose designed crypto bank platform? I mean any fiat funds deposited are automatically converted to some ERC20 stable coin? I know you could technically do it on exchanges already like binance. But for any business in high risk industries who struggle dealing with banks, could be an interesting service.

Bitcoin is just some aditional system / asset banks ca use

they are only afraid of getting tainted by the mass of scams you can debunk - US regulators are just too slow  / fuzzy - I wonder why ?

Cause xrp / eth / ico scammers keep them busy ?

Today bitcoin is one of the most profitable and fastest ways of earnings and many people now are trying to use this to avoid getting too much tax and also they want to lessen the transaction fees and today @OP there are a lot of countries now are accepting the banking system of the bitcoin and some of this country now are already make an ATM tell that they are supporting this kind of currency if this kind of transaction will be accepted into another country there is a big chance it will accept to the nearest counties supporting the use of the bitcoin too. But I think the government now will start to go with the bitcoin and they will use this to limits the transactions.

Banks will not go bankrupt considering the length of your time that Fiat has a presence, considering whether Bitcoin is working admirably today. Traditional cash is hard to beat banks like this. Individuals need their cash to be confirmed by a centralized company. Furthermore, to realize that Bitcoin can be a decentralized thing, there are still people who are afraid to use it. However, there are some banks that have found Bitcoin beneficial and have now joined the block-chain where we will buy Bitcoin to them.

Then again we can understand overall that Bitcoin is completely regulated and banks certainly were not. There is a need to be prepared for any danger to lose speculation with BTC.

I don't see that the bitcoin can killed the banking system because still many people will use the banking system because they are more familiar on it than other system so it would be better if we stop by there. Maybe there would be a chance that thr old banking system will be killed if they will not follow the continuously upgrading of the system meaning if they will still use the old banking system then probably bitcoin will killed them...

When the discussion that you submit outside of the topic thread is reasonable if your post is deleted because it complies with applicable regulations.


It is not easy for Bitcoin to challenge banks because the state system used still uses banking as a reference to control finances, indeed this has become one of the main problems where bitcoin cannot be legalized by the banking system, but when it does happen there is a high possibility that bitcoin could become a revolution the best finance in the future, even though it also takes a long time.

BTC can't kill the banking system,because the banking system could simply adopt it.
Inflation isn't so bad.It can help for further economic growth.Having money with decreasing value motivates all the people and businesses to work harder and make more money.If the value of all money was constantly going up,all the people would simply wait and hold their money,instead of spending them.
I don't think the banks are afraid of BTC.Anyway,this topic has been discussed 1000 times on the forum.
There's no point of asking the same questions again and again.

We don't really know that, we are just ordinary citizen unless you are from the government?, Yes they are supposed to do that to run our government efficiently but you can't deny the fact that there are some corrupt governments with hidden anomalies and stealing the money of its people. Just like what I say it is just a hunch but it is possible.

Even despite some of the advantages of bitcoin, the banking system would continue to exist even if it had not adopted blockchain technology and cryptocurrency. Cryptocurrency and the banking system generally perform different functions. In banks, these functions are much wider. In addition, the banking system is under the reliable protection of states and they would not allow it to die, even if cryptocurrency posed such a threat to it. However, bitcoin and other cryptocurrencies do not affect the banking system so much as to fear for its existence. At the same time, banks fully accept blockchain technology, as evidenced by its use of the ripple network and the planning of the release of its national stable coin by many states. Banks and cryptocurrencies will exist in parallel with each other.

It's worthy to note that there are two types of inflation, namely price and monetary inflation. While Bitcoin cannot suffer in monetary inflation, which is the inflation caused by limited supply, it can still suffer in price inflation.

Goods and services can be priced higher when the demand is low, and vice versa. Mainly known as volatility in the market.

Banks are undergoing lots of procedures and they can't just invest your funds but different companies are borrowing it for investment. In simple terms, banks helps the economy have the money circulating that is needed by the entire country. Imagine if there is not regulation with the money, how could government run efficiently? Majority of the projects or almost the entire projects of government are run by taxes and what makes it possible is because of banks.

Though, the downside of it is the total regulation of the money, leaving people out of control to their savings.

Bitcoin is killing it already, I guess banks are the biggest scam run by the government, Imagine 1 - 2% interest of your deposit per year? Maybe they are using our money to invest in stocks and maybe cryptocurrency and gain big profits from it. Maybe banks are one of the cryptocurrency whales? Just a hunch but it is possible. Bitcoin already beating it in terms of fees, etc. and it is more convenient.

if people starts to believe in Bitcoins capabilities and power?government cannot doi nothing but to accept it unless they will deny the freedom and willingness of their people,because this is for their own welfare and benefits.
this is the feature of Bitcoin that will be loved by people,same like ours right?we fell inlove in this market because of the volatility that brings us profit but also make us fail if we dont know how to deal with Cryptocurrency Market.

Before we can do this thing, we need to support every BTC developments and stay positive whatever bad result we see in the market because we know the price will rise again somehow. We also need to support BTC in the way that we can positively invite others to invest in it. I hope with the current situation in the market will make some other big companies invest some of their money in BTC.

Early on, the scene was probably like a direct challenge of Bitcoin to the deeply-entrenched banking system. However, it evolved over the few years that the banks and Bitcoin are existing at the same time. Right now, I can see some parallel movements although not totally since the banks are strictly bound to follow certain rules. Or perhaps the banks are merely playing the game very well so as not to get dislodged from its juicy position?

Volatility has some pros and cons. But I surmise that when the central banks of different countries will issue their own digital currencies, they will gain a much faster adoption among their citizens. Not least because it is stable and sanctioned by the state.

Bitcoin can challenge the banks. But at this moment we face one problem: the banking system is controlled by the government. And the government won't let it happen.   Another thing is that Bitcoin is more volatile, and some people can't stand it.

deleting post is normal in this forum no one can skip from that so accept that reality mate.
i don't also know whats behind needs for banks when we cans tore our bitcoin on our own wallet and keep it safe.
i have been reading some ,post way back about this banking that demands by someone while the main reason that is why we are all here as we are looking for privacy and more security.

Some fuck banned me for 7 days on here. Bitcoiners can not run a bank. They are to defensive. And as you can see on the advertising. Endorsing crime.

PS. Same shitbag deleted a lot of my posts.

As long as the existence of fiat is there, the banks will not be disappear even if bitcoin is doing well today. Traditional money is hard to beat and so the banks. People wanted their money to be secured by centralized organzations. And to think that bitcoin is a decentralized thing, there are still people who are afraid of using it. Anyway, there are banks who are bitcoin friendly and joined the blockchain already where in we can purchase bitcoin to them.

On the other hand, we all know that bitcoin is fully unregulated and banks were not. One should be ready for any risks losing investments with btc.

In my opinion, not a single cryptocurrency is capable of completely replacing the whole fiat in general in the foreseeable future.
Most likely, there will be some part of the market where they will dominate, but certainly not the entire financial system.

I don't think BTC can kill the banking system, exempted from inflation, free from government control and high transaction fees. If it's fully decentralized we won't be having lots of discussions in having BTC as one of the money in the world even if its a virtual thing. I just hope that Bitcoin will work hand in hand with other fiats but I guess if that happens Bitcoin will be centralized which isn't its purpose.

It won't happen, BTC might get more demand, scale, and have a higher value, but it won't replace anything that is fiat based. There are lots of things that cannot fullfil of BTC but cash/fiat would do.
Fiat will remain and so the banking system, BTC will exist along with it.

Bitcoin is a digital currency that, in the expressions of its backers, "utilizes shared innovation to work with no focal power or banks." By its very definition Bitcoin appears to be all around situated to slaughter off national banks.
National banks are as of now the prevailing structure countries use to deal with their economies.
Until and except if governments perceive Bitcoin as a real money, it has little any desire for killing off national banks at any point in the near future.

I doubt that. First is, the bank is everywhere and the government is regulating them. So do you think that the government will let  that happen? Bitcoin cannot easily kill the banking system since people are still dependent on them and fiat. When you ask random people, majority of them still trust the bank. The government as well as banks might end up adopting digital currency, but that doesn't mean it will kill banking system.

We cannot really conclude that banks are afraid of btc because it's too early and we're still far from massive crypto adoption. You're right about Bitcoin having an advantage over fiat, and so does fiat. Both of them has an advantage that's why they can really work together in the future.  And I never really see Bitcoin killing banking system because both of them has their own function.

Banks may survive if they join the exchange and crypto financing business, AND switch to full reserve practices when dealing with Bitcoin, etc.

That said banks will have to shrink. They have to, so they can remain alive. There is simply no need for so much banking once people become aware of Bitcoin.

I have the feeling that Bitcoin can trigger the world to a move to the Austrian school of economy, this is what current banks need to face reality about. Most of their existence is due to the fractional reserve legalized Ponzi scheme, and this is going to go.

Before Bitcoin, they could have continued with the Chicago school practices, stimulating people and nations to get in debt and live paying their debt with a permanent inflation as the way they believe economy growths, and fractional reserve money, money that doesn't exist anyway amounts to 90% of that which is the cause of bubbles in the first place.

When they become aware that money won't lose value anymore, and that in fact may even gain some, they enter in panic. They neglected the Austrians and now they see no future or are very scared. The genie is out of the bottle though.

Yes the economy growth has to slow down, but its better to have steady growth than the permanent roller-coasters of bubbles and crashes. Austrian economy growths from the savings of people, not debt and its credit expansion (euphemism for: "more money that doesn't exist anywhere").

You have to study fractional reserve banking to understand the implications of this, and preferably the Austrian school of economy, to get a picture of the future.

Banks are no longer needed, they are optional now. Know your place.

Can Bitcoin challenge the banks? Can it show that their monopoly is not necessary? Yes, and it already did that. Furthermore, it can continue to become an alternative to a bank account with fiat to more and more people. However, at this point, I don't think the banks are about to die. For one, 97% of the population still uses fiat and nothing else as money, so Bitcoin is far too unknown for now. Another thing is that Bitcoin is more volatile, and some people can't stand it. Apart from that, it's always easier to give your money to the bank and then blame it is anything happens to your money. Bitcoin requires to take one's own responsibility and agree to a case with no guarantees, so many people won't opt for it simply because it would seem too unreliable to them.

You have to understand one fact, bitcoin is not built to attack the good old banking system. Even though bitcoin has so many features which can potentially decrease the need of a banking system. But bitcoin is not certainly attacking the banking system. If banking system can't cope up with the changed need of the economy, it will itself go extinct! But fortunately or unfortunately, this is not the case happening now! If they remain unresponsive to the change, they will slowly loose their need of existence. But if they are open in accepting changes, they will grow even bigger!

Just to add, Germany has decided to allow banks to store and manage cryptocurrency on their customer's behalf. That's what is needed worldwide,

https://news.bitcoin.com/german-banks-authorized-to-store-and-sell-cryptocurrency-in-2020/

There's nothing for anyone to afraid about other. It's just survival of the fittest!

If banks shift to blockchain and Bitcoin, that would be a good scenario. But I don't think banks are still needed with Bitcoin as far as its role as a safe storage of money is concerned. Bitcoin is like a package of things, all in one. It is a currency, a payment system, a bank, and even a banking system. However, if banks will stick on keeping the savings of people with matching insurance and interest in terms of Bitcoin, that sounds nice to me.


The traditional banking system has already evolved. It does not depend on physical money alone. In fact, it has brought the system a notch higher in terms of modernity with its use of cards and online transactions. And now they are already entering the age of blockchain with a flexible approach.

Bitcoin won't kill the banking system, it has been there ever since so the trust of the people and its sympathy will be on the banks. It's regulated by the government so we can't think about its death for now.

There are just afraid of bitcoin because it will pull their customers out of their service. The money from their customers is where they're getting their capitals for loans so if most of their customers understands bitcoin correctly, they fear that time to happen.

Banks dont want cryptocurrency due to the fact that they can replace them if the blockchain tech improved a lot. Transactions of btc is getting higher and this is due to lots of usage, imagine what will happen if the bank is legally replaced by blockchain now? Dont say that why transaction fee so high now. Cause as the users of certain blockchain increases more fees will incurred as the network is been used a lot and a lot means frequent usage can also affect many things in blockchain which other projects trying to improve.

Banks can used blockchain and that will be a good innovative approach to client but totally replacing it will eb a big mistake on the part of banks if they do.

Bitcoin in some countries are decentralized stable because there are some country that's against cryptocurrency. Those countries don't know the advantages of blockchain technology for their economy because they are lacking of technology or maybe they think that it will be useless and increase the number of crimes will due to scammers. Bitcoin have a high transaction fees and that's how the government earn some profit and part in the exchanges. Some countries also free from government control because they don't care about the people who use cryptocurrency. Highly recommended for some countries to use digital currency for faster and easy transaction so that the movement in the market are good because of the number of bitcoin holders.

IMO, just because of devaluation.
Yes, you heard it right. Investing in Bitcoin while you're using your own crypto-wallet as your bank account nobody can devalue on it. No organization and no central authorities involved and as a holder, there's nothing to worry about. Unlike, the traditional banking system was obviously to act in favor of those with have a huge of money and good financial knowledge. The reason why there are some people that have poor knowledge with it comes to the traditional banking system they prefer to store cash at home than banking on it.

Bitcoin or cryptocurrency, in general, has a cheaper transaction and no chargeback will happen because it is irreversible not like cash. No doubt that this cryptocurrency will harm the traditional banking system and that is the reason why the government always afraid of it. It might their big competitor when it comes to the financial banking business. The fact that Bitcoin doesn't need the banking system because it has a limited stock. But it is impossible to replace fiat to Bitcoin, it is always good that cryptocurrency is an alternative way when it comes to transactions and other payment methods.

Bitcoin killing/stopping banking system to operate is merely impossible to happen. Limited supply of bitcoin as the reason to why it couldn't have the power to stop banks is not enough, as people is still widely using fiat system to transact. Basically, compared to bitcoin transactions, the percentage of bitcoin users compared to people who uses fiats is too slow. Most of the time, even bitcoin users think of bitcoin as an alternative way of transacting..


Inflation could possibly be affected not just by the monetary policies that countries have. Moreover, there are some instances that calamities directly affects price inflation as goods and services supply not promising. In terms of bitcoin, the right term is price inflation, wherein, bitcoin price decreases because the value of it decreases based from the demand of the people to the exchanges. I could say, bitcoin is not free from inflation.

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If physical money exist then bitcoin couldn't kill traditional banking system. And I believe it's not possible to exclude physical money from our life. I don't know what will happen after hundred years, but it's not possible in short period of time. Bank doesn't like bitcoin, but it doesn't mean they don't like blockchain technology. Perhaps once upon a time banks will start using blockchain ecosystem. Banks are worrying about decentralized system of bitcoin and they are more worried about volatility. That's why they are discourage to accept bitcoin as a payment methods.

This is also on my thoughts.
Although we all know that Bitcoin has something that banks don't have and has more advantages compare on using banks.
What I am worried about sooner or later is what if banks will start to use some cryptocurrency or some blockchain technology to rework or change their banking system or even they will use Bitcoins. I don't think if that is good or bad for Bitcoin. But even if that will happen, Bitcoin will go nowhere and will stay forever.

It might kill the old banking system if it does not bend to suit the call of the times. However, it seems that the banks are fully aware that the technology brought by Bitcoin is the future and they are now making adjustments. Gone are the days when the banks remain adamant in their old system and put up a resistance to the growing popularity of Bitcoin. Today, even a local bank in my developing country is installing Bitcoin ATM.

Bitcoin does not lose its purchasing power in a similar fashion to fiat but its value could plunge anytime worse than fiat. Bitcoin's price fluctuates. But the good thing is that it could suddenly decrease as much as it could also increase very quickly.

Hello! What's your opinion could BTC kill banking system? Bitcoin has an advantage over fiatbecause its amount is limited and it can't fall under inflation.Inflation usually is caused by monetary policies of our central banks. Bitcoin is free from inflation, governement control and high transaction fees.Banks can’t control BTC because it has no representative and is fully decentralized. That's why banks are afraid of BTC.

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