Topic: Bitcoin' the new generation banking system as opposed to traditional banking. (Read 94 times)

Bitcoin is volatile, fiat currency - especially if it belongs to an economically strong country, is much less likely to have large and quick drops. Not every use case allows hodling for years without touching your money.

Also Bitcoin is still considered an experiment, and there's no good way to predict its future. Just because it was going up doesn't mean it will be going up forever. Putting all your money into Bitcoin is unwise. So having some money in traditional banks is going to be a good decision for a long-long time.

Having money in bank and using a payment card is way more practical than spending lots of time and effort for trying to pay with Bitcoin in real life.

It doesn't work this way anymore for decades for most of the banks, especially since bank transfers are 3 times faster. They still do it but with saving accounts but here you're making a comparison with the money we use in our daily lives

Bitcoin wasn't created to be the next cash cow and a quick rich scheme. It was created to use for real uses cases. If people don't spend BTC and keep to 'hodl' it, the ecosystem will hardly evolve. what's the benefit to create solutions if nobody is interested in them?

Now, you mention that the value of every BTC increases so is the investment value, that's not always true. What do you have to say to people who invested while BTC was at $20,000 and have seen the value drop to $3,000? Secondly, the price may be at $30,000 nowadays (I don't know the bitcoin price currently since I don't check regularly) you are unable to guarantee the price will increase in the future (near or far). It could crash at $1,000 and never move anymore.

Finally, in traditional finance, there are also assets performing as much, and even more, than Bitcoin.

The problem in the cryptosphere is people are only interested to speculate. And like in the Trafi, I find speculators are cancer. The irony is when people blame traditional finance but make the same mistakes with Bitcoin.
People also forget that without banks, no jobs could be created, no companies could be opened, people wouldn't be able to buy their houses since nobody makes them a loan, and a country wouldn't evolve. Without the banks, we would be probably still living like in the 19th century

This is the extent to which the similarity goes, Bitcoin being able to be used as a medium to send and receive transactions, does not mean it functions as a bank nor that it can. There is a lot more to a traditional bank and the bitcoin network cannot effectively replace all that, meaning we would always have use for the banking sector, or up until an alternative emerges.

Fiat has so far proven to be a poor choice of a store of value as the value is prone to inflation and supply shocks, Bitcoin is a better option to store money you are not using as it is deflationary.

Bank, according to Wikipedia is a financial institution that accepts deposits from the public and create a demand deposit while simultaneously making loans. Banks are divided into different sorts, such as the Central bank, cooperative banks, commercial banks, Regional Rural banks(RRB), Local Area banks ( LAB), Specialized banks, small financial banks and payments banks.(WIKIPEDIA).
Irrespective of the different names they may bear, they all have a common synonymous role which focused on transactions, savings of valuables and treasures.

Bitcoin' on the other hand, also allows for transactions just like the bank but as a "digital asset", it adds more value to your investment, in that, as a the value of every Bitcoin increases so is your investment value(money). At the moment, Bitcoin is experiencing a drop in price but you can agree with me that, the price as today is even higher than few years ago. Many people took a calculative risk of buying/investing into it and, it didn't take long that the value later stepped up and all those that took the risk of investing at the moments of the drop of the value were all smiling all the way.

But if such money that was used to invest in buying Bitcoin at the time the value dropped was rather deposited into the bank ( be it saving or current account), even in the next one year or more it wouldn't have multiplied to an increment level, but rather bank charges ranging from ATM maintenance charges to SMS charges and others would have rather cost a reduction in value to the very deposited amount rather than increment.

It's no more news that the cryptocurrency/Bitcoin is gradually taking up the role of the banking system in addition to it's value added investment returns. For the value of Bitcoin today is far way beyond the value it was five years ago, then imagine it's value in prospect in the next five years from now.

In every investment there is the tendency of loss and gain, but be it as it may, with Bitcoin the gain far outweighs any form of loss. Mind you, even banks liquidates and deposits goes down with it which may take a long period of months even years to repay the customers but without added interest/value to the actual desposited amount.

Of what use is it, having your money starched in traditional banks?