Build a Bank Of Bitcoin - page 16. | Bitcointalksearch.org

Xester

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Quote from: deisik on March 15, 2017, 01:11:07 PM

Quote from: Theb on March 15, 2017, 12:50:22 PM

Quote from: Supercrypt on March 15, 2017, 12:12:48 PM

Quote from: lol3c on March 12, 2017, 12:47:29 PM

Quote from: fikihafana on March 10, 2017, 10:16:31 AM

At first i would say, i dont trust everyone on the net. Bank of bitcoin is means centralized currency, and no one can guarantee it will be fine using it

look at what Coinbase is doing and you will understand how bad Banks can be. We should never trust third party since we can not fully control our money. Moreover, they can easily turn into scammers if they want to. Therefore, Bitcoin is created for the good purposes, for the anonymity and the security. Banks will destroy all these features

Yes, though it sounds bad but actually it's true that if we TRUST someone then we are risking our money to an indefinite risk. People deposit in banks because they are controlled by government and cannot run away like nothing.

There can be a group of escrow that control the bitcoins but then you won't be able to pay users interest as you can't lend them which actually is what banks do to generate revenue with funds.

Banks are actually almost risk free because they are backed up by big corporations. Also when your money is stolen from a bank the government will pay for its losses, because all banks are required that the people putting up money in them are all insured which means you will get back the money that was stolen from you. Banks are also risk free because they actually don't put up any returns to your money

Why would government (read tax payers) want to cover your losses?

If a bank goes bust while its deposits are insured, you will receive your money back within s short period of time. When one of the banks in which I had a deposit account went belly up in the past, I received the deposit (with all outstanding interest) in about two weeks. But that doesn't mean that if someone steals money from your account due to your own negligence (e.g. by getting your account password or something like that), no one is ever going to compensate your losses. Otherwise, everyone and his dog would be stealing money from each other and then got reimbursed by the bank or government (tax payers)

Well he probably meant that if a bank was attacked by a hacker or it was bankrupt they will refund you since they have an insurance. But the insurance does have its limitations and if you have a large sum in your account not everything will be refunded. To make it simple we can just require and oblige the web wallet hosts to apply for an insurance so that when they go bankrupt or attacked by a hacker they can refund our bitcoins.

frowsiter

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But bitcoin is decentralised then how can it be operated from the bank. Also if you suppose to make bank of bitcoin solely of bitcoin then you will have to collect their identities which are against the rule of bitcoin I guess. I mean bitcoin online doesn't ask for your identity and you are free to do your transaction with any amount. Also fees are less when it comes to online bitcoin and for your physical bitcoin you will need big charges to afford your place, rent, service charges and all the stuff.

AjithBtc

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Already there are several banks that work only with bitcoin as the medium for all needs. Those banks have got several investment schemes same as that we get in our traditional banking system. One thing that makes a difference is the virtual availability and no physical structure. I believe one or two banks have physical location all others were virtual.

ilovefeetsmell

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Quote from: bit-emperor on February 09, 2017, 08:52:11 PM

if i build a bank of bitcoin that operating like a traditional fiat money bank when people can save the money and get interest for their saving and also people can get a loan from my bank but the fiat money is change for bitcoin, the question is would you guys trust me to save your bitcoin on my bitcoin bank that i want to build ?

I think we don't need to build a bank for bitcoin because of the value fluctuate higher and sometimes drop down. It is better to save in your wallet, wait until the price goes up. I think it is better than the interest as what you've said. You can double your money in just a couple of years by saving it in your wallet. Your bitcoin bank would be nonsense or even worthless in the years goes by.

Fatanut

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Quote from: StefanReed on March 22, 2017, 04:13:46 PM

Any Bank can give even a few percent of income according to your contribution. If you collect bitcoins in order to wait until its increase in price, why are you not profitable to keep its bitcoins in a Bank?

You don't have to collect bitcoin in order to "wait" for the price increase. If you're waiting for the price increase, you're doing nothing but checking if the price has already increased. You simply, "wait".

It's profitable to keep your bitcoin in the bank since if you put 1BTC in the bank, regardless of what price it is on in exchange with USD, you will still have 1BTC. Cashing out your bitcoins as fiat (if that's available in the bitcoin bank you're using) will give you profits since 1BTC used to cost less than that, assuming that the price has increased.

No one's saying that it's not profitable. It's about not having the government in the scene.

Adelajda

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Quote from: StefanReed on March 22, 2017, 04:13:46 PM

Any Bank can give even a few percent of income according to your contribution. If you collect bitcoins in order to wait until its increase in price, why are you not profitable to keep its bitcoins in a Bank?

Bitcoin is created to make a difference in the centralized scheme of things and i would not want my assets to be resting in a centralized bank and i would be happy to keep it in the comfort of my pocket rather than in someone else. You really do not need a bank for bitcoin,period,end of story.

StefanReed

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Any Bank can give even a few percent of income according to your contribution. If you collect bitcoins in order to wait until its increase in price, why are you not profitable to keep its bitcoins in a Bank?

birareru1988

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Quote from: bravehearth0319 on March 22, 2017, 11:08:54 AM

Quote from: Zadicar on February 10, 2017, 01:32:21 AM

Quote from: bit-emperor on February 09, 2017, 08:52:11 PM

if i build a bank of bitcoin that operating like a traditional fiat money bank when people can save the money and get interest for their saving and also people can get a loan from my bank but the fiat money is change for bitcoin, the question is would you guys trust me to save your bitcoin on my bitcoin bank that i want to build ?

Wow you would tend to build your own bitcoin bank? You did already think off the posibilities that might happen if you plan to do this? If government would accept your service then it would be good but i think most bitcoin users would not use your service at all because there are lots of wallets could be used to.

This is right! the people I think who join with your ventures in establishing your bank are those community who are much knowledgeable into bitcoin, but for sure none of the bitcoin users will not gonna use of your service, due to establishing your own bank was is obviously a centralized type.

I also think that such a bank will not enjoy interest among people. Everyone who has a bitcoin wallet has everything that a bank can give us. Apart from loans.

bravehearth0319

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Quote from: Zadicar on February 10, 2017, 01:32:21 AM

Quote from: bit-emperor on February 09, 2017, 08:52:11 PM

if i build a bank of bitcoin that operating like a traditional fiat money bank when people can save the money and get interest for their saving and also people can get a loan from my bank but the fiat money is change for bitcoin, the question is would you guys trust me to save your bitcoin on my bitcoin bank that i want to build ?

Wow you would tend to build your own bitcoin bank? You did already think off the posibilities that might happen if you plan to do this? If government would accept your service then it would be good but i think most bitcoin users would not use your service at all because there are lots of wallets could be used to.

This is right! the people I think who join with your ventures in establishing your bank are those community who are much knowledgeable into bitcoin, but for sure none of the bitcoin users will not gonna use of your service, due to establishing your own bank was is obviously a centralized type.

South Park

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Quote from: Roboabhishek on March 12, 2017, 11:02:13 PM

I dont think it will be a great idea because we will not remain anonymous while using bitcoin for transaction because we will have to provide bank with our ID and also there's no guarantee that government will not interfere in the work of bank

If a bitcoin bank comes to happen then it is obvious government interference will happen since they love to regulate stuff, you can be sure you will be asked all kind of details about where your coins come from and even what you plan to do with them.

BitcoinPC

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Activity: 812

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Quote from: Theb on March 15, 2017, 12:50:22 PM

Quote from: Supercrypt on March 15, 2017, 12:12:48 PM

Quote from: lol3c on March 12, 2017, 12:47:29 PM

Quote from: fikihafana on March 10, 2017, 10:16:31 AM

At first i would say, i dont trust everyone on the net. Bank of bitcoin is means centralized currency, and no one can guarantee it will be fine using it

look at what Coinbase is doing and you will understand how bad Banks can be. We should never trust third party since we can not fully control our money. Moreover, they can easily turn into scammers if they want to. Therefore, Bitcoin is created for the good purposes, for the anonymity and the security. Banks will destroy all these features

Yes, though it sounds bad but actually it's true that if we TRUST someone then we are risking our money to an indefinite risk. People deposit in banks because they are controlled by government and cannot run away like nothing.

There can be a group of escrow that control the bitcoins but then you won't be able to pay users interest as you can't lend them which actually is what banks do to generate revenue with funds.

Banks are actually almost risk free because they are backed up by big corporations. Also when your money is stolen from a bank the government will pay for its losses, because all banks are required that the people putting up money in them are all insured which means you will get back the money that was stolen from you. Banks are also risk free because they actually don't put up any returns to your money.

All of these above facts are true for Fiat bank which government supports. Since most Governments do not support bitcoins, you wont expect them to cover the loss or provide insurances to bitcoins too.
I think online bitcoin wallets already provide some sort of banking feeling, where you put your coins and Deposit/Spend them.

deisik

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Quote from: Theb on March 15, 2017, 12:50:22 PM

Quote from: Supercrypt on March 15, 2017, 12:12:48 PM

Quote from: lol3c on March 12, 2017, 12:47:29 PM

Quote from: fikihafana on March 10, 2017, 10:16:31 AM

At first i would say, i dont trust everyone on the net. Bank of bitcoin is means centralized currency, and no one can guarantee it will be fine using it

look at what Coinbase is doing and you will understand how bad Banks can be. We should never trust third party since we can not fully control our money. Moreover, they can easily turn into scammers if they want to. Therefore, Bitcoin is created for the good purposes, for the anonymity and the security. Banks will destroy all these features

Yes, though it sounds bad but actually it's true that if we TRUST someone then we are risking our money to an indefinite risk. People deposit in banks because they are controlled by government and cannot run away like nothing.

There can be a group of escrow that control the bitcoins but then you won't be able to pay users interest as you can't lend them which actually is what banks do to generate revenue with funds.

Banks are actually almost risk free because they are backed up by big corporations. Also when your money is stolen from a bank the government will pay for its losses, because all banks are required that the people putting up money in them are all insured which means you will get back the money that was stolen from you. Banks are also risk free because they actually don't put up any returns to your money

Why would government (read tax payers) want to cover your losses?

If a bank goes bust while its deposits are insured, you will receive your money back within s short period of time. When one of the banks in which I had a deposit account went belly up in the past, I received the deposit (with all outstanding interest) in about two weeks. But that doesn't mean that if someone steals money from your account due to your own negligence (e.g. by getting your account password or something like that), no one is ever going to compensate your losses. Otherwise, everyone and his dog would be stealing money from each other and then got reimbursed by the bank or government (tax payers)

Theb

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Activity: 1680

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Quote from: Supercrypt on March 15, 2017, 12:12:48 PM

Quote from: lol3c on March 12, 2017, 12:47:29 PM

Quote from: fikihafana on March 10, 2017, 10:16:31 AM

At first i would say, i dont trust everyone on the net. Bank of bitcoin is means centralized currency, and no one can guarantee it will be fine using it

look at what Coinbase is doing and you will understand how bad Banks can be. We should never trust third party since we can not fully control our money. Moreover, they can easily turn into scammers if they want to. Therefore, Bitcoin is created for the good purposes, for the anonymity and the security. Banks will destroy all these features

Yes, though it sounds bad but actually it's true that if we TRUST someone then we are risking our money to an indefinite risk. People deposit in banks because they are controlled by government and cannot run away like nothing.

There can be a group of escrow that control the bitcoins but then you won't be able to pay users interest as you can't lend them which actually is what banks do to generate revenue with funds.

Banks are actually almost risk free because they are backed up by big corporations. Also when your money is stolen from a bank the government will pay for its losses, because all banks are required that the people putting up money in them are all insured which means you will get back the money that was stolen from you. Banks are also risk free because they actually don't put up any returns to your money.

Supercrypt

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Quote from: lol3c on March 12, 2017, 12:47:29 PM

Quote from: fikihafana on March 10, 2017, 10:16:31 AM

At first i would say, i dont trust everyone on the net. Bank of bitcoin is means centralized currency, and no one can guarantee it will be fine using it

look at what Coinbase is doing and you will understand how bad Banks can be. We should never trust third party since we can not fully control our money. Moreover, they can easily turn into scammers if they want to. Therefore, Bitcoin is created for the good purposes, for the anonymity and the security. Banks will destroy all these features

Yes, though it sounds bad but actually it's true that if we TRUST someone then we are risking our money to an indefinite risk. People deposit in banks because they are controlled by government and cannot run away like nothing.

There can be a group of escrow that control the bitcoins but then you won't be able to pay users interest as you can't lend them which actually is what banks do to generate revenue with funds.

Gameroid

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Quote from: South Park on March 14, 2017, 04:29:32 PM

Quote from: choppork on March 11, 2017, 06:54:27 AM

Quote from: Oppolee on March 10, 2017, 02:05:01 PM

Quote from: fikihafana on March 10, 2017, 10:16:31 AM

At first i would say, i dont trust everyone on the net. Bank of bitcoin is means centralized currency, and no one can guarantee it will be fine using it

Yes, it seems to me that the creation of such a bank is an attempt to centralize bitcoin. And I really do not like it. I believe that bitcoin should not be controlled

They can't make it centralized. To make it centralized, they would have to buy all of the coins or at least the majority of it, and then change the technology into something that collects tax right away in every transaction. It will be like transaction fee, but it will be larger since it's tax. Most people are ranting about the "high" fees, which isn't high at all compared to how much you'd pay if you use other stuffs like Paypal. How much more would they rant when there's already tax in bitcoin. If bitcoin gets taxed, it's already a failed project. Most people will use a different coin and when the government makes it centralized as well, they'd just move to another and so on..

Yeah, not possible, besides even if they could get control of the network then we could just move to another coin and leave bitcoin behind, so there is no way to take control of the whole cryptocurrencies market because someone can just copy past the code and create their own coin.

to me i think it will not world as much. i think in current time online wallet system is enough for us as we can complete our all needs from online wallet.

Fatanut

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Quote from: lordquanta on March 15, 2017, 08:05:08 AM

Out of curiosity, as bitcoin is decentralize and not-controlled by anyone then who will be in position to make decision about the bitcoin banking scenario. What would the action steps if something goes wrong like fraud? And who will take necessary actions? How they will tackle inter-country scenario where defaulter is in a country which does not recognize bitcoin as asset or currency? Have we thought about it?
How to stop bitcoin bank from being next mt. gox?

No one.

And that's the reason why bitcoin is used in the black market. Even if they are doing something illegal, it's alright because it's relatively hard to trace you. On the other hand, if a fraud or a scam happens, you can't do anything about it. Some people prefer doing transactions in this place because there's the trust rating. A hero member will not ruin his account for something much lower than the cost of his account.

No one will take necessary actions to chase the fraudster. You have to take care of yourself and be smart for yourself. No one's going to save you from the consequences of your careless actions. If you get scammed, then you're scammed. There's no refund.

wuvdoll

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Quote from: bit-emperor on February 09, 2017, 08:52:11 PM

if i build a bank of bitcoin that operating like a traditional fiat money bank when people can save the money and get interest for their saving and also people can get a loan from my bank but the fiat money is change for bitcoin, the question is would you guys trust me to save your bitcoin on my bitcoin bank that i want to build ?

Don't expect people to trust you rather make them trust you by your actions. You can run a bank and have a system such that people submit their bitcoins while they are safe too. Once such method I can think of is multi signing and multiple control over your bitcoins, like you have the half control over their coins and half control by the depositers in your bank.

lordquanta

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Out of curiosity, as bitcoin is decentralize and not-controlled by anyone then who will be in position to make decision about the bitcoin banking scenario. What would the action steps if something goes wrong like fraud? And who will take necessary actions? How they will tackle inter-country scenario where defaulter is in a country which does not recognize bitcoin as asset or currency? Have we thought about it?
How to stop bitcoin bank from being next mt. gox?

giveen

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Quote from: fikihafana on March 10, 2017, 10:16:31 AM

At first i would say, i dont trust everyone on the net. Bank of bitcoin is means centralized currency, and no one can guarantee it will be fine using it

That is obvious i mean some people are just scared to invest in bitcoin because someone can steal from their desktop wallet. It is possible but probability is really less. It normally takes time for people to adjust with it. Just think of PayPal who must have trusted it in starting and now people store more than $100k in it. If the bank actually has a motive to serve the people then it shouldn't worry and just wait for people to adapt it slowly.

geopolisch

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Quote from: Gameroid on March 14, 2017, 06:37:34 PM

Quote from: Macai on March 14, 2017, 06:00:10 AM

In my opinion, if you build a bitcoin bank be sure to build bitcoin bank all over the world and can be accessible anytime anywhere... So people would patronize it.

i think we have already good access to bitcoin using the online wallet system. i it is very easy to access our bitcoin from anywhere just you need an internet connection and will be able to use your bitcoins in no time.

Yes the idea is great and the question OP asked is very very important as no one would deposit into a bank that is opened randomly and no actual trust is being build.

But that been said that is not a big concern as some way can be found via which both the users and the owners of the bank can access the funds yet not use it without each other's permission. People trust coinbase and other services for few bitcoins, no one will deposit 10k btc right ? That's why its important to sort this security issue.

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