Topic: Can bitcoin completely erase the Traditional Banking System? - page 3. (Read 274 times)

governments (patent holders of traditional money) want to retain control of their economy
they have laws protecting it
tax, minimum wage, valuations of income, court fine settlement, etc

bitcoin will not replace fiat, but bitcoin is an open choice to have besides fiat
..

its the same argument as will EURO replace dollar.. no, america will stick to using the dollar for american citizens and american government. but people can choose to have some euro and spend it with euro accepting businesses.

governments themselves can patent their own new money design. EG CBDC which they can introduce and work beside their paper bank note money and eventually over take it. but by remaining their patent they get to control the circulation and rules for how people bearing their money use it

Bitcoin has never erased traditional banking system, not now and will not be able to do this in future.

Be realistic and if you need examples.

You can see paper books/ newspapers and e-books, e-newspapers and you will see the same with paper/ polymer fiat currency, digital bank transfers, cryptocurrency transactions includes Bitcoin transactions. Soon even with CBDCs (Central Bank Digital Currencies), Bitcoin will only co-exist with other currencies, in bank system and in cryptocurrency.

even though bitcoin has experienced increasing adoption in recent years, that is not the reason that bitcoin is able to eliminate banking globally, the reason is; firstly bitcoin was developed to be a digital currency not for banking, secondly most people globally still depend on banks for their various needs, thirdly banking is one of the main pillars in the global economy, the fall will have a massive impact, and finally banking will not allow their services are replaced by bitcoin.

these reasons alone can refute the statement that says that bitcoin or other altcoins can eliminate the role of banking, because banking is still relevant for people to use as a place to fulfill their various financial needs and bitcoin/altcoin is not yet suitable for that.

I understand your point, you are looking at it from the perspective of the much fascinating evolution of currencies from the Barter form of exchange to the transformation of the currencies over the centuries.

The very known first form of money was through the trade by barter system where people engaged in the direct exchange of goods and services. During this period, the people value worths of goods to be exchanged by their desired goods or services. But because there was inefficiency and limitations in this form of exchange or transaction, people of the ancient time thought of the need to migrate to the commodity money.

In this kind of transaction, exchanges where done with items that had value in the eyes of the people of then, such items included precious stones, cattles, etc and these commodities which also included salts were widely known, valued and accepted in markets. From these commodity money, there was the introduction of the metal coins which were the currencies we all experienced at a point in time and are still experiencing today in some parts of the world. Governments also adopted and started minting these currencies for the market and individual use.

At a point in time, the government then introduced the paper money to ease trading since most of these metal coins where heavy and there was a monumental thought that the metals could also be transformed to just paper monies where you have the value of the money printed on currencies. These improvements also led to the invention of banknotes and the banking system itself which is yet one of the most valuable industries in the world now.

Now, with the advancement in the emerging internet, information technology and the fintech, these notes have been digitalized which brought about the advent of the cryptocurrencies through the invention of the Bitcoin currency by Satoshi Nakomoto as another digital currency that have its own value based on the decentralized blockchain technology. These cryptocurrencies operate independently and are only valued or devalued by its users making in it possible for more transparent and universal transactions.

Having journey through the abovementioned evolution of currencies, I think it is only normal for a curious mind to ask if it will replace the current paper money and banknotes. The most sincere and straightforward answer to give to such question is that the future of Bitcoin is still very much unpredictable and it will not be a decision that will be taken by people alone but governments of different nations, and with the current realities, that won't be possible any moment from now.

As much as I like Bitcoin, I don't think it can replace the traditional banking system. Bitcoin is a good alternative, something that can allow people to bypass banks in many ways. But Bitcoin doesn't come with assurances that the money will be safe, doesn't come with centralized responsibility for funds (and someone people can blame if things go wrong), doesn't come with customer support, loans, insurances, etc. So while it's an alternative, it doesn't cover all the things that banks do. More importantly, banks have established themselves over the years, and a lot of people trust them.

I'm sorry to say that I think you're asking the wrong question. The relevant one today is whether the banking system, especially central banks and public authorities, are going to be able to get their hands on Bitcoin. Not to wipe it out but to control it with ever stricter regulations involving KYC and transaction censorship.

Take note that BTC was not created to erase the traditional banking system, that is where people seem to get it wrong; fiat and the traditional banking system will continue to exist for a very long time.

BTC was created to be a censorship resistant and permissionless alternative to that system, and for people who want to control their finances. But obviously not everyone would want to do that, there will surely be more people who are totally comfortable with the present order of things and do not want a change. Then even for the people who want to control their finances through BTC, they must still have a certain percent of it in fiat for spending and other necessary payments.

This is what we have discussed over and over again on this forum. Bitcoin is existing not to be a substitute but an alternative to fiat and banking system. Fiat has some characteristics that bitcoin do not have. Also bitcoin has some characteristics that the banking system and fiat do not have. They are alternatives to one another but bitcoin is far better and worth holding as an investment.

Not really, I mean it can work as an alternative to what is being used by millions on our planet but it will not be able to overtake and become what traditional banking systems are.
I am sure it says Be your own bank however you surely relate every Bit of Bitcoin with a intrinsic value of a dollar which is based on the real cash, hence Banks control it either way.

For one, I would say that moreover that Bitcoin has gained popularity and also disrupted the financial industry , it is only safe to say that it is unlikely to replace the traditional banking system in the nearest future. I mean , mortgages , loans and financial services are functions that are carried out by these traditional banking systems. But then, Bitcoin and other cryptocurrencies have the potential to provide alternative options and challenge certain aspects of the traditional banking system .. What do you think?