This is a complicated question. The reason why banks exist is because they can do credit creation (by issuing loans.) This enables a bank to lend out more “money” than reserves (at the central bank and other assets.) Bitcoin is like “gold” and if it becomes more common in everyday transactions it would mean that banks would have to build up bitcoin reserves, in case they start having accounts denominated in bitcoin. This in turn enforces central banks to hold bitcoin in case banks have to be bailed out (if bitcoin becomes very common.)
However, in parallel there’s more development happening around the bitcoin network. Although the bitcoin network cannot handle much transaction volumes, there’s work that enables decentralised high speed transactions using the bitcoin network as a settlement layer. These technologies are named lightning network, lumino, sidechains, etc. This enables high capacity transfers completely outside the banking network. If peer-to-peer lending networks enables alternative ways of people getting loans, then the need for banks may almost diminish. At least how we view “banks” today, i.e. credit creation. These institutions will of course not disappear but transform into something else. Perhaps into something like investment funds.
Topic: Can Bitcoin make Banks disappear? - page 143. (Read 427614 times)
Banks will not disappear.But its also true that bitcoin has become the worst nightmare for bankers.Already,many people have started using bitcoins for transactions instead of banks.If this continues,Banks would face a huge loss in revenue got from transactions.In future,banks will not get huge profits as now.Mostly,they have to depend on the interests from loans as their main revenue.
There is nothing to be worried for bankers when it comes to bitcoin because it does not bother them at all,they are two different things and run for different purposes and as long as fiat currency and trading is possible banks will be functioning.It is just a misconception that bitcoin will make the banks disappear. 
What Dimelord is talking about is a prediction that is so unlikely to happen in the future for me. I'm one of those people who thinks that bitcoin is made
as an alternative payment system and it will also stay that way. Yes there are many of us who uses bitcoin but it can't be compared to the total number
of people who uses banks. Moreover there are also people who uses bitcoin and banks at the same time.
Well banks are providing a lot options already to any of their costumer feel happy and spend better their time, you can make and transfer money online, pay bills talk with manager, banks already provide a lot services, and bitcoin has no space to grow over them, since in the general we need banks to make our transactions into the exchanges.
Thats true and thats what bitcoin doesn't have that banks do right now. If you look at the other side there are also things that banks don't have and bitcoins does. These are you control your money, Low fees and volatility.
It seems that experts say that Bitcoin 'Here to Stay,' But Banks Could Disappear.
"TheStreet: How do you think FinTech will impact the way banks operate?
Frank Schwab: Banks either react on, or they will disappear. Anyway, the consolidation of the banking industry accelerates as the behaviour of people changes. Some banks will benefit from [FinTech], some will be pushed to the back end, and some will disappear."
http://www.thestreet.com/story/13419089/1/bitcoin-here-to-stay-but-banks-could-disappear-says-fintech-expert.html
What's your read on that?
Bitcoin will not make banks disappear, banks are incredibly powerful not only they have control over the worlds money but also the governments so to be honest I think we are going to reach a truce since neither side can destroy the other."TheStreet: How do you think FinTech will impact the way banks operate?
Frank Schwab: Banks either react on, or they will disappear. Anyway, the consolidation of the banking industry accelerates as the behaviour of people changes. Some banks will benefit from [FinTech], some will be pushed to the back end, and some will disappear."
http://www.thestreet.com/story/13419089/1/bitcoin-here-to-stay-but-banks-could-disappear-says-fintech-expert.html
What's your read on that?
It seems that experts say that Bitcoin 'Here to Stay,' But Banks Could Disappear.
"TheStreet: How do you think FinTech will impact the way banks operate?
Frank Schwab: Banks either react on, or they will disappear. Anyway, the consolidation of the banking industry accelerates as the behaviour of people changes. Some banks will benefit from [FinTech], some will be pushed to the back end, and some will disappear."
http://www.thestreet.com/story/13419089/1/bitcoin-here-to-stay-but-banks-could-disappear-says-fintech-expert.html
What's your read on that?
Bitcoin will not make banks disappear, banks are incredibly powerful not only they have control over the worlds money but also the governments so to be honest I think we are going to reach a truce since neither side can destroy the other. "TheStreet: How do you think FinTech will impact the way banks operate?
Frank Schwab: Banks either react on, or they will disappear. Anyway, the consolidation of the banking industry accelerates as the behaviour of people changes. Some banks will benefit from [FinTech], some will be pushed to the back end, and some will disappear."
http://www.thestreet.com/story/13419089/1/bitcoin-here-to-stay-but-banks-could-disappear-says-fintech-expert.html
What's your read on that?
I don`t believe bitcoin or other encrypted currencies can make banks dissappear at all. As far as I know traditional financial institutes actively resist new ways of payment, then they are trying to assimilate it... in some cases successfuly but some- not.
It's the nature of time that the old ways must give in.
It's the nature of time that the new ways come in sin.
It's the nature of time that the old ways must give in.
It's the nature of time that the new ways come in sin.
Banks will not disappear.But its also true that bitcoin has become the worst nightmare for bankers.Already,many people have started using bitcoins for transactions instead of banks.If this continues,Banks would face a huge loss in revenue got from transactions.In future,banks will not get huge profits as now.Mostly,they have to depend on the interests from loans as their main revenue.
There is nothing to be worried for bankers when it comes to bitcoin because it does not bother them at all,they are two different things and run for different purposes and as long as fiat currency and trading is possible banks will be functioning.It is just a misconception that bitcoin will make the banks disappear.
Well banks are providing a lot options already to any of their costumer feel happy and spend better their time, you can make and transfer money online, pay bills talk with manager, banks already provide a lot services, and bitcoin has no space to grow over them, since in the general we need banks to make our transactions into the exchanges.
im recently was convinced and got into btc,and these topics make me laugh,btc as it stands now is threat to itself,banks prob dont give it a fud,btc is small market,volatile and with 20mill cap.its like your middle in the nowhere bank power wise.
way i see it now btc is experiment that got somewhat sucesfull,but many now in the game are just gambling and always willing that price will climb to make them rich,while preaching about its usage when most just buy to save it,and rest just to use it on darkweb.Id be surprised if btc usage on www for general stuff amounts to 0.00001% globally,darknet aside,since thats where it mostly shines,even thou most wont admit it.
way i see it now btc is experiment that got somewhat sucesfull,but many now in the game are just gambling and always willing that price will climb to make them rich,while preaching about its usage when most just buy to save it,and rest just to use it on darkweb.Id be surprised if btc usage on www for general stuff amounts to 0.00001% globally,darknet aside,since thats where it mostly shines,even thou most wont admit it.
Banks will not disappear.But its also true that has become the worst nightmare for bankers.Already,many people have started using s for transactions instead of banks.If this continues,Banks would face a huge loss in revenue got from transactions.In future,banks will not get huge profits as now.Mostly,they have to depend on the interests from loans as their main revenue.
i don't think that it has become the worst nightmare for banks. you cannot use it in your daily life and if you have to use it instead of online shopping then you have to exchange it in the fait money and we all know that banks has takes a huge sum of amount while exchanging it so i don't think banks have any issue on its progress. I think there are two factors here. The banking/debt crisis, and the emergence of crypto-currencies. It won't be Bitcoin that will destroy the banks, it will be the politicians who are taking bribes to allow rubbish derivatives to be created, and then allowing bail-ins for the banks to cover their fraudulent lending, who will cause the demise and re-structuring of banking. Bitcoin will just be one of the emerging solutions/replacements.
Not sure what I'm talking about? Look at the recent permission to allow fracking in the UK, and the bail-in of Cyprus and the Greek banking theft to help DoucheBank.
Indeed. Bitcoin is not responsible if banks may disappear. Bitcoin is a cryptocurrency that people use in able to earn extra income and specially to buy their need and wants but it is nothing to do with banks. We all know that bankd today are very famous because of those people that want to stock money and those people who have lots of money in order to be safe. If you can see bitcoin and banks is no relationship at all. They just have the same purpose vut different ways of called and sometimes uses. Bitcoin will not make banks disappear because banks are the most useful establishments nowadays. And people will continue to use it. Not sure what I'm talking about? Look at the recent permission to allow fracking in the UK, and the bail-in of Cyprus and the Greek banking theft to help DoucheBank.
They actually do have a relationship and it's usually in the exchanger. All exchanger sites use banks to pay people and to accept cash-ins. Pretty sure exchanger sites use banks as well to store most of their fiat money. Without the banks, there will also no exchanger sites. Exchanger sites will be something like localbitcoins wherein we transact by having a meetup to somebody from that site that's willing to buy/sell bitcoins. It will be person to person just like how bitcoin trading used to be. It will be a lot harder in our position if all these exchangers go down because the banks doesn't want to have anything to do with them anymore just because their business is bitcoin-related.
I think there are two factors here. The banking/debt crisis, and the emergence of crypto-currencies. It won't be Bitcoin that will destroy the banks, it will be the politicians who are taking bribes to allow rubbish derivatives to be created, and then allowing bail-ins for the banks to cover their fraudulent lending, who will cause the demise and re-structuring of banking. Bitcoin will just be one of the emerging solutions/replacements.
Not sure what I'm talking about? Look at the recent permission to allow fracking in the UK, and the bail-in of Cyprus and the Greek banking theft to help DoucheBank.
Indeed. Bitcoin is not responsible if banks may disappear. Bitcoin is a cryptocurrency that people use in able to earn extra income and specially to buy their need and wants but it is nothing to do with banks. We all know that bankd today are very famous because of those people that want to stock money and those people who have lots of money in order to be safe. If you can see bitcoin and banks is no relationship at all. They just have the same purpose vut different ways of called and sometimes uses. Bitcoin will not make banks disappear because banks are the most useful establishments nowadays. And people will continue to use it. Not sure what I'm talking about? Look at the recent permission to allow fracking in the UK, and the bail-in of Cyprus and the Greek banking theft to help DoucheBank.
Banks will not disappear.But its also true that bitcoin has become the worst nightmare for bankers.Already,many people have started using bitcoins for transactions instead of banks.If this continues,Banks would face a huge loss in revenue got from transactions.In future,banks will not get huge profits as now.Mostly,they have to depend on the interests from loans as their main revenue.
Banks won't suffer any major losses as their core revenue doesn't come from transaction fees. If you look within your country, then it's free to send and receive money from one bank account to another.You'll be charged a certain fee if you happen to transfer money to a different country. But let's be honest, how often do people send money abroad? It's an insignificant bit of income for banks. So no, it won't hurt banks.
Fiat is the base for all needs and it's the only thing that's been used by all people without any difference of opinion. Digital currencies are the one that's been used by only the skilled people. For this reason bitcoin won't make banks go disappeared.
Banks will not disappear.But its also true that bitcoin has become the worst nightmare for bankers.Already,many people have started using bitcoins for transactions instead of banks.If this continues,Banks would face a huge loss in revenue got from transactions.In future,banks will not get huge profits as now.Mostly,they have to depend on the interests from loans as their main revenue.
Nah that is not true I think bitcoin will just be difficult to replace it to fiat money. If ever bitcoin will replace the fiat money I think the bank will go to the bitcoin world and I well bet that they will offer a lot of things. Like maybe more ATM for bitcoin or other stuff.
Yup that's true, that is one of the things that I fear when the time comes..Let's take this scenario:
Bitcoin became well known, people began accepting it as a mode of payment, as a means of exchange. Fiat is slowly losing its value. Banks are going down. But the people behind them, billionaires, businessman, bankers, government....This people are so powerful, they will do almost anything just to survive, just to remain on top. I think the time will come where they will control even Bitcoin. Make it as their reserve. Anything is almost possible in these powerful people. They will offer what people think good to them but in fact the benefits are to the top people again. And I hope when this day come, people will fight for this freedom. We are all human first, searching for greed second, I hope we always remember the first.
Fiat is not losing value at all. Not at this point. Bitcoin is far from the point where it'll kill fiat or make fiat less valuable. Everyone's still using fiat, even every single bitcoin user. When fiat has started to lose value because almost everyone's using bitcoin currency and the prices of stuffs are based on bitcoin, the rich ones have already moved their money to bitcoin or other assets. I believe that billionaires don't have all of their money in fiat form. Most of their money is on assets and on investments on different companies. They don't let all of their money just sleep in form of fiat. They all know the truth behind fiat and so they store the value of their money on different things like bitcoin.
May be many of friends here is saying , that it is impossible for the bitcoin to dissapear the bank system .
But I think opposite of this . According to the current condition of bitcoin of increasing popularity and price will surely result into dissapear bank system.
[/quote
the key is the fiat vs bitcoin. when bitcoin can beat the popularity of fiat and made all the human use of fiat bitcoin then bitcoin will make dissapear the system of bank
But I think opposite of this . According to the current condition of bitcoin of increasing popularity and price will surely result into dissapear bank system.
[/quote
the key is the fiat vs bitcoin. when bitcoin can beat the popularity of fiat and made all the human use of fiat bitcoin then bitcoin will make dissapear the system of bank
Nah that is not true I think bitcoin will just be difficult to replace it to fiat money. If ever bitcoin will replace the fiat money I think the bank will go to the bitcoin world and I well bet that they will offer a lot of things. Like maybe more ATM for bitcoin or other stuff.
Yup that's true, that is one of the things that I fear when the time comes..Let's take this scenario:
Bitcoin became well known, people began accepting it as a mode of payment, as a means of exchange. Fiat is slowly losing its value. Banks are going down. But the people behind them, billionaires, businessman, bankers, government....This people are so powerful, they will do almost anything just to survive, just to remain on top. I think the time will come where they will control even Bitcoin. Make it as their reserve. Anything is almost possible in these powerful people. They will offer what people think good to them but in fact the benefits are to the top people again. And I hope when this day come, people will fight for this freedom. We are all human first, searching for greed second, I hope we always remember the first.
I'm sure the bank will continue to exist and never disappear, this is because the use of fiat money and the banks is an important factor to channel credit to business and economics.
no, because there will always be those scared average joe, that will rely on the bank, no matter what new tech you have, you need plenty of new generation to remove those people
it's the same as right now there are still people that refuse to use credit card or new services...
it's the same as right now there are still people that refuse to use credit card or new services...
The Banks is an official financial institution full-protected by the Government. Although the use of the bitcoin continues to increase, but I'm sure the bank will continues and survive and imposible to disappear.
Bitcoin to $10,000
Chinese Banks, HSBC Caught up in Huge Money Laundering Scam
Read more at https://www.newsbud.com/2017/03/21/chinese-banks-hsbc-caught-up-in-huge-money-laundering-scam/.
Chinese Banks, HSBC Caught up in Huge Money Laundering Scam
Quote from: https://www.newsbud.com/2017/03/21/chinese-banks-hsbc-caught-up-in-huge-money-laundering-scam/
Documents obtained by the Organized Crime and Corruption Reporting Project show that at least US$20 billion was moved out of Russia between 2010 and 2014 in a vast criminal operation called "The Global Laundromat".
Over that period, Bank of China – one of the biggest state-owned commercial banks in China – processed a total of US$716 million of the Laundromat cash via branches in mainland China, Hong Kong and Macau, making it the fourth most active bank in the plot, as shown by the documents.
Over that period, Bank of China – one of the biggest state-owned commercial banks in China – processed a total of US$716 million of the Laundromat cash via branches in mainland China, Hong Kong and Macau, making it the fourth most active bank in the plot, as shown by the documents.
Read more at https://www.newsbud.com/2017/03/21/chinese-banks-hsbc-caught-up-in-huge-money-laundering-scam/.
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