Topic: Do you agree with idea "Bitcoin bank" ? - page 91. (Read 142276 times)

You work into a bank doesnt make you being more special then others, even with several beneficts you might have, why dont buy them directly, anyway the profession here isnt the question. Banks can provide an interest, but we dont need them at bitcoin since there are exchanges and casinos that already does provides interest for our bitcoins.

Of course it can be invested into different businesses and it depends on how much you are going to make, there are a various types of investments you can join, like this And also you can invest into the bankroll casino's of gambling sites but these type of investments doesn't need banks to regulate and for the distribution of profit.

and why not? why should i do for free something that can be paid? i'll post around here with or without the signature, so again, why not?
and you didn't even tried to argue against what i said... what a joke.

ps:  i said i'm banker, not a millionaire or something like.
ps2: you're in a signature campaign too.

People already make this with ico, funding several coins and then waiting those coins being traded, eth were one of them, and had made amazing results, i guess it jumped from 20k into 1 milion satoshis soo if you had waiting and holded your eth you would had made 50x your investment. As eth there are others altcoins coming and making sucess, shitty coins arent getting the support as last year, where anyone could create a coin and steall something like 5-20 btc from people. Bank of bitcoin wont happen, makes no sense to let a third person to come into bitcoin, fiat system has those already and its a waste of money nothing else.

Maybe the bitcoins can be invested in various businesses? It would be nice if there's a way for people to pool their bits and invest it in a business and then receive dividends later, though I guess that would be hard to implement considering how anonymous bitcoin is.

A banker is enrolled in a signature campaign... Go on mate, I'm all ears!


I've heard very bad things about these sites, namely, that borrowers there are mostly scammers. Really, what could be used as a collateral for online loans? I've also read people say that altcoins can be used, but it doesn't sound very plausible. Why not just sell them? The argument is that these altcoins may grow in the future, but so far I have seen them mostly going down or just outright turning into scams. I guess the process is very much like what those borrowers, which are offering these shit coins as collateral, end up with...

So, in a sense, offering these shit coins as collateral is just another way of selling them to silly buyers

dude.. i don't know where are you from and how things work there, but here where i live it isn't that way(and i'm a banker)...
banks don't create money, they cant loan funds they dont have it(that would be a crime to be more precise).

the reason they "always" have money is:
1. they use money from the clients. the money i deposit there becomes a number on the screen and the real money goes to another client.
2. they have a system which connects the whole financial system. if one banks loan all their reserve, they will borrow from another bank(with a better tax than the client of course.)

There are two reasons for people depositing any kind of money into a bank; Securing assets, and earning interest. If any bank could offer advanced security features, for securing Bitcoin, or if they were to declare that deposited Bitcoins are secured (by the government) up to a certain amount, then some people might consider it. But depositing Bitcoins into a bank would undermine anonymity, which is one of the great advantages of Bitcoin.

As for earning interest on Bitcoins, that doesn't really need to be done via a bank. Any online lending service, that acts as an intermediary between a borrower and a lender, could fulfill that role.

i agree with the idea of bitcoin bank i think that at the time bitcoin has it own bank it will be the best time for more people to know more about bitcoin and it will also help to bots the economy of the nation  and there will be more transaction for bitcoin  and as such the nation and every one will want to accept bitcoin.

There is nothing to lose I think if bitcoin banks such as xapo or coinbase and not conventional bank which we know not accept bitcoin yet. Bitcoin banks that provide diverse services likes wallet, make buying and selling digital currency easy and bitcoin debit card or atm card seems good to get involve. Until now those online platform proven give advantages to their customers and so secure to storing bitcoin.

The money you are talking about may be needed if the borrower wants cash (and the bank itself doesn't want to borrow it)

As long as there is no cash in the equation, there is no difference whether someone transferred money to his deposit account in a bank from another bank, or the bank itself credited this account in the case that person took a loan from the bank. The bank literally creates money out of nothing, all it needs is an eligible borrower willing to take a loan. Just think about the case when there is no cash involved and no reserve requirements set at all. People tend to complicate things a lot when they don't quite understand how something actually works. The fiat system itself is pretty simply organized once you get rid of distracting parameters

Well, then this is the point where we disagree. Just like mentioned i do not see us figuring this one out as we both believe the other one is wrong. I think a bank needs some money in order to give out loan, which does not have to come from deposits, like i tried to explain.

yes its nice idea

Banks don't need any money to create a loan

This is the assumption which makes all your further considerations irrelevant. Forget about reserves completely. There are countries where there are no reserve requirements at all (e.g. Canada). Reserves are needed only when someone decides to withdraw cash (that's one of the reasons the government doesn't like cash). Once you accept that, you will see how the modern banking system works. Banks don't need deposits of their clients at all to make loans. You will have to accept this, since this is how the system based on fiat works today. Whenever someone is granted a loan, it gets immediately credited to his bank account, and the balance of the bank is increased by this amount. The new money has just been created, basically out of nothing. Banks create deposits from loans as easily as they had been creating loans from deposits before

I made the mistake of talking about fiat and not Bitcoin to explain the current bank system, but i will explain at the end how this would apply to Bitcoin. First let me explain what i think is right and how the banks work, since i think we disagree on that point and will not be able to figure out who is right.
In order to make a loan you need some money. This can be your own money, a deposit from a customer or a loan you toke from the central bank, but you need money. This money is now you reserve and you can handle this amount like it is 10 times that much. But i can only do this when i give out a loan. If i start with $100 i have only $100, but i can loan out up to $1000. Just at the moment when i give out a loan i create money that did not exist a moment ago. (BTW. This is a different form of creating money as how banks and central banks interact and create money.) So i am not allowed to create infinite amounts of money. I am limited by the percentage of the reserve i need to keep and i am limited by the amount of money i have (how big is my reserve). Because if if have initially $100 as a reserve and i need a reserve of 10%, then in order to fabricate more then $900 i need to have a bigger reserve or a lower percentage. Otherwise i do not see a reason why banks would not just make infinite money and why some banks have to close and go bankrupt if the only limit would be the willingness of the borrower. 
And now to explain how this could be applied to Bitcoin.
If you give a Bitcoin bank your private keys, you have given them your money. But they give you some kind of online place to log in where you see the amount of bitcoin you have deposited with them. But those are just number on a screen that are not backed up with a private key. they can do the same like with fiat money know. The difference is you can not make up more money when you need it. The interest rates on the loan must be paid in real Bitcoin and sooner or later someone will not be able to pay it back. This is when the real fun starts.

I don't see when is the bad here. There will be always bitcoiners who will want bitcoin to realize their dreams and others who will want to borrow them because will want to multiply those. The bank will be the institution which will be believable for both of them. So both will be redirected to this institution. I have a question for you: What about escrows who make this "job" here in this forum and retain their percentage for the service they do? What do you think about these people? They are the "bank of bitcoin" which is in action. Where is the worst here?

So what is the use of bitcoin bank if there are already wallet which acts as you personal bank? It doesnt make sense to me. That will be more expensive just like other wallets. There are so many choice sto secure our bitcoins. Cold storage is the best for huge amount. Simple wallet like xapo, mycellium and coinbase etc. are good for smaller amounts. I dont see bitcoin bank useful because banks are centralize. Its against bitcoin.

In the case of hard currencies (like Bitcoin), it is exactly the way banks would work


I suspect that you don't quite understand how the fractional reserve banking works. If we talk about Bitcoin, they can lend only as much as you put in a bank minus the reserves, otherwise they will be abusing the system. With fiat, they don't need deposits altogether to make loans, so the FRB is utterly irrelevant in this case. Banks in a banking system with a central bank can create money "on the fly", they are only limited by one side, and that side is the number of borrowers willing to take a loan from a bank, not depositors willing to give a loan to a bank. If the number of eligible borrowers is infinite, banks will create infinite amount of money (with the Central bank being a "reserve"). This is an intended feature of the system...

You can safely forget what you had been taught in economics classes about modern banking

Why I have voted Yes? hrmm I realized, what will be the good effects if there will be a bitcoin bank? Who can take benefits? If ever a bitcoin bank exist, of course it will stored so the supply will go down. So it has a clear disadvantage. So for this post I'll go for not agree.

I expected that you would mention exchanges. This is how they make marginal trading possible, but I guess it has little to do with genuine borrowing. Really, the money you borrowed from other traders is not spendable, apart from opening a short position with it, and that's pretty much all there's to it. Banks, on the other hand, don't limit you in any way in respect to where you are going to spend the borrowed funds. You may gamble them right away...

So there is still a big difference


In the long run the result will be exactly as I described in my post. Provided Bitcoin (or any other cryptocurrency, for that matter) does actually offer substantial advantages over the fiat money (which is debatable)


That won't work since governments spoil everything they touch, and people would switch to Bitcoin instead of using their copycat coin. So, they would be shooting themselves in the foot simply because existing Bitcoin users won't use the government cryptocurrency anyway, while new users will end up using Bitcoin