Topic: How safe are these "so called" Bitcoin Banks? (Read 3131 times)
I shall not use those "banks". When the conventional banks accept bitcoin in their operation, I might use them.
I wouldn't trust any bank for my coins, since the whole point of bitcoin protocol is precisely decentralization and not depending on third parties do conduct business or perform financial operations.
I will save the coins in my wallet. But I will use a bank if I need to borrow the bitcoin when I need them.
I wouldn't trust any bank for my coins, since the whole point of bitcoin protocol is precisely decentralization and not depending on third parties do conduct business or perform financial operations.
As I have learned through this forum and several opinions, you are not "safe" as long as other person holds your coin and they are not in your wallet.
can i have some example of what are these "so called" Bitcoin Banks? never heard about
These are services who offer you some interest rates of you loan out your Bitcoin to them.
That means you lose the control of your coins because you don't own the private key anymore.From this moment on it's all about trust.
I highly advice everyone to be very careful with such services.The risk of fraud is pretty high.
Bitcoin was not created to give control of your coins to a third party!!
can i have some example of what are these "so called" Bitcoin Banks? never heard about
i still won't trust any banks tho.. i'll just keep it on my wallet, much safer that way
I recently saw someone advising services like these to newbies who asked "where to invest" and I just wanted to know what are your views on such services which are now advertising themselves as Bitcoin Banks and offering interest to people to keep their coins with them?
security aspect is number one,people must be so comfort and trust fully to that "banks" so they have no worry to invest so many bitcoin,and security must be have insurance 
i would never trust a third party to give my bitcoin to, so they can hold it for me even if they are called "BANK" and give all sorts of promise to keep it safe.
Not researched too much into them, but I'd stay clear and manage your own bitcoins.
When the HSBC or City Bank open business for bitcoin, I will save some of my bitcoins there to earn some interest.
Not researched too much into them, but I'd stay clear and manage your own bitcoins.
The safest place to store bitcoin is in a personal wallet....if saving is the goal...it's value is increasing in relation to the currency it was purchased with anyway, so there is no need to put it into a bank to collect interest. The actual investment IS Bitcoin; put it away in cold storage and wait. The safest place to invest bitcoin is a different creature all together...it's a wild, wild, frontier.
I save all my coins in my personal wallet. I only store the coins in the exchanges temporally. It is much safer.
well there were a few total scams that actally used the term 'bank'
but thats another story best left in the past, and am glad some of those died already
now as for 'magnr', they are a scam and they fled already
bitbond and btcjam are slowly failing too
Could you provide some evidence to back up your claim regarding Magnr?
I have some BTC there and have had not difficulty getting it in and out.
All of the margin loans they do with my BTC (to generate interest) are recorded on the blockchain, unlike margin funding on an exchange.
Bitbond and BTCjam seem to have some problems (quality of borrower, screening, lack of secured collateral), but they aren't outright scams from what I have found.
The safest place to store bitcoin is in a personal wallet....if saving is the goal...it's value is increasing in relation to the currency it was purchased with anyway, so there is no need to put it into a bank to collect interest. The actual investment IS Bitcoin; put it away in cold storage and wait. The safest place to invest bitcoin is a different creature all together...it's a wild, wild, frontier.
Why would bitcoin community support anything remotely resembling a bank?? Why give away what bitcoin has of most value, that is the independence for intermediators of financial transactions??
Can u pls list what kind of service u actually refer to?
Cause there are tons of simple ponzies which call themselves Bitcoin banks.
Cause there are tons of simple ponzies which call themselves Bitcoin banks.
Let's start by considering what we mean by a "bank" in relation to the bitcoin ?
- a place where you can safely store your bitcoin and possibly earn the interest ?
- an institution from which you can borrow bitcoins ?
- an intermediary where you can buy & sell bitcoins ?
In the bitcoin universe these activities are usually taken care of the wallet providers, the exchanges, and the P2P lending platforms.
If we really need banks we must have some mechanism to protect our btcs.- a place where you can safely store your bitcoin and possibly earn the interest ?
- an institution from which you can borrow bitcoins ?
- an intermediary where you can buy & sell bitcoins ?
In the bitcoin universe these activities are usually taken care of the wallet providers, the exchanges, and the P2P lending platforms.
That's automatically need some kind of regulations and government guidance.
So how this can be good now?
Every government interference in this will cause centralization and monopol will be created.
Simple and effective law securing your private propoerty would be fine. There is no need to create legislation that will take control of any other aspect of cryptos, to defend you from thieves.
If you are not the sole owner of your private key(s) then nothing is safe at all. I do not like these bitcoin banks & even if they are safe, insured etc they still destroy the whole purpose of bitcoin & what Satoshi wanted - decentralization.
Let's start by considering what we mean by a "bank" in relation to the bitcoin ?
- a place where you can safely store your bitcoin and possibly earn the interest ?
- an institution from which you can borrow bitcoins ?
- an intermediary where you can buy & sell bitcoins ?
In the bitcoin universe these activities are usually taken care of the wallet providers, the exchanges, and the P2P lending platforms.
If we really need banks we must have some mechanism to protect our btcs.- a place where you can safely store your bitcoin and possibly earn the interest ?
- an institution from which you can borrow bitcoins ?
- an intermediary where you can buy & sell bitcoins ?
In the bitcoin universe these activities are usually taken care of the wallet providers, the exchanges, and the P2P lending platforms.
That's automatically need some kind of regulations and government guidance.
So how this can be good now?
Every government interference in this will cause centralization and monopol will be created.
If your not holding your coins on your own computer then you have pretty much forfeited any right to see those coins again.
I think Bitcoin banks are safe. But there are also risks associated with indeed. You can for instance be hacked.
I think the safest method is that you save it on your own computer.
Or the "bank" can state that it was "hacked" and then run away with your coins. There was one scammer in this forum, that officially admitted, that he just stole coins deposited for his sh*tty IPO
After all, honest thief is better than lying one
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