Banks are not inherently evil. [...] The business of a legitimate bank is to get money loaned out on a risk appropriate basis, and make money for their depositors via interest. Doing this fosters development and adoption.
Correct.
There are a great many reasons why banking would be very good for bitcoin and other cryptos.
Incorrect.
Only a fool would lend a highly volatile currency like bitcoin is, since if it goes one way they pay you back easily but they're worth less, and if they go the other way they just won't be able to pay you back at all.
Plus, there's no bitcoin ecosystem, which is one of the reasons they are so volatile, so it would be silly to ask a loan in that currency anyway: you should get loans in the currency you are actually going to base your businss on.
The volatility has a lot to do with the fact that it is NOT much of an ecosystme at the moment. It's getting there.
In fact a lot of short term loans ARE made with bitcoin. I think a bank or bank like institution would actually help that, as they would set longer term interest rates just due to the nature of finance.
And we ARE speculating on the future here
Besides that, a great many banks rely upon and utilize the US dollar. Can you think of a more volatile currency? It's current value is so far below it's initial market as to be a ludicrous, yet it continues on...
