Investment Banker - Bitcoin is not a "real" currency ;->

deisik

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Quote from: Sithara007 on April 14, 2015, 07:43:03 AM

Quote from: deisik on April 14, 2015, 06:09:53 AM

Quote from: Sithara007 on April 14, 2015, 05:41:51 AM

Quote from: Kprawn on April 05, 2015, 03:55:19 PM

I had a most interesting discussion with a investment banker today.

I asked him the question... "Do you see Bitcoin as a disruptive technology or a threat to the traditional banking system"

His answer {Most arrogantly} ....We do not consider Bitcoin as a "real" currency. Shocked

I then asked him to define a currency in his opinion ...and he said ..." a system of money in general use in a particular country "

I then told him...Bitcoin is a global currency... He then replied.. "But nobody use it" Grin

They are clearly in the "Let's ignore it" phase of the disruption cycle... When they wake up... it will be to late to change. Grin

In my opinion, any currency should have a legal backing by the respective country by the equivalent amount of Gold in it's reserve. What do you say? Is it correct or not?

We've already been there. After 1944 the US dollar had been allegedly backed up by gold till Nixon Shock. And many countries were on the gold standard even before that (I mean before the First World War). Didn't end very well, though...

So you see, Bitcoin is and will be a virtual currency till someone or some country start backing it by some physical property like Gold, land, or any other kind of asset which has a real value in the market.

But why would they, given they don't have control over the blockchain? If they don't back up the currency they happen to emit by anything other than law and power, I think it is highly unlikely anyone would ever be going to back up bitcoin. It just doesn't make sense since it is already in a sense backed up by its blockchain...

gkv9

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Quote from: Sithara007 on April 14, 2015, 07:43:03 AM

So you see, Bitcoin is and will be a virtual currency till someone or some country start backing it by some physical property like Gold, land, or any other kind of asset which has a real value in the market.

Who says Bitcoin isn't physically available???
Can't it be backed by those physical coins itself???
They too have a value after storing private keys in them, so why to go for something else instead BTC itself to back the virtual currency???

Sithara007

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Quote from: deisik on April 14, 2015, 06:09:53 AM

Quote from: Sithara007 on April 14, 2015, 05:41:51 AM

Quote from: Kprawn on April 05, 2015, 03:55:19 PM

I had a most interesting discussion with a investment banker today.

I asked him the question... "Do you see Bitcoin as a disruptive technology or a threat to the traditional banking system"

His answer {Most arrogantly} ....We do not consider Bitcoin as a "real" currency. Shocked

I then asked him to define a currency in his opinion ...and he said ..." a system of money in general use in a particular country "

I then told him...Bitcoin is a global currency... He then replied.. "But nobody use it" Grin

They are clearly in the "Let's ignore it" phase of the disruption cycle... When they wake up... it will be to late to change. Grin

In my opinion, any currency should have a legal backing by the respective country by the equivalent amount of Gold in it's reserve. What do you say? Is it correct or not?

We've already been there. After 1944 the US dollar had been allegedly backed up by gold till Nixon Shock. And many countries were on the gold standard even before that (I mean before the First World War). Didn't end very well, though...

So you see, Bitcoin is and will be a virtual currency till someone or some country start backing it by some physical property like Gold, land, or any other kind of asset which has a real value in the market.

deisik

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Quote from: Sithara007 on April 14, 2015, 05:41:51 AM

Quote from: Kprawn on April 05, 2015, 03:55:19 PM

I had a most interesting discussion with a investment banker today.

I asked him the question... "Do you see Bitcoin as a disruptive technology or a threat to the traditional banking system"

His answer {Most arrogantly} ....We do not consider Bitcoin as a "real" currency. Shocked

I then asked him to define a currency in his opinion ...and he said ..." a system of money in general use in a particular country "

I then told him...Bitcoin is a global currency... He then replied.. "But nobody use it" Grin

They are clearly in the "Let's ignore it" phase of the disruption cycle... When they wake up... it will be to late to change. Grin

In my opinion, any currency should have a legal backing by the respective country by the equivalent amount of Gold in it's reserve. What do you say? Is it correct or not?

We've already been there. After 1944 the US dollar had been allegedly backed up by gold till Nixon Shock. And many countries were on the gold standard even before that (I mean before the First World War). Didn't end very well, though...

Sithara007

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Quote from: Kprawn on April 05, 2015, 03:55:19 PM

I had a most interesting discussion with a investment banker today.

I asked him the question... "Do you see Bitcoin as a disruptive technology or a threat to the traditional banking system"

His answer {Most arrogantly} ....We do not consider Bitcoin as a "real" currency. Shocked

I then asked him to define a currency in his opinion ...and he said ..." a system of money in general use in a particular country "

I then told him...Bitcoin is a global currency... He then replied.. "But nobody use it" Grin

They are clearly in the "Let's ignore it" phase of the disruption cycle... When they wake up... it will be to late to change. Grin

In my opinion, any currency should have a legal backing by the respective country by the equivalent amount of Gold in it's reserve. What do you say? Is it correct or not?

RodeoX

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The revolution will be monetized!

I love it when an expert tells me bitcoin is not a currency because no one uses it. Even though I use it all the time.

Kodak is a good example of institutional blindness. As is Blockbuster video or any bookstore. These people build their whole world around an idea, then can't imagine the world moving on to a better idea. I think the banking business is poised for an even greater fall with bitcoin. They have NEVER had to face competition like this before and seem totally unprepared for it. Instead choosing to ignore reality and say stupid things like its not "real".

nachoig

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Quote from: 600watt on April 09, 2015, 10:58:43 AM

what did the kodak people say when photography became digital ? Cheesy

Fucking great analogy!

But if I remember well, it was Kodak who created the technologies behind digital protography.

aso118

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Quote from: deisik on April 09, 2015, 03:44:14 AM

Quote from: Kprawn on April 09, 2015, 03:09:56 AM

She was interrested in the "low fees" structure of Bitcoins and wanted to promote their latest "low fee" option on saving accounts to me. {Obviously, I was not interrested}

They are simply ignorant and more interrested on how they can make more profit, from using some similar technology that is not patented. {The disruption will come quickly, whilst they are sleeping}

You have to pay a fee on a saving account? Next, if they are ignorant they won't see that if they try to use similar technology, no one will use it since they would have to make it decentralized which, in the first place, they will never do, and, in the second, if they nevertheless do, there is already tough competition there. So the end result is quite predictable in any case...

Yup. There are fees on savings accounts, but these are waived if you maintain a minimum balance.

The traditional banking model is built on a set of assumptions which Bitcoin has challenged. The entities which develop in the Bitcoin space will have an altogether different business model.

600watt

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what did the kodak people say when photography became digital ? Cheesy

deisik

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Quote from: Kprawn on April 09, 2015, 03:09:56 AM

She was interrested in the "low fees" structure of Bitcoins and wanted to promote their latest "low fee" option on saving accounts to me. {Obviously, I was not interrested}

They are simply ignorant and more interrested on how they can make more profit, from using some similar technology that is not patented. {The disruption will come quickly, whilst they are sleeping}

You have to pay a fee on a saving account? Next, if they are ignorant they won't see that if they try to use similar technology, no one will use it since they would have to make it decentralized which, in the first place, they will never do, and, in the second, if they nevertheless do, there is already tough competition there. So the end result is quite predictable in any case...

Kprawn

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To answer some of the questions posted here...

He is still young... 47 {Most of these guys are a lot older} and he is highly educated. His whole family work in the banking sector for ages.

I think it's more a question of scale.... {In Banking terms... Bitcoin is still relatively small, if you compare it to other currencies .... transaction volumes etc}

I took it a step further, and discussed it with a friends wife...She is a branch manager for a local bank. {She has no clue, what Bitcoin is, and they only deal with what is approved by the Government/Reserve Banks and their shareholders}

She was interrested in the "low fees" structure of Bitcoins and wanted to promote their latest "low fee" option on saving accounts to me. {Obviously, I was not interrested}

They are simply ignorant and more interrested on how they can make more profit, from using some similar technology that is not patented. {The disruption will come quickly, whilst they are sleeping}

aso118

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Quote from: Q7 on April 08, 2015, 06:41:11 AM

These people has been too long in the current fiat banking system so you would expect what their responses would be. You will be surprised what they say will be basically follow everything by the book and word by word. I don't think you will even need to sell them the idea about bitcoin, it will be up to them to realize it one day.

Investment bankers smell money. Once there is serious money to be made in Bitcoin, I am sure investment bankers will be attracted in droves. It doesn't matter if they have spent their whole life in the fiat banking system; they will still be eager to sell packaged bitcoin derivatives.

tyz

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There are many bad investment bankers out there and only a few good ones. He definetly belongs to the group of bad investment bankers. Talk to someone who sees the entire picture of the future's currency system and he would not argue like your guy did.

Amph

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Quote from: gkv9 on April 07, 2015, 11:21:41 PM

Quote from: aso118 on April 07, 2015, 08:18:00 PM

Quote from: lucasjkr on April 06, 2015, 08:38:59 AM

What are bAnkers missing by not recognizing it yet, though?

Should they offer Btc denominated accounts, or something?

BTC denominated accounts won't be a reality until there is regulatory clarity.
Banks have huge compliance departments and try to end on the right side of the law (although they do pay huge fines now and then).
There will be a lot of questions raised - will these deposits be insured, who will insure them, etc.

But if regulations come into existence for Bitcoins, there won't be any room left for decentralization I guess, and most importantly, there won't be any anonymity which we are here for...

in a decentralization system security should be automatized(don't know how can you that now, but there must be a way...), with no maintenance ever by any human, a fully automatized system that can also preserve anonymity

Dotakels

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Quote from: Q7 on April 08, 2015, 06:41:11 AM

These people has been too long in the current fiat banking system so you would expect what their responses would be. You will be surprised what they say will be basically follow everything by the book and word by word. I don't think you will even need to sell them the idea about bitcoin, it will be up to them to realize it one day.

They not believing in bitcoin because they never use it and they not know about it so dont expect that they will consider it as a currency because they only know is their country currency .

Q7

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These people has been too long in the current fiat banking system so you would expect what their responses would be. You will be surprised what they say will be basically follow everything by the book and word by word. I don't think you will even need to sell them the idea about bitcoin, it will be up to them to realize it one day.

gkv9

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Quote from: aso118 on April 07, 2015, 08:18:00 PM

Quote from: lucasjkr on April 06, 2015, 08:38:59 AM

What are bAnkers missing by not recognizing it yet, though?

Should they offer Btc denominated accounts, or something?

BTC denominated accounts won't be a reality until there is regulatory clarity.
Banks have huge compliance departments and try to end on the right side of the law (although they do pay huge fines now and then).
There will be a lot of questions raised - will these deposits be insured, who will insure them, etc.

But if regulations come into existence for Bitcoins, there won't be any room left for decentralization I guess, and most importantly, there won't be any anonymity which we are here for...

aso118

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Quote from: lucasjkr on April 06, 2015, 08:38:59 AM

What are bAnkers missing by not recognizing it yet, though?

Should they offer Btc denominated accounts, or something?

BTC denominated accounts won't be a reality until there is regulatory clarity.
Banks have huge compliance departments and try to end on the right side of the law (although they do pay huge fines now and then).
There will be a lot of questions raised - will these deposits be insured, who will insure them, etc.

techgeek

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That investment banker, how old was he? You gotta understand most ex jp morgan people already started their own private funds to start a private mining company of their own.

eg: cucumber mining

If you do a search and read some threads, the coins that were bought from auction for silkroad coins links to something interesting lol.

Besides, thats only one investment banker and that also tells you that even though he has the title, I repeat title as a, "investment banker". It doesnt tell you that he knows the difference of what currency really means - fiat : means trust, which is what most are already have been doing for bitcoin lol.

His argument would be in a constructive way, I would say would be how can you compete with a how many year old paper vs this digital currency.

Dotakels

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Quote from: Kprawn on April 05, 2015, 03:55:19 PM

I had a most interesting discussion with a investment banker today.

I asked him the question... "Do you see Bitcoin as a disruptive technology or a threat to the traditional banking system"

His answer {Most arrogantly} ....We do not consider Bitcoin as a "real" currency. Shocked

I then asked him to define a currency in his opinion ...and he said ..." a system of money in general use in a particular country "

I then told him...Bitcoin is a global currency... He then replied.. "But nobody use it" Grin

They are clearly in the "Let's ignore it" phase of the disruption cycle... When they wake up... it will be to late to change. Grin

Hahahah theres nobody use it ? If he only knows that all over a million using bitcoins. And also the million users that have been helped by the bitcoin.

Topic: Investment Banker - Bitcoin is not a "real" currency ;-> (Read 2563 times)