Shower thought. Would this start "killing" the banks? - page 2.

alyssa85

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Quote from: Wind_FURY on March 13, 2018, 01:10:27 AM

What if every person loaned money from a bank or maxed out their credit cards to buy Bitcoin and deliberately not pay out those debts. Would that start "killing" the banks or, at all events, dent their dominance?

Sorry if this might be a shit topic. But go ahead, discuss. Haha.

That's fraud - and all that will happen is you end up in jail.

It won't hurt the banks, it will hurt you.

jseverson

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In case of loans, banks require collateral so they'll be fine in that case.

In case of credit card debt, well that depends. There is no collateral, sure, but there is a limit in place, and it's pretty small for most people. It would be crippling if everyone in the world maxed out theirs and not pay for it for sure though.

As for the second case, banks seem to be onto you because a few have already started banning cryptocurrency purchases through credit cards lol.

cryptocrusher

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It would harm banks but likely wouldn't kill them unless it was the whole world that did it. I think that they would have some sort of a fail safe in place that would stop such a thing from happening, probably a limit on the amount of credit they can give out within a certain period?

teilwalL05

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In my opinion with your statement if whatsoever every persons bank account would deliberately loan or use their credit card in buying bitcoin I really think this can not have any problem at all with the bank if people would get loans to them, And they have set minimum reserve requirements, But if all people would get their deposit on the banks and transfer it to bitcoin, Maybe something might happen to the bank, But yes something like this would likely to happen.

LuanX3

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Quote from: Wind_FURY on March 13, 2018, 01:10:27 AM

What if every person loaned money from a bank or maxed out their credit cards to buy Bitcoin and deliberately not pay out those debts. Would that start "killing" the banks or, at all events, dent their dominance?

Sorry if this might be a shit topic. But go ahead, discuss. Haha.

Well, I don't think people that got loans do not have other properties aside from the bitcoins they bought. But that would cause it to be another bubble like the housing bubble that happened back then. That bubble burst because in reality no one was really living in those homes but just being used as a speculative investment, much like bitcoins would be if people will max out loans just to buy bitcoins. I don't think it would happen again as banks and other credit services would have employed some sort of safeguards already.

Pursuer

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Where is my ring of blades...

LOL, "According to the Federal Reserve, U.S. households collectively hold over a trillion dollars in credit card debt." https://www.federalreserve.gov/releases/g19/current/
so I don't think it will hurt them at all, there is already enough debt and if they were supposed to be hurt they would have!

davis196

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This won`t kill the banks,because they will get financial support from the central banks.By "financial support" i mean loans with little or no interest.Actually "killing" the banks is not a good idea,because many people have savings in those banks.The only way to kill a bank is to create financial panic and find a way to force the people ,who have deposits to withdraw their money.
Getting loans and not paying your debts will create more problems for you.The banks will chase you ,untill you pay your debts. Grin

Wind_FURY

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What if every person loaned money from a bank or maxed out their credit cards to buy Bitcoin and deliberately not pay out those debts. Would that start "killing" the banks or, at all events, dent their dominance?

Sorry if this might be a shit topic. But go ahead, discuss. Haha.

Topic: Shower thought. Would this start "killing" the banks? - page 2. (Read 291 times)