Shower thought. Would this start "killing" the banks?

samcrypto

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Quote from: Mila52 on March 17, 2018, 07:21:12 AM

The bank loan repayment system is protected by law! There are insurance capitals and organizations that make to return the loan. With crypto-loans it is more complicated. There's no mechanism protecting bank's criptocurrency capital. It is decentralization that makes banks vulnerable.

I think its too risk to loan some funds to those people who is unknown, baking system will still exist no matter what and this loan services will be the one for them to survive. Cryptocurrency is great, but we still need some security that most of the banks gives I believe crypto and banks can be use at the same time without having any problem.

Mila52

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The bank loan repayment system is protected by law! There are insurance capitals and organizations that make to return the loan. With crypto-loans it is more complicated. There's no mechanism protecting bank's criptocurrency capital. It is decentralization that makes banks vulnerable.

aardvark15

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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.

Banks don’t typically loan money without some kind of collateral or at least the knowledge that you earn money or have assets. If you default on a loan, the bank will come after the money, so I don’t see people getting away with that. Banks will foreclose on houses, garnish wages, and go after asserts such as vehicles and bank accounts. They have the resources to get the money.

cellard

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The transition must happen by means of necessity. If people don't see a real necessity to get their money out of banks and into Bitcoin, then this idea of "killing the banks" will simply never happen. That's how things die for real.

People no longer use regular mail (except on few occassions) this is how email took over, people don't need X because they find a better alternative and this alternative becomes #1.

And even then, as I said, the old stuff still gets used sometimes, even fax.

Wind_FURY

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Ok, fair enough. Loaning money and maxing out your credit cards without replaying them will not "kill" the banks. But what will?

I see that some suggested that bank runs will kill banks. I disagree. It might close a branch of that bank but it won't "kill" the whole system.

But we first came here with the idea that "Bitcoin is the future" and that it would "eliminate the fraudulent banking system". I don't see that now. What happened to us?

paul00

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First, I don’t think there will come a time where ALL people would do such thing for we all know that not all people believed in Bitcoin. However if in case this thing would happen, banks will not just simply be on their downfall but as well as those who have loaned and not paid. Also, as far as I know banks have allotted allowance for possible loss on debts, loans and others for them to stay liquid despite unpaid liabilities.

entrepmind23

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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.

I don't think banks would let that time come when many people would borrow from them just to invest in cryptocurrencies. In fact, some credit card companies do not allow nowadays transactions that will be paid to companies involve with cryptocurrencies.

This is the news regarding the banning of credit card companies to crypto currencies.
https://www.forbes.com/sites/naeemaslam/2018/02/05/banks-banning-cryptocurrency-purchase-on-credit-cards-why/#691d536a3cf9

As we can see, they are already making a move to prevent what you thought will happen if people decides to borrow money. They are just showing it that they are still in control and they will not let bitcoin "kill them".

DeadCoin

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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.

If you refer the data 25% of account holders who bought loan from a bank has not paid back. This has become a normal attitude towards repaying back to the bank. This would seriously lead the bank to lose their business as well. We could observe, my government authority has informed that few banks are running out of loss and the account holders who have their money saved as fixed deposit should contribute service charge and a part of amount to the bank to recover back. Banks are the first competitors of crypto currency.

batang_bitcoin

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It is not enough to kill the banks. They are rich with properties and they have reserved fund that is stored on their vaults. Banking industry is the wisest industry when it comes on making money and I'm sure that they won't allow this to happen and we can't out think them by having this type of mindset. But it's also a reality that there are people who loans from them and not paying. I was once worked in a tied up company with bank and they are also recovering some of the unpaid loans through acquiring assets and providing tighter requirements on who will they grant.

MakeMoneyBtc

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First of all, you can be 100% sure than none all of us would take a lon from bank and just dont pay it back because banks have their strategies and you will be fuc*ed up all your remaining life if you dont pay your loan back. Probably if all bitcoin users would do such a thing it eill harm banks but surely not kill them because bitcoin users are spread all around the world and every bank would have a certain number of loans wich is not going to make them close their bank.

I guess banks have limited amounts of money that they can loan to people and remember that not everyone can get a lon because banks are not that stupid. If thousands of millions of people would take loans and dont pay them back I cant imagine what would happen. I guess it would all be a disaster wich is not going to end very well.

aso118

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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.

You do not need people to take a loan and default to kill banks. All you need is people to take out their own money (which they have deposited with the bank) and buy Bitcoin (or any other asset). Banks will collapse. That is the beauty of the fractional reserve system of lending.

Shikaina

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Quote from: davis196 on March 13, 2018, 01:22:47 AM

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

Exactly. Banks are suckers. The central bank will just print money and local banks get support from them. Aside from people’s savings they also possess properties. Those who are not able to pay their debts have their properties being taken by the banks. Could be a parcel of land, house, cars etc.

TravelMug

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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.

Banks has a lot of money reserves even if everyone does make a loan and didn't pay, it will not do any significant dent on their financials and they would like die as you have pictured.

But scary thought isn't it? As much as we want to end this domination, it won't happen in the future not even in 100 years or so. They have already a lot of reserves for themselves that they can survive the worst attack on them.

richardsNY

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It won't kill banks at all. Main point of importance is that banks do not actually hand you over any money. They just change a few database points, and that's it. At worst, the central bank can just keep printing into oblivion to keep banks up and running. I like to see banks lose the battle against crypto, but I'm not a criminal, and I don't want to make the tax payer end up paying the bill, because that's very likely going to happen. At some point there will be a time where we can just pay everywhere with Bitcoin, and get our salary paid out in Bitcoin. It's just a matter of time, so have patience. We like freedom, but aren't criminals, keep that in mind.

cellard

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The only thing that would end is your freedom. If you get a loan and don't pay, they will come after you. If they can't find your bitcoins, they will find your properties and then get some lube because you are about to get raped.

The only way to kill the banks is if people willingly stop using them and store all of their wealth on bitcoin and transact on there, which I don't see happening anytime soon. The good news is, we don't need that to go to the moon. A small % of diversification in big portfolios can bring BTC to 6 figures rather easy.

STT

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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?

The banks would ensure that bitcoin is shut down as a destructive enterprise I think is more likely. Even now I would advise you not to take leverage when entering bitcoin because the volatility is already very extreme and it would increase the chances that you will sell before is best. I just say that in reference to the drop out of 2014, 15 going forward. That was the time to buy but plenty of people sold and never came back which we see was a mistake. Play for the long term and bankruptcy will take your BTC also btw

Cobalt9317

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My memory doesn't serve me right I do knew that a financial bank in America founded the WWI or WWII can't remember it.
The owner of the bank have a name of roosvelt or something, so I deem bank is unkillable in terms of financial support it has some back up somewhere to where every conspiracy centering in one point.

Idrisu

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Bitcoin has succeed without the help of bank and governments and I think it might not need to create problems for bank before bringing bitcoin to lim light and making it be acceptable all over the world. We know that banks need to be weaking before we can see less pressures on cryptocurrencies.

jtipt

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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.

Lol if you put it like that and let's assume "everyone" does this and there won't be any legal consequences of not paying back. Then yes, it will kill banks. But while we are on this topic, what's stopping banks from printing more money Tongue

jk..

AVAMONEY

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Quote from: davis196 on March 13, 2018, 01:22:47 AM

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

Yes, good idea to make bank crisis are making financial panic, such as database bank was being hacked and money stolen hahaha, this could be effect most on their customer will withdraw their money at same time, it's panic situation, same as we called here panic selling Cheesy

I will not recommended taking loan from bank, even it is just Credit-Card, because they are running it under the regulation of law so they can take you into legal proceedings.

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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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? (Read 292 times)