These could be how bitcoins make banks obsolete!

Beliathon

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https://youtu.be/PZm8TTLR2NU

Quote from: CurbsideProphet on June 19, 2014, 01:35:08 PM

Quote from: cuddaloreappu on June 19, 2014, 10:30:46 AM

As we move into bitcoin economy , where there is merchant adoption universally and you are able to buy anything with bitcoin, there is no point an average guy would put his savings in a bank, He could save even a million dollars worth of money in a encrypted paper wallet.

Now banks will lose all the minimum balance that it recommends for having an account, Now banks will not have any money to loan out and hence the entire banking system collapses.

On the other side bitcoin 2.0 applications like counterparty, ethereum will enable crowdfunding and other financial derivatives and decentralized exchanges which will affect the investment banks. Because you don't rely on a central institution like banks to raise your capital.

What other ways could banks face disruption by bitcoin?

Banks fulfill more roles than just merchant services and depository accounts. For instance, most businesses (large and small) need working capital lines of credit, loans for capital expenditures, etc..

It's not just business that rely on loans (DEBT) to survive, our entire house of cards economy does, from the biggest bank all the way down to the poorest consumers! That's all because the fractional reserve banking scam has MADE IT THAT WAY!

Bitcoin is the antidote to the cancer of debt-for-profit! Two videos everyone must see are: The biggest scam in history & Capitalism hits the fan.

CurbsideProphet

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Quote from: cuddaloreappu on June 19, 2014, 10:30:46 AM

As we move into bitcoin economy , where there is merchant adoption universally and you are able to buy anything with bitcoin, there is no point an average guy would put his savings in a bank, He could save even a million dollars worth of money in a encrypted paper wallet.

Now banks will lose all the minimum balance that it recommends for having an account, Now banks will not have any money to loan out and hence the entire banking system collapses.

On the other side bitcoin 2.0 applications like counterparty, ethereum will enable crowdfunding and other financial derivatives and decentralized exchanges which will affect the investment banks. Because you don't rely on a central institution like banks to raise your capital.

What other ways could banks face disruption by bitcoin?

Banks fulfill more roles than just merchant services and depository accounts. For instance, most businesses (large and small) need working capital lines of credit, loans for capital expenditures, etc.. It's necessary to function. Companies that ship goods internationally need letters of credit. Individuals need trusts and retirement accounts.

Bitcoin and banks can co-exist.

Lauda

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Terminated.

Quote from: iluvpie60 on June 19, 2014, 10:56:00 AM

in the U.S. you get like .1% per year on whatever you have in your bank account. Lets say you have 100,000 USD in the bank, that is 100 dollars you make by leaving your 100,000 in the bank... Or you could buy a stock and sell it for a .2% profit in less than a matter of a day and make 200 dollars - a 10 dollar trade fee? or you could do the same thing with converting BTC/USD and whatever else, my point is that you definitely do not make yourself better off by leaving your money sitting around. Smart money makes money.

Tell that to everyone who held onto Bitcoin for the past 4 years.

Este Nuno

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amarha

Quote from: iluvpie60 on June 19, 2014, 10:56:00 AM

Quote from: Este Nuno on June 19, 2014, 10:53:13 AM

Quote from: cuddaloreappu on June 19, 2014, 10:30:46 AM

As we move into bitcoin economy , where there is merchant adoption universally and you are able to buy anything with bitcoin, there is no point an average guy would put his savings in a bank, He could save even a million dollars worth of money in a encrypted paper wallet.

Now banks will lose all the minimum balance that it recommends for having an account, Now banks will not have any money to loan out and hence the entire banking system collapses.

On the other side bitcoin 2.0 applications like counterparty, ethereum will enable crowdfunding and other financial derivatives and decentralized exchanges which will affect the investment banks. Because you don't rely on a central institution like banks to raise your capital.

What other ways could banks face disruption by bitcoin?

What if banks offered competitive interest rates on deposited fiat?

in the U.S. you get like .1% per year on whatever you have in your bank account. Lets say you have 100,000 USD in the bank, that is 100 dollars you make by leaving your 100,000 in the bank... Or you could buy a stock and sell it for a .2% profit in less than a matter of a day and make 200 dollars - a 10 dollar trade fee? or you could do the same thing with converting BTC/USD and whatever else, my point is that you definitely do not make yourself better off by leaving your money sitting around. Smart money makes money.

Yeah, the interest rates are bad now because there is very little pressure on banks to offer any. But with Bitcoin as a direct competitor as a store of value they might have to lower their margins and offer better incentives.

A high interest rate, stability, and security might make a bank account a reasonable place to hold at least some of your wealth.

EcuaMobi

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Quote from: cuddaloreappu on June 19, 2014, 11:18:17 AM

Quote from: EcuaMobi on June 19, 2014, 11:15:04 AM

Quote from: cuddaloreappu on June 19, 2014, 11:09:52 AM

Quote from: Este Nuno on June 19, 2014, 10:53:13 AM

Quote from: cuddaloreappu on June 19, 2014, 10:30:46 AM

As we move into bitcoin economy , where there is merchant adoption universally and you are able to buy anything with bitcoin, there is no point an average guy would put his savings in a bank, He could save even a million dollars worth of money in a encrypted paper wallet.

Now banks will lose all the minimum balance that it recommends for having an account, Now banks will not have any money to loan out and hence the entire banking system collapses.

On the other side bitcoin 2.0 applications like counterparty, ethereum will enable crowdfunding and other financial derivatives and decentralized exchanges which will affect the investment banks. Because you don't rely on a central institution like banks to raise your capital.

What other ways could banks face disruption by bitcoin?

What if banks offered competitive interest rates on deposited fiat?

BUt the interest rate is a gimmick, consider inflation which washes away any gains with interest.
but no competitive stratergy can help a inflationary asset like us dollar can fight a deflationary assets like bitcoin

But banks don't have to work only on USD in the future.
They could allow BTC accounts and pay interests over those BTC, while lending it to other clients.

That centralization could go against the idea behind Bitcoin, but they still will be able to do it.

Everything is possible.

would you deposit your bitcoin in a bank?..I wont and i believe you wont too, because the greatest lesson bitcoin has taught us through Mt.Gox is that a decentralized system should not be trusted with a centralized system.

No, I wouldn't. But I'm sure a lot of people would when Bitcoin is used by everyone, provided banks offer a good interest rate.

cuddaloreappu

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Quote from: EcuaMobi on June 19, 2014, 11:15:04 AM

Quote from: cuddaloreappu on June 19, 2014, 11:09:52 AM

Quote from: Este Nuno on June 19, 2014, 10:53:13 AM

Quote from: cuddaloreappu on June 19, 2014, 10:30:46 AM

As we move into bitcoin economy , where there is merchant adoption universally and you are able to buy anything with bitcoin, there is no point an average guy would put his savings in a bank, He could save even a million dollars worth of money in a encrypted paper wallet.

Now banks will lose all the minimum balance that it recommends for having an account, Now banks will not have any money to loan out and hence the entire banking system collapses.

On the other side bitcoin 2.0 applications like counterparty, ethereum will enable crowdfunding and other financial derivatives and decentralized exchanges which will affect the investment banks. Because you don't rely on a central institution like banks to raise your capital.

What other ways could banks face disruption by bitcoin?

What if banks offered competitive interest rates on deposited fiat?

BUt the interest rate is a gimmick, consider inflation which washes away any gains with interest.
but no competitive stratergy can help a inflationary asset like us dollar can fight a deflationary assets like bitcoin

But banks don't have to work only on USD in the future.
They could allow BTC accounts and pay interests over those BTC, while lending it to other clients.

That centralization could go against the idea behind Bitcoin, but they still will be able to do it.

Everything is possible.

would you deposit your bitcoin in a bank?..I wont and i believe you wont too, because the greatest lesson bitcoin has taught us through Mt.Gox is that a decentralized system should not be trusted with a centralized system.

EcuaMobi

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Activity: 1876

Merit: 1475

Quote from: cuddaloreappu on June 19, 2014, 11:09:52 AM

Quote from: Este Nuno on June 19, 2014, 10:53:13 AM

Quote from: cuddaloreappu on June 19, 2014, 10:30:46 AM

As we move into bitcoin economy , where there is merchant adoption universally and you are able to buy anything with bitcoin, there is no point an average guy would put his savings in a bank, He could save even a million dollars worth of money in a encrypted paper wallet.

Now banks will lose all the minimum balance that it recommends for having an account, Now banks will not have any money to loan out and hence the entire banking system collapses.

On the other side bitcoin 2.0 applications like counterparty, ethereum will enable crowdfunding and other financial derivatives and decentralized exchanges which will affect the investment banks. Because you don't rely on a central institution like banks to raise your capital.

What other ways could banks face disruption by bitcoin?

What if banks offered competitive interest rates on deposited fiat?

BUt the interest rate is a gimmick, consider inflation which washes away any gains with interest.
but no competitive stratergy can help a inflationary asset like us dollar can fight a deflationary assets like bitcoin

But banks don't have to work only on USD in the future.
They could allow BTC accounts and pay interests over those BTC, while lending it to other clients.

That centralization could go against the idea behind Bitcoin, but they still will be able to do it.

Everything is possible.

cuddaloreappu

hero member

Activity: 756

Merit: 502

Quote from: Este Nuno on June 19, 2014, 10:53:13 AM

Quote from: cuddaloreappu on June 19, 2014, 10:30:46 AM

As we move into bitcoin economy , where there is merchant adoption universally and you are able to buy anything with bitcoin, there is no point an average guy would put his savings in a bank, He could save even a million dollars worth of money in a encrypted paper wallet.

Now banks will lose all the minimum balance that it recommends for having an account, Now banks will not have any money to loan out and hence the entire banking system collapses.

On the other side bitcoin 2.0 applications like counterparty, ethereum will enable crowdfunding and other financial derivatives and decentralized exchanges which will affect the investment banks. Because you don't rely on a central institution like banks to raise your capital.

What other ways could banks face disruption by bitcoin?

What if banks offered competitive interest rates on deposited fiat?

BUt the interest rate is a gimmick, consider inflation which washes away any gains with interest.
but no competitive stratergy can help a inflationary asset like us dollar can fight a deflationary assets like bitcoin

EcuaMobi

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Activity: 1876

Merit: 1475

Quote from: Este Nuno on June 19, 2014, 10:53:13 AM

Quote from: cuddaloreappu on June 19, 2014, 10:30:46 AM

As we move into bitcoin economy , where there is merchant adoption universally and you are able to buy anything with bitcoin, there is no point an average guy would put his savings in a bank, He could save even a million dollars worth of money in a encrypted paper wallet.

Now banks will lose all the minimum balance that it recommends for having an account, Now banks will not have any money to loan out and hence the entire banking system collapses.

On the other side bitcoin 2.0 applications like counterparty, ethereum will enable crowdfunding and other financial derivatives and decentralized exchanges which will affect the investment banks. Because you don't rely on a central institution like banks to raise your capital.

What other ways could banks face disruption by bitcoin?

What if banks offered competitive interest rates on deposited fiat?

This.

Bitcoin will produce more competition, which will be very favorable for the client.

Monopolies and even oligopolies will be much harder to exist.

commandrix

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Quote from: Este Nuno on June 19, 2014, 10:53:13 AM

Quote from: cuddaloreappu on June 19, 2014, 10:30:46 AM

As we move into bitcoin economy , where there is merchant adoption universally and you are able to buy anything with bitcoin, there is no point an average guy would put his savings in a bank, He could save even a million dollars worth of money in a encrypted paper wallet.

Now banks will lose all the minimum balance that it recommends for having an account, Now banks will not have any money to loan out and hence the entire banking system collapses.

On the other side bitcoin 2.0 applications like counterparty, ethereum will enable crowdfunding and other financial derivatives and decentralized exchanges which will affect the investment banks. Because you don't rely on a central institution like banks to raise your capital.

What other ways could banks face disruption by bitcoin?

What if banks offered competitive interest rates on deposited fiat?

That's gonna take a while AND it's going to take just about everybody adopting Bitcoin just to get the really big ones to notice. Everybody please BUY SOMETHING with Bitcoin today even if you only spend 0.01BTC. That'll be a decent first step in getting the retailers to notice and things will start snowballing from there.

iluvpie60

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Quote from: Este Nuno on June 19, 2014, 10:53:13 AM

Quote from: cuddaloreappu on June 19, 2014, 10:30:46 AM

As we move into bitcoin economy , where there is merchant adoption universally and you are able to buy anything with bitcoin, there is no point an average guy would put his savings in a bank, He could save even a million dollars worth of money in a encrypted paper wallet.

Now banks will lose all the minimum balance that it recommends for having an account, Now banks will not have any money to loan out and hence the entire banking system collapses.

On the other side bitcoin 2.0 applications like counterparty, ethereum will enable crowdfunding and other financial derivatives and decentralized exchanges which will affect the investment banks. Because you don't rely on a central institution like banks to raise your capital.

What other ways could banks face disruption by bitcoin?

What if banks offered competitive interest rates on deposited fiat?

in the U.S. you get like .1% per year on whatever you have in your bank account. Lets say you have 100,000 USD in the bank, that is 100 dollars you make by leaving your 100,000 in the bank... Or you could buy a stock and sell it for a .2% profit in less than a matter of a day and make 200 dollars - a 10 dollar trade fee? or you could do the same thing with converting BTC/USD and whatever else, my point is that you definitely do not make yourself better off by leaving your money sitting around. Smart money makes money.

Este Nuno

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Activity: 826

Merit: 1002

amarha

Quote from: cuddaloreappu on June 19, 2014, 10:30:46 AM

As we move into bitcoin economy , where there is merchant adoption universally and you are able to buy anything with bitcoin, there is no point an average guy would put his savings in a bank, He could save even a million dollars worth of money in a encrypted paper wallet.

Now banks will lose all the minimum balance that it recommends for having an account, Now banks will not have any money to loan out and hence the entire banking system collapses.

On the other side bitcoin 2.0 applications like counterparty, ethereum will enable crowdfunding and other financial derivatives and decentralized exchanges which will affect the investment banks. Because you don't rely on a central institution like banks to raise your capital.

What other ways could banks face disruption by bitcoin?

What if banks offered competitive interest rates on deposited fiat?

cuddaloreappu

hero member

Activity: 756

Merit: 502

As we move into bitcoin economy , where there is merchant adoption universally and you are able to buy anything with bitcoin, there is no point an average guy would put his savings in a bank, He could save even a million dollars worth of money in a encrypted paper wallet.

Now banks will lose all the minimum balance that it recommends for having an account, Now banks will not have any money to loan out and hence the entire banking system collapses.

On the other side bitcoin 2.0 applications like counterparty, ethereum will enable crowdfunding and other financial derivatives and decentralized exchanges which will affect the investment banks. Because you don't rely on a central institution like banks to raise your capital.

What other ways could banks face disruption by bitcoin?

Topic: These could be how bitcoins make banks obsolete! (Read 1087 times)