Topic: Will banks using bloackchain affect Bitcoin price? (Read 1877 times)
The thing is with the bitcoin blockchain you don't need banks anymore
This is a very interesting subject. I think if banks were to use blockchain technology, it might give Bitcoin a boost. Then again, it might hurt Bitcoin's price too. I do not know for sure what would happen. But, I think it would surely bring some legitimacy to Bitcoin though if major banks use the technology that powers it.
It's possible that banks using their blockchain technologies could breathe new life in the speculative price of bitcoin.
As an example, Ripple is trial testing with banks and remittance companies like western union. The main trading platform for Ripple is RippleTrade, and one of the active currencies in that network is Bitcoin. If the Ripple network is adopted by the big banks, it could give a big boost to bitcoin trading volume.
As an example, Ripple is trial testing with banks and remittance companies like western union. The main trading platform for Ripple is RippleTrade, and one of the active currencies in that network is Bitcoin. If the Ripple network is adopted by the big banks, it could give a big boost to bitcoin trading volume.
Even if the banks come up with their own version of blockchain technology i won't trust that. The question here is whether it is decentralized and for banks no matter what they do, they need to insert the codes into it so that if something happens they can always pull the plug or find a way to fix it. That's bank and the banking system we all know about. You can see the same version of altcoin which are basically centralized and controlled by the company that issues it.
The blockchain is a powerful technology mainstream adoption by financial institutions into the tech will increase public awareness and support of new ideas and Bitcoin would likely receive a benefit from perception changes.
In other words in the long run perhaps through relationships.
In other words in the long run perhaps through relationships.
It will affect (positively) the prices once the banks start using THE bitcoin blockchain and Barclays is the first one to experiment with that, I'm sure others will follow suit. A new blockchain with few nodes won't be nearly as effective or safe as bitcoin's blockchain due to it's network efffect.
Barclays isn't the only financial institution interested in the blockchain. UBS has set up a blockchain "lab" in Canary Wharf and Santander is also experimenting with the technology as well. Many others will follow it, try to embrace bitcoin's technology and compete with bitcoin. The banks would NOT have to temporarily convert currency into bitcoin. I could see them sending blocks of fed notes (1,000,000's 100,000's 10,000's) with marked satoshi's/colored coins. Of course they would still have to pay transaction fees with bitcoins. I believe it would still be bullish from Bitcoin being acknowledged. It just would be a way more subdued trip to the moon since they would not need a billion dollars of bitcoin to transfer billion dollars of fed notes just a few marked satoshi's.
Can you please elaborate on how the block chain can be used to send fed notes (or other non BTC transactions) without using actual bitcoins? with a coloured coin implementation all you need is a global standard that a red satoshi = 0.01, a blue satoshi = 0.1, a green satoshi - $1, then by sending 3 satoshis you can send $1.11. And if I mkae a purple satoshi $1,000,000,000, I can send $1,000,000,000 with 1 satoshi.
But that is by the by, Banks will NOT use bitcoin unless they can get themselves comfortable with receiving bitcoins from unknown parties, or ensure that parties identify themselves - ie meet money laundering regulatory requirements.
What banks will much prefer is a closed loop system where they act as gateways and send IOUs around a distributed ledger amongst parties they trust (sound familiar). Banks don't care that they are trading IOUs and fractional reserving - that's what they do anyway.
Now that system is in many ways inferior to bitcoin, so bitcoin will continue to exist, but it will give the banks enough instant transaction and cross border ability that for most sheep using bitcoin will be too much hassle for not enough saving.
no because, many banks will only build from scratch their own centralized blochchain, and this might potentially, go against bitcoin and impact its price in a negative way
The banks would NOT have to temporarily convert currency into bitcoin. I could see them sending blocks of fed notes (1,000,000's 100,000's 10,000's) with marked satoshi's/colored coins. Of course they would still have to pay transaction fees with bitcoins. I believe it would still be bullish from Bitcoin being acknowledged. It just would be a way more subdued trip to the moon since they would not need a billion dollars of bitcoin to transfer billion dollars of fed notes just a few marked satoshi's.
Can you please elaborate on how the block chain can be used to send fed notes (or other non BTC transactions) without using actual bitcoins? It will be using actual bitcoins, just fractions (colored coins). It will be like Nasdaq's experiment where hey are planning to transfer stocks on the blockchain, or the transfer of property deeds or other assets using the blockchain.
The banks would NOT have to temporarily convert currency into bitcoin. I could see them sending blocks of fed notes (1,000,000's 100,000's 10,000's) with marked satoshi's/colored coins. Of course they would still have to pay transaction fees with bitcoins. I believe it would still be bullish from Bitcoin being acknowledged. It just would be a way more subdued trip to the moon since they would not need a billion dollars of bitcoin to transfer billion dollars of fed notes just a few marked satoshi's.
Can you please elaborate on how the block chain can be used to send fed notes (or other non BTC transactions) without using actual bitcoins? If banks use the BTC blockchain in the future then of course it will effect the price. It'll send the price to the moon. If they use the BTC blockchain then it means they will have to temporarily convert currency into BTC whilst they transfer that money to wherever they're sending it. To transfer it they're buying BTC with the money they're sending so of course it will effect the price.
It'll be incredibly bullish if they start using the BTC blockchain, if they decide to use blockchain technology then the BTC blockchain is the only sensible way really, it's fast & incredibly secure, something banks will be have to ensure.
It'll be incredibly bullish if they start using the BTC blockchain, if they decide to use blockchain technology then the BTC blockchain is the only sensible way really, it's fast & incredibly secure, something banks will be have to ensure.
The banks would NOT have to temporarily convert currency into bitcoin. I could see them sending blocks of fed notes (1,000,000's 100,000's 10,000's) with marked satoshi's/colored coins. Of course they would still have to pay transaction fees with bitcoins. I believe it would still be bullish from Bitcoin being acknowledged. It just would be a way more subdued trip to the moon since they would not need a billion dollars of bitcoin to transfer billion dollars of fed notes just a few marked satoshi's.
blockchain and banks..
well for one, banks dont really care for much for bitcoin cause if they really wanted to get in the game, they can offer a numerious sum on like coinbase or other private companies.
well for one, banks dont really care for much for bitcoin cause if they really wanted to get in the game, they can offer a numerious sum on like coinbase or other private companies.
I think the reason a lot of CEOs distance themselves from mentioning Bitcoin is because they know Bitcoin has a past of crypt-anarchysm and all those Silk Road incidents don't help selling them product, but all in all they are still promoting Bitcoin since they promote the blockchain.
yeah, the day this happens its because most people are already using bitcoin.
so i say dont worry if the bank affect price, worry about if theres any new users we can introduce the coin.
so i say dont worry if the bank affect price, worry about if theres any new users we can introduce the coin.
No, but people using bitcoin will affect banks.
It is the other way around.
It is the other way around.
its just a matter of when, but for all I know I can be dead before this happens.
anything can happen within a day, so if you live to see it yay!
No, but people using bitcoin will affect banks.
It is the other way around.
It is the other way around.
I still would like to know what a centralized bank version of there own blockchain would look like. Pretty sure I will laugh at it.
they will simply use their own version of the blockchain. it will show the blockchain as technology has a future. as far as having an impact on the price? nope.
If banks use the BTC blockchain in the future then of course it will effect the price. It'll send the price to the moon. If they use the BTC blockchain then it means they will have to temporarily convert currency into BTC whilst they transfer that money to wherever they're sending it. To transfer it they're buying BTC with the money they're sending so of course it will effect the price.
It'll be incredibly bullish if they start using the BTC blockchain, if they decide to use blockchain technology then the BTC blockchain is the only sensible way really, it's fast & incredibly secure, something banks will be have to ensure.
It'll be incredibly bullish if they start using the BTC blockchain, if they decide to use blockchain technology then the BTC blockchain is the only sensible way really, it's fast & incredibly secure, something banks will be have to ensure.
Banks using blockchain technology will raise awareness of cryptos, might bring more users into bitcoin, but not enough to move the prices. If banks use THE bitcoin blockchain, it will affect bitcoin price a lot, since they need to buy bitcoin to send transactions to the blockchain.
Using blockchain doesn't necessarily mean buying Bitcoin. The blockchain can be serve as trustless record ledger.
It doesn't mean buying Bitcoin directly, but you are using Bitcoin. If your infraestructure uses the blockchain, then it's using Bitcoin even if you think you don't directly. These miners are getting paid processing every transaction your bitcoin-blockchain based business makes, so you better hope that Bitcoin is healthy. This gives entrepreneurs using the blockchain an incentive to directly invest in BTC as well.
Jump to: