Would you trust your Bitcoins to a Bitcoin Bank with annual 10% interest rate? - page 8.

neochiny

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I would not trust my bitcoin to a bitcoin bank.
Even it will have an annual interest of 10%.
as its too good to be true.. we all know that theres a lot,
of scam happening in bitcoin. we do not know if this is also one of it.
and even the future if that happens... it will still not be good to bitcoin.
as if it happens... it will not be different to a fiat anymore...
Sad

hunnaryb

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Suppose you had 100 BTC. I'm sure many of you do. If you put it in a Bitcoin Bank account and had 10% interest, you might find yourself in negative equity after that year, even with the new balance of 110 BTC. Its unwise to do this.

Yakamoto

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No, unless the bank was a previously reputable company with a fairly long history in the Bitcoin space, I would immediately think that it was a scam and move on with my life.

However, if it is a reputable company with a large history in the Bitcoin space, I would still think it's a scam and move on.

10% is absolutely massive, and is hugely unsustainable for a long period of time. Unless the bank was giving out loans like crazy, with fairly large interest rates, and, of course, inevitably leading to the fractional reserve lending that stems from such a system, it seems way too good to be true.

Hell, I put in $100 to that bank, and in a year I would earn $10. That is mind boggling. I can see earning $1/year when someone inputs $100, but 410 a year? Never happening until a cup of Tim Hortons is $30.

Drewski

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Quote from: BitUsher on December 07, 2015, 07:30:52 PM

Quote from: Drewski on December 07, 2015, 07:19:21 PM

Depends on where you live. The banks in Canada are backed by the government, so I do have a fair amount of faith in our banks. If the situation gets to a point where the government can't cover it, I will probably have more pressing issues than my bitcoins.

Do you realize that some countries have negative interest rates for the first time in history? We are in uncharted waters and governments are using new techniques to pay off their debts and reckless spending. Bail-ins are becoming popular and will come unannounced. You will wake up one morning and see a line outside of every ATM where you are allowed 100 dollars a day withdrawal maximum while they decide how to devalue your assets. -- coming to a country near you.

And that's why I keep a pantry full of food and water, and a safe full of guns.

I guess it's the nature of democracies, where one government doesn't care what condition they leave the country in for the next one, as long as they get re-elected. Hell, leaving it in horrible condition might actually get you re-elected for the next one.

Hazir

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If bitcoin price will be fixed at rates similar to standard FIAT currencies, then keeping your money in a bitcoin bank for a year could be beneficial for you.
But bitcoin's price is so volatile that there is no way that here will be bank paying for all prices shift. So after a year you can end with less money you invested initially into this.

Meuh6879

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Quote from: BitUsher on December 07, 2015, 07:30:52 PM

and governments are using new techniques to pay off their debts and reckless spending.

print money.

use simple words ... bitcoin is as simple as that : you can not print money with this system.
intact fund, intact economy (work = money), recycling of fund (bad money = justice) ... over decade.

trusted money over generation of humans.

BitUsher

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Quote from: Drewski on December 07, 2015, 07:19:21 PM

Depends on where you live. The banks in Canada are backed by the government, so I do have a fair amount of faith in our banks. If the situation gets to a point where the government can't cover it, I will probably have more pressing issues than my bitcoins.

Do you realize that some countries have negative interest rates for the first time in history? We are in uncharted waters and governments are using new techniques to pay off their debts and reckless spending. Bail-ins are becoming popular and will come unannounced. You will wake up one morning and see a line outside of every ATM where you are allowed 100 dollars a day withdrawal maximum while they decide how to devalue your assets. -- coming to a country near you.

Drewski

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Depends on where you live. The banks in Canada are backed by the government, so I do have a fair amount of faith in our banks. If the situation gets to a point where the government can't cover it, I will probably have more pressing issues than my bitcoins.

BitUsher

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Quote from: The Sceptical Chymist on December 07, 2015, 07:03:22 PM

it's funny, but I would trust my Bitcoin with my local bank perhaps but would never trust it with anyone on this forum or pretty much anyone in the Bitcoin world. There are so many fucking scams going on here that trust is nowhere to be found.

well I respect half of that comment.... but trusting banks is very naive. Bail ins, austerity measures and asset forfeiture is the new trend.

The Sceptical Chymist

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Top Crypto Casino

it's funny, but I would trust my Bitcoin with my local bank perhaps but would never trust it with anyone on this forum or pretty much anyone in the Bitcoin world. There are so many fucking scams going on here that trust is nowhere to be found.

BitUsher

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This defeats the whole raison d'être of bitcoin, so no.

Bitcoin is disinflationary so naturally grows "sitting under your mattress" , if a bank is offering high returns , turning a profit and paying for employees and overhead you know there must be some sort of scam involved.

Do not trade your bitcoins for IOUs or promises.

keepdoing

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Not currently. In the future maybe. Markets change. Global / Regional interests rates change. But currently the global interest rate average is about ZERO. 10% looks too good to be true.

Wapinter

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Hire me for Bounty Management

Quote from: Xubu on December 07, 2015, 04:33:32 PM

Would you, or would you not?

It is not rate of interest that matters to me but the credibility of the Bank that would be decisive point for me.If the promoters of Bitcoin Bank are reputable,and they have means to provide best security to bitcoins,then yes I would definitely keep my Bitcoin with them

eternalgloom

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I would not, 10% annual interest rate sound far too sketchy.
How would it even be possible to offer those kinds of rates while keeping your funds safe?

I would assume that you'd need to partake in some pretty risky investments..

calkob

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Quote from: Xubu on December 07, 2015, 04:47:59 PM

Quote from: onemorexmr on December 07, 2015, 04:35:24 PM

no

Why not? If you store 100BTC, next year you've got 110 BTC. I know BTC is decentralized but holding your coins on your local wallet or exchange doesn't grow your amount.

HAHA Thought this was gona be a joke but i read to the end and had a laugh

ahh Cheesy

what about the idea that mybe next year your 100BTC becomes 0BTC because, well here are a few reason,

the Company goes bust,
the owner does a runner with all the private keys
a trusted employee steels the bitcoins
they get hacked
they lose the private keys

"if you dont have the keys you dont own the bitcoin"

BTC jam are doing P2P loans but even then you have risk of someone not paying back, so you spread the risk over say 100 loans. if you have all your coins in a so called bank in one account, then in my opinion you are asking for trouble.

virtualx

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LOTEO

Quote from: Xubu on December 07, 2015, 04:33:32 PM

Would you, or would you not?

No, I do not trust third parties with my possessions. Third party involves a lot of risk. What if this "Bitcoin bank" gets hacked? Bitcoin does not rely on a third party and this makes it more trustable.

ekin4

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No, I don't trust any banks. That's why I use Bitcoin.

owm123

sr. member

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F*** banks.

franky1

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Quote from: Xubu on December 07, 2015, 05:00:21 PM

Quote from: onemorexmr on December 07, 2015, 04:55:42 PM

Quote from: Xubu on December 07, 2015, 04:53:50 PM

Quote from: NorrisK on December 07, 2015, 04:50:48 PM

The rate is just too unrealistic.. The profit of the bank has to come from somewhere to pay your interest rates. They will most likely be doing some extremely risky investments to pay you then.

There is no difference with real money banks here...

the difference is that real banks are insured against loss

assume we live in 2020, BTC is a stable and trustable currency and the BTC bank is insured for losses. Would you trust your BTC to a bank with an annual 10%?

firstly. fiat banks do not invest customer funds.. its fractionally reserved...
lets say the bank had $1m of customers funds in accounts.
now separately
they are legally allowed to CREATE $10million into new mortgage accounts and its the debt interest on the repayments of the newly created mortgage money. that eventually bank customers see as their 'savings interest'.

customers funds do not get handed to potential home owners.. its just used as an asset measure to validate a banks liquidity and allow it to create money.
bitcoin cant do that.. the only way to make more bitcoin is to trade/gamble it on markets. meaning there is a risk of loss..
no one is going to insure that otherwise wall street(investments) would never go broke if they could insure losses.

so in short. no i wont hand my funds to third party for a year long. sorry.
OP i think you need to research 'trendon shavers'

Monnt

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TBH, no. 10% is quite alot, and also with bitcoin's increase in price, it's unbelievable. So no, I wouldn't trust this bank with my bitcoin. I'd rather convert my coins into fiat then put it into another more trusted bank.

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