Competition tends to shake things up, right? But honestly, I haven't seen anything yet that would really push banks to step up their game where they're lacking. Imagine if every country embraced Bitcoin and we had banks that operated like the ones we know, but with Bitcoin. There are definitely some issues we deal with at regular banks that wouldn’t be a problem with Bitcoin banks. For one, they’d likely attract way more customers because transactions would be super fast. No more waiting in line for hours at a bank things would get done way quicker with Bitcoin banks. So, do you think regular banks would finally start to pay attention if Bitcoin banks became a thing?
Let me say you just wanted to write something positive about Bitcoin, but you should at least be constructive enough about it. Are you saying Bitcoin's transaction that takes at least 10 minute will be faster than that of the banks which happen in milliseconds in most cases? If everybody is using Bitcoin and banks were totally outdated, have you thought about the career loss and how it would affect the economy, even as some tech savvies continue to take all benefits, or almost all? Not to talk about higher fees (except for cross border payments). Many financial institutions offer free transfers in my country, and those who charge, charge a ridiculous amount that may not be able to buy the least product in the country. Let's be fair, and for me, there should be a balance, and I love the way Bitcoin and others coexist.
Bitcoin is not even ready to compete; instead, it is being served as an alternative for anyone who is interested in seeing a change from how central authorities take control of our finances. This is a change everyone has always dreamt of seeing come to pass until the arrival of Bitcoin.
The issue here is that we don't even want Bitcoin to behave like normal banks, because the government regulation will be so disastrous for us that we are going to regret having such. Better that things remain as it was and we keep being under decentralization as individuals only take responsibility for their financial lives.
First of all you cannot even think of bitcoin becoming like the normal bank. Why? Because the banks are a central authority, bitcoin is a decentralised system and its has no bill to give.
The closest you can think of is the bitcoin ATMs, and even the Bitcoin ATM transactions takes more time than the normal ATM transactions due to the series of procedures.
We all want to say positive things about bitcoin, but one of the reasons why bitcoin havent gain more adoption as it is supposed to have got is just the time it take to confirm transactions is a little bit slower. most especially if the network is congested. It will take few minutes to confirm transactions and add to the blockchain, or youll be charged high fee by the miners just to make it fast.
Bitcoin can not be like the banks, but bitcoin has the characteristics that can make people use it instead of depending on the banks, but people prefer to use bitcoin as investment instead of making use of it also as a currency.
What I think can happen are the banks to also having bitcoin businesses like allowing their customers to have bitcoin with them. But the funniest thing is that you can have bitcoin on your own without any second party.
It can be, and a lot of exchange users know that. They deposit coins, then they trade, and they can also withdraw them. By using their coins for trading, they basically get the banking experience, which is very similar, as if they would invest in regular stocks instead.
So, we already have "Bitcoin banks". It is just called "keeping your coins on centralized exchanges".
I think this is a very interesting topic! 🙋
First, I'm sure commercial banks have no future. They currently have incredibly strong competitors. These include central bank digital currencies (CBDC), the AI agent ecosystem (like Google's), and cryptocurrencies, including Bitcoin. Therefore, in my opinion, it's safe to say that very soon, commercial banks will become as irrelevant as medieval carriages. 🏇
Second, you use the term "Bitcoin banks," but I'm not quite sure what you mean? Using Bitcoin as collateral to obtain a loan? Or something else?
In fact, owning Bitcoin is like having your own bank in your pocket! Currently, transacting through the banking system is very difficult due to compliance procedures. You may not be able to open an account at a commercial bank. Your own money may be frozen at the bank. You might be denied a certain transaction... Banks used to be customer-focused. Now, banks are more like government agents. It seems they consider the government their client. But they don't consider the people who bring them money to be clients...
If you have Bitcoin, you won't have any problems making cross-border payments of any amount. You won't have to coordinate these payments with anyone. This is precisely Bitcoin's advantage over banks. However, owning Bitcoin also comes with a huge responsibility. Because you can only rely on yourself. If you make a mistake in a transaction, you won't be able to turn to your bank for help. You are also fully responsible for the security of your private keys. 🧏
If Bitcoin eventually owns a physical bank like the regular commercial banks it will be regulated by the same government that regulates the commercial banks we use. The same level of operation might like be seen because accountability still falls back to the management. The only way bitcoin will remain what it is will just be to retain it's decentralised nature. If there be adoption there should just allow users be their own bank. The centralised banking system has failed us again and again which might even make things worse if something like a bitcoin bank ever exists. Not because of bitcoin itself it the people behind the counter attending to customers.
Although Bitcoin wasn't created to compete but indirectly there's a competition since it serves as an alternative money system and still has it's own features/benefits that's made people to embrace it however I think the real competition is among banks like traditional and fintechs but since Bitcoin still offer services like storing and traffering money, some people see it as a competition.
Well some bank are not really seeing Bitcoin as a threat and trying to coexist by adopting the blockchain to enhance their security and services and it makes lots of sense to me cause even though Bitcoin has a better store of value and other good benefits, banks are still very relevant.
Bitcoin can solve all the problems we face in banks, so people's trust in banks is gradually decreasing and people's trust in Bitcoin is increasing. If you keep money in the bank, the value of that money gradually decreases over time due to inflation, but if you hold Bitcoin digits, then the value of Bitcoin will not decrease over time due to the absence of inflation.
Banks can reduce the value of money by printing money at any time, but since Bitcoin has a fixed supply, there is no question of printing or increasing the supply.
Banks and bitcoin have their own advantages and disadvantages. You can't say that bitcoin is better than bank, or bank is better than bitcoin. They are both unique in their own ways. However, banks will always be favored by the government since it operate within a regulated, centralized system that can be easily monitored by the authorities and the government itself. And bitcoin is totally the opposite, and is expected to co-exist with banks.
If there is competition that is happening, I think that's normal for both currencies. People have their personal options and preferences, but if I had to say, what they have is just a healthy competition just to serve the people where they feel more convenient and secured.
It can be achieved, what I'm saying is a comparison between Banks and Bitcoin Bank, who serves better, that is if one day it happens for we to start seeing Bitcoin having its own Bank. In Banks we have notes which we can store in the Bank and from how we have seen Bitcoin since it came to existence is only coin we have seen, some have but I haven't so that's how it will be or we say it should be a collaboration between the two of them, move you money from the Bank to Bitcoin Bank, it can be converted and you do whatever you feel like, maybe investment like you said. For Banks to have Bitcoin business is like promoting Bitcoin while they lose their customers and they will be left with no body to do business with them, is like using your own hands to spoil everything you have built.
Banks can not compare in efficiency, security in handle transactions like Bitcoin blockchain. Because banks are based on and operated with traditional accounting while Bitcoin blockchain made an revolution in accounting.
The revolution shook the world including the traditional bank system and you will understand more about the Bitcoin's accounting revolution after reading.
The bullish case for Bitcoin.
Bitcoin: an accounting revolution.
Bitcoin and the accounting revolution that shook the world.
Both bitcoin and bank have their individual importance, don't post neglecting the value the bank brings too. The most value Bitcoin brings is the aspect of anonymity and control over assets without regulations and restrictions from bank.
With the bank, your assets are stable and legal protection provided unlike Bitcoin which is untraceable in the case of scams or mistakes from wrong address. Bitcoin is not widely accepted as payment means but Banks are widely used globally. Both Bitcoin and banks provide value, it depends on what you need (security, privacy, control).
Before you ask this question, you should first understand how Bitcoin works properly and also understand the banking system well.
You need to understand wisely, Bitcoin is currently still dependent on banks, the reason is that Bitcoin is not real like fiat, Bitcoin cannot yet be spent Bitcoin for Bitcoin and Bitcoin has no clear legal ownership, like banks have clear ownership and many other reasons, so Bitcoincannot be used as a Bitcoin Bank.
Bitcoin, without banks and without fiat can't do anything, because Bitcoin is not the same as paper money in general in taste, touch and so on, besides no one wants to take risks on Bitcoin, so it is impossible to form a Bitcoin Bank.
I think either your idea of Bitcoin is not clear, or you dont fully understand how the banking system works. Because the basic foundation of Bitcoin is a peer-to-peer system, where one user transacts directly with another user, without any intermediaries. It is a completely decentralized network.
On the other hand, the banking system is completely centralized. Here, KYC is required to open an account, and there are various levels of employees and intermediaries to manage the entire system.
People are also working in Bitcoin but they are not under any central authority. Miners are adding transactions to the block, node operators are helping to keep the network running everything is voluntary and decentralized.
So in my opinion, Bitcoin and the traditional banking system will never be the same unless the entire structure of the banking system is radically changed.
There is no need for a bitcoin bank, you are your own bank that is the core concept of bitcoin and if you are going in the path of allowing some custodian called a bitcoin bank then they are owning the bitcoin not you.
And the debate of standing in the long queue even with the tradional bank obsolete for almost a decade because banks also implemented digital banking, so you can do everything from your smartphone itself and it's been like 4 years since I visited a bank from myself yet I opened a couple of accounts in the last 4 years.
Why is there a Bitcoin Bank, while we can keep it ourselves. Just buy a hardware wallet when there are many assets, that way you have become your own bank. no need to queue, no need to go to the Bitcoin bank you are referring to.
If it does exist in the end, I'm not sure I'll keep it in that bank. It's better for me to keep it in my hardware wallet at home and make the necessary transactions from home, it saves more energy if I have to go to the bank.
If the Bitcoin bank does exist, I think there is a time when the transaction will be longer, for example when depositing Bitcoin to the Bank and then there is a heavy transaction in the mempool, it will take a few minutes or even several hours, it is really boring if you have to wait for confirmation and be at the Bank you are referring to.
I personally don't prefer holding money in banks because holding money in banks is not a good thing near me for long-term holding. Because if one is holding their money in the traditional banking system, then that means with the passage of time, the value of currency will devalue due to the increasing rate of inflation, and many other factors.
Rather, I personally prefer to hold money in the form of investments because investing in assets will help us to fight against the increasing rate of inflation. Well, this is my personal preference, and I am not advising anyone to do this as an fincial advise. So, this is for now, here I suggest more on relying on anyone's personal or own research.
Some banks offer efficient and close to reliable online services that you don't need to visit their physical offices. I think the major difference between Bitcoin and fiat is its decentralized nature. This is because there are some banks that offer cheap and fast transactions.
Some banks in Europe and the US are offering crypto-related services. Apart from the centralized nature of the crypto services offered by these banks, I don't think they are finding it difficult. Integrating these two types of money has enabled these banks to increase their customer base. It is also important to state that Bitcoin might not totally replace fiat, It was created as an alternative.