Is bitcoin the way to kill the banks?

Is their a Bank of Bitcoin where a prospective homeowner can go in and take out a collateralized home mortgage? No? Let me know when you can do that and then we can have a conversation about how you really didn't replace anything.

originally posted by: lightedhype

originally posted by: paytaplay
I dont care who owns bitcoin or runs it , it looks crazy and sounds crazy, but my brother sent me .10 a long time ago and i just sent it to a gambling site and had me a good run. Bitcoin is stupid , will go away, but it sure was fun

Well that was pretty dumb. You couldve done research and invested when he sent it, youd be a millionaire by now if we are talking years. But hey - all for fun. Those btc gambling sites are a fun way to lose money.

Unless I am misreading his post it was .10 of a bitcoin, so that would not have made him a millionaire regardless of when he got it.

Wow so many uninformed and just outright wrong responses! The banks do not control bitcoin a d can't touch your coins if you have them secured away, its value is from the supply and demand for it because it and its any altcoins are more efficient fintechs then swift and safer than PayPal.
Could you imagine if enough people used bitcoin to protest the banks? They have lent more money than they have so if people become smart enough and go for the better return which is definitely btc the banks will get drained of liquidity.
Btc is not the only horse on the race either so I'll list some altcoins and what they're trying to do.
Syscoin; If syscoin takes off say goodbye to lots of profits eBay as syscoin already has a working platform to sell on a decentralized exchange.

Monero; The ultimate privacy coin and is currently 100% untraceable and is a libertarians dream.

Ethereum, NEO, ARK, ETP and a few others will host decentralized smart contracts which can be so many things. Think decentralized uber or airbnb.

Gamecredits; is going to facilitate transactions between gamers and virtual items.

IOTA, this isn't even blockchain and wants to lead the way for micro transactions and is already working with major companies like Bosch and VW.

Black moon, decentralized exchange for all kind of things from stocks to real estate.

BAT, basic attention token is the best browser you can use because you can get paid to view adds or trade the token as a virtual currency.

Solarcoin, get credits by joining the network and producing solar power.

Tend, has a card that you can get in some countries to spend your crypto and Monaco as well as Metal are similar concepts.

Ripple, wants to work with the banks to replace swift and dominate remittances a trillion dollar market.

I can go on as there's so much going in the crypocurrency world, so I advise the uneducated sceptics just making statements based on zero comprehension this subject to actually do some research.

a reply to: AugustusMasonicus

You can use one of the emerging smart contract platforms to sell a title deed or have an escrow agreement so I'm assuming its not far off. Btc is still young and its children are chipping away at the foundations of the centralized banking system.

Why am I even in a system where I need a bank to create money out of nothing and then lend it to me at a cost? I will probably be able to just buy a house very soon because of crypocurrency and its more fair decentralized economy.

originally posted by: AugustusMasonicus

Is their a Bank of Bitcoin where a prospective homeowner can go in and take out a collateralized home mortgage? No? Let me know when you can do that and then we can have a conversation about how you really didn't replace anything.

Valid argument. There doesn't yet exist a platform to lend given the market volatility. Few years are still needed to extend the blockchains far enough to where they create larger stores of stable value.

What does exist is 'smart contracts.' Whereas you could sell me a home for an allotted price and we hash out the details. BUT, would be a sucker bet for all parties given the mentioned volatility.

originally posted by: Slickinfinity I will probably be able to just buy a house very soon because of crypocurrency and its more fair decentralized economy.

How will you be able to buy a house "because of"? Is this because you have made "real" money by speculating?

originally posted by: LightSpeedDriver
"In other news tonight....

Governments worldwide have banned all crypto-currencies effective immediately due to their destabilisng effects on economies and the increased criminality that has lately been sweeping nations citing national security concerns. All crypto-exchanges have now been declared illegal and it remains to be seen if regular citizens will see a single penny of their digital assets....

Next up, Tom with the weather..."

this is precisely what I expect to happen

a reply to: paraphi

What do you consider real money? I am in Asia right now on vacation and I bought my tickets with btc on cheapair and same with the hotels. I saved hundreds of dollars by using Rebit to send myself a remittance with almost no cost. I just sent btc which got converted into pesos which I pick up at a palawan shop or local bank.

a reply to: njord

Then it will loose value temporarily like it did with China FUD then some new way to exchange, hide and convert will get created. They can't stop it unless they shut off the internet and the more they try the more we come up with ways to bypass them.
Most people hate the banks and are unhappy with current government so not many will follow unjust laws and with decentralized exchanges taking over sites like bittrex and bitfinex the governments will be so impotent at btc enforcement they'll either have to adapt or get replaced.
They can't get your coins if you store them secure period and all they can do is FUD and oppress my freedom to control my own money.

Bitcoin won't replace conventional currencies as for the vast majority of transactions it offers no real benefit but with higher risks.

While there are some uses for crypto currency (some of which are even legal...) they are far too niche to lead to mainstream adoption.

a reply to: ScepticScot

Your response is typical of someone who knows very little about bitcoin and the blockchain technology that's it's based on.
Those "some uses" are far more than you realize and everything that is currently centralized is being underwritten by a more fair decentralized system.
The risks in bitcoin is there but so is there risk in having anything of value.
So many uses and current things are going to be replaced by crypto and decentralization, I'm betting on it.

a reply to: Slickinfinity

And your response is fairly typical of a crypto fan boy in that it makes vague claims with out any real detail to support.

My assertion is that for most transactions bitcoin has no advantages and plenty of potential disadvantages over convention payment methods.

Have yet to see a convincing argument otherwise.

a reply to: ScepticScot

OK well if you read a few posts back I clearly explain what not just btc but many different crypocurrencies and smart contract platforms can and do.

Here's an example of how I'm saving lots of money by using crypocurrency.
I'm in the Philippines right now on vacation and I bought my tickets with btc easily as well as a hotel. If I wanted to convert dollars to pesos like before I always felt raped after the fees so now I send my crypto to Rebit which I go pick up as pesos. I just got one yesterday for under 500$ and the only fee was about 2$.
If I use western union its 10$ fee plus their 2.9% min exchange rate
If I get cash advance at ATM its just brutal fees on both ends.
If I buy something with my cc I pay a fee so yes btc works better than actual currency in my situation to cut travel costs down, those costs being bank and credit card fees.

I use mostly litecoin for those transactions as its faster than btc and has an average fee of .07 per transaction.
I buy things online with crypocurrency a lot easier than using my cc, I just scan qr with my wallet n send exact amount and the blockchain shows all transaction so I feel more secure.
Its new and I understand that some might be weary of new fintech but I'm looking 5 years down the road with btc at 100k and government having no choice but to work with the people for a change instead of the 1% who rely on the control of centralized banking to remain on top because they produce nothing tangible for society except debt and fees and more debt.
Bitcoin is the nemesis of keynesian economics.

a reply to: Slickinfinity

If you buy something online with bitcoin you are considerably less secure in most cases than using a conventional payment method. If you use a bank, credit card or even PayPal you are protected by a host of legal protections and industry standards. Using bitcoin you have virtually no comeback against the seller at all.

The number of companies accepting bitcoin is limited and the majority those that do will want to transfer it over to their local currency. For the majority of transactions you are unlikely then to get a better price paying bitcoin ( or similar).

Fees are paid on pretty much every bitcoin transaction, the vast majority of my transactions through my bank are completely free. ( This of course does depend on your countries banking system).

The idea that bitcoin or any crypto currency is a challenge to national governments is just fantasy. While governments have the ability to tax in the currency of their choosing there is no need for them to acknowledge cryptos at all other than as a speculative asset to be taxed.

originally posted by: Slickinfinity
You can use one of the emerging smart contract platforms to sell a title deed or have an escrow agreement so I'm assuming its not far off.

None of these, as far as I know, are set up for long term amortized mortgages of real estate. Also, bitcoins are not needed on the current SALTs, you can repay in whatever currencies you mutually agree on. There is also no credit check performed on the borrower so the high inherent risk may not appeal to many prospective lenders.

a reply to: ScepticScot

If you buy something online with bitcoin you are considerably less secure in most cases than using a conventional payment method. If you use a bank, credit card or even PayPal you are protected by a host of legal protections and industry standards. Using bitcoin you have virtually no comeback against the seller at all.

False. If they accept payment of the bitcoin, you are still under the same protections whether you use a card or cash. A huge difference in favor of the bitcoin payer is that there is a public ledger to where exactly the payment went.

The number of companies accepting bitcoin is limited and the majority those that do will want to transfer it over to their local currency. For the majority of transactions you are unlikely then to get a better price paying bitcoin ( or similar).

Mostly correct in the context and conditions that they want their local currency. Solutions are being developed.

Fees are paid on pretty much every bitcoin transaction, the vast majority of my transactions through my bank are completely free. ( This of course does depend on your countries banking system).

Again, correct. Bitcoin fees are high because of the resources required of miners. This is the main reason big pushes of altcoins are being made. However, if were talking money wires or person to person transfers, the speed and fees more than make up for traditional banking methods.

The idea that bitcoin or any crypto currency is a challenge to national governments is just fantasy. While governments have the ability to tax in the currency of their choosing there is no need for them to acknowledge cryptos at all other than as a speculative asset to be taxed.

Luckily, currency is a popular vote method. We, not banks can give and take away the value of a currency. In fact, it would be great if they don't acknowledge it at all! Should crypto move on it's same pace, we can be looking at a use tax in lieu of income taxes and capital gains taxes.

originally posted by: JinMI
What does exist is 'smart contracts.'

Yes, SALTs, but as of yet, as you are obviously aware, there is no way to amortize a real estate transaction which is one of the major features of commercial banks.

My point is, once you replace the current status quo with another method you really didn't replace anything, someone is still making money on interest so the 'banks' only change form. Lending is a mainstay in how we conduct commerce and has been since man created currency.

a reply to: AugustusMasonicus
Following the traditional finance rules, you'd be absolutely correct. There is a term used called disruption in the crypto space. The prospect that it throws a wrench in the gears of business as usual in the financial sector. I don't claim to know what may be in store for that area but I would imagine it would greatly effect the dollar value attributed to real estate. Perhaps even reduce the demand as other living arrangements are made.

I personally don't think any crypto yet has the capability to knock out debt/interest systems. Nor do I see a better option other than paid in full options. Best I could offer is, we'll see.

a reply to: AugustusMasonicus

Fiat is Keynesian bitcoin is not and that little difference tells me btc is the more fair currency for the future that will replace centralized banking in the next 25 years or less.

originally posted by: JinMI
I personally don't think any crypto yet has the capability to knock out debt/interest systems. Nor do I see a better option other than paid in full options. Best I could offer is, we'll see.

Nothing will ever knock out the debt interest system as long as people use any type of money.