Mark my words, before too long banks will be offering to hold your bitcoin for you (securely of course) and transferring between fiat to btc, and back, with little to no fee as incentive.
I'll say it again. I would trust some of my btc to a traditional bank, as long as
- The deposit is backed by (audited) crypto or undilutable bank stock (ordinary bonds would be OK too)
- I get my interest (in btc). A reasonable 10% or something like that, depending on market conditions.
These banks will find out that luring old school hodlers to part temporarily with their precioussss takes more than a flashy brochure.
They can shove 10% up their ass. I'd rather support a public firm at those rates. And any higher than that they can't guarantee anyways. I'd consider a bank safe with a hardware or paper wallet if it was insured for the fiat equivalent of the Bitcorns regardless of market situation, but I don't think there are any insurances that cover dynamic valuations without extracting insane fees that would render the whole deal uneconomical.
They couldn't give any interest rate unless they were allowed to:
a) Running fractional reserve
b) Shorting the market (selling YOUR BTC)
There's absolutely no way I can think of... unless a market of fully insured Bitcoin lending would exist and offered better returns than those 10% they would give you... which it doesn't.
You could be glad if they don't charge you a custody fee for holding your BTC.
I wouldn't mind storing some BTC with them, at no interest rate, if they wouldn't charge me any fee for that AND it was fully insured (to the full BTC amount, not fiat value). I would be doing it as another "diversifying" on my hodling/storing strategy.
But it is not gonna happen because the numbers don't add up.