Quote from: Strongkored on July 21, 2023, 12:06:03 PM

Quote from: MiF on May 14, 2023, 07:18:15 PM

Banks are earning big profit from our deposits, they earn bigger than the interest that we get from our deposit because they put a bigger interest rate through thier borrower's or lenders, i think bank is not too far from big whales in crypto they buy or collect coins in dip and they sell in bull and they earn bigger from the holders that sell at loss they are almost the same or what? What dou you think?

It looks the same but it's not, because banks are institutions that use other people's money to make a profit by offering services whereas whales are more for individuals and the money he uses is his own and the profit he gets is not because he offers services to other people but sees opportunities from bearish or bullish times but both have the same orientation namely profit, and the bank's profit is to continue developing their business while the whale's profit is to make them richer because assets increase, but both are trying to get richer.

I think we could compare banks in fiat world to exchanges in the crypto world. In the end when you are spending your credit card, you give some of it to the bank, the shop gives some of it to the bank, and then shop owner goes spends that and gives some to the bank as well.

As you can see all the money in the world ends up in the banks hands, and they are not like some human who needs to spend, they just collect it forever, hence we keep needing to print money in order to prevent them from having all the money in the world one day. Same with exchanges, when you trade in an exchange, the buyer and the seller both pays. Hence banks are like exchanges if you ask me, the comparison is uncanny and it's very similar to each other.