Quote from: cuddaloreappu on June 19, 2014, 04:18:17 PM

Quote from: EcuaMobi on June 19, 2014, 04:15:04 PM

Quote from: cuddaloreappu on June 19, 2014, 04:09:52 PM

Quote from: Este Nuno on June 19, 2014, 03:53:13 PM

Quote from: cuddaloreappu on June 19, 2014, 03:30:46 PM

As we move into bitcoin economy , where there is merchant adoption universally and you are able to buy anything with bitcoin, there is no point an average guy would put his savings in a bank, He could save even a million dollars worth of money in a encrypted paper wallet.

Now banks will lose all the minimum balance that it recommends for having an account, Now banks will not have any money to loan out and hence the entire banking system collapses.

On the other side bitcoin 2.0 applications like counterparty, ethereum will enable crowdfunding and other financial derivatives and decentralized exchanges which will affect the investment banks. Because you don't rely on a central institution like banks to raise your capital.

What other ways could banks face disruption by bitcoin?

What if banks offered competitive interest rates on deposited fiat?

BUt the interest rate is a gimmick, consider inflation which washes away any gains with interest.
but no competitive stratergy can help a inflationary asset like us dollar can fight a deflationary assets like bitcoin

But banks don't have to work only on USD in the future.
They could allow BTC accounts and pay interests over those BTC, while lending it to other clients.

That centralization could go against the idea behind Bitcoin, but they still will be able to do it.

Everything is possible.

would you deposit your bitcoin in a bank?..I wont and i believe you wont too, because the greatest lesson bitcoin has taught us through Mt.Gox is that a decentralized system should not be trusted with a centralized system.

No, I wouldn't. But I'm sure a lot of people would when Bitcoin is used by everyone, provided banks offer a good interest rate.