Are banks doomed by the crypto revolution?

Chris Becker, blockchain lead at Investec, and Josh Miltz, co-founder of crypto exchange Bitfund, discuss how cryptos are changing what we thought we knew about financial services and banking.

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No the banks are not doomed.

It isn’t a revolution.

Blockchain may be an evolution for B2B communication.

Cryptocurrency is a fad running on hype.

Agreed. How do you buy your crypto in the first place? Do you deposit money into their bank account from your bank account to buy the thing that is supposed to replace your bank account?

You missed the part about the $1bn transaction that cost $3. Now imagine doing that over & over & none of tbe 2% banking fees per transaction. THAT is the power of bitcoin. Banks will get paid twice – once when I deposit & once when I withdraw. Zero transactional charges in between. Still see no threat?

@DHawker Ok, let’s engage in facts. Crypto has several claims to fame besides transaction cost and most of them are unreliable at best. Safety, wild fluctuations in value caused many people to lose their entire life savings (more consumer education is required and it should be marketed as some silver bullet). Security, exchanges have been hacked and in one instance an owner of an exchange (QuadrigaCX) died with nobody knowing the encryption key and all the clients losing their investment. Anonymity, often it is said that crypto can’t be traced but that $ 1 billion transaction was traced back to the Silk Road. Which brings me to another point, criminal activity. Criminals often use crypto for ransom and payment for services and products, because there is no charge back option and it may be hard to trace. This created other illicit trades like tumbling to disguise the true origin of money. Lastly, the technology underlying crypto can change the banking system if we do not need to use the Swift or SASwitch systems I do not believe it will replace it.

Exactly. There can be no crypto-entity without an interface to reality. Now there are ATM-type thingies that charge 10 or 15% and if you get your money you are lucky. How wonderful is that?
Then the taxman is focused upon you.
It costs big time to buy and big time to sell. And in between are a host of totally uncontrolled, unreliable and unregulated ex snake-oil sales entities.
And this is the future?

Just go and have a good look at what is busy happening in the crypto world and when you convince yourself that you know enough about this hype, then good for you. There is not a doctor on the planet that expected in 2020 a security guard will take his temperature. You will own bitcoin, maybe only when it is $100,000

Cryptocurrency is the concept of what we know as money represented as a computer program. Programmable money that allows any and every person to write their own programs to interface and use the money, send it anywhere without borders and red tape introduced by government. It is true online commerce.

You might be comfortable with government printed papers and worthless metal coins or a digital number on a system called a bank account, that is backed by… trust in the Central bank to keep inflation in check… And trusting your politicians to not run the debt to the point that your money loses all their value.

It was the same discussion vs online stores vs store at the mall… The 2000 dot-com boom and bust went the same route. Everyone thought Amazon would take over the world and where are they today? If I only bough some Amazon stock during the 2000 crash. Google started in a garage selling advertising on websites. Now who in their right mind would pay to put advertising onto a news site? I was wrong about google stock too. Netflix, Paypal…. etc. Lesson learned.

Yes the hype is great, since lots of people see it as a get-rich-quick scheme. It isn’t a get-rich-quick scheme. It is the future of transacting on the internet and who knows if bitcoin will not be replaced with another system that is faster and cheaper and more secure? The technology itself is not something that will pass.

It is the online form of money. And will morph and change insurance, stocks, unit trusts, commerce and foreign exchange in ways we cannot even begin to understand. just look at the financial applications built into ETH.

I repeat… this is not a get rich quick scheme, it is technology that will rewrite internet commerce

The modern wealthy men and flashing. The old way was buildings, yachts,and wife’s. Surrounded with diamonds, horses, and tabloid creepers. Today it is a memory stick with data, in bits, how many coins you own.

Not until crypto gets regulated and taxed.

To get involved in Crypto.start to learn by going to sites like Coinmarketcap.com, blockchain.com and Binance.com Their menus will all have easy learning sections, even Q &A assistance.Free.Then join telegram groups on a few of the main currencies/biz where more direct assistance is possible.The due diligence advice in the podcast is good/valid.Simple businesses that will teach you more free,that dont not have complex layers, that don’t charge you upfront fees, don’t have time periods tying up your Crypto, have other hoops you must first jump through to attain more and allow you to withdraw your money and profits when you want with no charges or ‘fees/penalties are some of the things to look for. Get other opinions on telegram but start small and learn that biz yourself. Its your money,, be responsible for it. With 4+ years experience in the industry, I’ve taken some knocks, but I’m still in it, growing with it,, and its rewarding.

No. And lastly … there is no such thing as a free lunch, unless you go to a charity kitchen, which you may have to do if you go big on BC.

But, if you are in Canada it will cost you $4000 to mine a BC so why spend $15000 on a BC when you could get a friend to mine one in Canada for a third of the price and transfer cash to you in US dollars? Because that’s the USP, isn’t it? No fee international transfer?

Then you could go to Venezuela and mine a coin for $531. Production costs per coin considering electricity input. Hardware rigs not costed in.

So like any other product, jeans, t-shirts or fashion shoes, it all depends on where you source your stock: Bangladesh, Paris or Milan and you your market is. Also, do you have a main street Maison or a backstreet hack shop?

Sigh …

https://www.borndigital.com/2018/01/31/canada-is-26th-most-expensive-country-to-mine-bitcoin-in
https://www.investopedia.com/articles/forex/051115/bitcoin-mining-still-profitable.asp

“Dear Mister Bitcoin…or should I address my to Satoshi Nakmoto?”

My bank (the big green ‘N’) charges me prime minus 1,15% on my home loan.

WHAT CAN YOU OFFER ME INSTEAD with your impressive and advanced blockchain crypto solution??

Would it be close to 0% p.a.? Well, in that case….commercial banks are toast.

What about vehicle credit? (possible with smart-contracts?) How’s your % rates?

Sadly if you do not offer loans, the commercial banks are not being disrupted at all.

Awaiting your favorable response. I have a good credit record…my chain is somewhere on your block 🙂

End of comments.

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