the main reason you operate a bank is loans. Bitcoin doesn't have loans. you can lend Bitcoin to people but you can lend anything to people, so Bitcoin isn't special in that regard.
Discussion
The primary purpose of my bank is to provide me with free pens
Bitcoin is meant to replace the credit system by having people save in Bitcoin rather than dollars
go on...
Then people will build businesses with savings, and not by taking loans
it's not that simple...
Or loans will be given based on real risk/return assessments and not get rich quick schemes. A return to accountability and real problem solving
this is literally how traditional banks operate...
Yeah I think we’re on the same page here. The idea of banks will always exist in some semblance. A bitcoin standard would in theory force a type of balkanization of community banks, credit unions, etc and deleverage the system. Nothing “too big to fail”
Actually there are two places I see similar dynamics:
1. Lightning network inbound liquidity is valuable. So you have to pay for it some fee/interest rate in marketplaces like magma, loop etc.
2. There is Sovryn running on RBTC. it allows taking 0% loans against Bitcoin. As risky as any other defi, it allows tax-free liquidity without selling Bitcoin. This is similar to how billionaires take a loan against their company stocks and avoid taxes.
Banks will always be a thing.
Save in bitcoin
Get loans from fiat
If you have enough savings, take loans from yourself, then payback the money borrowed from your savings with interest.
This is the way