Bankers do one thing that the decentralized blockchain struggles with, which is lending.
In the early days of bitcoin there were some experiments with lending bitcoin, but
they failed because people absconded with the coins.
Basically, we need a development where governments legislate to make smart contracts on the blockchain legally enforceable, and then we can move forward with decentralised blockchain lending.
Do not forget that even a blockchain bank can disappear into the air, where you deposited your funds)
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Why would you want governments involved in anything?
Have you not seen the corruption?
As for the lending on blockchain, balance sheet banking has excelled at lending for over 70 years. Since blockchain is digital ledger technology, there is no reason for it to not excel in the same manner.
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Suppose you lend me 1 bitcoin and I abscond with it. "But it's in the digital ledger", you cry.
I say, "So? You can't prove the pseudonymous address you sent the coins to belongs to me, and even if you could, you can't make me give 'em back".
Actually you can, by taking me to a court (run by the govt) and sue me under laws passed by the govt.
But if you don't believe in government and won't touch those government-run things like courts and laws with a bargepole, well you ain't ever going to get your coins back...
And what collateral are you putting up for the 1 Bitcoin?
That is what lending is about, collateralization.
There was a banking system that lends trillions of dollars per day without courts or governments. It has been operating for more than 70 years.
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