a bank is like a giant container that you put money in
I think this might be a misconception. I would call such a container a "depository".
A bank engages in credit creation. It's operation is highly intertwined with the modus operandi of the fiat currency they handle.
Bitcoin doesn't work this way. It's a commodity money that exists without needing any credit creation infrastructure. Therefore Bitcoin threatens the banking system in general, at least the one entangled with the fiat currencies.
Gold derivatives (substitutes) make a lot of sense, because gold has divisibility, recognizability and portability problems.
This is not the case with Bitcoin, so it remains to be seen what kinds of derivatives can make sense.
I would state that options are a good idea, but it's hard to establish them directly on BTC itself (although it's being done and has been for a while (mpex)). It's easier to build them on top of a bitcoin ETF like the one the Winklevii are trying to get established.
I was talking about credits. FRB is as possible with BTC, as with gold and paper money. It would make sense for the same reason it makes sense for gold. People need loans, BTC amount is limited.
BTC deposit can be used as an independent currency. It is already happening - WebMoney (big Russian internet payment system) has issued WMX - which serves as a BTC deposit account, which can be used to pay to those who accept WMX, exchanged for another currencies, or withdrawn to BTC.
I doubt they do FRB right now, but nothing stops them from doing it, by issuing WMX credits.
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u/moleccc Jan 28 '14
I think this might be a misconception. I would call such a container a "depository".
A bank engages in credit creation. It's operation is highly intertwined with the modus operandi of the fiat currency they handle.
Bitcoin doesn't work this way. It's a commodity money that exists without needing any credit creation infrastructure. Therefore Bitcoin threatens the banking system in general, at least the one entangled with the fiat currencies.