a good question, well, I think without banks, this will deal with special institutions like banks))

Why would the lending capacity be reduced though? The only thing that changes is the way the money is supplied but not how or why.

This is only the question of a good system (good algorythm) that spreads risk of lenders. I'm sure a lot of people will be happy to lend their bitcoin to strangers (see this forum had a lending section) and it worked with or without collateral (I haven't checked the lending section recently). So it's already working, but if there would be an app or something that can handle this, it would be better. Also the best would be not only to do p2p lending (1 person lends to 1 borrower) but to spread the risk like 100 person lends to 100 borrowers and you have just reduced the risk of having a non-paying loan to 1% if one of the borrowers fail to repay the loan.

When people say that cryptocurrencies will replace banks, they are talking about the aspects of storage and transfer of money. Banks will still lend money, whether it is fiat or crypto.

Obviously, the concept of loan repayment guarantees should change.
The base account of a person in the crypt world is the sum of various assets in the form of tokens. Monetization of human behavior in society, the creation of ranks of trust, algorithms to support a positive balance of consumption, monitoring the level of coexistence in society.
In China, such a model of constructing addictions is already being implemented in society. .

I think the main purpose of the bank existence is to keep our money safe and then they will focus on lending therefore if the banks will gone there are many businesses today that engage in lending, loans, and financing so no problem about lending but the problem is who will do the safekeeping of our huge money? I think we should bury it in the ground.  

I think in the future where cryptocurrency is dominating, banks will have no choice but to start adapting it. We already have Ripple which is manage by group of banks in the world. So there will still banks who will lend us money or maybe cryptocurrencies in the future. If they will never learn to adapt innovation, they will never last in the industry.

that's not necessarily true. the decentralization of money makes localization and decentralization of lending practices possible. indeed, would-be borrowers still need liquidity and would-be lenders still want interest payments. there's no reason that banks/lenders and credit lines can't exist in the context of BTC. it's just that the current monopolies held by the financial powerhouses can be dismantled because crypto-based alternatives can compete with them.

there are several cryptocurrency projects that are building platforms for P2P cryptocurrency lending. one example is SALT (Secure Automated Lending Technology). it let's you use cryptocurrencies as collateral to obtain cash loans:

If you have lost hope now with bitcoin, also hold some bitcoins and keep them because I believe this year's price will go up, whatever makes you sure .. but I'm sure that bitcoin will go up.

Without? Why do you think there will be no more banks?
Look at the current crypto environment.

Bitcoin was supposed to help you on becoming your own bank, the result....?
Hundred and hundred of online wallets who are basicaly...banks!!!! Banks that have overall control of your money.
No, banks won't go away, in the worst case they will just change name.



I'm almost willing to bet that in 2 years time they will go bankrupt.
It happen to all projects that thought submitting some papers is enough to make the guy repay its debt.
BtcJam was the clear example on how many things can go wrong.

LE
Just checked the "project" you provided. An ICO? Common man....



I bought my house on credit with a loan.
How the hell would I have been able to provide a collateral for it?