true, but with fiat money, you're pretty much forced to use banks.

The power of bitcoin really frees us from this, we just have to learn to use this power.

we could try it. But, personally, my btc are all offline so I can't help.
But I think that they will have troubles.
For example BTER had a max BTC withdrawal of 50BTC. What if I had to take 51BTC?

The same goes for Bitstamp. They say that for large amount you need to contact them.

It's the same with banks: Say I have one million dollar in a bank account the moment I go to withdraw they will be more than surprised.
They will send me to the director who will eventually finds excuse about that.

Do you understand what I mean?
 

Well, in the case of fiat, it depends. There are a lot of things which you can do without using eletronic forms (since I started to learning about Bitcoin, I stopped to use my debit card and started to paying with paper money instead). But if you receive an eletronic transfer, you can just withdraw ASAP. Of course, if everybody do this, the banks goes to bankruptcy. Also, fractional reserves is the motive why I think it's not possible to a country to have currency boards in nowadays.

But what I want to demonstrate is the cultural factor. I think people keeps their money in exchanges because they think their (fiat) money should stay at banks. The people think an exchange is like a  bank.

And I'd like to call the attention to which can be another common practice: people still can put their money on wallets which they can't truly control their money instead of a traditional exchange. I can't say they are using the fraction reserve-scheme, but I would put an yellow flag on this, specially on some web wallets. You can find some of these wallets listed at Choose you wallet page at Bitcoin.org ( https://bitcoin.org/en/choose-your-wallet ). But there is a problem of being your own bank which needs to be covered at some point of the discussion: physical security of your private keys.

most of the big exchanges are SCAM .. use localbitcoins or anonymous small bitcoin exchanges

Well, the limitation on withdraws should be the first red flag.... if you only deposited your coins with then to trade, they should have the full amount availlable. Banks does need to have a fractional reserve, because they re-invest your deposited money, to enable them to pay out interest and sponsor sport events. 

I have never tried to withdraw $1 000 000 from a bank, so I would not know how it works. 

I just wonder how these exchanges use your BTC? Do they sell it for fiat and then play around on the stock exchange with the fiat currency?

That is what we would like to know.
The million dollar example is an extreme one.
Once I went to withdraw 3500€ at the post office and they blamed on me that I didn't warn them in advance (!!!).
There were my only money at the time and I needed them for University stuff.

Even "your" money is not "your" money in this crazy world.

Fiat money has the problem that it carries intrinsic debt from the very beginning: when you accept 100$ dollar there's a debt included on that note that someone needs to repay. And usually who repays it it's poor people working like slaves more than 8 hours a day while bankers become fat.

That's why I loved bitcoin. We could start here something that destroys this world of greed from the very basis. But are we all on the same ship?
I don't think so.

I lost bitcoins in MtGox when it went down. I will never trust an exchange ever again for sure, even if everyone says it´s legit. I trust myself.

The key is never to trust them for a lot.

thanks !