[mkbrody]

What I'm trying to get at is that a bank is only as secure as it's regulators say it is. The Government is what insures all depositors money up to $100,000, as well as theoretically stops it from taking too great of risk and losing your capital.

The other purpose a bank serves is to protect your money; A bank at it's most basic level is physical security: steel vaults doors, security deposit boxes, security processes, guards, etc. All ancillary (and highly profitable) services flow up from providing this primary need for it's depositors.

Because BitCoin relies on technology to secure your money, so long as users could find an acceptable level of security to replicate this with "high"-technology, there wouldn't be a need for traditional banks to store your money.