The State of Cryptocurrency

[Vya Domus]

The whole idea of banning crypto purchases is dumb... People buy couches with credit cards all the time, and no credit company complains about the fact that couches depreciate by more than 50% the moment you buy them... And people default on couch payments all the time, but no credit card company bans couch purchases. And couches don't even have any possibility of appreciating.

Or cars, or whatever item you want to pick... I'm not hung up on couches, just saying... consumer goods get bought with credit all the time, and get defaulted on all the time. But nobody bans them. If they don't trust people to make the payments, they shouldn't be lending them the money whether it's a couch or a bitcoin. That's exactly what caused the housing crisis and the US recession.

Difference is at least with credit , you can rely (more or less) on the fact that the couch will be worth 50% , with bitcoin not even that. The reason buying couches with credit is not banned is because it's something with a predictable outcome.

 

[Papahyooie]

Difference is at least with credit , you can rely on the fact that the couch will be worth 50% , with bitcoin not even that. The reason buying couches with credit is not banned is because it's something with a predictable outcome.

Negative. The couch is effectively worth $0 as soon as it's purchased, to the credit company. They can't repo the couch, and even if they could they couldn't sell it for enough to cover the cost of repossession. If the consumer defaults on a couch, they take 100% loss, minus whatever collections agencies will pay for the right to sue.

 

[Deleted member 67555]

So many Bans happening so fast...
If you got money in this I'd be thinking of collecting it ASAP.

 

[Vya Domus]

Negative. The couch is effectively worth $0 as soon as it's purchased, to the credit company. They can't repo the couch, and even if they could they couldn't sell it for enough to cover the cost of repossession.

That doesn't really matter , the point is they know exactly what their loses are and can account for that in a reliable way such that overall they can keep going , with bitcoin you can't do that. That's why it is not banned and why bitcoin might end up that way.

 

[jboydgolfer]

And couches don't even have any possibility of appreciating.

I find money in my couch all the time. Its an earner

 

[Papahyooie]

That doesn't really matter , the point is they know exactly what their loses are and can account for that in a reliable way such that overall they can keep going , with bitcoin you can't do that. That's why it is not banned and why bitcoin might end up that way.

The credit card company also knows exactly what their losses could be/will be. It's exactly equal to the credit limit for that specific customer.

 

[r9]

Most money are made by fluctuation in price.
First you have news spread about bitcoin millionaires.
People start buying the price goes up.
Than some breaking news how its a all a bubble and a reason why it will fail.
Prices goes down.
It's all staged.
For somebody to make money somebody has to be on the loosing side.
There are plenty youtubers that lost money and its always the same story.
Invest little money watch the price goes up and get sucked into investing all their money.
And once the price goes down you know that eventually gonna go up again but when your life savings are on the line no one is willing to hold on.
So they sell all to cut their losses.

 

[Vya Domus]

The credit card company also knows exactly what their losses could be/will be. It's exactly equal to the credit limit for that specific customer.

Relying just on the credit limit is not enough , that's not the only aspect on which they work out their loses and decide if it's worth it or not , as a long term strategy. If there is a particular aspect of the economy causing them to lose abnormal amounts of money you can bet they'll do everything to get it banned or make it stop.

 

[r9]

The credit card company also knows exactly what their losses could be/will be. It's exactly equal to the credit limit for that specific customer.

There is a reason for different rates in for purpose loan like to finance a car buy a house and a credit card.
For creditcard interest rate is way higher for a reason.
Because you can do what you want with the money.
It's retarded for the bank to tell you what to do with the money after you been approved for a credit line.
What if they are wrong and you are right and crypto makes you million dollars that you will keep in their saving account for close to zero interest rate and they can use that money to make money.
What would be next, the bank gonna tell me which restaurants are too expensive for me.

 

[R-T-B]

Credit card purchases are made with their money ( A loan if you like untill you repay it)
debit Card payments are made with Account holder's money ( no Risk to any Financial institution )

No offense dorset but I am well aware...

 

[Papahyooie]

Relying just on the credit limit is not enough , that's not the only aspect on which they work out their loses and decide if it's worth it or not , as a long term strategy. If there is a particular aspect of the economy causing them to lose abnormal amounts of money you can bet they'll do everything to get it banned or make it stop.

For consumer debt, that is all that matters. Sure, with something like a house or car that has a lien, then of course they would evaluate what you're buying. But for consumer credit (credit cards) if they don't think I'm good for the full amount, whether bitcoins or couches, then they should not extend that credit to me, point blank.

 

[xkm1948]

Wait so are all the crypto coins crashing or just Bitcoin?

Should I get ready to celebrate normal GPU prices now?

 

[Vya Domus]

For consumer debt, that is all that matters. Sure, with something like a house or car that has a lien, then of course they would evaluate what you're buying. But for consumer credit (credit cards) if they don't think I'm good for the full amount, whether bitcoins or couches, then they should not extend that credit to me, point blank.

All I am saying is that crypto clearly has the potential to get purchases with it banned.

 

[Papahyooie]

All I am saying is that crypto clearly has the potential to get purchases with it banned.

Well of course it does... they already did it, so that's pretty obvious... And all I am saying is that that's stupid.

 

[TheoneandonlyMrK]

Relying just on the credit limit is not enough , that's not the only aspect on which they work out their loses and decide if it's worth it or not , as a long term strategy. If there is a particular aspect of the economy causing them to lose abnormal amounts of money you can bet they'll do everything to get it banned or make it stop.

Except they would still pay a cash out on a credit card that can then be used to buy crypto, end results the same ,just less traceable to the credit agencies, if a guy wants to buy 5grands worth or whatever he still can , just with a few more steps in the loop, end result is only the mildly interested will be disuaded from credit purchases of crypto, anyone who Wants to, still will.

Most banks will be investing in some form of crypto research at this point, the next ten years i see to be very interesting from a crypto point ,lets see what big money does with blockchain.

 

[R0H1T]

I find money in my couch all the time. Its an earner

So you have a stealing/thieving couch? Where can I get one

 

[R-T-B]

Wait so are all the crypto coins crashing or just Bitcoin?

Should I get ready to celebrate normal GPU prices now?

Affirmative. That said, do not expect this to be the last time there is a shortage.

 

[Papahyooie]

Except they would still pay a cash out on a credit card that can then be used to buy crypto, end results the same ,just less traceable to the credit agencies, if a guy wants to buy 5grands worth or whatever he still can , just with a few more steps in the loop, end result is only the mildly interested will be disuaded from credit purchases of crypto, anyone who Wants to, still will.

And cash withdrawals usually carry a much higher interest rate... Which means them banning crypto purchases isn't about protecting from losses at all, but rather about making more money while also hurting crypto's popularity.

 

[R0H1T]

Affirmative. That said, do not expect this to be the last time there is a shortage.

Shortage of what ~ GPUs? That's an extreme case of supply & demand, due in part owing to a financial instrument that's as yet to be legitimately accepted by most of the world's economies.

 

[yotano211]

I find money in my couch all the time. Its an earner

So are all of my graphics cards. When I sell them they will still be earners.

 

[r9]

Generally there are two groups of people.
First group invested into Crypto trading or mining that want to see Crypto do good and will justify its existence.
Second group regular PC user who wants to buy a GPU at regular price and think Crypto is bs and justify banks and governments banning it.
And than there is me.
I'm a miner that wants to see Crypto to do good but on the other side I know that its a bubble and a pyramid scheme.
The general idea about a decentralized currency and all is great.
But the way it actually works it's useless and wasteful and it's price its dictated by the greed of the people.
Let me elaborate on that.
Because you would think that the price would be dictated by its practical use and value and I haven't bought a single thing with the coins I mined except some us dollars. lol
And if the buying and selling is not the main purpose of a currency is I don't know what it is than.
So the demand dictates the price and the demand is not dictated by its practical value instead by the hope that the price will keep going up.
Don't even start me on the mining.
The difficulty rises %25 a month, so in order to produce the same amount of crypto you have to increase your hashrate by %25 every month.
So everybody is investing and investing but as a whole we are not being more productive.
The redistribution of the Crypto pie changes among miners but thats about it.
So more more and more electricity is wasted to do the same work every month.
Like I said before its useless and wasteful and it's price its dictated by the greed of the people.
Sorry for the long post, had to express my self. lol

 

[Deleted member 67555]

I think it's a funny coincidence that after Nvidia used miners to keep prices high on tech while using those extra resources to build their new GeForce Now center that they finally decided to speak up... Just before Banks and Govt's started to take action.... It's time to get out y'all.

 

[R0H1T]

Generally there are two groups of people.
First group invested into Crypto trading or mining that want to see Crypto do good and will justify its existence.
Second group regular PC user who wants to buy a GPU at regular price and think Crypto is bs and justify banks and governments banning it.
And than there is me.
I'm a miner that wants to see Crypto to do good but on the other side I know that its a bubble and a pyramid scheme.
The general idea about a decentralized currency and all is great.
But the way it actually works it's useless and wasteful and it's price its dictated by the greed of the people.
Let me elaborate on that.
Because you would think that the price would be dictated by its practical use and value and I haven't bought a single thing with the coins I mined except some us dollars. lol
And if the buying and selling is not the main purpose of a currency is I don't know what it is than.
So the demand dictates the price and the demand is not dictated by its practical value instead by the hope that the price will keep going up.
Don't even start me on the mining.
The difficulty rises %25 a month, so in order to produce the same amount of crypto you have to increase your hashrate by %25 every month.
So everybody is investing and investing but as a whole we are not being more productive.
The redistribution of the Crypto pie changes among miners but thats about it.
So more more and more electricity is wasted to do the same work every month.
Like I said before its useless and wasteful and it's price its dictated by the greed of the people.
Sorry for the long post, had to express my self. lol

There's also a third group, that wants to stay in power & keeps milking crypto ~ like they've done with the others. It's not you, me or anyone else on this forum who'll decide the fate of BTC or whatever takes its place. Our de facto rulers most certainly will.

 

[r9]

There's also a third group, that wants to stay in power & keeps milking crypto ~ like they've done with the others. It's not you, me or anyone else on this forum who'll decide the fate of BTC or whatever takes its place. Our de facto rulers most certainly will.

I'm sure that qualifies for the first group. lol

 

[R0H1T]

I'm sure that qualifies for the first group. lol

Not really, the third group makes money whatever happens to crypto ~ they'll still make money if BTC disappears tomorrow but probably more if BTC shoots up to the moon again.