Currency is popular again, especially the $100 bill • Hacker News Board

Re: Currency is popular again, especially the $100 bill

#31

Post by Spooky23 » Sun, Oct 27, 2019, 5:34 PM UTC

scottLobster wrote: post #21

seibelj wrote: post #15

Every time you swipe your credit card innumerable processes and algorithms begin to parse and reevaluate your personality profile. Every purchase you make changes their opinion and assessment of your shopping habits and needs. Google may start showing ads for pet food if you bought something at PetSmart. Your bank may start sending you car loan ads if you spend at the repair shop. Everything has a side effect. Cash i…

Yeah, but I get paid for that in a combination of cash back and points. I limit my credit card information sharing as much as the privacy preferences allow, but I'm not about to give up hundreds or thousands of dollars a year in value because Google might show me an ad I won't click on anyway.

I had the same concern and tracked it. In my family’s case, making cash our primary spending vehicle reduced our 2018 spending 7% vs 2017 when we were card focused.

The value of the credit card point is about 2% best case. Points exist to create a fomo attachment to the card.

Re: Currency is popular again, especially the $100 bill

#32

Post by analog31 » Sun, Oct 27, 2019, 5:35 PM UTC

oh_sigh wrote: post #3

What's the motivation for a store to not accept cash? Is it possible that cash has a > 3% "fee"(or whatever stores pay for cc processing) when you roll in cash registers, armored car services, employee handling time, theft, etc?

Indeed, some of those things are fixed costs, that might be hard to justify if cash has dwindled to a small percentage of sales. You still have to maintain (i.e., probably rent) a cash register, even if it contains no cash.

Re: Currency is popular again, especially the $100 bill

#33

Post by analog31 » Sun, Oct 27, 2019, 5:39 PM UTC

>>>> One recent study, by a pair of economists in Asia, found a link to aging populations. It seems that older folks — perhaps because they’re less inclined to trust numbers on a screen — have a greater affinity for cash.

It may also be harder to be swindled out of your money by telemarketers, if you ditch your credit cards. And dealing with anything online or on a phone can be physically laborious and error prone for the elderly -- then you have to re-learn it when it changes.

For me, cash is actually a hassle. As a part time musician, I occasionally get paid in cash -- often a $100 bill, preferably but rarely more -- and then I have to deal with the bills and coins until it's finally spent.

Re: Currency is popular again, especially the $100 bill

#34

Post by pbourke » Sun, Oct 27, 2019, 5:42 PM UTC

banachtarski wrote: post #13

chabes wrote: post #5

I closed my bank accounts in 2011. Cash is my currency of choice for most things. I use bitcoin for long term savings. Cold storage is safer than a bunch of cash under the mattress.

Who needs things like FDIC insurance anyways /s

You’re assuming that they live in the US.

Re: Currency is popular again, especially the $100 bill

#35

Post by mnm1 » Sun, Oct 27, 2019, 5:43 PM UTC

After hurricane Maria hit Puerto Rico, the blackout lasted for months. I assume no one was getting any money out of ATMs or using credit/debit cards or Apple pay or anything like that. You don't have to distrust the financial system to want cash on hand. You just need to have a rudimentary understanding of the fragility of the current system. I simply cannot see a cash less society ever existing while the only alternative is powered by electricity. Electricity can fail way to easily.

Re: Currency is popular again, especially the $100 bill

#36

Post by 0x00B664 » Sun, Oct 27, 2019, 5:44 PM UTC

seibelj wrote: post #15

Every time you swipe your credit card innumerable processes and algorithms begin to parse and reevaluate your personality profile. Every purchase you make changes their opinion and assessment of your shopping habits and needs. Google may start showing ads for pet food if you bought something at PetSmart. Your bank may start sending you car loan ads if you spend at the repair shop. Everything has a side effect. Cash i…

I agree, but there are of course other ways to refine the profile. Does the retailer have a loyalty program or send paperless receipts?

Re: Currency is popular again, especially the $100 bill

#37

Post by ellisv » Sun, Oct 27, 2019, 5:44 PM UTC

Spooky23 wrote: post #31

scottLobster wrote: post #21

Earlier quoted context omitted.

Yeah, but I get paid for that in a combination of cash back and points. I limit my credit card information sharing as much as the privacy preferences allow, but I'm not about to give up hundreds or thousands of dollars a year in value because Google might show me an ad I won't click on anyway.

I had the same concern and tracked it. In my family’s case, making cash our primary spending vehicle reduced our 2018 spending 7% vs 2017 when we were card focused. The value of the credit card point is about 2% best case. Points exist to create a fomo attachment to the card.

Was this because of using cash or simply paying more attention to spending?

I’d love to see a well done research paper to get a sense of the expected value of cash vs credit.

Re: Currency is popular again, especially the $100 bill

#38

Post by klodolph » Sun, Oct 27, 2019, 5:44 PM UTC

ben509 wrote: post #18

banachtarski wrote: post #13

Earlier quoted context omitted.

Who needs things like FDIC insurance anyways /s

Funny thing is, FDIC is insuring you against the bank collapsing, not your bank accounts from theft. I don't think you can even do that, since protecting your deposits against theft is supposed to be the service your bank provides. You can insure cash with most homeowner's policies, though.

This is called “bank fraud”. In general, no need for you to insure against this because the bank has to eat the loss.

Re: Currency is popular again, especially the $100 bill

#39

Post by Nullabillity » Sun, Oct 27, 2019, 5:45 PM UTC

chickenpotpie wrote: post #29

seibelj wrote: post #15

Every time you swipe your credit card innumerable processes and algorithms begin to parse and reevaluate your personality profile. Every purchase you make changes their opinion and assessment of your shopping habits and needs. Google may start showing ads for pet food if you bought something at PetSmart. Your bank may start sending you car loan ads if you spend at the repair shop. Everything has a side effect. Cash i…

In terms of data mining: credit card companies seem to be the lesser of infinite evils. At least I can see what data they collect and they pay me for my data. I would still prefer they didn't do anything with my data, but at least I can opt out at any time by paying cash. A lot of companies take my data, I don't know, and I get nothing for it.

> and they pay me for my data.

From the fees that you paid them to begin with.

Re: Currency is popular again, especially the $100 bill

#40

Post by AlexAltea » Sun, Oct 27, 2019, 5:46 PM UTC

sys_64738 wrote: post #22

I've never had a 100$ bill and find 50$ bills are frowned on in retail. I carry a few 20$ bills just in case Apple Pay is not accepted.

> 50$ bills are frowned on in retail

Where would that be? On every trip to the US I have exchanged cash, EUR to USD, resulting in mostly $100 bills which I've used everywhere, sometimes even for rather small purchases, and there's been no frown upon that (after few purchases I also get my hands on smaller bills which are also more convenient).