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MasterCard to open up network to cryptocurrencies

reuters.com

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Re: MasterCard to open up network to cryptocurrencies

#101

Post by Slartie »

PretzelPirate wrote: post #6
PragmaticPulp wrote: post #2

These stories usually spur more enthusiasm for buying cryptocurrency, but ironically those buyers aren’t interested in spending cryptocurrency using their MasterCard. They’re hoping other people will buy cryptocurrency from these announcements, driving the price up. Or, more likely, they’re just hoping other people will buy cryptocurrency and not use it in these spending systems. Spending cryptocurrency would result…

I’m in the minority in that I’d like to be able to spend my cryptocurrency in a way that: 1. The card handles also selling some off for taxes every transaction and put that in an interest-accruing account. 2. The card tracked my capital gains for each transaction for easy reporting on taxes. 3. The card provider will help manage fees - I’d rather bulk deposit funds to a layer2 and have fee-less payments over having t…

> 1. The card handles also selling some off for taxes every transaction and put that in an interest-accruing account.

> 2. The card tracked my capital gains for each transaction for easy reporting on taxes.

How should it ever do that? It would basically have to limit you to spend Bitcoin that you acquired over that exact same card (like when you buy Bitcoin via PayPal) and that you hold in a virtual wallet provided by that card network operator. Otherwise they'd be unable to tell how many $ you paid to acquire the Bitcoin you just spent.

As a related question: how comfortable would you be with a cryptocurrency-backed electronic payment card that would require you to keep your Bitcoin in the wallet of Visa/MasterCard/whatever (or their associated banks or crypto custodians) in order to spend them?

Re: MasterCard to open up network to cryptocurrencies

#103

Post by anm89 »

PragmaticPulp wrote: post #2

These stories usually spur more enthusiasm for buying cryptocurrency, but ironically those buyers aren’t interested in spending cryptocurrency using their MasterCard. They’re hoping other people will buy cryptocurrency from these announcements, driving the price up. Or, more likely, they’re just hoping other people will buy cryptocurrency and not use it in these spending systems. Spending cryptocurrency would result…

And the people buying it even though they don't want to spend via mastercard are smart to do so.

They understand that it's building up the network effects, creating onramps, and improving the ecosystem.

Over the long run I highly doubt mastercard will be a meaningful player in the crypto space but they definitely have the ability to hasten its adoption.

Re: MasterCard to open up network to cryptocurrencies

#104

Post by agentdrtran »

olalonde wrote: post #88
PragmaticPulp wrote: post #2

These stories usually spur more enthusiasm for buying cryptocurrency, but ironically those buyers aren’t interested in spending cryptocurrency using their MasterCard. They’re hoping other people will buy cryptocurrency from these announcements, driving the price up. Or, more likely, they’re just hoping other people will buy cryptocurrency and not use it in these spending systems. Spending cryptocurrency would result…

Bitcoin is used as a speculative investment today only because it is so underpriced. Once its value stabilizes, its use in day to day transactions will grow. > Should also note that MasterCard crypto transactions almost certainly won’t be settled on the blockchain. And neither are USD transactions. In fact, USD doesn't even have a blockchain! The great thing with Bitcoin is once you want to cash out your Bitcoin, you…

"Once its value stabilizes, its use in day to day transactions will grow." and how will it grow when it's a fixed amount of currency with a fixed amount of transactions per second?

Re: MasterCard to open up network to cryptocurrencies

#105

Post by globular-toast »

maxkwallace wrote: post #75

To everyone saying "my credit card pays me 2% to use it", no, your credit card charges the merchant 2.3%+ to use it, that gets bundled into the price, and they give you 2% of that as a kickback.

And, by the way, the merchant incorporates that cost into their price.

Re: MasterCard to open up network to cryptocurrencies

#106

Post by anm89 »

steeve wrote: post #98
olalonde wrote: post #88

Earlier quoted context omitted.

Bitcoin is used as a speculative investment today only because it is so underpriced. Once its value stabilizes, its use in day to day transactions will grow. > Should also note that MasterCard crypto transactions almost certainly won’t be settled on the blockchain. And neither are USD transactions. In fact, USD doesn't even have a blockchain! The great thing with Bitcoin is once you want to cash out your Bitcoin, you…

How can it stabilize when it has a fixed amount of BTC?

No currencies are "stable" inflationary, deflationary or neutral. Stabilize means that volatility reduces, not ceases to exist.

Re: MasterCard to open up network to cryptocurrencies

#107

Post by joosters »

exdsq wrote: post #43
PragmaticPulp wrote: post #25

Earlier quoted context omitted.

Honestly, why? My credit card pays me 2% to use it. If there’s a problem with my transaction, I click some buttons and the card company reversed the charges. If I lose my card, I call them up and get another one overnight without losing all my money. Why would I give all of that up, pay exchange fees on both ends of a transaction, pay transaction fees (however small), and wait longer for my transactions to clear?

I regularly invoice internationally. I can get a crypto payment through with a small transaction fee (a few cent for $20k) which clears in ~5 minutes, or I can get a payment that takes several days to clear with a larger fee. Crypto works perfectly for me!

Or you could use any of the far cheaper options for international payments (Transferwise, etc)... why do cryptocurrency enthusiasts think that all international payments need to be done via Western Union?

Re: MasterCard to open up network to cryptocurrencies

#109

Post by code_duck »

mcosta wrote: post #83
hackinthebochs wrote: post #60

Earlier quoted context omitted.

It's an entirely different beast when everyone is forced to use USD as a medium of exchange.

You are only forced to pay taxes in USD.

Crypto would get a large boost if a mandatory customer with a multi-hundred billion dollar "market" decided to require it.

Re: MasterCard to open up network to cryptocurrencies

#110

Post by cesarb »

bagacrap wrote: post #85
maxkwallace wrote: post #75

To everyone saying "my credit card pays me 2% to use it", no, your credit card charges the merchant 2.3%+ to use it, that gets bundled into the price, and they give you 2% of that as a kickback.

I'm not sure how that's different? When a merchant accepts cash, they have to pay for physical security and pickup, it's prone to theft or miscounting, etc. So cash isn't free. Accepting card payments is also not free. Merchant pays visa for convenience (to both merchant and customer); visa kicks some back to customer.

I've seen this said a lot, but in my experience whenever a merchant has different prices for cash and credit card, the cash price is always lower. So whatever the merchant is paying to Visa and/or MasterCard, it's more than it costs to handle cash.
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