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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

#261

Post by parliament32 »

ArtTimeInvestor wrote: post #4

The game Paypal currently plays with Crypto is the closest thing to printing money I have ever seen: Their users can "buy and sell Bitcoin" and pay "no fees". How does Paypal make money? "From the spread". The difference between bid and ask. And who sets the spread? Drumroll ... Paypal! Since you cannot transfer your bitcoins out, when you sell your bitcoins, Paypal pays you whatever they like. So far, Paypal only of…

Thing is this is exactly how it works with literally every other forex ever. If you go buy CAD with your USD from your local bank, of course they make money on the spread, the exact same way.

Re: MasterCard to open up network to cryptocurrencies

#262

Post by chordalkeyboard »

arcticbull wrote: post #235
chordalkeyboard wrote: post #207

Earlier quoted context omitted.

> the increase in pricing has nothing to do with monetary policy. This is incorrect.

Inflation adjusted $/sqft on average across the US housing costs exactly the same as it did in the 1970s. With interest rates 1/5 of what they were back then, each square foot is actually much more affordable. I admit I misspoke, because of course, monetary policy controls interest rates, but I maintain that a change in affordability is not dominated by inflation but rather other social policies. Houses are twice is…

> Inflation adjusted $/sqft on average across the US housing costs exactly the same as it did in the 1970s.

> Inflation adjusted

Inflation is a result of monetary policy. So when you’ve adjusted the price for the monetary policy, you see that 50 years of capital accumulation and efficiency has been soaked up by monetary policy.

> I admit I misspoke, because of course, monetary policy controls interest rates, but I maintain that a change in affordability is not dominated by inflation but rather other social policies. Houses are twice is big and families are 20% smaller.

Things are supposed to get cheaper as capital accumulates. Social policies undoubtedly have an effect. So does increasing the money supply. An increase in the number of currency units necessarily causes each unit to be worth less, ceteris paribus.

> Happy to debate more but [citation needed].

I’m not sure how to proceed. The notion that one could print money and have each currency unit correspond to the same amount of physical goods is prima facie false.

Re: MasterCard to open up network to cryptocurrencies

#264

Post by PragmaticPulp »

vmception wrote: post #226
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…

> Spending cryptocurrency would result in selling that cryptocurrency, which would drive the price down. That’s not what cryptocurrency investors actually want that’s really assuming a lot a closed loop cryptocurrency transaction does not result in selling mastercard may or may not be offering that capability mastercard offering that capability makes the cryptocurrency proponents vision a reality

They're not interested in making the vision of cryptocurrency a reality any more than it enhances their bottom line.

Mastercard is offering exchange services. They will collect exchange fees on transactions, just like PayPal and other providers.

They won't even bring blockchain into this any more than necessary. They'll handle it in databases like everyone else, only engaging with the blockchain as necessary for deposits and withdrawals.

Re: MasterCard to open up network to cryptocurrencies

#265

Post by rantwasp »

ArtTimeInvestor wrote: post #4

The game Paypal currently plays with Crypto is the closest thing to printing money I have ever seen: Their users can "buy and sell Bitcoin" and pay "no fees". How does Paypal make money? "From the spread". The difference between bid and ask. And who sets the spread? Drumroll ... Paypal! Since you cannot transfer your bitcoins out, when you sell your bitcoins, Paypal pays you whatever they like. So far, Paypal only of…

Fed has entered the room

Re: MasterCard to open up network to cryptocurrencies

#266

Post by tshaddox »

vmception wrote: post #226
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…

> Spending cryptocurrency would result in selling that cryptocurrency, which would drive the price down. That’s not what cryptocurrency investors actually want that’s really assuming a lot a closed loop cryptocurrency transaction does not result in selling mastercard may or may not be offering that capability mastercard offering that capability makes the cryptocurrency proponents vision a reality

In fact, for every transaction where a unit of cryptocurrency is bought, that same unit is also sold.

Re: MasterCard to open up network to cryptocurrencies

#267

Post by SpicyLemonZest »

danhak wrote: post #212
arcticbull wrote: post #196

Earlier quoted context omitted.

And yet you and everyone else are unable to produce any meaningful sources or analysis that justify your beliefs. [citation needed] and we can talk about it. Healthcare is a social policy matter, not monetary policy, and nothing to do with increase in the money supply. You take that up with your representatives not the Fed. Housing is a function of city council zoning policy. You take that up with your city council n…

> Housing is a function of city council zoning policy... This is the laughably reductionist take that predictably appears on HN when folks think the dynamics of San Francisco apply everywhere. Housing costs have nothing to do with the Fed? Really? You don’t believe record low mortgage rates are driving demand at all? Nah, it must be city council zoning policy that is sending home prices soaring all over the country—-…

Rural and unincorporated areas have strict zoning too. Look at Tuolomne county (https://www.arcgis.com/apps/webappviewer/index.html?id=3e926...) for an example I could easily find a graphic for. The vast majority of privately-held land in the county is zoned RR (brown, 1 unit per 5 acres), AG (1 unit per 18.5 acres), or TPZ (1 unit per 37 acres).

Re: MasterCard to open up network to cryptocurrencies

#268

Post by PragmaticPulp »

14 wrote: post #156
PragmaticPulp wrote: post #74

Earlier quoted context omitted.

You’re ignoring the consumer’s transaction fee for making the purchase in the first place. Who pays that? Even if you turn this into a credit card that a consumer pays off once a month, how many consumers want to pay $8 for the privilege of paying their credit card bill? Also, $8 is just the current transaction fee, with virtually zero vendors accepting Bitcoin. If Bitcoin became popular, the transaction fees would b…

Wouldn’t MC just buy thousands of BitCoins then just keep track of how many they owe you and not actually interact with the block chain every time?

Yes, that was my point in the higher comment:

> Should also note that MasterCard crypto transactions almost certainly won’t be settled on the blockchain

This is just an exchange service where Mastercard collects exchange fees, in the same way that PayPal offers cryptocurrency payments.

Re: MasterCard to open up network to cryptocurrencies

#269

Post by [deleted] »

arcticbull wrote: post #229
danhak wrote: post #212

Earlier quoted context omitted.

> Housing is a function of city council zoning policy... This is the laughably reductionist take that predictably appears on HN when folks think the dynamics of San Francisco apply everywhere. Housing costs have nothing to do with the Fed? Really? You don’t believe record low mortgage rates are driving demand at all? Nah, it must be city council zoning policy that is sending home prices soaring all over the country—-…

I'm sorry you're just wrong about that though. On average, the price per square foot of housing in the US is exactly the same now as it was in the 1970s, on an inflation adjusted basis. [1] In major metros, that number is higher, because of city policy, but on average, the number is flat. That means on an inflation adjusted basis in rural areas houses are cheaper per square foot. Once you take into account that inter…

[deleted]

Re: MasterCard to open up network to cryptocurrencies

#270

Post by bmurphy1976 »

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…

Four or five years ago I mined Dogecoin on a lark using a laptop for a month. I converted that to BTC at some point and it's worth more than I ever anticipated. It won't change my life but I could have some fun with the money.

I'm not inclined to transfer it to USD, but I'd happily spend some of it were it easy to do so. Maybe buy some stocks, upgrade my PC, or get a PS5 and some games? Sure, why not!

I'm only sitting on it because it's a hassle to use it, not because I believe it's going to suddenly grow 100x in size. If I really cared about the growth I'd immediately move it to some index funds.

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