71–80 of 139 posts
It may remain in use in less, or in-regulated markets, but that will be a secondary thing. Eg what if it is not exchangeable to any major currency?
Considering how much money laundering real estate gets used for right now this is the last place I'd like to see crypto get involved. We already have a legion of issues with even legitimate money being stashed in real estate here (in Canada) and down there (the US) to get it out of reach of the Chinese government. I don't think we need to do anything to ease this process at all.
Most of the time, these companies are simply partnering with external firms to process crypto payments, but they're actually taking cash. They'll probably charge you a fee, too, which means no one will actually use it.
These headlines are the equivalent of a company announcing that they'll take debit cards or credit cards as a payment method. They don't actually care how the money arrives, as long as it arrives in their bank accounts.
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Looks like a SPAC stock too. Never the most reputable...
SPACs have been around for a while and plenty of reputable companies have gone that route
It’s all bullshit marketing until someone is accepting payments for goods priced in crypto.
"Yes, we would be delighted for you to settle a debt at 3% per with an asset- volatile, tis true- that is nevertheless likely to grow 20%-100% per over the next several years."
Cheapest, easiest, balance sheet diversification play ever.
Thought bubble: "Yes, we would be delighted for you to settle a debt at 3% per with an asset- volatile, tis true- that is nevertheless likely to grow 20%-100% per over the next several years." Cheapest, easiest, balance sheet diversification play ever.
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Cryptos are extremely volatile. That's not possible until that changes.
Volatility literally doesn't matter at all. You can reduce it to 0 by shorting Bitcoin futures contracts. You can make it even more volatile if you want. You can change the multiplier on base price change i.e. volatility to be any number between -300% and 300% of its base rate(the caps depend on margin requirement), with appropriate setup. That's for Bitcoin, but you can do other cryptocurrencies indirectly. And thes…
So, someone high up in the company is heavily invested in crypto?
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Volatility literally doesn't matter at all. You can reduce it to 0 by shorting Bitcoin futures contracts. You can make it even more volatile if you want. You can change the multiplier on base price change i.e. volatility to be any number between -300% and 300% of its base rate(the caps depend on margin requirement), with appropriate setup. That's for Bitcoin, but you can do other cryptocurrencies indirectly. And thes…
If you have to do all this fancy footwork to make volatility not matter doesn't that prove that volatility does matter. If you price asset X in crypto in the market and then buy options on USD to ensure that your sale price will be redeemable for a certain amount in USD in the future if it sells then aren't you really just pricing in USD? And then suffering a loss on your USD options if the asset doesn't end up selli…
Which I would agree with, but the original "volatile instruments cannot be used for pricing" isn't true.
> doesn't that prove that volatility does matter.
It doesn't matter for making it "possible" or even "safe in principle". It does matter if you want it to be convenient.
> aren't you really just pricing in USD?
Sort of, but you can choose to price 90% of it in USD and 10% in Bitcoin. So arguments with a discrete "impossible" seem in conflict with this continuous ratio.
The point is: If there's a maximum volatility an agent is willing to accept, one can construct a financial setup that meets the constraint. So the volatility itself shouldn't be a reason against it.
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People with substantial amounts of crypto would like to be able to finance larger purchases directly in crypto without needing to liquidate into fiat first
Yes, money launderers and tax evaders would like to continue laundering and evading -- I think the real question is why are we making this easy for them? Buying property with ill-gotten gains is an extremely common method of money laundering. Having a large hoard of cryptocurrency that you prefer not to liquidate screams "I'm trying to pretend that this isn't a taxable event." We don't let people pay their mortgages…
It’d be much easier to just pay my mortgage in crypto, then the endless back and forth that happens to get a bank to take crypto proceeds. (Count yourself lucky if they don’t shut down your entire account!) Crypto users are much like sex workers in this regard.
When my crypto startup launched, it was nearly impossible to find a bank to give us a checking account. We were literally walking around with a VC check and nowhere to cash it. Just because we had the words “cryptocurrency” in our charter. 99% of the banking system hates crypto. This is a smart move to deliver value to an underserved, now very wealthy, customer segment.