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The number of banks willing to do business with the crypto industry is shrinking

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Re: The number of banks willing to do business with the crypto industry is shrinking

#51

Post by mumblemumble »

monero-xmr wrote: post #31

3 years ago ETH was $100, today it's $1300, maybe we should all just wait and see before writing the obituary

Calling this an obituary is rather hyperbolic.

It is, though, yet another indication that crypto is losing momentum among mainstream consumers. Perhaps that's simply collateral damage from a downturn that's affecting all segments of the economy. But, then again, perhaps not. It strikes me as a distinct, qualitatively important development that's worth observing carefully rather than dismissing out of hand.

Re: The number of banks willing to do business with the crypto industry is shrinking

#52

Post by strangattractor »

dijit wrote: post #15
givemeethekeys wrote: post #9

If I were a bank, I'd stay far away from any non-bitcoin cryptos that I'm not an issuer of. Why would I want to own a coin that someone else is able to freely devalue, in addition to conventional currencies? On the other hand, if I were a bank, bitcoin presents a compelling argument. The supply is finite. Disclaimer: I don't own any crypto or bitcoin.

>if I were a bank, bitcoin presents a compelling argument. The supply is finite. Do you think that the most important thing about the value of something is the finite supply of it? Fiat currency is theoretically infinite since we abolished the gold standard, but seems to be compelling. Why would bitcoin be more compelling than gold (a finite store of wealth) or fiat currency (a fluctuating/volatile/infinite store of…

You seem to be forgetting the hard forks of bitcoin.

https://www.investopedia.com/tech/history-bitcoin-hard-forks...

Creating new digital currencies is also rampant. It seems to me that a finite representation of the current wealth of the economy (the money in circulation) is not even desirable. New things are being created all the time that increase that wealth. It seems reasonable to be able to adjust the amount of currency in circulation to reflect that.

Re: The number of banks willing to do business with the crypto industry is shrinking

#53

Post by threeseed »

AviationAtom wrote: post #39
threeseed wrote: post #26

Earlier quoted context omitted.

The number of fiat banks to crypto banks is in the realm of 10,000 to 1. So yes a crypto bank could maybe cause a single fiat bank to fail but it would be isolated. And likely a very small bank. The entire crypto industry could collapse tomorrow and there would be likely no systemic risk to the global financial system.

Indeed, not currently. The problem is where crypto will go after the next winter. Maybe FTX will have scared off the next batch of newcomers, but then again 2017 and people still were lured back again.

Difference now is that VCs have lost interest in the crypto space.

LPs are freaking out over what happened with FTX and wanting to limit their exposure and investors in general are increasingly dubious that crypto is capable of generating sustainable, highly profitable businesses.

Re: The number of banks willing to do business with the crypto industry is shrinking

#54

Post by monero-xmr »

mumblemumble wrote: post #51
monero-xmr wrote: post #31

3 years ago ETH was $100, today it's $1300, maybe we should all just wait and see before writing the obituary

Calling this an obituary is rather hyperbolic. It is, though, yet another indication that crypto is losing momentum among mainstream consumers. Perhaps that's simply collateral damage from a downturn that's affecting all segments of the economy. But, then again, perhaps not. It strikes me as a distinct, qualitatively important development that's worth observing carefully rather than dismissing out of hand.

I mean, META stock has been a worse investment year over year than bitcoin. I know everything is relative, but the "momentum losing" I think is fueled by people who vehemently dislike this technology more than what the market is determining

Re: The number of banks willing to do business with the crypto industry is shrinking

#55

Post by jbverschoor »

wayeq wrote: post #49
epolanski wrote: post #33

Earlier quoted context omitted.

How being the supply finite is relevant? This idea that being scarce implies value makes no sense. You realize we can go on github and setup a bitcoin network too, we call it BitcoinYC, our coins have the same properties of bitcoins, why would that have a value? Please repeat with me: - currencies (wheter fiat or crypto) have no value. You can't do anything with them, maybe watch dead national heroes printed or them.…

> - currencies (wheter fiat or crypto) have no value. You can't do anything with them You can pay taxes to stay out of jail with fiat, which seems desirable.

Don’t need to pay taxes if you don’t earn or own anything

Re: The number of banks willing to do business with the crypto industry is shrinking

#57

Post by jononomo »

willhslade wrote: post #41
givemeethekeys wrote: post #9

If I were a bank, I'd stay far away from any non-bitcoin cryptos that I'm not an issuer of. Why would I want to own a coin that someone else is able to freely devalue, in addition to conventional currencies? On the other hand, if I were a bank, bitcoin presents a compelling argument. The supply is finite. Disclaimer: I don't own any crypto or bitcoin.

Water is finite

grains of sand are finite

Re: The number of banks willing to do business with the crypto industry is shrinking

#58

Post by xupybd »

monero-xmr wrote: post #31

3 years ago ETH was $100, today it's $1300, maybe we should all just wait and see before writing the obituary

And that is why I don't go near any crypto. Don't get me wrong I love the idea but I don't like volatility. I can't wait until a stable DeFi is established. for international transactions this will be a dream.

If it's up over 10 fold in 3 years then I don't see why it couldn't drop 3 fold in the next 3. I like simple investments where the value is obvious and a simpleton like me can guess if the price matches the underlying value.

Re: The number of banks willing to do business with the crypto industry is shrinking

#60

Post by strangattractor »

xwdv wrote: post #48
tnel77 wrote: post #23

Earlier quoted context omitted.

I personally find Bitcoin much easier to send to family than a chunk of gold, and Bitcoin’s block reward results in a far more favorable inflation rate than many currencies. There’s more to money than these two aspects, but they are IMO solid positives for Bitcoin.

What would a family even do with bitcoin or a chunk of gold?

Chunk of gold - go down to the local gold broker pay a fee to get dollars. Bitcoin - pay a fee to get it exchanged for dollars so that you can buy something before it loses it's value ($60K -> $17K).

Or just use dollars.

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