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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

#121

Post by sharkjacobs »

kayamon wrote: post #115
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.…

> 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? Miners will only mine the blockchain with the longest proof-of-work. They won't mine yours, as Bitcoin's preexisting blockchain is longer. This principle was explained in the Bitcoin paper and is the heart of what makes Bitcoin work. Miners can only use…

why would mining something make it valuable?

I can dig up rocks in a field and they won't be valuable just because I'm tired and sweaty and don't have anything else to show for it

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

#122

Post by sumeno »

conanbatt wrote: post #32
astrange wrote: post #29

Earlier quoted context omitted.

A bank run isn't a systemic risk to the banking system because we have the FDIC.

How does FDIC behave in a high-inflation environment?

Much better than crypto has

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

#123

Post by aaronwalker »

rurp wrote: post #83
wruza wrote: post #13

A worrisome title. https://www.businesswire.com/news/home/20230109005186/en/ The Company expects minimal financial impact from the exit of this vertical. MCB currently has four active institutional crypto-asset related clients that in the aggregate currently account for approximately 1.5% of total revenues and 6% of total deposits. MCB’s relationships with these clients are limited to providing debit card, payment an…

A few years ago crypto often had large jumps from deals like these, not so much because of the immediate affect but more because it implied much larger growth was on the horizon. That seemed reasonable at the time, and the reverse seems reasonable now. If large financial institutions don't want to touch crypto, that severly limits the foreseeable upside for the industry.

Interest in crypto comes in cycles, and with each new cycle there are more incumbents that want to get involved. This bear market may have been particularly worrying for the industry, but I'm confident that in 5-10 years from now large financial institutions will again want to incorporate crypto. The networks behind these currencies are too resilient and the upside is too high to avoid.

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

#124

Post by fyloraspit »

gerdesj wrote: post #85
Canada wrote: post #47

Earlier quoted context omitted.

> I minted nearly 1 BTC rather a lot of years ago and it vanished with a Pentium II to III upgrade (or similar). How did you do that?

I idly played with BTC one evening and I let it mine for about a week or so on a fairly poky PC and got bored of it eventually. I was more interested in Folding@Home. As it turns out I was both right and wrong. That BTC was going to be worth up to $64,000 at one point in time. However, protein folding might save lives. I ditched that PC and didn't copy over the wallet because I'd forgotten about it - it wasn't that i…

I'd love to believe you but this sounds somewhat farfetched given quoted specs. It was very early on that CPU mining was almost useless and even when it was useful it would not have been on a Pentium II

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

#125

Post by phs318u »

danaris wrote: post #87
TedDoesntTalk wrote: post #68

Earlier quoted context omitted.

> What does Bitcoin "becoming mainstream" look like specifically? Just like your desktop computer analogy, it looks like Grandma using Bitcoin in an everyday, mundane way like paying the electric bill.

...which was so very obviously never going to happen.

The original Bitcoin white paper mentions commerce (in the introduction) as the primary use-case and it does not qualify this in any way.

But yes, in hindsight many things become obvious.

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

#126

Post by pavlov »

Octokiddie wrote: post #61

> The problem, in a nutshell, is that for Bitcoin and other digital assets to have any chance of becoming mainstream, banks—with their access to deep sources of liquidity and experience in facilitating payments—will have to be on board. For the time being, they’re running in the opposite direction. What does Bitcoin "becoming mainstream" look like specifically? The article doesn't offer anything - not even a link. Le…

> “AML/KYC bootlicking”

This is where your 1974 PC analogy breaks down.

The Apple II wasn’t a tool for breaking laws. People didn’t buy them to produce Communist Party leaflets in their homes on matrix printers.

But crypto is a political project. It’s intertwined with a very specific view of how money and government should work, and it’s not compatible with the legal framework in place.

(Rhetoric like “bootlicking” is revealing because it’s associated with a very different 1970s movement than the computer revolution.)

The PC really took off when IBM made one. That’s the equivalent of banks adopting Bitcoin. But things would have been pretty different if you needed a Congress full of Maoists first before IBM could make a personal computer.

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

#127

Post by mtnGoat »

kayamon wrote: post #115
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.…

> 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? Miners will only mine the blockchain with the longest proof-of-work. They won't mine yours, as Bitcoin's preexisting blockchain is longer. This principle was explained in the Bitcoin paper and is the heart of what makes Bitcoin work. Miners can only use…

Miners will mine whatever they can get paid to mine. Otherwise nothing but BTC would have any hash rate.

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

#128

Post by phs318u »

tnel77 wrote: post #80
strangattractor wrote: post #60

Earlier quoted context omitted.

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.

What if they were on the other side of the bull run where it went $3.5k -> $65k? Why only focus on the maximum loss scenario?

That would arguably feel worse for the sender. "I did what?!"

No thanks :)

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

#129

Post by 93po »

eli wrote: post #10
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.

Lol a compelling argument for what? Like as an investment?

Compelling against the US dollar which is "printed" by the trillions and is constantly losing value based on arbitrary decisions of people with effectively no accountability

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

#130

Post by 93po »

gerdesj wrote: post #85
Canada wrote: post #47

Earlier quoted context omitted.

> I minted nearly 1 BTC rather a lot of years ago and it vanished with a Pentium II to III upgrade (or similar). How did you do that?

I idly played with BTC one evening and I let it mine for about a week or so on a fairly poky PC and got bored of it eventually. I was more interested in Folding@Home. As it turns out I was both right and wrong. That BTC was going to be worth up to $64,000 at one point in time. However, protein folding might save lives. I ditched that PC and didn't copy over the wallet because I'd forgotten about it - it wasn't that i…

I always console people by telling them there's no way you'd have held on to that BTC all the way to $64k. You'd probably sell it for a few hundred
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