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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

#251

Post by paulgb »

kybernetikos wrote: post #173
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.

I'd stay away from BTC too, its poor environmental effects invite regulation and they have no plan to pay for chain security in a way that scales as issuance drops off. If you like the "limited supply" thing (I don't) you might be interested to know that other chains exist that can even have negative issuance, and while there is a plan to eventually stop issuing BTC, right now the supply of BTC is actually increasing…

Yep. To put some numbers on this, transaction fees are currently about 1% of the block reward[1]. As of the next halving next year, transaction fees would have to grow by 50x to make up for the lower block reward.

Bitcoiners I talk to either haven’t gamed out the long term, plan to sell before then, or have some wishy-washy story about how Coinbase et al. will mine as a loss leader to keep the industry running.

1: https://bitinfocharts.com/comparison/fee_to_reward-btc.html#...

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

#252

Post by hem777 »

astrange wrote: post #29
AviationAtom wrote: post #7

Earlier quoted context omitted.

I vouched. This is a very valid concern, that was even recently mentioned in a paper from the Fed. Large crypto "banks", with large holdings in fiat banks, can cause huge outflows from those banks, upsetting their reserves balance. Essentially a crypto bank run can cause a fiat bank run. This couldn't be more true when you see examples like where FTX bought a small community bank. People pretending crypto only effect…

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

You may not remember 2008, but banks are absolutely, massively, a systematic risk to everyone, everywhere.

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

#253

Post by oblio »

mensetmanusman wrote: post #248

Humanity isn’t ready because we can’t build perfect code yet. Once crypto isn’t incentivizing nation state actors from working on $50M bug bounties, maybe we will be ready…

> Humanity isn’t ready because we can’t build perfect code yet.

Let me rephrase that:

[Nobody] is ready because we can't build perfect [anything], [ever].

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

#254

Post by WinstonSmith84 »

brianmcc wrote: post #239
jamiegreen wrote: post #224

Earlier quoted context omitted.

It never mattered if you live in a country with a stable currency and access to modern financial services. If that is you, you are in a very small minority of the world population. For the rest of the world, there seems to be some value... https://blog.chainalysis.com/reports/2021-global-crypto-adop...

>> you are in a very small minority of the world population Really? So EU, UK, USA, China, Australia, with stable currencies, are a small minority..? Sorry but countries with wild instability are the minority and frankly gold would seem to be a better store of value if that's anyone's concern. Crypto remains speculation i.e. a gamble not a store of value.

After 2022, you still think that these countries (EU, UK, etc.) have a stabile currency? Well, that's some serious positive thinking. I'm still curious to see how people will react when we get a real crash within the next few years.

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

#255

Post by tsimionescu »

jamiegreen wrote: post #224
windex wrote: post #110

So many HODLers in this thread. For the normal person on the street, Bitcoin or Crypto never mattered. The endlessly breathless PR was irritating. Whatever happens, this wont be missed.

It never mattered if you live in a country with a stable currency and access to modern financial services. If that is you, you are in a very small minority of the world population. For the rest of the world, there seems to be some value... https://blog.chainalysis.com/reports/2021-global-crypto-adop...

India, China, the countries of the EU, the USA, Japan, Indonesia - these countries all have a stable currency and access to modern financial services, and together make up a majority of the world's population, or close to it - and there are many others fitting this bill. This "small minority" idea is ludicrous.

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

#256

Post by oblio »

ls15 wrote: post #249
brianmcc wrote: post #239

Earlier quoted context omitted.

>> you are in a very small minority of the world population Really? So EU, UK, USA, China, Australia, with stable currencies, are a small minority..? Sorry but countries with wild instability are the minority and frankly gold would seem to be a better store of value if that's anyone's concern. Crypto remains speculation i.e. a gamble not a store of value.

> EU In 2013 the government of Cyprus decided to seize money directly from people's bank accounts. I would not call that stable. https://www.theatlantic.com/business/archive/2013/03/everyth... > China In 2022, when some Chinese banks decided to freeze depositors accounts for shady reasons and debitors planned to protest the issue, authorities used Covid codes to block them from accessing the banks. That also does not…

If a government decides you'll get a haircut, you'll get one, even if they have to take out the sheep shears to do it.

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

#257

Post by WinstonSmith84 »

ls15 wrote: post #249
brianmcc wrote: post #239

Earlier quoted context omitted.

>> you are in a very small minority of the world population Really? So EU, UK, USA, China, Australia, with stable currencies, are a small minority..? Sorry but countries with wild instability are the minority and frankly gold would seem to be a better store of value if that's anyone's concern. Crypto remains speculation i.e. a gamble not a store of value.

> EU In 2013 the government of Cyprus decided to seize money directly from people's bank accounts. I would not call that stable. https://www.theatlantic.com/business/archive/2013/03/everyth... > China In 2022, when some Chinese banks decided to freeze depositors accounts for shady reasons and debitors planned to protest the issue, authorities used Covid codes to block them from accessing the banks. That also does not…

You forgot the truckers in Canada last year

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

#258

Post by oblio »

WinstonSmith84 wrote: post #254
brianmcc wrote: post #239

Earlier quoted context omitted.

>> you are in a very small minority of the world population Really? So EU, UK, USA, China, Australia, with stable currencies, are a small minority..? Sorry but countries with wild instability are the minority and frankly gold would seem to be a better store of value if that's anyone's concern. Crypto remains speculation i.e. a gamble not a store of value.

After 2022, you still think that these countries (EU, UK, etc.) have a stabile currency? Well, that's some serious positive thinking. I'm still curious to see how people will react when we get a real crash within the next few years.

If the major currencies fail/drop 50%+ per year in N years, crypto value will be screwed too, even more.

Because all those major currencies are backed by huge economies and militaries and whatever's needed to prevent those people from starving.

As usual, it's great to have diversified assets, but that's not really a viable option for the average person that can barely pay their rent.

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

#259

Post by thepangolino »

mrtksn wrote: post #245
jamiegreen wrote: post #224

Earlier quoted context omitted.

It never mattered if you live in a country with a stable currency and access to modern financial services. If that is you, you are in a very small minority of the world population. For the rest of the world, there seems to be some value... https://blog.chainalysis.com/reports/2021-global-crypto-adop...

This is a complete BS, currently I'm in a country with very unstable currency that lost so much value during the last 2 crypto booms(2017, 2021) and I know what actually happened on the ground. Crypto adoption is indeed high, much more than the western world but people are not in it to protect themselves from a volatile exchange rates but because they are desperate for a side hustle to make the ends meet. Those who a…

Providing banking services to people who are unbanked for political reasons is one of the main advantages of crypto imho. This is something you can get hit by in so called democratic countries as Canada demonstrated last year. https://www.businessinsider.com/trudeau-canada-freeze-bank-a...

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

#260

Post by tsimionescu »

ls15 wrote: post #249
brianmcc wrote: post #239

Earlier quoted context omitted.

>> you are in a very small minority of the world population Really? So EU, UK, USA, China, Australia, with stable currencies, are a small minority..? Sorry but countries with wild instability are the minority and frankly gold would seem to be a better store of value if that's anyone's concern. Crypto remains speculation i.e. a gamble not a store of value.

> EU In 2013 the government of Cyprus decided to seize money directly from people's bank accounts. I would not call that stable. https://www.theatlantic.com/business/archive/2013/03/everyth... > China In 2022, when some Chinese banks decided to freeze depositors accounts for shady reasons and debitors planned to protest the issue, authorities used Covid codes to block them from accessing the banks. That also does not…

You're speaking as if the second largest crypto exchange hasn't just collapsed, and had turned out to be stealing all of its customers' money.
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