Crypto currency (IF banned from CA)

[SerenityNigh]

I think like @SerenityNigh mentioned - if its in your account for 90 days + then there is no risk. From memory they only ask for 3 months worth of statements

I mean that more as a guide than as a definitive statement, but generally it should be true.

 

[SerenityNigh]

"risk averse,doesnt put them at risk" ?
this is not what happened in 2008 when banks were lending trillions to anybody that wanted it and caused a economic meltdown.
its happening again now in china,evergrande owe money to over 100 chinese banks!
the central banks will just print more and more to bail them all out though,raise the debt ceiling higher and higher,and the whole thing is going to explode,once again,its beginning again now!
this is just the start,empty shelves in supermarkets,gas and electricity prices going up.
they might try to blame brexit,lorry drivers or climate change but its caused by rampant inflation due to endless money printing.
i predicted this on here 6 months ago!

Yes, banks are risk averse. Yes, banks have made tremendous mistakes. These two statements aren't at all contradictory. But you're also massively confusing central banks, which are government institutions, and commercial banks, which are private institutions with the purposes I described above. If you aren't willing to distinguish these two entirely different entities, then I can't really help you understand the differences.

 

[nikom court]

Yes, banks are risk averse. Yes, banks have made tremendous mistakes. These two statements aren't at all contradictory. But you're also massively confusing central banks, which are government institutions, and commercial banks, which are private institutions with the purposes I described above. If you aren't willing to distinguish these two entirely different entities, then I can't really help you understand the differences.

who do you think controls the commercial banks in everything they do?
who constantly bails them out for every little f*x up?
do you think its all for the good of the consumer ?
dont be so naive!

 

[Efcjake]

who do you think controls the commercial banks in everything they do?
dont be so naive!

The shareholders and board of directors for that bank.

The central bank doesn't control commercial banks. They control the central bank interest rate to loan those commercial banks money to enable them to sell financial products like mortgages.

 

[SerenityNigh]

How it has an original value?

That's something I struggle with as well, but also the basic ontological question: what is crypto(currency). I don't think it's a currency, at least it doesn't behave like currency. Maybe someday it will. So then is it an asset? And what provides the fundamental value--is the value only driven by scarcity and demand? I could sell bottled elf farts, which are quite scare, but there appears to be insufficient demand for me to get rich with these.

 

[SerenityNigh]

who do you think controls the commercial banks in everything they do?
who constantly bails them out for every little f*x up?
do you think its all for the good of the consumer ?
dont be so naive!

the cleverness of your conclusions is an odd pair with your lack of fundamental understanding of the banking system

 

[nikom court]

That's something I struggle with as well, but also the basic ontological question: what is crypto(currency). I don't think it's a currency, at least it doesn't behave like currency. Maybe someday it will. So then is it an asset? And what provides the fundamental value--is the value only driven by scarcity and demand? I could sell bottled elf farts, which are quite scare, but there appears to be insufficient demand for me to get rich with these.

It's a currency for 6 million people in el Salvador,the cleverness of your conclusions is an odd pair with your lack of fundamental understanding of what a currency is

 

[YoboCopter]

No, it's because banks offer loans based on the value of the collateral (house in this case) and the credit risk of the borrower. A friend sold a highly graded Lebron James rookie card for something like $15,000 last year and the mortgage lenders wouldn't touch it for 30 days because when cash shows up in accounts without a prior history, they want to make sure there's no unposted debt that matches it.

There may be some element of conversion risk--if your banker can't figure out how much your crypto will be worth in 30-60 days when the sale happens, they don't want to underwrite any risky transaction. What if there's a dip and you're just a little short? Bankers like the easy math (not because they're stupid, but they may play dumb on purpose.)

There's also probably some question about where the money comes from--in the US for instance if you generate your cash through illegal activities the Feds can still come in and seize property. This has created an interesting/weird economy in Colorado in recent years because selling marijuana is legal in CO but it's still a US crime. So banks won't house any money for the businesses/owners because they don't want to risk it being seized by the Feds*. People who generate legitimate income through these related businesses will take their cash and buy houses/land/property in a cash sale; now the property can generate income that has no risk of recapture or it can be sold and the money is "laundered."

But the main issue is proving credit worthiness, so cash out your crypto and let it sit on a balance sheet as actual fiat currency for 30-90 days and you'll get around this issue.

Also, on the second comment, just no. Banks don't create currency, they hold currency. They create credit/liquidity. Banks will gladly hold your funds or lend you funds, but are risk averse, and they apply their risk aversion equally to personal credit risk and bureaucratic legal risk. Banks don't really care where your money came from so long as it doesn't put them at risk.

*this may have changed recently, but this was the case even a few years ago

Cheers mate makes sense
3 months then till i put my depo down on my new south liverpool ranch

 

[DuuuncanHadaPigeon]

It's a currency for 6 million people in el Salvador,the cleverness of your conclusions is an odd pair with your lack of fundamental understanding of what a currency is

We will see how El Salvador plays out - it has been 12 years since Satoshi envisaged p2p digital cash, and El Salvador is all we have.

If BTC was truly what it was meant to be it wouldn't need a government or big banks/institutions to adopt it. That is the opposite of crypto

 

[DuuuncanHadaPigeon]

That's something I struggle with as well, but also the basic ontological question: what is crypto(currency). I don't think it's a currency, at least it doesn't behave like currency. Maybe someday it will. So then is it an asset? And what provides the fundamental value--is the value only driven by scarcity and demand? I could sell bottled elf farts, which are quite scare, but there appears to be insufficient demand for me to get rich with these.

Typically there has only ever been two real actual use cases for crypto and they are, store of value and speculation. In both those cases the only thing that matters is, price go up.

To answer your ontological questions, crypto is a slow, expensive database that has no benefits to any company over a typical SQL or even excel database. One of its only real useful features is censorship resistance, which I personally place a lot of value in.

 

[SerenityNigh]

We will see how El Salvador plays out - it has been 12 years since Satoshi envisaged p2p digital cash, and El Salvador is all we have.

If BTC was truly what it was meant to be it wouldn't need a government or big banks/institutions to adopt it. That is the opposite of crypto

Good for them for working out a way to stabilize their currency. I don't know much about El Salvador except they added the USD as official currency 20 years ago. I suppose this was an effort to stabilize the Colon.

 

[SerenityNigh]

Typically there has only ever been two real actual use cases for crypto and they are, store of value and speculation. In both those cases the only thing that matters is, price go up.

To answer your ontological questions, crypto is a slow, expensive database that has no benefits to any company over a typical SQL or even excel database. One of its only real useful features is censorship resistance, which I personally place a lot of value in.

There is definitely value in the public ledger, but I can't reconcile the differences in value between various cryptos, except that I know volume of use and perceived (and real) legitimacy/stability of the infrastructure plays a role here as well.

 

[nikom court]

We will see how El Salvador plays out - it has been 12 years since Satoshi envisaged p2p digital cash, and El Salvador is all we have.

If BTC was truly what it was meant to be it wouldn't need a government or big banks/institutions to adopt it. That is the opposite of crypto

El Salvador will be the first of many!

 

[SerenityNigh]

Cheers mate makes sense
3 months then till i put my depo down on my new south liverpool ranch

 

[nikom court]

There is definitely value in the public ledger, but I can't reconcile the differences in value between various cryptos, except that I know volume of use and perceived (and real) legitimacy/stability of the infrastructure plays a role here as well.

The public ledger is a slow and expensive database,it's only useful for preventing bitcoin double spends.