Tero's Crypto Corner

Discussion in 'General Discussion' started by terosis, Jun 20, 2017.

  1. Octavionn

    Octavionn Mind Blowing!

    Post Count:
    2,346
    @Kanmuk_Sealclubber

    The only downside from using a crypto to cryoto wallet is you arent getting Credit Card points to use for your next vacation to the bahamas. Also, credit cards have zero liability for fraud and charges can easily be disputed. If you use crypto to crypto wallets, it’s essentially cash and you lose all benefits and safety nets. So me personally I’d only carry small amounts in said crypto wallet as if it was cash in my pocket. No more than what ai’d be comfortable with having stolen and not freak out.
     
  2. Octavionn

    Octavionn Mind Blowing!

    Post Count:
    2,346
    3rd party vendors we contract to use their product software. I cant say anymore then that. Lol. Large banks like chase and wells fargo have their own programming department and develop all their own software services. Small and community banks have to find vendors and figure out which ones we like.
     
  3. Kanmuk_Sealclubber

    Kanmuk_Sealclubber Yes

    Post Count:
    9,311
    WHen I talk about Fundamental value, I don't mean "what is it's use case", I mean "how does the use case actually impact value in a meaningful way?".

    Take arbitraging. That involves buying a coin, transferring it almost instantly, and then dumping it a few seconds later. That has a very minor impact on supply (since you're dumping the coins back into the supply pool a few seconds later). A lot of money would have to be arbitraged each second for that to be a *primary* driver of value.

    All this "use case" rhetoric needs to be translated into actual real world numbers at some point.
     
  4. Czer

    Czer I'm a poor person. The lambo is my cousin's.

    Post Count:
    24,654
    actually big banks use either oracle or sap, citibank uses sap, wells fargo uses oracle etc

    i'm sure they have developers to create their own supplemental apps
     
    Octavionn likes this.
  5. Sear

    Sear TZT Neckbeard Lord

    Post Count:
    32,063
  6. Kanmuk_Sealclubber

    Kanmuk_Sealclubber Yes

    Post Count:
    9,311
    I would never use a crypto in a location that already has credit card access. If Libra can make it convenient enough to actually rival credit card usage, maybe, but that will be a difficult task.

    In developed nations, Libra is probably just going to be PayPal. It's neither a crowdfunding vehicle nor an "investment" option. It's a service, not an asset.
     
    Octavionn likes this.
  7. Octavionn

    Octavionn Mind Blowing!

    Post Count:
    2,346
    @Kanmuk_Sealclubber

    Who knows... hype and speculation drive our crypto market. Lol. Everything is still soo new. Uncharted territories.
     
  8. Utumno

    Utumno Administrator Staff Member

    Post Count:
    40,996
    More like CUCK
     
  9. Velox

    Velox TZT Abuser

    Post Count:
    5,829
    Is this the official explanation? With a few notable exceptions with hyperinflation, even developing countries have moderately stable prices in their own currency. A few have elected to peg their currency to the dollar (which achieves the same thing with more flexibility). Most want some level of inflation though. It seems to me that trying to hijack the currency regulation in developing nations is not going to go down well. I'm not very confident that the crypto crowd has much of a clue what they are doing even if it is well intentioned.
     
  10. Kanmuk_Sealclubber

    Kanmuk_Sealclubber Yes

    Post Count:
    9,311
    No, that's speculation I've read in Forbes/other places based on what little information Facebook has released. We won't know for sure until Facebook unveils their white paper on the 18th. Although if it's as politically fraught as you suggest, they may tiptoe around it.
     
  11. Velox

    Velox TZT Abuser

    Post Count:
    5,829
    Okay, thanks. The main use I see is as transparent transaction back end between payment processors and banks in countries with little financial infrastructure and poor rule of law. This is a reasonable if narrow use case.

    Im skeptical of the concept of trying to get consumers to use libre coins directly. I also see no obvious upside for any other public coin, but maybe im not looking hard enough.
     
  12. Kanmuk_Sealclubber

    Kanmuk_Sealclubber Yes

    Post Count:
    9,311
    I have no idea.

    Facebook probably doesn't care about all the Libertarian fantastical bullshit that other coins do, and may be able to eliminate a lot of the drawbacks of other coins (onboarding difficulty, security, unregulated price manipulation, coin hoarding, etc). At which point it becomes PayPal 2.0.

    Can Facebook make it convenient enough and provide enough incentives to get people to use it over traditional credit cards or PayPal? Possibly. I'm not exactly expecting success, but there are a lot of ways FaceBook could leverage their muscle to incentivize coin usage.
     
  13. Octavionn

    Octavionn Mind Blowing!

    Post Count:
    2,346
    Oh! Another perfect use case for Libra is the cannabis industry. If users can easily convert fiat to Libra in their facebook... then the cannibis stores whom are barred from opening bank accounts can just use discounts and incentives to get people to pay in Libra. Them they can store all their funds in digital wallets and comvert into other cryptos if they so chose.
     
    Kilinitic likes this.
  14. Czer

    Czer I'm a poor person. The lambo is my cousin's.

    Post Count:
    24,654
    So, that would require breaking a lot of laws.

    First of all just reporting your income would get you audited, or the government will audit you for what seems to be a lot of income you have no reasonable way to account for. Your explanation of circumventing their central bank will go very poorly.

    Your bypassing the part where you have to obtain a license from the government to perform and operate...

    Most businesses need to register with a state government to operate. Corporations need a charter, and other forms of businesses, such as limited liability companies or partnerships, need other forms of registration.The function of this registration is usually to define the financial liability the owners of the company have.
     
    Last edited: Jun 15, 2019
  15. Kanmuk_Sealclubber

    Kanmuk_Sealclubber Yes

    Post Count:
    9,311
    Wasn't there an article in the crypto thread talking about how BTC transactions are unfavourable for vendors because it requires a middleman to quickly convert the bitcoins to fiat? And that cross-border transactions using different currencies also involve a similar process? A stablecoin could, in theory, eliminate the need for a middleman. I'm floating that out there more as a question than as I statement.
     
  16. Octavionn

    Octavionn Mind Blowing!

    Post Count:
    2,346
    @Kanmuk_Sealclubber

    BTC is not worth it at all for consumer businesses. The massive hurdles just to set up accts at exchanges to buy bitcoin. Then there’s all the fees involved. And then how slow it is. Also the massive fluctuations in prices. A stablecoin that anyone can easily buy (through facebook) would be a major advantage. Ofcourse I would not leave my finances in a stable coin controlled by the Facebook Consortium of Companies Cartel who could probably in theory freeze my coins at the government’s behest. I would immediately convert it to a decentralized crypto that I like. Lol. Nano ofcourse. ;).

    Also think of the massive savings the cannibis industry would get by eliminating all cash from their shops. No need for all the armored vehicles, the warehouses storing their mulah. Reduction in security costs. The ease of accessing said funds since its now in crypto and easily movable. Can pay my employees with ease. My vendors, etc.
     
  17. Octavionn

    Octavionn Mind Blowing!

    Post Count:
    2,346
    @Czer

    All true points. But in a more rural or poorer country, villages, etc. I’m not going to report my sidewalk food cart where I serve up fried pigeon on a stick to my hungry Chinese customers. Also, being able to accept a crypto would make the hassle of cash go away.

    If in a more developed country, if you do completely bypass laws and arent keeping accurate records to pay your taxes, you just open yourself up to being raided and business assets seized.... but if I moved my miljillions in crypto to a flash drive hidden in a family portrait at my mom’s house hanging on a wall... well.... they aint gettin mah monies! Lol.

    I would pay my taxes though so they cant throw me in jail. But I’d also still hide flash drives everywhere with my money. . So if they did raid my cannibis shop they cant seize my monies!

    I pay bail, then off to some foreign land I go with all my fortunes to start a new life.
     
  18. Sear

    Sear TZT Neckbeard Lord

    Post Count:
    32,063
    So we're back to Silk Road black markets full of third-world junkies and pedos as the only major use case anyone can think of for crypto.

    That seems fitting. Lol!
     
    Utumno likes this.
  19. Octavionn

    Octavionn Mind Blowing!

    Post Count:
    2,346
    I live in California. There’s cannibis shops an 8 min drive from me. The banking problem for Cannibis shops is real. I get emails every few months of businesses pleading for ways to open a bank account for their weed monies. I think a few of them had opened shell businesses and just move some of their cash as payments for some
    Made up service provided so they can get some funds in banks. Lol.

    I’ve also considered switching to smoking weed for my severe insomnia issues since my pill popping habits have caused me to develop insane tolerance to chemicals. zolpidem has little effect on me now.

    It would be most convenient for me to pay for my “medication” with a cryptocurrency. Lol.
     
    Last edited: Jun 15, 2019
  20. Velox

    Velox TZT Abuser

    Post Count:
    5,829
    Just to be clear, I'm not an expert on macro econ, but the motivation behind "private" currencies is really baffling to me. People get their salary in the currency of their country, which unless your country is severely mismanaged will be moderately stable internally at least. There are cases where people/countries have reverted to using e.g. USD when all else fails, but this is a niche use. Generally, countries want control of their currencies so they can regulate an appropriate level of inflation (which is not zero). If people start having debt in external currency, the country can end up in a bad debt spiral that you just can't inflate away.

    The troubles with the Eurozone is actually a good example where even fairly developed countries ran into trouble with a common currency. Greece gets the same monetary policy as Germany, even though Greece was a less mature economy. They borrowed too much, and racked up a bunch of debt in EUR they are really struggling to pay back. Meanwhile Trump can just print more dollars, because his debt is in USD. Likewise, Iceland had a bunch of consumer loans in dollars, which was a huge problem after their financial meltdown. Which is not to say that it cannot be beneficial (they likely got lower rates), but nation states probably want a say in their monetary policy. Which is why the idea of private entities going at it alone seems both baffling and possible even unethical.

    Unless they only plan to use it for long term savings, but then people would be better off with easy access to some kind of of global wealth fund.

    EDIT: Perhaps it could be useful for international commerce? If it is a basket of currencies it would be more stable than any single one, and international contract prices could be denominated in it. Currently companies sometimes take out insurance for large currency fluctuations on their contracts, so the crypto system would have to be cheaper/more robust/less of a hassle than that.
     
    Last edited: Jun 16, 2019