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RE: NEWS - Bank America Bans Bitcoin
This is a major power play by the banks. There are plenty of people who aren't willing to link up their bank accounts for fear of not knowing if it's safe. I personally used a credit card for my first purchases, but I pay them in full every month. It was a security thing more then anything.
very wise approach. too many people bought big with credit planning to make it big and payoff the debt and still be up big time.
the parties over and now a lot of people are left with a bad case of the hangovers.
I think, as an ex-banker that part of the banks reluctance is about people who buy today with their credit card and when the market crashes the next day some of those people come back and want to cancel the credit card buy and get their money back - it creates a really big mess for the banks to clean up.
I get the issue the bank faces with requests to cancel transactions. Society as whole doesn't take responsibility for their actions and thinks someone should bail their butts out each time they make a mistake. The move towards considering it a cash advance that many banks in the US just took recently actually protects them almost completely. Undoing a cash advance isn't nearly as easy as undoing a purchase.
Either way I don't think the banks like all the money that was sitting in their account leaving towards crypto. Every $1 that leaves the banking systems adds liquidity issues for them. There are plenty of us that have pulled substantial sums from money markets and savings accounts.
When a few people pull say $1000-$5000 it doesn't matter, but when tens of thousands of them pull $1000-$5000 it starts to create issues. As an ex-banker I'm sure you grasp the position the banks are in when cash keeps flowing out the door vs in.
excellent point about the liquidity issue, a slow but steady 'run on the bank' as money flows out to crypto exchanges and beyond. The banks still allow the use of debit cards so they haven't stemmed the flow completely - yet - though I think they will still try new ways to cut the flow.
for now the blunt force scare tactics are working, people are bailing out and the price / value of the currencies drop and more people bail out. once prices find a new more solid higher low than last time the process of new money going into cryptos will again exceed the outflow and price / values will again resume their upward movement again attracting in more and more people looking for the quick road to wealth again.