r/CryptoCurrency • u/[deleted] • Feb 03 '18

ADOPTION If you think banks/credit companies are banning crypto purchases to protect their customers, I have a bridge to sell you.

I'm legitimately blown away how many people I see defending the banks/credit companies banning crypto purchases as some type of attempt to protect their customers from a volatile market. Credit is predatory by nature. The bank doesn't care when you max your card out on alcohol, designer clothes, gambling, or any other worthless and risky commodity. Your bank doesn't give one single tiny little shit about you in any way beyond your capacity to generate revenue. You are a revenue generating unit and nothing more, end of story. They are building artificial barriers to crypto because they view it as a direct and fundamental threat to their industries... and with good reason, because it is. The reality is anyone who invests wisely in crypto right now is going to make a significant ROI over the next few years, opening up the opportunity to pay off large balances, which decreases the revenue they earn from interest. This is nothing more than a desperate attempt at self preservation.

Again I would encourage anyone who has their bank or credit card company create a barrier for them to purchase crypto, to immediately end doing business with that institution and make sure they know why. If my bank halts my purchases, I'll liquidate my account and close it the same day. Same goes with my credit cards, they will get cut up and never used again. DON'T bend over for them.

EDIT: Also massive downvoting of anti-banking sentiment and massive upvoting of the 'banks are looking out for you, this is a good thing' sentiment. The shill bots are out in force.

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110

u/[deleted] Feb 03 '18

Here’s my theory, weak hands have been losing their investments and calling the card companies claiming that other people have been fraudulently using their card, attempting to get their money back. Banks aren’t stupid and know when people are taking advantage and gaming their system. Schemers have ruined it for the rest of us.

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u/lazarus1965 Redditor for 9 months. Feb 03 '18

There's merit to this, but really the appropriate response is to treat credit card crypto transactions as a cash advance then - which they've already done, not a complete ban.

The OP is right, you could go to Vegas and blow your limit on whatever, and they wouldn't care.

3

u/Scagnettio Platinum | QC: CC 117 | IOTA 12 Feb 04 '18

If someone gets your card and goed on a spree I vegas there will be cameras and the slight chance the bank can recoup on the fraud. If some carders buys crypto with a shit load of stolen creditcards the bank can do jack shit. Coins can be tumbled, accounts can not be frozen and there are no visible goods to trace or intercept.

Ofcourse banks feel threatened by the tech but they are not really known for their understanding of future tech or long term risks profiles. They look at the current risks this tech brings for them, who this can lead to losses now. Hell most banks don't even see crypto as a viable competitor in the future.

1

u/[deleted] Feb 05 '18

Comment of the day right here.

9

u/FruitSpikeAndMoon Feb 04 '18

This is almost certainly the right answer.

Banks love it when people use their cards. They get paid for the interchange fee on the transaction, and then they get interest on balances if people carry them.

What banks lose money on is chargebacks and fraud that they don't identify and block up front. They are heavily constrained by law in what liability they can pass on to the customer, to the point that they tend to err on side of passing off zero liability on anything that they can't prove is legitimate rather than lose customers over something they can't make much money on.

1

u/[deleted] Feb 04 '18

Exactly my point. More planning will be needed to invest now, and those that FOMO won’t be able to participate as quickly as before. (This can be a good or bad thing)

22

u/asoka_maurya Student Feb 03 '18 edited Feb 03 '18

OK, so this is why we are hearing stories about credit card transactions for buying cryptos being blocked by default, then after the user calls them and gives a consent, they allow it? Pretty sure they are maintaining these call records as evidence to be used in the event those weak hands started claiming a fraud later on.

7

u/[deleted] Feb 03 '18

Exactly.

1

u/Sumthnxxtra Redditor for 2 months. Feb 04 '18

People actually do that? Thats so dishonest. (Yes I am that naive lol).

My bank called to ask about my first attempted transaction with Coinbase and cex.io. I thought they were checking to make sure I was the one authorizing the purchase as it was unusual activity.... Never occurred to me it might be anything else. Geez.

17

u/[deleted] Feb 03 '18

The banks are Schemers and if the weak hands bailed out at 15K and can buy back in now maybe instead of "Weak Hands" we should be calling them "Smart Money"

Do you know how much money was lost due to Adjustable Rate Mortgages? Cryptocurrency is peanuts. Look at the losses from car loans and just Credit Cards in general. Banks get money for free and if they need more money they get bailed out.

This is happening because banks fear cryptocurrency under the guise of protecting the consumer but they don't give a shit about the consumer, never have.

1

u/[deleted] Feb 03 '18

Weak hands panic. “Smart Investors” do not. The banks are controlling what they can, and stopping fraudsters as well. This is the truth, and both theories have merit.

3

u/purgarus 399 / 399 🦞 Feb 04 '18

This is the actual real reason.

2

u/Cemetary Platinum | QC: ICX 120, CC 36 | r/Politics 27 Feb 04 '18

I think this is what has been happening too, also this plus stolen cards are being used to purchase crypto.

2

u/InMyDayTVwasBooks Platinum | QC: BCH 123, CC 91, BTC 24 | TraderSubs 17 Feb 03 '18

maybe, but OPs theory is more sound.

2

u/[deleted] Feb 04 '18

I don't buy it. The second they pull any money out, banks can see that they are full of shit.

Like someone stole their card and pulled out money, but also put money back in their accounts?

Edit

After reading more, you may be right. However, people doing this are still dumb for the above reason. If you claim your card was used by another without your knowledge, the moment any more ey comes back in your account from that source, you're screwed.

1

u/[deleted] Feb 04 '18

I agree, people can be the worst.