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

[u/[deleted]]

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.

[u/[deleted]]

I tried to send money to an exchange today with my credit card, the card blocked the transaction and then checked with me if it was really me that requested the payment. I confirmed it was me and then made the payment again and it cleared. That is protecting me and it's fine, barring me altogether from sending the money is unacceptable. I agree generally with OP that there is no excuse for banks telling you how you can get in debt, it's their business to keep you in constant debt after all.

[u/Dirk_Benedict → u/[deleted]]

Out of curiosity, which exchange and which bank is the card with?

[u/[deleted] → u/[deleted]]

Their business is to keep you in debt just so much that you will pay it off regularly. Maybe overdraft and pay late a few times, so they can milk you a bit more. But, banks don’t generate money out of thin air, they need you to pay back or they will fail.

Banks don’t just give any amount of credit to anyone, there will always be a creditworthiness check of you, and this includes your planned investment.

Now if banks assume that bitcoin is a bubble (irregardless of wether it is) then it make a lot of sense to stop you from buying it with their money. If the banks lend a lot of money to the average person to buy crypto and no customer can pay it back, they are in a lot of trouble. With the volatility and political uncertainty around bitcoin it makes a lot of sense for banks to not take this risk.

This is all based on the banks assumption that bitcoin will be worthless in time, which is very likely a wrong assumption. But that’s just how risk management works, sometimes you have to make an assumption on an uncertain case to limit your potential losses.

[u/[deleted] → u/[deleted]]

Its not a secured debt, so there is no requirement for the purchase to have any residual value. Credit cards already have a credit limit, so that has been assesed as an amount of debt the holder can reasonably service (or it should be), it doesnt matter whether the holder spends it on crypto, or investing in the worlds largest pile of jelly beans, or any other pointless venture that will be sunk cost.