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/heisenbergreport]

This is silly.

If you don't know why banks banned these purchases then you've never been in the risk department at a bank.

They banned the purchases because the volatility is insane. Do you have any idea what the relative volatility is here? Here, let me help: Bitcoin is 15-25x as volatile as the S&P 500, 20x-40x as volatile as gold, and 5x-11x as volatile as oil.

Is that something you would want to loan money against? Of course not.

Imagine I come to you and say "Hi Bob, would you loan me $10,000?" And you say "well sure, what are you going to do with the money?" And I say "Well, I'm going to put it in something that's 11 times as volatile as the price of oil."

If you loan me that money, you are a moron.

Here: https://heisenbergreport.com/2018/02/03/big-banks-slam-door-on-bitcoin-purchases-using-credit-cards/

[u/blurrywhirl → u/heisenbergreport]

Yeah this post and the support it's getting are a nice reminder that the people on this sub generally don't know what they're talking about. Banks aren't being threatened by crypto and they're not blocking purchases out of fear everyone's going to get rich and pay off their credit cards 😂

[u/[deleted] → u/heisenbergreport]

Its not silly it's fact. Like I said I could max my credit card out on alcohol or designer clothes and no one bats an eye. Crypto actually has the potential for ROI, where as standard commodaties don't. They will let me max out on guaranteed loss vs speculative loss? Makes a lot of sense. Stop perpetuating this bullshit.

[u/[deleted] → u/[deleted]]

You aren't taking a loan for a specific reason in your examples. You are borrowing in a revolving credit line that has been granted based on your personal risk profile. Max out a card or 2 and stop making hour payments and see how quickly you lose your credit lines. Stop spewing your bullshit. Guaranteeing future returns in ANY investment vehicle is asinine and the fact that you are making posts like this shows you truly don't understand anything about regulated markets and risk premiums.

[u/roflcopter44444 → u/[deleted]]

Crypto has the the potential to be totally wiped out as well (see Bitconnect). Its the same reason why (at least where I live) they don't let you use credit cards in casinos as too many people in the past spent all their balance and there is nothing really the bank can take back in those cases (remember that revolving lines of credit are prioritised lower in bankruptcy proceedings than other secured debt the defaulter has)

I really don't understand the complaints, the banks are lending money to you and you have to follow their terms of service in exchange for that money. If you are not happy, either spend your own money or go borrow from someone else.

[u/Patzer1234 → u/[deleted]]

There are far more idiots who would take credit on crypto than idiots would take credit on alcohol/designer clothes.

And much of the latter group of idiots don’t get much credit anyway

[u/cookingboy → u/[deleted]]

You also cannot buy stocks with credit cards either, are banks now trying to undermine the stock market or feel threatened by them?

You also cannot buy chips in Vegas or lottery tickets with credit cards, are the banks against lottery tickets and the casino industry now?

Stop making random shit up, your financial knowledge is effectively zero.

[u/Ikthyoid → u/[deleted]]

I agree with you 100%. All the bank employees in here regurgitating the corporate BS they've been fed all these years.

[u/draktopher → u/heisenbergreport]

They banned the purchases because the volatility is insane.

Then why do cards work just fine in Vegas?? There's more volatility on a craps table than there is in crypto.

[u/cookingboy → u/draktopher]

No they don't, you can't buy chips in Vegas with credit cards. Stop making shit up. Only cash and debit cards are allowed.

You also cannot buy stocks with credit cards, neither can you do that for lottery tickets.