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JPMorgan Chase, Bank of America & Citi bar people from buying bitcoin with a credit card
CNBC ^ | February 2, 2018 | Evelyn Cheng

Posted on 02/04/2018 3:49:25 AM PST by C19fan

J.P. Morgan Chase, Bank of America and Citigroup said Friday they are no longer allowing customers to buy cryptocurrencies using credit cards. "At this time, we are not processing cryptocurrency purchases using credit cards, due to the volatility and risk involved," a J.P. Morgan Chase spokesperson said in a statement to CNBC. "We will review the issue as the market evolves."

(Excerpt) Read more at cnbc.com ...


TOPICS: Business/Economy
KEYWORDS: banking; bitcoin; credit
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1 posted on 02/04/2018 3:49:25 AM PST by C19fan
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To: C19fan

Cryptocurrencies would make Charles Ponzi smile.


2 posted on 02/04/2018 3:52:35 AM PST by BuffaloJack (Chivalry is not dead. It is a warriors code amd only practiced by warriors.)
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To: C19fan

Are those banks all members of the Federal Reserve?!


3 posted on 02/04/2018 4:29:36 AM PST by Trumpet 1 (US Constitution is my guide.)
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To: Trumpet 1

Are those banks all members of the Federal Reserve?!
__________________________
You bet they are and therein lies the dirty little secret. No one is going to upset their big fat cat, exclusive, one of a kind medium of exchange applecart.


4 posted on 02/04/2018 4:55:04 AM PST by iontheball (lLL)
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To: iontheball; Trumpet 1

> “You bet they are and therein lies the dirty little secret. No one is going to upset their big fat cat, exclusive, one of a kind medium of exchange applecart.”

Yes, that’s it.

The ‘volatility’ policy makes no sense. There are many things that are volatile in value.

Thankfully I have no credit cards and will never have them. I purchase everything with debit, cash, credits, or trade; never credit.


5 posted on 02/04/2018 5:56:38 AM PST by Hostage (Article V)
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To: Hostage

People that are borrowing money to speculate on beany babies... I mean tulips.... ooops. I meant bitcoin.

Jpm/chase and others would be wise to revoke credit to these morons.

An extremely long line of respected financial people and economists have warned people about bitcoin. Sadly, greed compromises people and the idea of a quick buck is tempting.

I own a financial institution and have been in finance nearly my entire adult life. This bitcoin thing is just but another scam that I’ve witnessed in my long career.


6 posted on 02/04/2018 6:30:00 AM PST by Professional
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To: Professional

Big banks should prohibit the purchase of cake, ice cream, candy, sugary sodas, guns, and donations to Donald Trump.

They should also prohibit the purchase of theatre tickets to movies and events they don’t like.

Of course, they should allow purchases of abortions and abortifacients that are not covered by Medicaid or insurance.

Yeah, I like your idea. The banks should make decisions for everybody! Then life will have its BLISS!


7 posted on 02/04/2018 6:39:16 AM PST by Hostage (Article V)
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To: Hostage

I knew a guy in the early 60’s who didn’t believe in credit. Then, he got married, and wife got pregnant...

He needed to get a bigger car with room for baby seat, and found out that he couldn’t buy a $3400 car with payments BECAUSE he had NO credit history!!!

Sure woke him up.


8 posted on 02/04/2018 6:45:52 AM PST by ridesthemiles
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To: ridesthemiles

Yeah, your guy sure needs to borrow. Otherwise, he might learn to save and plan. GOD FORBID!

Banks should ban saving. It’s downright unAmerican to save!


9 posted on 02/04/2018 7:04:08 AM PST by Hostage (Article V)
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To: Hostage

The big problem they’re seeing is that you can use this to make a big scam. Cryptocurrencies aren’t listed as assets. So you could buy a whole bunch on credit, declare bankruptcy, the credit card company gets little if anything, then when all the paperwork is cleared you cash out your crypto, you win, banks lose. I wouldn’t be surprised if they’ve already seen some folks doing it.


10 posted on 02/04/2018 7:06:29 AM PST by discostu (Lick here [ ] you might be one of the lucky 25.)
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To: Professional
This bitcoin thing is just but another scam that I’ve witnessed in my long career.

There's a speculative aspect which was complemented by a pump and dump by bigger players. It is very thinly traded and easy to manipulate in the short run. But there's a store of value you are ignoring. Those of us who bought in the low hundreds hoping to store value at those same numbers were shocked to see it rise so much. I was unconfortable and took some money off the table in December.

But studying it more I realized that the main reason is went up is price-insensitive purchases by Chinese and others. They fully intended to sell, and were just using BTC as a vehicle to move money. The key factor is that selling takes a while especially if you don't want to be tracked through a legitimate exchange. (my sales are all going to be sent to the IRS for long term cap gains tax, I have 1099s for some and will document the rest). The delay from purchasing to sale caused the rise. Again, there were a lot of price-insensitive buyers. They didn't care.

11 posted on 02/04/2018 7:29:16 AM PST by palmer (...if we do not have strong families and strong values, then we will be weak and we will not survive)
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To: discostu

Moving beyond crypto currency and big banks,,,I have heard that block-chain processes(what ever those are) will be a new form of data storage and/or data security. That non crypto currency block chain will be useful.


12 posted on 02/04/2018 7:31:30 AM PST by Trumpet 1 (US Constitution is my guide.)
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To: Professional
I respectfully disagree with your assessment. While I agree spending debt (credit card) to speculate is a bad idea, I do feel there is a place for crypto currencies that allow direct P2P transactions without the middleman charging for transactions. Bitcoin is one implementation and it has some flaws which I expect to be worked out, specifically scaling and performance. Frankly, the credit card network offer much faster exchange, lower transaction costs, and is much larger than Bitcoin. However, bitcoin has been going on for years, only garnering news in recent months.

The banks were caught off guard by the fast rise in crypto and have been fighting against it, still Dimon backed off his initial claims. I encourage you to read Nakamoto’s 2008 paper. Bitcoin is one implementation of his idea, but the idea has merit, IMO. If you have read it, do you take exception with his position or do you take exception the specific implementation called bitcoin?

13 posted on 02/04/2018 7:47:31 AM PST by HonkyTonkMan
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To: Hostage
Thankfully I have no credit cards and will never have them. I purchase everything with debit, cash, credits, or trade; never credit.

And are therefore, no "Hostage". 😁

14 posted on 02/04/2018 8:13:41 AM PST by Caipirabob (Communists...Socialists...Fascists & AntiFa...Democrats...Traitors... Who can tell the difference?)
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To: discostu

Sorry no sale. The scheme you describe applies to a thousand other purchases.

Substitute in your paragraph the word ‘timeshares’ for ‘cryptocurrencies’ and the same scenario is molded. One can find dozens of other products without much effort.

See post #5 for the real reason why bankers are scared sh*tless of cryptomoney.

Cryptocurrencies are all based on BLOCK CHAIN TECHNOLOGY or BCT. BCT is a mortal threat to bankers just as hydraulic fracturing of oil shale is a mortal threat to OPEC. The analogy is accurate and precise.


15 posted on 02/04/2018 8:26:01 AM PST by Hostage (Article V)
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To: Caipirabob

You got it.

When a person wakes up to see the debt traps surrounding them and learns how to avoid or defeat them, it’s inspiring to watch them become aware of what it means to be truly ‘alive’.

“Every time a credit trap is defeated, a true American is born.”


16 posted on 02/04/2018 8:33:22 AM PST by Hostage (Article V)
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To: Professional

“This bitcoin thing is just but another scam that I’ve witnessed in my long career.”

You have dealt with fiat currency your entire life, and stolidly maintain that there is some inherent legitimacy because your preferred ponzi scheme is supported by world bankers and nation states who enacted the system? Seems a bit of a logic loop. The “full faith and credit” is underpinned by only debt. This has been so most, if not all of your long career.

Comparing crypto currency to tulips is easy if you discount the fact that niether cryptography nor currency have any inherent value. As a basis for commerce, the dollar (fiat currency) is an unsecured note controlled by a Byzantine private corporation. With the exception of XRP, crypto currency is a currency without the fiat. In your world, such an entity makes no sense.

Yet, when one realizes that all currency is a transaction, it becomes clear that the value lies not in the currency, but the transaction.

The security of that transaction is where the crypto part comes in. Rather than relying on some “benevolent” corporation to secure my transaction, the currency itself is secured by encryption. The other part is the transaction itself which is recorded by the block chain. Every transaction is recorded in the block chain that forms the chain. This technology is already making inroads in numerous areas beyond the crypto currency area.

Crypto currency is an esoteric idea, and it certainly is not mature, but consigning it all to the tulip market myth is a bit simplistic for one who understands economics. The speculation is foolish and there are certainly bad actors, including the large corporations now trying to usurp the free market, but it’s not going away.

Those swept away in emotion always lose, but there are still nice tulips in Holland and many a family making a living at developing new ones. I am no prophet or fanatic, but I do see this maturing in unimaginable ways.

The likelihood of any particular variant becoming the norm is negligible, but the likelihood of the major fiat currency evolving into some form of crypto currency is almost inevitable. Of course, by then it will have devolved into just another link in the plutocracy’s chain rather than a real free market transaction basis. You and your professional progeny should be safe from us heathens.


17 posted on 02/04/2018 8:33:28 AM PST by antidisestablishment ( Xenophobia is the only sane response to multiculturalism’s irrational cultural exuberance)
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To: Trumpet 1
That non crypto currency block chain

The blockchain is created from currency transactions. The mining reward and transaction fees motivate the miners to keep 1000's of copies. The power of blockchain is that 1000's of miners agree 100% on the data in the blockchain. Withouth the miners there is no blockchain. Without cryptocurrency you will need some other way to motivate miners, otherwise it's just another Oracle database.

18 posted on 02/04/2018 8:46:08 AM PST by palmer (...if we do not have strong families and strong values, then we will be weak and we will not survive)
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To: Hostage

Not really. Timeshares are a track-able asset that you could be forced to liquidate during a bankruptcy to pay off creditors. The whole point of crypto is that you can own it WITHOUT the government knowing, since they will only know you have it if you admit it, they can’t make you liquidate it, and they can’t use it to pay off your creditors.

Bankers aren’t scared at all of crypto. Block chain simply does not matter. If cryto actually became useful for things like paying bills banks would get involved with it, and if it ain’t useful for paying bills, bank don’t care.


19 posted on 02/04/2018 8:47:04 AM PST by discostu (Lick here [ ] you might be one of the lucky 25.)
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To: Trumpet 1

It’s already used for that. Especially handy for tracking items with complex possession chains, tracking that one chip from China to a circuit board in India, to a cellphone back in China to a Best Buy to you (through of course dozens of ships and trucks and shipping companies and manufacturing lines and sales people). The infinite insertion capability makes it really handy for that, doesn’t matter if your chain of possession for the item includes 3 stops or 300 you’ll never blow up the database or waste a bunch of space.


20 posted on 02/04/2018 8:51:33 AM PST by discostu (Lick here [ ] you might be one of the lucky 25.)
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