Bitcoin Ban Expands across Credit Cards as Big US Banks Recoil

Megalith

Megalith

24-bit/48kHz
Staff member
Joined
Aug 20, 2006
Messages
13,000
JPMorgan Chase & Co., Bank of America Corp. and Citigroup Inc. have announced that they are declining crypto puchases: buying Bitcoin and other cryptocurrencies will not be possible on their credit cards. Debit cards are not affected, however.

Bitcoin has lost more than half its value since Dec. 18, falling below $8,000 on Friday for the first time since November. Now, cutting off card purchases could exacerbate those pressures by making it more difficult for enthusiasts to buy into the market. Capital One Financial Corp. and Discover Financial Services previously said they aren’t supporting the transactions.
 
I know the article mentioned fraud and money laundering as part of the reason, but I also wonder if CC fees didn't play a big part too?
 
There are probably morons maxing out their credit cards and taking a second morgage, but I think that is a small number of people. Example, if I had $2000 to invest and an EFT is going to take 4 days, a credit card is pretty much instantaneous. Then I take the $2k I had in my bank account and pay off the CC. No interest, no fees (for the buyer) and so on. Something tells me this doesn't play out very often and people think I can double my money in a month and don't have the 2k to begin with.

Personally I don't care, no dog in this hunt.
 
But but but... It's not a scam! And it's the future of money! Said the sheep as the value plummets, and multiple nations/banks ban the pyramid scheme. Monolopy money is more useful.
 
I was purchasing with my Chase CC because it would give me point when I did. Now I will just use ACH with coinbase which is instant as well...
 
Showbiz said:
I know the article mentioned fraud and money laundering as part of the reason, but I also wonder if CC fees didn't play a big part too?
Click to expand...
Fees wouldn't effect the card companies. Up to the seller to accept fees. The concern would be people maxing the cards and going bankrupt, at which point the card companies eat it.
 
grumpy-cat-good-grumpy-cat-good-meme-free-a-million-pictures-funniest-memes-trees.jpg
 
gigaxtreme1 said:
That's just common sense. Sure if you want to take a cash advance to get around it but still too volatile to extend credit/margin.
Click to expand...

Exactly. Getting credit to speculate on an unregulated market is fraught with dangers but if you already have the money, go nuts.
 
Putting Crypto on a credit line is either very smart or very dumb... depending on which way the wind is blowing.
 
Presumably, if the credit card company has issued you credit, they already consider you a good risk up to whatever credit limit they have set. I would imagine a bigger concern of the CC companies is having to deal with people that want the CC company to refund them when someone sells them coin and doesn't deliver. Also, why would CC co's want to further enable the spread of a new technology that might eventually make a big dent in their own line of business (electronic payments).
 
I enjoyed crypto when it wasn't mainstream honestly, the general problem was the people who don't understand what it is (aside from the people who say it is a scam) treated it as digital assets and not as a means of currency. I'm glad prices are dropping to a "mean" value.
 
dyzophoria said:
I enjoyed crypto when it wasn't mainstream honestly, the general problem was the people who don't understand what it is (aside from the people who say it is a scam) treated it as digital assets and not as a means of currency. I'm glad prices are dropping to a "mean" value.
Click to expand...

SAme here, though I did flip my Dogecoin and Litecoin holdings, bought them back on the dip and ended up about $10K in USD ahead. /score!
 
bos said:
Surprised it took this long, you're not allowed to buy most investment products with a credit card.
Click to expand...

But you can buy a house with a bank loan? whats the difference?
 
if cards are doing this banks will block EFTs soon too that should finally kill the crypto craze
 
lagsmoke said:
I was purchasing with my Chase CC because it would give me point when I did. Now I will just use ACH with coinbase which is instant as well...
Click to expand...
till banks or the fed says no lol all ACH's are processed via the Fed all they have to say no more crypto ACHs
 
The difference is that you own a house, and that house is worth something. Perceived value has no value, but real value has value.
 
Chunder said:
But but but... It's not a scam! And it's the future of money! Said the sheep as the value plummets, and multiple nations/banks ban the pyramid scheme. Monolopy money is more useful.
Click to expand...

Cool story bro. I've made mine :)
 
let's see you stop a decentralized currency
Click to expand...

<Insert Kermit drinking tea meme with him saying nothing>

All and all it's just another brick in the wall
 
Honestly I think this is just a correction and the large influx of people that got in during the up swing, we're talking millions of people, are now freaking out and getting out. Makes great for buyers! I've already made thousands off what I put in just late summer last year, now I'm slowly building for the increase that will likely come toward the end of the year and ride it on out.

I love how you can't buy crypto with CC's yet you can buy all sorts of other things that have zero value and people are these companies are perfectly fine with it. I think it's all just a power play because they can't control the end product that has value out of their grasp. Until they ban CC's at bars, strip clubs, tattoo parlors and hundreds of other places Im not buying their excuses
 
aokman said:
But you can buy a house with a bank loan? whats the difference?
Click to expand...

House is a tangible good, that will have to be insured. It has some "real" value beyond speculation. And an established framework for asset recovery if you default.
 
aokman said:
And if the housing market crashes and the house is worth next to nothing? I fail to see the difference...
Click to expand...

Has never happened. Even the crash most property maintained value, or could be held by lien holders until prices recovered. Now within 5yrs of market bottom most markets recovered 80-90% of lost value.
 
I keep wondering why this is bad news, you cant buy stocks or any other investment with a credit card either. But like all things bitcoin or internet a bunch of fools seem to think its some sort of magical exception.
 
You must log in or register to reply here.
Back
Top