Crypto 360°

Friday, 27 December 2019

How they fleece you

I like the credit card debt. The interest is from 20% to 80%, reflecting the real cost of risk and, the time preference, and the money devaluation (but see below for money unit creation). Some people don't pay back, some do. It increases in volume slightly, but it is not galloping, so some pay back, and the issuer can have an average profit. They lend money and hope that the debtor can and wants to pay back.

Most loans are regulated some way. Like student loans - the debtor has not shown any capacity to pay back, still they are given to everybody. Clearly, the risk is paid for by someone else, and that could be you! The same with mortgages, the state is heavily involved. The low interest rate is the result of money creation, and it distorts all calculations, to their benefit, not yours.

All interest today can be regarded as usury - because it is not earned money they lend out, the lender does not defer their spending of rightfully earned money. Most is created by fractional reserve banking, a practise that was made legal a couple of hundred years ago, before that, it was regarded as a crime. When it came to light among the bankers in Venezia, the depositors got furious and broke the bankers bench, they literally went bankrupt, their bank/bench was left in pieces in the agora. This is all hidden, and the initial scam is the central bank: A broke banker colluded with the broke state, the broke banker lent nonexisting money to the state on the condition that the state deposited the same nonexisting money in the bank. Now the bank had reserves, and could start taking deposits, and lending out to the public. From nothing.

Now the state/bankers depend on perpetuating this. The money unit number has to increase all the time. It is not to your advantage, it is for the purpose of the bankers. They need the ability to create more units, by writing a higher number on their own account and multiplying it with fractional reserve. Bitcoin puts a stop to this, because you can not write that higher number into your own account.

But they have gold! Well do they huh? With every failed state we see that there is no gold. The only reason for a state to have gold, is for the fallen leaders to run away with a bar or two when they are chased out of the place.

Do they facilitate payments in an efficient way to the benefit of the customers? Well they have clumsy systems, and since there are infighting, we have different fiats. It is almost impossible for the user to see all the hidden costs. The spread in exchange for instance. One way to look at it, is the size of the world profits that is in banking. It is somewhere between 20% and 30% of all value creation. We have miniscule city states that do nothing more than finance, and they are the most prosperous places.

So getting hold of a few coins and relax knowing that you have something in reserve for a rainy day, that is not stealing from future adopter, it is not unfair, that is how money should work, and did work, before the fiats.

submitted by /u/ErdoganTalk
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source https://www.reddit.com/r/btc/comments/eg4495/how_they_fleece_you/

‘Japan’s Amazon’ Rakuten now allows users to convert loyalty points to bitcoin, ether and bitcoin cash

submitted by /u/riqelme
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How exactly is the bitcoin value determined?

Is value solely based on supply and demand or are there other factors affecting price?

submitted by /u/FiliNotTheDwarfOne
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