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If you want to chase high yields regardless of the default risk, you would be better off issuing payday loans for 500% a year.
 

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DeFi uses over collateralized loans (the opposite of the 0% fractional reserve banking in the US)

There is risk in the code but it's not the same risk as people who live pay cheque to pay cheque or banks who are required to maintain 0% collateral in the US

How is 0% fractional reserve even a fraction anymore? How do you divide by 0 sags? Fiat is now infinite
 

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Right now regular money does everything better than crypto for my day-to-day financial needs. Even if transactions could be done as fast with crypto as with credit/debit cards, why would I bother with the extra conversion to fill up the crypto wallet? Also crypto can never fully replace real money because you need some form of physical currency (coins and bills). Digital only goes so far, we're in a physical world.

That's my little thesis on why cryptos are doomed to fail, regardless of how good the technology gets.
In the last month I've made the following cash transactions.
Bought ice cream at a tourist spot that didn't accept credit cards.
Sold some items at a garage sale, about 1/3 of my transactions were digital, 2/3 cash.
Bought some used books at a book store cash.

None of those were "needed", so I'd say that I need digital currency more than physical.

Putting money on a crypto wallet should be no different than putting money on your credit card. It is today, but it's not a major step IMO.

Finally, as I've said many times before.
The advantage of Cryptocurrencies & blockchains are the things that it does that current solutions don't or can't do.
 

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I never use cash. I never have cash. I withdraw some cash only when I want to do a transaction without any tracking.
 

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In the US it's all square now

The rare places that only took cash had to go contactless during COVID. My mechanic uses square. The coffee shop uses square. The icecream stand uses square. Square owns the 3rd most BTC for a public company behind Tesla and MicroStrategy and is integrating crypto.

Heck even if I wanted marijuana it's legal now and probably sold with square. Once square, NFC etc integrate with crypto there is no need for Visa 4% merchant fees. Then it's only a small step to realize all you need is a smart phones and QR codes. China already did this with WeChat and soon the digital yuan.

El Salvador is launching BTC next month. You can still use cash if you want to. You can still use the post office if you want to

Good luck not using email or crypto
 

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Discussion Starter · #486 ·
I never use cash. I never have cash. I withdraw some cash only when I want to do a transaction without any tracking.
I use plenty of cash. It's great. I bought some milk today with cash.

Simple paper bills, accepted everywhere, no batteries or fancy phones required. Why over complicate things?
 

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Simple paper bills, accepted everywhere, no batteries or fancy phones required. Why over complicate things?
You'd get a funny look here offering someone cash unless it's in a dark alley. All the places I frequent upgraded to NFC and highly encourage contactless payment now

Cash is filthy especially USDs. In Europe they had special plates to reduce germs 10 years ago but I've never seen those in America even after covid
 

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Discussion Starter · #488 ·
You'd get a funny look here offering someone cash unless it's in a dark alley. All the places I frequent upgraded to NFC and highly encourage contactless payment now

Cash is filthy especially USDs. In Europe they had special plates to reduce germs 10 years ago but I've never seen those in America even after covid
Oh come on. I lived in the US for many years, and there was plenty of cash changing hands.

At my US office, we always bought our lunches at food carts with cash. I was at a coffee shop a couple days ago (Canada), again, paid with cash.
 

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I use plenty of cash. It's great. I bought some milk today with cash.

Simple paper bills, accepted everywhere, no batteries or fancy phones required. Why over complicate things?
I hate cash. You always get plenty of pocket change and I don't know what to do with that pocket change. And if I want to get rid of the pocket change, it takes forever to count it to pay the exact amount to the cashier (forever = 5s to find the pocket change and 5s to count it and then 5s for the cashier to validate instead of 0.1s contactless). I pay with my phone, and my reward cards are on my phone so I don't even carry my big wallet anymore. Simple and easy.
 

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Oh come on. I lived in the US for many years, and there was plenty of cash changing hands.

At my US office, we always bought our lunches at food carts with cash. I was at a coffee shop a couple days ago (Canada), again, paid with cash.
Yes that was the pre-COVID world james. They use square or another app for those things now

During COVID when they had to install plexiglass in front of the cashiers.. they also installed fancy contactless payment terminals (which we had in Canada for many years now) Older gas stations also upgraded so you could pay contactless at the pump (I pay for gas from my phone in the car)

I already preferred contactless payment and COVID just forced the US to install it everywhere
 

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For decades, poorer countries have operated without cash. When you remit money to the Philippines, they send the value by fax/email and the tx is complete. It is operated on trust. The sender and receiver settle when the amounts get large.

The unbanked people in Africa have used Scrip between phones to transact business for years. These people do not have bank accounts.

So the notion of cashless is quite old. What is new is that the value of bitcoin can vary more than these cash equivalents which was unheard of. It is also technically traceable yet there has been cases of big frauds because ultimately one has to trust the exchange organizations.
 

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So the notion of cashless is quite old. What is new is that the value of bitcoin can vary more than these cash equivalents which was unheard of. It is also technically traceable yet there has been cases of big frauds because ultimately one has to trust the exchange organizations.
Ethereum has thousands of tokens and many of them are pegged to a "stable" currency known as stablecoins or even gold and stocks. Every company can have its own loyalty token with special discounts (sound familiar?) Ultimately everyone should be able to pay and receive whatever token or currency they want.. using decentralized exchanges and automated market makers

An exchange aggregator will find the best rate from the many automated market maker protocols. Typically 0.3% fee goes to the liquidity providers. Yields are insane for liquidity providers when volume is so high and liquidity is still low. Volume and liquidity will likely only increase meaning the fees will likely drop to 0.1% or lower because the aggregator will take the best rates.

There was recently the largest hack in crypto history but the hacker gave it all back because he knew there is no way to spend it. The oil pipeline ransom was recovered. Yes there are still exchanges registered in sketchy off shore countries but even they will freeze funds tied to a fraudulent address. A lot has changed since the silk road black market was shut down.

Cash is king for criminals nowadays
 

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I think bitcoin companies are ok. But there appear to be fraudsters taking advantage of the area.

Interesting article in G&M about a company supposedly trading on bitcoin volatility which turned out to be a ponzi scheme.

Cryptocurrency promoter pleads guilty in $2-billion fraud


SAN DIEGO
The Associated Press


A Los Angeles man pleaded guilty Wednesday to participating in what prosecutors called a “textbook Ponzi scheme” that defrauded cryptocurrency investors worldwide of more than $2-billion.
Prosecutors said Glenn Arcaro, 44, sat atop the North American branch of the pyramid investment scheme BitConnect, the San Diego Union-Tribune reported.

Arcaro, who pleaded guilty in U.S. District Court to conspiracy to commit wire fraud, admitted in his plea agreement to earning “no less than $24-million from the BitConnect fraud conspiracy,” the newspaper said. As part of his plea, Arcaro must pay back that money to investors. He faces up to 20 years in prison when he is sentenced Nov. 15.

“The BitConnect scheme is believed to be the largest cryptocurrency fraud ever charged criminally,” the U.S. Attorney’s Office said in a statement.
Arcaro’s plea came the same day that the U.S. Securities and Exchange Commission filed a civil complaint against BitConnect, the Union-Tribune said.

According to prosecutors, Arcaro and his co-conspirators claimed that BitConnect used a proprietary technology that was able to generate huge profits by using investors’ money to trade on the volatility of cryptocurrency exchange markets.

“In truth, BitConnect operated a textbook Ponzi scheme by paying earlier BitConnect investors with money from later investors,” prosecutors said.
 

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But there appear to be fraudsters taking advantage of the area.
More than appear - there's no question

BitConnect is just one of many ICO scams. People who feel like they "missed out" on better projects are rushing into scams with no research. Hex looks like the new pyramid scheme and it's ironically based on CDs hmm

"Rug pulls" and "giveaway scams" are also common

In truth, BitConnect operated a textbook Ponzi scheme by paying earlier BitConnect investors with money from later investors
Paying earlier investors with money from later investors? Boomers get more from social security than they contributed. SEC should look into that textbook Ponzi scheme next?

By this definition, the western government could be called a Ponzi scheme that relies on the future generations to pay the older generation debt

Scams are everywhere not just crypto
 

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Discussion Starter · #495 ·
BitConnect is just one of many ICO scams
I think BitConnect was the one with the amazing video, the con man Carlos


Someone even asked about BitConnect on this forum back in 2018, to which the CMF responses were unanimous: this is a bad idea, a fraud.

 

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Ad on a Montreal bus ("Buying and selling Bitcoin").

Automotive parking light Cloud Sky Bus Vehicle
 

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Ad on a Montreal bus ("Buying and selling Bitcoin").
FTX has Tom Brady and Steph Curry
Voyager sponsors a NASCAR, Rob Gronkowski, Victor Oladipo
Crypto.com sponsors Montreal Canadiens, UFC, F1, IIHF and some soccer leagues

Lots of scams going around
 

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Lots of scams going around
Posted it here but it's just that I noticed how crypto are truly increasing their presence (through ads, for instance).

I don't have an opinion though whether it is good or bad.
 
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