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I have always thought that but it just crossed my mind that credit cards are basically just terrible loans. You could still give out loans in cryptocurrencies.
by wuliwong 9y ago
I have always thought that but it just crossed my mind that credit cards are basically just terrible loans. You could still give out loans in cryptocurrencies. Maybe Master Card could just switch if a particular crypto currency gained wide adoption. They could start issuing new cards with some sort of technology that allowed for cryptocurrency transactions at businesses. Or maybe they can use existing card tech, I really don't know anything about that.
- SomeStupidPoint 9y agoWhat makes them terrible loans? Also, much of the benefit of credit cards is from the fraud protection and mediation that companies provide -- it's not so much that they're loaning me $X00, but that they're covering the transaction details against fraudulent use and provide a dispute mechanism if don't feel the merchant has lived up to their offer post payment. I find it much more likely that MC is trying to be the MC of cryptocurrencies -- eg, by packaging up a USB dongle that automates transactions using "secure" means, which they then insure against abuse. From that perspective, ETH makes a reasonable platform.
- skellera 9y agoI think he just meant because it's a 20%+ loan typically. But really a person shouldn't be holding a balance on a credit card.
- jerguismi 9y agoCredit card loads are the best to me as a consumer, since there is 0% interest for 1,5 month on average.
- JackFr 9y agoSo maybe I don't understand this, but one of the purported advantages of cryptocurrencies is that the supply cannot be expanded by loose credit. Thus it is seemingly impossible (to me at least) for a bank to for a bank to extend credit.
- nopzor 9y agoEven if the supply of the currency can't be expanded, can't credit still be issued from the supply of currency that the lender has?