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I'd be curious about the figures for a similar analysis with the US dollar. Ex. for a credit card transaction, the 'economic value' of the transaction (purchas
by cwkoss 8y ago
I'd be curious about the figures for a similar analysis with the US dollar.
Ex. for a credit card transaction, the 'economic value' of the transaction (purchase price) would be half or less of the total amount of dollars moving (price from CC to merchant, payments from customer to CC). Even if a customer pays off the balance instantly, two transfers of the amount of the purchase price are made: 50% economic value transactions. If making minimum payments, economic value seems like it could constitute less than a third of total amount transferred.
If CC, merchant, and customer all use different banks, there may be more transfers necessary behind the scenes.
- Retric 8y agoThere is utility in using a CC for consumer protection. CC companies get paid for this as a cut from the merchant which requires a transaction of some kind. AKA you to CC = X, CC to merchant X - Y. No way to move money like that without 2 simple transactions as 3 accounts are updated.
- sonnyblarney 8y agoAll of the things that happen in a regular CC transaction have economic value, i.e. buying stuff, interest, loans, network charges, transaction fees etc. etc.. Even BTC-USD trades have economic value obviously. The article presents transactions which are basically kinds of accounting functions, i.e. tumblers to hide trails etc. etc.. As far as USD, maybe this would be the equivalent of moving USD from one account to another. Now, clearly it wouldn't be done if there was no value to the transaction ... but it's generally net neutral stuff. There's now way to compare to the USD because it's generally not something that is tracked at all with fiat currency because it would be pointless. But it just happens to go on the record with BTC.