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They are hashes secured by repeatable cryptography which are stored on a distributed database The monikers are skeumorphs to be more relatable to a nearest pri
by rolltiide 7y ago
They are hashes secured by repeatable cryptography which are stored on a distributed database
The monikers are skeumorphs to be more relatable to a nearest prior elementary concept
Some of those hashes are used for payment, some of those hashes are used for a record of fractional ownership of an enterprise, some of those hashes are used to access a good or service. A credit card company would therefore be misapplying their policy, when there isnt enough information in their transaction detail and also no rationale for charging higher fees for this type of transaction. If any actual risk was higher they should make a third category. Otherwise treat a crypto transaction like any purchase of consumer goods.
- TazeTSchnitzel 7y agoContracts and law generally tend to see through the technical details. It is functionally like cash, therefore it is a cash equivalent.
- ceejayoz 7y agoThis is the sort of "laws work like computer code" thinking that gets you "I don't recognize this court because it has a fringed flag" sovereign citizen types. A judge is not going to see it this way.
- rolltiide 7y agoSeveral countries and states have laws reflective of what I described, with the same taxonomy already in committee in Congress US payment processors are the ones flying blind and interpreting things arbitrarily, and the courts might too, but the direction the legislatures are going will correct that
- ceejayoz 7y agoUS payment processors have been giving casino chips this treatment for decades. I see no reason US legislatures would give cryptocurrency better treatment than that - if anything, they're more likely to smack it around.
- dragonwriter 7y agoCasino chips tend to be fiat-denominated and trivially redeemable at face value, so are true cash equivalents. Cryptocurrencies tend not to be fiat-denominated, and even those that are don't have trivial free frictionless exchange for fiat at face value.
- ceejayoz 7y agoThe Euro has an exchange rate and forex spread, too, hence neither of those things are disqualifying as a cash equivalent.
- dragonwriter 7y agoIn pretty sure Euros are fiat-denominated and readily exchangeable for fiat (being, after all, fiat, makes this trivially true.)
- ceejayoz 7y agoAgain, this is that "laws work like computer code" thinking. Euros vary in USD value, and take a process to convert to/from USD just like Bitcoin does. Governments are not going to ban banks from treating BTC transactions as cash advances.
- rolltiide 7y ago> Governments are not going to ban banks from treating BTC transactions as cash advances Courts typically will look at the bank's rationale for charging customers higher fees arbitrarily. You are heavily focused on the semantical debate about "cash advance" and not the consequences of categorizing this way. A court might say "sure call them that, just don't charge customers higher a cash advance fee and higher interest", the bank will consider that irreconcilable and change the categorization anyway. Nobody will address the specific difference you wanted to debate about.
- dragonwriter 7y ago