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BMW and it's suppliers have zero problems moving money today.
by 323 5y ago
BMW and it's suppliers have zero problems moving money today.
- TekMol 5y agoHow do you know?
- 323 5y agoBecause there are no articles about big companies having money transfer problems with their suppliers. The complains are about the "buy now pay 90 days later" part, not about the actual money transfer.
- TekMol 5y agoHow hard did you try to find such articles? I would imagine the suppliers of Wirecard do see it as a problem that the $2B WireCard said it has in the bank did not exist. In a blockchain setup, they would have known it. Ducking for "supplier" and "insolvency" brings up quite a lot of stuff about this topic: https://duckduckgo.com/?q=insolvency+suppliers https://duckduckgo.com/?q=insolvency+suppliers
- 323 5y agoSupplier insolvency has nothing to do with money transfer. And if you think that you can "lock bitcoin" into an account to avoid this, you obviously don't know much about how these things work. Hint: you can also "lock dollars" today, it's called "escrow". But it wasn't used in WireCard (I take your word for it, I don't know the case). Explained like I'm five: BMW will not accept it's bitcoin being locked for 90 days, so that it's supplier can be sure it will receive it's pay. Because if BMW would have accepted such a thing, it would pay today, not 90 days later. So crypto doesn't solve any problem here, because BMW doesn't want this problem solved. And today, the supplier would use "factoring" so that it can receive the money instantly, instead of 90 days later, and the bank which provides the factoring service will make sure to take it's money from BMW later. Hint: you need capital to be able to provide factoring, since it involves credit risk, so crypto can't replace that either directly (it could with some fancy smart contracts that pool liquidity and yield)
- TekMol 5y agoBMW will not accept it's bitcoin being locked for 90 days The way I see the future, BMW will not only lock their Bitcoin for 90 days but much longer. And not only the Bitcoin they owe to one supplier. But a large portion of their Bitcoin. Aka their virtual bank account. They can still use their account however they like. But if one of their suppliers feels that the balance goes dangerously low, the supplier can block further spending or settle everything.
- johnday 5y agoSurely suppliers want to be paid? Accumulating a huge pile of IOUs is of zero benefit to someone who has actual real-world costs, such as taxes, payroll and capital outlays.
- TekMol 5y agoWhat do you mean by "be paid"? Usually, one is "paid" when "the money is in the bank", right? And this is what happens here. The initial step is to create a bank and then "payments" happen there. As for how to pay someone who is not "customer" of this bank, see my answer to this question: https://news.ycombinator.com/item?id=29227788 https://news.ycombinator.com/item?id=29227788
- jessaustin 5y agoLots of firms, especially those whose value is based partially on "predictable" profits, want to schedule payments in Q2 rather than Q1.
- danlugo92 5y agoLightning transactions are final. Anything else is FUD.
- x86_64Ubuntu 5y agoAnd Net X(Net 90 in your case) is part of business, so it' not going away because of a blockchain.
- beaner 5y agoI've heard stories about the difficulty about payments at AirBnB, where the suppliers are local people across the globe in different languages with varying levels of access to financial services. It's one of the things that inspired the Coinbase founder, who was an ex-AirBnB employee, to start his company.
- danlugo92 5y agoWhat about Venezuelan or Iranian companies?
- coralreef 5y agoTesla didn't like paying banks to store its money in Europe via negative interest rates, so they moved in into Bitcoin. https://www.techtimes.com/articles/263185/20210721/elon-musk-reveals-tesla-bank-account-in-europe-has-negative-interest-rates-money-depletes-in-real-time-while-ceo-imagines-crypto.htm https://www.techtimes.com/articles/263185/20210721/elon-musk...
- 323 5y agoThat has nothing to do with transferring money. Tesla also holds bonds and other stuff that pays a dividend.
- anonporridge 5y agoPeople had little problem with transportation when all they had was horses and sailboats. Just because you don't technically have a problem doing something now and no one is complaining, doesn't mean there's not a drastically more efficient way to do the thing, and those organizations that start doing the more efficient thing rapidly out compete and make irrelevant those who hold onto the legacy ways.
- loceng 5y agoBitcoin is the horse and buggy in this comparison - while attempting to naively remove control possibilities and making it "trustless" aka a free for all/wildwest where nations can't use financial levers to try to economically punish known bad actors, e.g. Magnitsky Act.
- anonporridge 5y agoI think it's a grand experiment. Perhaps the primary output of bitcoin will be that it lights a fire under the lazy ass of government to actually have a service mindset towards people, because they now have an alternative that they can use however they want. We'll see.
- loceng 5y agoYes, I agree with you - it's likely been a necessary mechanism as a counterweight to the current corruption and lack of integrity in the system.
- ashwagary 5y ago>where nations can't use financial levers to try to economically punish known bad actors, e.g. Magnitsky Act. Probably unknowable but I wonder what has caused more damage to the world, financial crimes or centralized financial levers being used to steal the time/savings/wealth of 8 billion people and redistribute it to a small group of people.
- loceng 5y ago
- lancemurdock 5y agotry not to focus on the alice and bob portion of the explanation