4 ms·
cheaper, faster, secured lending that doesn't affect a credit score. a few minutes versus 7 - 90 business days on the consumer lending side no arbitrary transa
by yieldcrv 3y ago
cheaper, faster, secured lending that doesn't affect a credit score. a few minutes versus 7 - 90 business days on the consumer lending side
no arbitrary transaction limit thresholds to worry about for your large purchase
this infrastructure is inherited by all crypto currencies, or they can be easily converted to one that does
the article is about crypto not only bitcoin
but to your scenario, not everyone has a gain to worry about. if you acquired bitcoin right now to pay for something with it, there is also no gain to worry about. youd do that because thats where your liquidity is: already in other cryptos and you just bought bitcoin to pay. and of the people that only have big capital gains, not all of them care either if they wanted to purchase something, they might have to report a gain too. just saves one step of converting to USD first. they might have capital losses elsewhere they neutralize the gain.
but I think you’re missing that USDC is a big component here, they accept USDC, which does not have price fluctuations
so lets go to your discouraged speculator scenario: they can just deposit their bitcoin in a lending protocol and get USDC back within a few minutes. they have no capital gains tax event. and now can pay for their car without even needing an exchange relationship.
and for everyone else, they just already have liquidity in crypto. They already have USDC and aren’t avoiding any new tax event either.
there are also many shortsighted people that simply won’t consider the tax event. nobody’s problem but their own
- pavlov 3y ago> “no arbitrary transaction limit thresholds to worry about for your large purchase” This is not a problem for anyone who buys a Ferrari in cash. Banks and credit card companies love nothing more than letting you buy expensive things once you’ve shown you have the money.
- yieldcrv 3y agoAnd its not a problem for crypto users that now want to buy a Ferarri either to make that point, I think you're still missing that there are already crypto users. this isn't about convincing anyone to switch to a different system anymore. its about catering to additional routes of liquidity. nobody cares about playing devil's advocate with nocoiners anymore. the world kept going, bitpay the payment processor is like 10 years old. but if you’re interested in why someone likes their crypto ecosystem, I’ll explain some behaviors.
- callalex 3y agoI don’t mean this in a rude way, but do you have Ferrari money? Traditional financial institutions work VERY differently for the kind of people who do compared to the average person.
- TrapLord_Rhodo 3y agoLook into a crypto lending/ yield pool. You'll understand what he's saying because it's nothing like "Traditional Finance". Traditional Securities-based lending does not have a "base oracle" like crypto does, and the lenders get to determine the spread. The margin limits, the rates, the transparency, all much better in a crypto yield pool. But you obviously run the base risk of a defi exchange getting hacked, which you are not covered for like you are in traditional finance. (There is some interesting crypto insurance products tho)
- yieldcrv 3y agoliquidity is liquidity, Ferrari decided to recognize a lot of people don't care what traditional financial institutions do not sure the point of wanting to play devil's advocate to the points made here, there are already people actively using the parallel payment systems and Ferrari is catering to that, its no longer about convincing someone comfortable in the traditional finance system to learn about crypto the crypto ecosystem has its own ways of doing everything... at all tiers. there are no tiers of wealth or needing to revisit relationships with banks now that you have money. so they're already familiar with the quick lending if they want to use that. some people are well integrated in a system where you don’t have to start a question with “I don't mean this in a rude way, but do you have enough money for this to be convenient”
- throwysnowy 3y agoA lot of people with Ferrari money have their net worth tied up in investments like stocks, bonds, real estate and maybe even Bitcoin. Bitcoin is a very liquid asset, buying a Ferrari with it would be nearly instant.