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> I am no fan of crypto as today it is being used as store of value(which it is not) instead of mechanism to transfer value(which it is). Once we finally move i

> I am no fan of crypto as today it is being used as store of value(which it is not) instead of mechanism to transfer value(which it is). Once we finally move into the right direction, I know I'll have a good day. People need and like to use credit, but they are doing it wrong by contributing to the "rotten" system. Crypto is a great store of value because you can use it as collateral to borrow against. Supply eth, borrow usdc, withdraw as usd. This is tax free since the conversion is 1:1 and there are no gains to report. Instead of buying things with a credit card and paying it back every month, provide crypto as collateral, borrow against it and then pay it back. The difference is that this takes an upfront investment in order to get yourself started. Not too much different than the way credit works in SE Asia, since they time lock a deposit, to enable a debt card. Maintaining your collateralization ratio (this answers the price volatility question) is no harder to do than paying the exorbitant fees to credit card companies for your balance. This could easily be wrapped into a nice UX. It would work globally and enable all sorts of great commerce. No more giving up all your information to the credit card companies. No more credit scores to get hacked either.

rcxdude 1y ago
This is more of a guide to dodge taxes than it is how to use crypto for transactions, or avoid the traditional financial system.
- latchkey 1y ago
  This has _nothing to do with dodging taxes_. Everyone, including me, should pay their taxes within the rules of law. Do you pay taxes when you "borrow" funds from a credit card and pay them back every month? No. This is really no different except that instead of borrowing from a third party, you're borrowing from yourself. In the same way that you don't pay taxes when you borrow from a bank or when you borrow from your friend. Cut out the middleman and be your own bank. My prediction is that one day, people will think of crypto as the traditional finance system. We're already seeing the transition happening today.
habinero 1y ago
You're solving for the completely wrong problem. Several wrong problems, actually. Your scheme is just debit cards with more work, less privacy and a lot more risk. Consumers use credit cards because of chargebacks and fraud protection. If I get my card stolen or I accidentally pay a fraudster, I get that money back. Crypto's irreversibility is one of the worst things about it from a consumer perspective. It's also horrible for privacy since all your transactions are literally public.
- latchkey 1y ago
  Amazing to watch someone try to argue FOR credit cards. Maybe you work in that industry. ;-) > Consumers use credit cards because of chargebacks and fraud protection. True! However it isn't your credit card that protects you with purchases from Amazon, it is Amazon. I use my credit card for all sorts of things, because it is just convenient. Do you expect to do a chargeback at a grocery store or gas station? No. But, what you're giving up for that privilege, is all of your data. > Crypto's irreversibility In what I'm talking about, this part is irrelevant since you're just paying with cash. > all your transactions are literally public. You actually believe that credit card transactions are private? LOL. They are sold to the highest bidder.
  - habinero 1y ago
    You don't need to like something to understand it. And no, credit cards protect you from the merchant. I can call up Capitol One and get them to do a chargeback if I order something online and the merchant never sends it. It highly incentivizes the merchant to help you, otherwise the only recourse would be to take Amazon to small claims court. > You actually believe that credit card transactions are private? LOL. They are sold to the highest bidder. You misread it. Your crypto purchases are public. Literally. Yes, your card purchases are compiled and sold in aggregate, but the entire blockchain is available to anyone. It's an utter myth that crypto is private or can't be tracked lol

rcxdude 1y ago

This is more of a guide to dodge taxes than it is how to use crypto for transactions, or avoid the traditional financial system.

latchkey 1y ago
This has _nothing to do with dodging taxes_. Everyone, including me, should pay their taxes within the rules of law. Do you pay taxes when you "borrow" funds from a credit card and pay them back every month? No. This is really no different except that instead of borrowing from a third party, you're borrowing from yourself. In the same way that you don't pay taxes when you borrow from a bank or when you borrow from your friend. Cut out the middleman and be your own bank. My prediction is that one day, people will think of crypto as the traditional finance system. We're already seeing the transition happening today.

habinero 1y ago

You're solving for the completely wrong problem. Several wrong problems, actually. Your scheme is just debit cards with more work, less privacy and a lot more risk. Consumers use credit cards because of chargebacks and fraud protection. If I get my card stolen or I accidentally pay a fraudster, I get that money back. Crypto's irreversibility is one of the worst things about it from a consumer perspective. It's also horrible for privacy since all your transactions are literally public.

latchkey 1y ago
Amazing to watch someone try to argue FOR credit cards. Maybe you work in that industry. ;-) > Consumers use credit cards because of chargebacks and fraud protection. True! However it isn't your credit card that protects you with purchases from Amazon, it is Amazon. I use my credit card for all sorts of things, because it is just convenient. Do you expect to do a chargeback at a grocery store or gas station? No. But, what you're giving up for that privilege, is all of your data. > Crypto's irreversibility In what I'm talking about, this part is irrelevant since you're just paying with cash. > all your transactions are literally public. You actually believe that credit card transactions are private? LOL. They are sold to the highest bidder.
- habinero 1y ago
  You don't need to like something to understand it. And no, credit cards protect you from the merchant. I can call up Capitol One and get them to do a chargeback if I order something online and the merchant never sends it. It highly incentivizes the merchant to help you, otherwise the only recourse would be to take Amazon to small claims court. > You actually believe that credit card transactions are private? LOL. They are sold to the highest bidder. You misread it. Your crypto purchases are public. Literally. Yes, your card purchases are compiled and sold in aggregate, but the entire blockchain is available to anyone. It's an utter myth that crypto is private or can't be tracked lol