David Cay Johnston: How Bitcoin and Other Magic Internet Money Loans Endanger Your Financial Health

[FakeNoose]

(link) https://www.dcreport.org/2023/03/14/how-bitcoin-and-other-magic-internet-money-loans-endanger-your-financial-health/

It’s The Big Bank Failure Story No One is Talking About

The collapse of Silicon Valley Bank (SVB) last week raises serious issues far more significant than the obvious ones cited by the financial press and a broad range of Washington politicians.

Chief among these are bank loans against dubious assets. That’s not getting much if any attention in the news or from Washington and is likely to soon be swept under the rug, allowing needlessly risky banking practices to continue. Before its collapse last week, SVB made loans against Bitcoin and other cryptocurrencies.

The question: why is any bank anywhere allowed to accept crypto as collateral for loans?

Bitcoin and its imitators are not money. They are not currency. They’re hardly used to buy and sell, an unsurprising fact given that by design the Bitcoin system can process only seven transactions per second compared to many thousands of transactions per second for credit cards.

Indeed, except for laundering proceeds from drug trafficking as well as hiding assets from creditors, estranged spouses, and the tax police, cryptocurrencies have no use.

- more at link -

David Cay Johnston calls cryptocurrencies (including Bitcoin and others) as nothing more than high-tech Ponzi schemes. Thank you Mr. Johnston for your expertise! I've been saying the same thing for years, but I'm no finance expert. I'm just a dizzy blonde.

Our US banks have no reason accepting cryptocurrencies in any form, and the bank failures are going to continue if this isn't stopped.

[Blues Heron]

1. Bank crashed, bitcoin went up - where would you put your money in retrospect?

In the big safe bank? or the weird sketchy bitcoin?

[keithbvadu2]

2. The big money return in crypto is:::

The big money return in crypto is:::
1. Starting it, hyping it, and getting out, leaving the
suckers holding the bag.
2. Handling/storing it for others.
...a. Not your own money/crypto. Someone else's money/crypto.
...b. Lots of fraud/money manipulation/theft/lack of regulation.
3. Backed by trust/faith/great promises/optimism... but no
real assets.
4. It can literally disappear and good luck with lawsuits.
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A few have profited by 'investing' but not the majority.