Credit Suisse writes about Bitcoin

[Q7]

Well, as what the title says, Credit Suisse, the Swiss financial services just recently wrote about bitcoin. And if you are a fan of collecting the gold bars, the name should also sound familiar. Although there is no special information in the article but at least for them write about bitcoin, shows that they are really serious about bitcoin. Here are some quotes on what they think

Do bitcoins have the potential to become commonplace and to dislodge the money monopoly from the central banks? The outlook is not good. Even if distribution as a means of payment continues to increase, the system's advantage – decentralization – is also its biggest drawback. Unlike legal tender, there is no authority that guarantees the value of the currency, and bitcoin does not benefit from the resulting confidence. In the end, this confidence is crucial for any currency whose usage extends beyond the exchange of goods.

https://www.credit-suisse.com/ch/en/news-and-expertise/news/banking.article.html/article/pwp/news-and-expertise/2015/03/en/bitcoins-money-without-physical-form.html

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[Gervais]

Do bitcoins have the potential to become commonplace and to dislodge the money monopoly from the central banks? The outlook is not good. Even if distribution as a means of payment continues to increase, the system's advantage – decentralization – is also its biggest drawback. Unlike legal tender, there is no authority that guarantees the value of the currency, and bitcoin does not benefit from the resulting confidence. In the end, this confidence is crucial for any currency whose usage extends beyond the exchange of goods.

What the hell are they talking about? I don't think they have any idea. The central authorities have little to no control of how much their currency is worth and when they keep printing it all it does is decrease in value. If they could control it the pound and dollar wouldn't have lost most of its purchasing power over the last few decades. What a joke.

[itsAj]

Do bitcoins have the potential to become commonplace and to dislodge the money monopoly from the central banks? The outlook is not good. Even if distribution as a means of payment continues to increase, the system's advantage – decentralization – is also its biggest drawback. Unlike legal tender, there is no authority that guarantees the value of the currency, and bitcoin does not benefit from the resulting confidence. In the end, this confidence is crucial for any currency whose usage extends beyond the exchange of goods.

What the hell are they talking about? I don't think they have any idea. The central authorities have little to no control of how much their currency is worth and when they keep printing it all it does is decrease in value. If they could control it the pound and dollar wouldn't have lost most of its purchasing power over the last few decades. What a joke.

Credit Suisse is open to crypto they are essentially saying that there is no insurance backers for Bitcoin itself.

[Denker]

Do bitcoins have the potential to become commonplace and to dislodge the money monopoly from the central banks? The outlook is not good. Even if distribution as a means of payment continues to increase, the system's advantage – decentralization – is also its biggest drawback. Unlike legal tender, there is no authority that guarantees the value of the currency, and bitcoin does not benefit from the resulting confidence. In the end, this confidence is crucial for any currency whose usage extends beyond the exchange of goods.

What the hell are they talking about? I don't think they have any idea. The central authorities have little to no control of how much their currency is worth and when they keep printing it all it does is decrease in value. If they could control it the pound and dollar wouldn't have lost most of its purchasing power over the last few decades. What a joke.

Credit Suisse is open to crypto they are essentially saying that there is no insurance backers for Bitcoin itself.

To me it sounds more like they are open to centralized crypto!
Idiots!

[Sutters Mill]

Do bitcoins have the potential to become commonplace and to dislodge the money monopoly from the central banks? The outlook is not good. Even if distribution as a means of payment continues to increase, the system's advantage – decentralization – is also its biggest drawback. Unlike legal tender, there is no authority that guarantees the value of the currency, and bitcoin does not benefit from the resulting confidence. In the end, this confidence is crucial for any currency whose usage extends beyond the exchange of goods.

What the hell are they talking about? I don't think they have any idea. The central authorities have little to no control of how much their currency is worth and when they keep printing it all it does is decrease in value. If they could control it the pound and dollar wouldn't have lost most of its purchasing power over the last few decades. What a joke.

Credit Suisse is open to crypto they are essentially saying that there is no insurance backers for Bitcoin itself.

There's a difference between an agency backing a currency and one being able to guarantee the value of it which is what was claimed in that article. They can't guarantee the value unless they mean 1 us dollar is worth 1 us dollar but then you can say that about bitcoin as 1btc is always worth 1btc.

[duckydonald]

Of course they are gonna say something like this, nothing but corruption,  did you know that Credit Suisse endorsed Obama, I was there, I use to work at credit Suisse

[Q7]

Essentially what it meant to say in the quote is that "if you somehow got into trouble there will be a central authority to bail you out" and that is what fiat system is all about. Look at how many times commercial banks actually got into trouble accumulating bad debts and then ended up almost bankrupt only to be rescued by the central bank which essentially want to prevent meltdown in the economy. So for CS, being part of the banking system, these people generally loves how the way it goes, so to say.....

[tins]

Didn't read the article, sorry. I did see that the SEC filed some sort of disciplinary actions against Credit Suisse in the past month or two. (Do not know the charges, saw it in passing while looking through the SEC website for anything on GAW mining.)

[countryfree]

I'm very disappointed! They use to be better than that, they totally misunderstood BTC.

They consist only of data. And data can be copied without a great deal of effort. There is therefore a risk of the same "digital coin" being spent more than once.

Their conclusion is hardly better:

In the end, the question remains: Who do you trust more, your own central bank or an anonymous online network?

Maybe in Switzerland, people can trust their central bank, but that's not the case in the US or in the EU.

[teppupkcos]

I'm very disappointed! They use to be better than that, they totally misunderstood BTC.

They consist only of data. And data can be copied without a great deal of effort. There is therefore a risk of the same "digital coin" being spent more than once.

Their conclusion is hardly better:

In the end, the question remains: Who do you trust more, your own central bank or an anonymous online network?

Maybe in Switzerland, people can trust their central bank, but that's not the case in the US or in the EU.

Maybe not
What makes a Central bank in Switzerland any different than a Central bank else where?

[johnyj]

Central bank guarantee nothing, they don't provide any backing for fiat money. They used to provide gold in exchange for fiat money, but that is history, now fiat money is only backed by a consensus of merchants, if no one accept it in exchange for goods/services/valuables, then it worth nothing

However, this consensus is built over generations, and based on gold standard originally. So it will stay as long as there are no dramatic change in fiat money's value/acceptance

[randy8777]

However, this consensus is built over generations, and based on gold standard originally. So it will stay as long as there are no dramatic change in fiat money's value/acceptance

so you are saying that this is not likely going to change within 10 or so years?
what i do know for sure is that they earn billions with their current system and are not willing to give up even a few % of it unless they can they can change without losing the option to make solid profits.

[johnyj]

However, this consensus is built over generations, and based on gold standard originally. So it will stay as long as there are no dramatic change in fiat money's value/acceptance

so you are saying that this is not likely going to change within 10 or so years?
what i do know for sure is that they earn billions with their current system and are not willing to give up even a few % of it unless they can they can change without losing the option to make solid profits.

This consensus is not so easy to change as long as majority of people follow their government. Even a hyperinflation currency like Zimbabwe dollar can hold its position for decades before it finally broke

Only hyperinflation will destroy a currency, in deflation, people desperately want more currency, which helps banks to produce more money for themselves. Bankers all know that, so they do it carefully, they'd rather see the rest of the people getting no money instead of lending out too much money and destroy that concensus

People could also abandon it if majority of people agreed that it is a scam, however that is going to take years, and before that they must adopt other alternative payment method like gold or bitcoin

People won't abandon it easily, also because many people's income received is in the forms of fiat money (Originated from large bank loans). If their income changed to other forms, then it is possible to totally leave fiat money alone, only purchase some when paying tax

Most possibly bitcoin will be mainly used as a store of value and anti-inflation tool, slowly increasing merchant acceptance, and if there are some currency crisis, it will shine and get more attention

[nachoig]

This is nonsense. Gold and silver don't have legal tender, don't have a central bank, don't have any type of authority to guarantee their value, so why people still trust on these currencies?

These fluctuations in value are what is stopping bitcoins from becoming more widespread as a means of payment.

No. Bitcoin is not a legal tender in any place of the world. Bitcoin works more like a foreign currency. Any foreign currency has a lot of fluctuation against a national currency. A national currency is the element what dictate prices. A foreign currency can't do this, except for imported goods. This is why in case of devaluation of a national currency, the first thing to be affected is the price of imported goods. But all the rest is indexed to the national currency, which is what dictate the prices.

So, anything which is not a legal tender in your country will suffer from this. Bitcoin, gold, silver or any foreign currency with a Central Bank. But hypotetically, if Bitcoin goes to be a legal tender of any country, the only prices which will suffer from instability are those which depends from importations. You can also adopt gold or even silver (which is even more volatile than gold), they don't suffer with this instability if they become a legal tender. Or even without being a legal tender, if they're going to be de facto currencies, this will bring stability to them.

So, we can think from another point. What is really unstable here? Gold, silver, Bitcoin, or the currencies backed by central banks? What if we start to look to the price of the currencies backed by the central instead of looking to the price of gold, silver and Bitcoin?

The price of 1 Brazilian Real now is BTC 0.00119 or 0.00026 XAU.  

[krigger]

Credit Suisse is open to crypto they are essentially saying that there is no insurance backers for Bitcoin itself.

As it is not needed as well.

[leopard2]

Do bitcoins have the potential to become commonplace and to dislodge the money monopoly from the central banks? The outlook is not good. Even if distribution as a means of payment continues to increase, the system's advantage – decentralization – is also its biggest drawback. Unlike legal tender, there is no authority that guarantees the value of the currency, and bitcoin does not benefit from the resulting confidence. In the end, this confidence is crucial for any currency whose usage extends beyond the exchange of goods.

What the hell are they talking about? I don't think they have any idea. The central authorities have little to no control of how much their currency is worth and when they keep printing it all it does is decrease in value. If they could control it the pound and dollar wouldn't have lost most of its purchasing power over the last few decades. What a joke.

Credit Suisse is open to crypto they are essentially saying that there is no insurance backers for Bitcoin itself.

same with fiat! all the government guarantees just mean that they will give you fiat in return for lost fiat, there is absolutely no internal value. No authority guarantees the value of fiat currency, just the "face value"

you get numbers on computers, and fancy paper, hehehehe.... 

[countryfree]

I'm very disappointed! They use to be better than that, they totally misunderstood BTC.

They consist only of data. And data can be copied without a great deal of effort. There is therefore a risk of the same "digital coin" being spent more than once.

Their conclusion is hardly better:

In the end, the question remains: Who do you trust more, your own central bank or an anonymous online network?

Maybe in Switzerland, people can trust their central bank, but that's not the case in the US or in the EU.

Maybe not
What makes a Central bank in Switzerland any different than a Central bank else where?

Switzerland doesn't do QE, and it doesn't have a huge deficit.

[medUSA]

They all have a fundamental problem: the lack of physical form. They consist only of data. And data can be copied without a great deal of effort. There is therefore a risk of the same "digital coin" being spent more than once.

The author, Jonathan Horlacher (Fundamental Macro Research), hasn't done much research on the blockchain. There is a risk (extremely low) of double spending on the network, but it is not the result of "data copying".

These fluctuations in value are what is stopping bitcoins from becoming more widespread as a means of payment.

He got that bit right. Fluctuation is forcing merchants to dump their coins to cover their costs of sales. If we can have a stable bitcoin, they will be more willing to hold, and users of weak national currencies are willing to park their savings in bitcoin.

[teppupkcos]

I'm very disappointed! They use to be better than that, they totally misunderstood BTC.

They consist only of data. And data can be copied without a great deal of effort. There is therefore a risk of the same "digital coin" being spent more than once.

Their conclusion is hardly better:

In the end, the question remains: Who do you trust more, your own central bank or an anonymous online network?

Maybe in Switzerland, people can trust their central bank, but that's not the case in the US or in the EU.

Maybe not
What makes a Central bank in Switzerland any different than a Central bank else where?

Switzerland doesn't do QE, and it doesn't have a huge deficit.

Sorry i forgot about fractional reserve banking.
Tell me how does your banks make money in the international market.

[oblivi]

I'm very disappointed! They use to be better than that, they totally misunderstood BTC.

They consist only of data. And data can be copied without a great deal of effort. There is therefore a risk of the same "digital coin" being spent more than once.

Their conclusion is hardly better:

In the end, the question remains: Who do you trust more, your own central bank or an anonymous online network?

Maybe in Switzerland, people can trust their central bank, but that's not the case in the US or in the EU.

Lol, they are as clueless as ever if they even't can fathom how awesome Satoshi was solving the double spending problem. These old cunts can't even get the basics of Bitcoin.