Coinbase: Major banks blocking Credit Card purchases of digital currencies

[mokodisney]

Per their tweet yesterday, the following banks are now blocking the purchase of digital currencies with their branded credit cards.

Chase
Bank of America
Citi
Capital One

How do you see this affecting the market?

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[lokinator]

People shouldn't be buying crypto with credit anyways. Never invest money you can't afford to lose. And ABSOLUTEL NEVER take out a line of credit on crypto.

People racking up credit card debt buying cryptos are morons ... it's as simple as that.

If anything, smart investors who were perhaps paying for crypto with credit cards and then paying off their credit card that same week/month are going to lose out on some miles/points/cash back -- but they will survive.

[Poink]

People shouldn't be buying crypto with credit anyways. Never invest money you can't afford to lose. And ABSOLUTEL NEVER take out a line of credit on crypto.

People racking up credit card debt buying cryptos are morons ... it's as simple as that.

If anything, smart investors who were perhaps paying for crypto with credit cards and then paying off their credit card that same week/month are going to lose out on some miles/points/cash back -- but they will survive.

I agree and I support the move to ban CC purchase of crypto "speculations" (not I did not use the term investment).

[Pickle-Rick]

People shouldn't be buying crypto with credit anyways. Never invest money you can't afford to lose. And ABSOLUTEL NEVER take out a line of credit on crypto.

People racking up credit card debt buying cryptos are morons ... it's as simple as that.

If anything, smart investors who were perhaps paying for crypto with credit cards and then paying off their credit card that same week/month are going to lose out on some miles/points/cash back -- but they will survive.

Exactly!! I have no problems with this. People should not be invest/gambling with the banks money. The one's who do this are likely the one's who do not understand the market and are buying during the hype. Only invest what you are willing to lose, otherwise you will panic sell and make a loss.

[oxonhu]

its not a problem at all.. can you image you bought btc around 19k with creditcard and price is now 7k ? people should buy btc with debitcard or with money they have in their account. than you wont have big problems even if you lose some money. you can wait when it recorvers.
Btc will rise again. this is dip .. 9k soon and than 14k..

[Cryptokatt]

You can't buy stocks or anything of the such with a CC, so you can view this as these exchanges now having a bit of "legitimacy" to them. Though to simply echo what others here have said, spending what you don't actually have creates paranoid and risky investors who in the end seem to spread FUD and disinformation when their positions start to slip.

[trumper]

It will not affect the market, and it is not a problem, I think it is not a decision that is made to stop crypto, it is in fact beneficial for both banks and people.

[5ensei]

Not a big deal, they can just use a debit card or any other credit card of which there are many. They can even use a store credit card rather than one from a bank, these cards are crap anyway as you don't get anything but credit. Other companies give you reward points or superstore vouchers. It won't have a major effect, and with the price of bitcoin being so low they don't need credit to buy a decent amount of bitcoin.

[rayk]

Not a big deal, they can just use a debit card or any other credit card of which there are many. They can even use a store credit card rather than one from a bank, these cards are crap anyway as you don't get anything but credit. Other companies give you reward points or superstore vouchers. It won't have a major effect, and with the price of bitcoin being so low they don't need credit to buy a decent amount of bitcoin.

I agree, this is not a big deal, but if banks block sending money to cryptocurrency exchanges, then it is a big deal but I can say that it is almost impossible and nonsense.

[bitbollo]

This is a good solution because a lot of fraud were permitted for several years (from the firsts btc transactions).
I don't know why some people think this a bad news, but this could even fix a lot of problems with paypal  

[mokodisney]

Very good insights here. The fact that its forcing people to invest properly with real money and not credit absolutely adds to the legitimacy of the market and will hopefully create more stability. My next concern is whether or not this is the beginning of more obstacles being put in place by the powers to be. (ie. banning transactions with specific businesses)

Thoughts?

[CryptoDemonElite]

Per their tweet yesterday, the following banks are now blocking the purchase of digital currencies with their branded credit cards.

Chase
Bank of America
Citi
Capital One

How do you see this affecting the market?

Buying cryptocurrency with credit cards are risky. Imagine if a investor is in credit debt and decide to purchase some crypto which runs his debt higher and the coin he/she buy crashes. What happens if these coins takes a few month to recover or worst never recover. How he/she is going to pay off that debt. I think that a mess. So it good the banks did ban it. The banks have to protect their shelves too.

[Zepp74]

Credit card was great because i can deposit cash quickly. Depositing with a bank account takes 8-10 days on Coinbase and that sucks. The market changes so fast in that timeframe. So that was the point of investing with Credit card. The speed you can get your cash to btc or eth and trade. I still pay off my credit card every month. Using a credit card doesn't have to mean I'm going in debt over it.

[Estrath]

Very good insights here. The fact that its forcing people to invest properly with real money and not credit absolutely adds to the legitimacy of the market and will hopefully create more stability. My next concern is whether or not this is the beginning of more obstacles being put in place by the powers to be. (ie. banning transactions with specific businesses)

Thoughts?

This is not the government regulation. Banks just want to protect themselves. Probably they did it because after thousands of people saw the rapid growth of the bitcoin to 20k they began to spend all the credit money for the purchase of the cryptocurrency (with the money they cannot afford) and then the price dropped to 6-7k. As a result, a lot of people in debt, but banks more concerned that they cannot even return that credit money since many of these people do not have anything that can be taken away. Banks are not a charitable organization, so they decided to not let people spend credit money to buy crypto.
After all, nobody canceled the debit cards.

[oaks05]

my bank was rejecting coinbase transactions so i had no choice to use credit cards now cant use those, there are other ways so im not to worried but def makes it a little harder to buy.

[AshCoins]

It takes a lot of the convenience out of it.  Credit card transactions were instant whereas bank transactions required 7-10 days to settle and get your coins. 

[Kang TB]

here is anothers bad news for digital currencies
but, everyone should be calm, because this situations already predictable in the past
the solutions is buy and sell personally with anothers crypto users for the beginnning after that trade it on exchange 

[hanskan]

People shouldn't be buying crypto with credit anyways. Never invest money you can't afford to lose. And ABSOLUTEL NEVER take out a line of credit on crypto.

People racking up credit card debt buying cryptos are morons ... it's as simple as that.

If anything, smart investors who were perhaps paying for crypto with credit cards and then paying off their credit card that same week/month are going to lose out on some miles/points/cash back -- but they will survive.

this.

You have to be expert level retard to buy crypto with credit card. And when you are that retarded you obviously don't realize it yourself and that's why banks are blocking the deposits.

[Hello4x]

People shouldn't be buying crypto with credit anyways. Never invest money you can't afford to lose. And ABSOLUTEL NEVER take out a line of credit on crypto.

People racking up credit card debt buying cryptos are morons ... it's as simple as that.

If anything, smart investors who were perhaps paying for crypto with credit cards and then paying off their credit card that same week/month are going to lose out on some miles/points/cash back -- but they will survive.

this.

You have to be expert level retard to buy crypto with credit card. And when you are that retarded you obviously don't realize it yourself and that's why banks are blocking the deposits.

Not the case for everyone.  Ppl that bought via credit card AND pay their balance monthly are smart...rewards (e.g. points or cash back) #smartmoney #Imhereallday #maybetoolatetoreapthebenefits

[MV7]

There are do many other ways to buy crypto besides credit cards. Besides, technically using a credit card is borrowing money from the bank, which you have to pay back, so it makes sense that banks would do this.

Honestly not really big news but the fud has been spreading like wildfire