Belgian Bank sends out FUD newsletters concerning Bitcoin

[Bitbuy]

Well, I guess we have arrived at the point where banks are feeling the hot breath of Bitcoin...
Today I received a letter from one of the more larger and well known Belgian banks.(general mail, not directed particular at me)

I won't bore you with all the details (2 pages long); but it wasn't a love letter to Bitcoin.

They finish their letter with (translated):

KBC advises not to invest in Bitcoin. We will summarise the many risks for you:

* Very hard to comprehend, and way to complex
* Not backed up by anything or anyone
* High volatility
* No money or gold guarantuees
* Lots of uncertain technological risks
* Very sensitive to fraud, illegal transactions & government regulation

This was a mailing that was sent out to all their investors & clients...I couldn't help but immediately think of this:
http://tapastic.com/episode/3686

I never expected this to happen in Belgium, but it seems that the banks over here are starting to spread the FUD...

PS: full contents (in Dutch) to be seen here:
http://pastebin.com/Cj5nTjDa

[OnkelPaul]

Translation: We don't mind if you invest into some high-risk asset that you don't fully understand, but we want you to perform your investment through us because otherwise we don't profit from it.

Onkel Paul

[Jouke]

It is so much FUD, it reads like a parody

[glendall]

That is pretty funny when you consider each point they made...against the USD, or pretty much any other fiat currency for that matter.  

In a contest , I think bitcoin compared to USD against the bullet points they made: bitcoin edges them out.

The hard to understand point is close though.  I'm not a great explainer.  And I don't think I have had much describing to folks I talk to about either a) how bitcoin works (even though I know the subject well, still a bit a difficult to succinctly lay out with out many technical terms      or   b) how currency is created from two entities buying stuff they made up from one another, at interest, out of thin air, that is based on nothing, and how each countries' currency in the global economy is pegged against that one.    

I think A) is easier to explain but it is close .

Let's do a quick comparison here with Bitcoin (A) and USD (B)

* Very hard to comprehend, and way to complex
-see above
* Not backed up by anything or anyone
-bitcoin) backed up by its ability to resist counterfeit  (imho)
-usd)
* High volatility
-bitcoin) experiencing unbelievable growth due to its intelligent design
-usd) well nothing is going to be that volatile if everything is pegged against it,
* No money or gold guarantees
-bitcoin) exchangeable for either ,anywhere on the globe, in moments, due to technology
-usd)  used to be exchangable for gold at any bank.  until the banking industry had this repelled. now there is no backing, except the threat of violence. which isn't a great thing to base currency on from a sociological or humanistic perspective.  
* Lots of uncertain technological risks
-bitcoin) open source code, any of the millions who use it can see the code and if they find flaws, work to bring them to attention
-usd) their are a great deal of uncertain technological risks when the vast majority of created currency only exists as numbers in alternate ledgers. i.e there is no 'ultimate ledger' for money, and most of it exists in computer banks.  if you are a bank with 1/5th of the worlds currency and you magically gave yourself 10$ million this would be incredibly, maybe impossible, to detect, if you had the control and know-how .  not to mention the other inherent electronic weaknesses of old currency, credit cards are not a secure system and prone to abuse
* Very sensitive to fraud, illegal transactions & government regulation
-bitcoin) public block chain record system
-usd)  can be counterfeited.  often used for fraud, bribes, and illegal transactions. countless examples, but HSBC's huge drug cartel money laundering comes to mind.   how about government regulation? when your economic policy is not dictated from elected officials but instead employees of Goldman Sachs, you have a problem. this is becoming more and more obvious and will continue to do so, because the problems behind this are too huge to miss.


On further consideration, stuff like this from the banks scares me a bit. Because so many people seem to believe this lies about fiat currencies, even when they logically know that they are incorrect or that the system is broken.  It is so ingrained though that to even consider it being incorrect is unfathomable. It's like some sort of odd, logical/emotional dissonance

[zeetubes]

Perhaps you should write back to them and ask why they are telling deliberate lies. And then add, "Oh sorry, forgot for a moment that you're a bank." Also mention that there are legal repercussions under European law surrounding abuse of truth in advertising.

[Meuh6879]

I won't bore you with all the details (2 pages long); but it wasn't a love letter to Bitcoin.
http://pastebin.com/Cj5nTjDa

  i want bore with details ... thanks for the original letter.  

[Kikkerdril]

Actual source:
https://multimediafiles.kbcgroup.eu/ng/published/KBC/PDF/Bitcoins_NL.pdf

Found at:
https://privatebanking.kbc.be/nl/bitcoins-speculatief-en-dus-te-riskant

[goose20]

Meh, seems each bank is just copying the other.
Last vain attempt to survive.

[augustocroppo]

KBC advises not to invest in Bitcoin. We will summarise the many risks for you:

* Very hard to comprehend, and way to complex
* Not backed up by anything or anyone
* High volatility
* No money or gold guarantuees
* Lots of uncertain technological risks
* Very sensitive to fraud, illegal transactions & government regulation

This was a mailing that was sent out to all their investors & clients...I couldn't help but immediately think of this:
http://tapastic.com/episode/3686

I never expected this to happen in Belgium, but it seems that the banks over here are starting to spread the FUD...

PS: full contents (in Dutch) to be seen here:
http://pastebin.com/Cj5nTjDa

The list you post is providing correct information regarding investments in BTC. Why are you calling this FUD?

[augustocroppo]

Perhaps you should write back to them and ask why they are telling deliberate lies. And then add, "Oh sorry, forgot for a moment that you're a bank." Also mention that there are legal repercussions under European law surrounding abuse of truth in advertising.

They are not telling lies. Every item in the list is correct.

[zeetubes]

The list you post is providing correct infomation regarding investments in BTC. Why are you calling this FUD?
[/quote]

Because it is precisely FUD. these banks wildy invested their client's money in worthless derivatives and now they are spouting b.s. because they can't make money out of something. Bitcoins is backed by nothing.... yeah, except mathematics.

[Kikkerdril]

English version:
https://multimediafiles.kbcgroup.eu/ng/published/KBC/PDF/Bitcoins_EN.pdf

[Bitbuy]

Perhaps you should write back to them and ask why they are telling deliberate lies. And then add, "Oh sorry, forgot for a moment that you're a bank." Also mention that there are legal repercussions under European law surrounding abuse of truth in advertising.

They are not telling lies. Every item in the list is correct.

True, but since this was sent out I have received numerous messages / calls from friends and family (who know I'm into BTC) that are telling me:
"OMG OMG SEE! EVEN THE BANKS ARE WARNING YOU! I TOLD YOU SO!"

Every story has two or more sides to it; but here they deliberately target some unaware / uneducated (in regards to BTC, that is) mass to deliver some kind of proactive strike. The only upside to this is that the people who received this will maybe, just maybe, think for themselves and do the proper research. (and make up their own mind instead of blindly following the banks' communiqué)

[Bitbuy]

Actual source:
https://multimediafiles.kbcgroup.eu/ng/published/KBC/PDF/Bitcoins_NL.pdf

Found at:
https://privatebanking.kbc.be/nl/bitcoins-speculatief-en-dus-te-riskant

English version:
https://multimediafiles.kbcgroup.eu/ng/published/KBC/PDF/Bitcoins_EN.pdf

Thanks for this!

[augustocroppo]

Because it is precisely FUD. these banks wildy invested their client's money in worthless derivatives and now they are spouting b.s. because they can't make money out of something. Bitcoins is backed by nothing.... yeah, except mathematics.

No, that is not FUD. That was not published in any specific venue to spread fear, uncertainty and despair. Assuming you are telling the truth, that is just a mail to alert people about the inherent risks of virtual currencies. Moreover, not all banks invest their client's funds in derivatives.

No, Bitcoin is not "backed" by mathematics. Perhaps you do not know what are you talking about?

[augustocroppo]

English version:
https://multimediafiles.kbcgroup.eu/ng/published/KBC/PDF/Bitcoins_EN.pdf

Thank you. I advise everyone which is still learning about Bitcoin to read carefully the above document.

Be aware of risks when dealing with BTC.

[augustocroppo]

No, Bitcoin is not "backed" by mathematics. Perhaps you do not know what are you talking about?

You are talking to deaf people. The amount of catchphrases and buzzwords that are considered gospel here is astounding.

 

Sometimes I feel I speaking with bricks in a wall. That remind me of Pink Floyd.

[zeetubes]

Because it is precisely FUD. these banks wildy invested their client's money in worthless derivatives and now they are spouting b.s. because they can't make money out of something. Bitcoins is backed by nothing.... yeah, except mathematics.

No, that is not FUD. That was not published in any specific venue to spread fear, uncertainty and despair. Assuming you are telling the truth, that is just a mail to alert people about the inherent risks of virtual currencies. Moreover, not all banks invest their client's funds in derivatives.

No, Bitcoin is not "backed" by mathematics. Perhaps you do not know what are you talking about?

Right, it was not published in any venue... Er yes it was. Perhaps you don't understand either mathematics or English.

[zeetubes]

No, Bitcoin is not "backed" by mathematics. Perhaps you do not know what are you talking about?

Why do they call it a crypto currency?

[zeetubes]

Why do they call it a crypto currency?

When you say a currency is backed by something else, it means you can redeem it for whatever that is. For example, the USD used to be backed by gold. Now, if Bitcoin is backed by mathematics, does that mean you can redeem Bitcoin for mathematics? Perhaps it is you that do not understand English or general monetary definitions?

Right, so now the USD is backed by the government, I can redeem it with what exactly? Politicians? It is a meaningless concept and has no bearing on the real "value" of the Usd. Bitcoins' "integrity" is backed by mathematics. The value can vary drastically but one bitcoin will always equal one bitcoin. And that is backed by mathematics.