Bitcoin is bad / Bitcoin is High risk .... well what about Archegos?

[Kakmakr]

We hear this every day...... Shills and competitors and Crypto haters spewing FUD on the Internet.. telling everyone that Bitcoin is "Bad" and that it is a "High Risk" investment or their favorite.... Bitcoin is a Ponzi scheme/Bubble that are going to burst soon.

The skeletons in the cupboard of the FIAT Financial System are piling up and we see one of them in the form of the Archegos scandal! ( USD20 billion in liquid assets losses) --- So where did they get the money to invest... Answer : Banks !!! (Our Money)

Nomura reporting losses of USD2.9 billion and Credit Suisse taking a USD5 billion (approx.) hit. Morgan Stanley and UBS also had some losses.

Archegos was not a hedge fund..... It was a single family office, run by one individual. Why did Banks give money to such a risky financial operation? (Question is ..... Can we trust Banks to make the best decisions with the money that we deposit?)

You thought your money deposited in the Banks are the safest option? Guess again........ 

Sources : https://www.hedgeweek.com/2021/05/05/299729/archegos-collapse-shows-what-can-happen-when-leverage-misapplied

https://www.bloomberg.com/news/articles/2021-03-30/a-glossary-to-understand-the-collapse-of-archegos-quicktake

[Tytanowy Janusz]

Archegos was not a hedge fund..... It was a single family office, run by one individual. Why did Banks give money to such a risky financial operation? (Question is ..... Can we trust Banks to make the best decisions with the money that we deposit?)

You thought your money deposited in the Banks are the safest option? Guess again........ 

Because "risk" is a word that does not appear in the banks' dictionary. They can put money on "safe" investments and get small returns or gable on "risky" assets and get big returns or bail out from government. So there is not risk for them.

Are my money safe in banks? Yea. If bank will lose them government will print them back causing inflation and everyone will pay for it in devaluation of their savings. No matter where you store your money. If its Fiat - you will pay for all mistakes made by elites.

[passwordnow]

You can trust them just to keep your money but it's on them where they're going to invest the money that we depositors have deposited. So if you feel that you don't like how they use the deposited money and where they're allocating it to their investments.
We've got our own back where we can put our money and has a better value in returns than the banks give us with our deposits.

[cryptomaniac_xxx]

You can trust them just to keep your money but it's on them where they're going to invest the money that we depositors have deposited. So if you feel that you don't like how they use the deposited money and where they're allocating it to their investments.
We've got our own back where we can put our money and has a better value in returns than the banks give us with our deposits.

I wouldn't say that is a trust because they are re-investing it without your own consent isn't it? And that's why majority doesn't want to used banks because of this one. When I learn about this things, I started to not like them at all, plus my bad experience with them, (can't open an account etc etc).

So I will say that I don't like them at all, and now that we have options like bitcoin to store our wealth, then I guess we only need them if we wanted to convert our btc->fiat.

[Dhoe]

you say bitcoin is bad and high risk, maybe because you hate bitcoin, or you can't control bitcoin, that's why you say so,, indeed saving money in the bank is no risk, but you the bank can use the money they save for your business, while those who deposit in the bank do not get any profit, in contrast to bitcoin, indeed bitcoin has risks, but the profits we get, can be said to be high too..

[crwth]

I don't think it will be our fault anymore if we deposit our money into banks and lose the investments they have. There's always going to be that insurance whenever something happens, right? The FDIC or wherever you are. As a client, we don't need to do anything but know that they will carry that loss and still be there whenever you need transacting.

This collapse makes it even harder for people to know Bitcoin and know that anything can happen. One wrong move in the wrong direction, you are already going to lose everything. I hope whoever is responsible for this, understand what he did and possibly recover from it.

[Kakmakr]

Archegos was not a hedge fund..... It was a single family office, run by one individual. Why did Banks give money to such a risky financial operation? (Question is ..... Can we trust Banks to make the best decisions with the money that we deposit?)

You thought your money deposited in the Banks are the safest option? Guess again........  

Because "risk" is a word that does not appear in the banks' dictionary. They can put money on "safe" investments and get small returns or gable on "risky" assets and get big returns or bail out from government. So there is not risk for them.

Are my money safe in banks? Yea. If bank will lose them government will print them back causing inflation and everyone will pay for it in devaluation of their savings. No matter where you store your money. If its Fiat - you will pay for all mistakes made by elites.

This is exactly why Satoshi Nakamoto created Bitcoin.. (Remember the reference he made to the second Bailout that governments made to the Banks with taxpayers money in the first Block that was mined?)

Satoshi Nakamoto knew that Banks did not learn a lesson from their mistakes, because they have repeated those mistakes before and they know if they fail..... governments will use taxpayers money to bail them out.

[mrongos]

those who hate bitcoin are definitely people who can't control bitcoin under their control, bitcoin is safe and reliable, so everyone now has invested their money in bitcoin, and they make it an asset to get profit in the future, now some people have withdrawn money they are in the bank, because they know the bank can't make any profit at all..

[joniboini]

those who hate bitcoin are definitely people who can't control bitcoin under their control, bitcoin is safe and reliable,

Well, being overly optimistic is also not a good practice. There's a good reason why people should be careful with their investment, including bitcoin. Safe and reliable can be interpreted in many ways, and I'm sure most skeptics will point out its volatile nature and said that a highly volatile asset is not safe and reliable at all. It's true to some extent but doesn't mean you should just disregard it.

In short, just like other risky investments, the best way to 'play' it is to use the money you can afford to lose and trade with a good strategy.

[Lucius]

~snip~

What about them? It’s not the first or last time a fund loses its clients ’money, it certainly happens on a daily basis - although clients don’t want to tarnish their reputation with public announcements - no one is happy to turn out stupid and lose money.

Banks should not be considered honest entities, because they operate in accordance with the laws of a particular country - and if the country is corrupt, then banks also use it to operate in the gray zone as much as possible. Banking scandals like HSBC or Danske Bank show how much they are willing to play dirty for profit. But that doesn’t mean Bitcoin is a successful solution for all people, because the world of cryptocurrencies is full of scams, and many people are too naive to be able to defend themselves against it.

Besides, this is old news -> Archegos Capital Management - How to burn $20 billion overnight!

[maju69]

We hear this every day...... Shills and competitors and Crypto haters spewing FUD on the Internet.. telling everyone that Bitcoin is "Bad" and that it is a "High Risk" investment or their favorite.... Bitcoin is a Ponzi scheme/Bubble that are going to burst soon.

The more they spread FUD on the internet and keep on expressing their hatred for crypto, especially Bitcoin under various high-risk pretexts, and things we have often found. It has shown how dangerous Bitcoin is for crazy people.

While on the other hand Bitcoin is something that we never ask to give what we want in life. I love the freedom inherent in all the functions and benefits of Bitcoin. Doesn't it make sense when more and more people start criticizing Bitcoin in a negative light, that they've pointed out there's a hidden gem they've been missing. Then move as one of the groups who do not like the existence of Bitcoin.

[avikz]

(Question is ..... Can we trust Banks to make the best decisions with the money that we deposit?)

You thought your money deposited in the Banks are the safest option? Guess again........ 

If Banks are the best institution to trust your money with, then no banks would have ever failed. So the answer is no! We have seen a lot of malpractices within banking sector in last few years, especially in my country! We have seen banks lending money to already stressed companies that eventually became NPA and the bank went on to the verge of closing down (Yes bank of India). So we can't blindly trust banks with our money!

But at the same time, bitcoin (or cryptos in general) is also very risky. So having 100% money on any particular asset class is always risky! Crypto is no different here!

[Fortify]

We hear this every day...... Shills and competitors and Crypto haters spewing FUD on the Internet.. telling everyone that Bitcoin is "Bad" and that it is a "High Risk" investment or their favorite.... Bitcoin is a Ponzi scheme/Bubble that are going to burst soon.

The skeletons in the cupboard of the FIAT Financial System are piling up and we see one of them in the form of the Archegos scandal! ( USD20 billion in liquid assets losses) --- So where did they get the money to invest... Answer : Banks !!! (Our Money)

Nomura reporting losses of USD2.9 billion and Credit Suisse taking a USD5 billion (approx.) hit. Morgan Stanley and UBS also had some losses.

Archegos was not a hedge fund..... It was a single family office, run by one individual. Why did Banks give money to such a risky financial operation? (Question is ..... Can we trust Banks to make the best decisions with the money that we deposit?)

You thought your money deposited in the Banks are the safest option? Guess again........ 

Sources : https://www.hedgeweek.com/2021/05/05/299729/archegos-collapse-shows-what-can-happen-when-leverage-misapplied

https://www.bloomberg.com/news/articles/2021-03-30/a-glossary-to-understand-the-collapse-of-archegos-quicktake

You should really distinguish between retail banks and investment banks because there is quite a big difference. In a boring old retail bank customer deposits should always be segregated and for this reason there are often government guarantees on a certain amount of funds - banks can only use deposits for what are considered very low risk investments, like putting them in certain bonds or lending it back out in mortgages. Investment banks, like the ones that you listed with losses, might be a department within the wider bank but their funds come from investors who want greater returns but as you see - they suffer greater downsides when things go wrong. It's always worth understanding your comparisons before getting over confident in your analysis.

[dataispower]

Money saved in the bank is not actually risky or bad, it is a personal decision to make whether or not to save with the banking sector. Beside whichever way we view it, one can not totally avoid the banking system completely. Many people do not know the actual power buying a digital asset as Bitcoin is the reason they FUD on it.

[19Nov16]

Money saved in the bank is not actually risky or bad, it is a personal decision to make whether or not to save with the banking sector. Beside whichever way we view it, one can not totally avoid the banking system completely. Many people do not know the actual power buying a digital asset as Bitcoin is the reason they FUD on it.

It is impossible for us to completely leave the bank, all sectors of the economy always need a bank to save or borrow, in my opinion this does not matter, the presence of bitcoin is only an alternative transaction system not to replace fiat.

[Wind_FURY]

OP, you are doing Bitcoin a disservice by comparing it with a hedge fund that defaulted on margin calls, ser. Bitcoin is an entirely new asset class, thanks to the development of Proof of Work, and only made possible through Satoshi’s breakthrough use of it for Bitcoin.

[swogerino]

Money saved in the bank is not actually risky or bad, it is a personal decision to make whether or not to save with the banking sector. Beside whichever way we view it, one can not totally avoid the banking system completely. Many people do not know the actual power buying a digital asset as Bitcoin is the reason they FUD on it.

It is impossible for us to completely leave the bank, all sectors of the economy always need a bank to save or borrow, in my opinion this does not matter, the presence of bitcoin is only an alternative transaction system not to replace fiat.

It is the best alternative.I can for example in an imaginary scenario send 1 million Bitcoins to anyone in the planet that has a Bitcoin wallet for receiving the money and not be asked questions about this transaction from no one.This is the strongest point of decentralization.Now go and send 1 million dollars from a bank account you own,you will be flooded with questions,where did the money come from,where it is going,why it is going and all the questions like that.By the banks elite are making us financial slaves so do not compare Bitcoin with banks,it was created in the first place to remove any third party,for me meaning Central Authorities like Central Banks.I am very happy that Bitcoin exists and I think is the best thing it have happened in this century we are living.

[ik5656]

Bitcoin Always High Profit. But People already entering Bitcoin or Blockchain Speech.Bitcoin Is Futher Money in World.People always interested Bitcoin day by day. Money Bitcoin Not Except but The Country Policy maker Don't Know How Work Bitcoin In Global World.

[buwaytress]

Haven't really followed Gamestop or Archegos etc but yeah, the lack of transparency in all these different markets, be it swap or any kind of derivatives, and the insane amount of leverage they're allowing, plus the lack of collateralisation (or in Archegos case even using the same collateral at 6 different banks haha, damn). Not really news, until the victims are the ones who usually take advantage by gaming the system.

I agree it's a shitty deal, but your fiat in a bank is anyway protected by your state's guarantee. Even if a bank collapses you should be all right -- it's when your state collapses ala Greece that you'll be in tears.

Bitcoin should be a hedge against that, and against fiat devaluation, but I wouldn't recommend all in to anyone, not when people be losing their private keys and keeping their BTC on exchanges!

[Lucius]

I agree it's a shitty deal, but your fiat in a bank is anyway protected by your state's guarantee. Even if a bank collapses you should be all right -- it's when your state collapses ala Greece that you'll be in tears.

I can't say how it is in the rest of the world, but in the EU, citizens' savings are only insured up to €100 000, which is, let's say, good for all those who have no more money. This is something we can say is positive about banks, although theory is one thing and practice is quite another. I want to say that on paper some things may look very convenient, but when words need to be put into action problems arise.

We can therefore ask the question of whether it is safer to have €100 000 in a bank or the same amount in a crypto non-custodial wallet? For some people, the risk is certainly too great to decide on the latter - because it is not easy to be your own bank, too many people are still not ready for such responsibility.