The cryptocurrency threat (26 Feb, 2018)

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The cryptocurrency threat (26 Feb, 2018)

Postby aardvark_admin » Mon Feb 26, 2018 9:24 am

This column is archived at: https://aardvark.co.nz/daily/2018/0226.shtml

Do you think that cryptocurrency could effectively take over many of the services currently provided (at a cost) by your local bank?

Will the very significant fees earned from transaction processing soon be lost by the banking industry, forcing them to rethink their business model and perhaps become little more than glorified finance companies?

How will an industry which makes billions of dollars in profits from the daily transactions of Kiwis respond to this threat to its bottom line?

Might they spend a sizable chunk of money lobbying government to impose controls or even ban cryptocurrency in an attempt to preserve their profits?

Or is cryptocurrency just a fad that will have passed within a few years, leaving the bankers free to rort Kiwis for billions of dollars a year, every year?
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Re: The cryptocurrency threat (26 Feb, 2018)

Postby granada29 » Mon Feb 26, 2018 10:07 am

I don't think that will happen anytime soon. Until we see crypto-currency ATMs in every shopping centre, crypto-EFTPOS machines in every retail outlet, bar and gas station, people will continue to use their bank provided plastic and thus preserve the banking industries status quo.

Of course the banks themselves may become big holders of crypto currency in just the same way they now speculate with 'foreign' currencies - what our former PM used to do for a living.

Bank of America recently claimed, in an SEC filing, that crypto-currency *is* a risk to their business. I think that this was most likely a CYA move on their part, along with detailing the risk of nuclear war, invasion by North Korea, inundation of New York by sea-level rises due to global warming and other such possible but in the short term unlikely events. If they don't identify risk then they are open to law suits from their stock-holders.
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Re: The cryptocurrency threat (26 Feb, 2018)

Postby hiscoca » Mon Feb 26, 2018 10:41 am

Sounds all Utopian, but as I understand it Crypto Currency still has fees attached to it and at this stage of its development it is suffering significant delays in processing transactions.
I doubt it is an effective alternative at this stage and probably not for some time to come. But the Block Chain Ledger process has significant room for development in other areas where data needs to be secured.
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Re: The cryptocurrency threat (26 Feb, 2018)

Postby Kiwiiano » Mon Feb 26, 2018 10:59 am

Can anyone explain just how CC works. How do I earn or convert NZ$ earned elsewhere to CC? How do I purchase something here in NZ or on eBay/AliExpress?
~ Kiwiiano
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Re: The cryptocurrency threat (26 Feb, 2018)

Postby phill » Mon Feb 26, 2018 11:16 am

i only have 2 problems with crypto
how they are made ( the waste in energy for no constructive gain is horrendous ... which makes me ponder how much goes into printing and smelting with normal folding )
how transactions are hidden ( make it traceable for security and anti criminal reasons and it would be fine )

solve those 2 problems .. and i will 100 % support any changes required to bring them in as a viable small transaction currency
( ,,,,,,,, ....... A E I O U use em sparingly theres probably not enough )
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Re: The cryptocurrency threat (26 Feb, 2018)

Postby Wetherman » Mon Feb 26, 2018 3:32 pm

I think it's amazing that our ex-PM presided over this country's finances in FY2014-5 which resulted in a payments deficit of 5.1bn when the total profits of the four Australian banks that own our banks (except Co-op, Kiwibank and TSB) total profit from trading here was, er, oh yes, about 5.1bn. And where is he now? Oh no, CEO of ANZ *Sigh*
If you look into what we are told is money, you find that since 1974 it is something called "fiat currency" which means "it's money because we say it's money" - so it's all virtual anyway. The banks are making virtual money out of transactions in virtual money. For a beginner's guide see Youtube for "Hidden Secrets of Money". We should definitely go back to gold or go forward to crypto otherwise the next GFC could be our last
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