New retail investors in the US may find themselves unable to invest in crypto during the next global bull market. If they don't want to use sites like LocalBitcoins, where they will pay a premium and take the perceived risk involved with trusting some random website's escrow features, they may find that their bank simply won't let them make the transaction.
I say this because currently I have problems buying crypto sometimes. Thankfully I have 2 bank accounts that allow me to ACH and wire funds in to exchanges. But none of my debit cards will work, nor any credit cards. And the credit union where I have a high yield savings account refused to send a bank wire to Coinbase. They called to say they don't send wires to Coinbase, specifically.
So when the floodgates open and many want to rush through, they may find themselves unable to gain access.
Options like Cash App may be crucial, because with it you can deposit funds that will either be sent as USD or used to buy bitcoin, and which it is remains unknown to the banks.
It's all about the fiat on-ramps!
Without more ways for newbies to feel safe enough when trading their fiat for crypto, they just won't participate even once convinced it is an asset class they want to be in on. They'll do something easier (and where they don't get treated like a criminal) instead.
This matters, because it remains the case that Americans hold a lot of the world's wealth. A bull run that happens without middle class Americans is diminished. How much is unknowable, but stands to reason there is a significant effect.
I recall not long ago one of the C-level executives at PayPal had his checking account at Bank of America shut down because he was buying crypto on exchanges. He did nothing illegal. They just considered him an undesirable customer because he made the purchase. You can imagine how much the balances he was holding in that account were being used by the bank to make more money with, so this isn't even just a middle class problem. No matter how valuable you think your account is to your bank, think again.
The banks are threatened by crypto, so they're working to make it impossible for their customers to use bank services (checking, savings, credit accounts) to access it. This makes blended entities like Cash App and Fidelity (which I think still only gives crypto access to some but not all customers) critically important for the entire space's asset price appreciation.
I did finally get one of my credit cards to let me make a small purchase using Crypto.com. The bank denied the charge, but then called me the next day to verify it. They seemed incredulous when I said that yes, the charge was made by me. They gave me a few extra verifying questions to be sure. I was then able to make a small purchase. (Never got Atomic or other mobile wallets to work.)
Every time you reach for a crypto on-ramp and find it works, don't let that make you complacent. That it will continue to work, that it will be there anytime you want, is not at all secure. Have backup plans for yourself, and when people ask you how to buy bitcoin, check first to confirm the way you would recommend still works.
I think this will be a huge plus for Steem as you don't have to go the traditional route for purchasing Crypto as you can sell Steem for Bitcoin or whatever coin you want to get into.
This was an issue during the last bull run as I set up a crypto Facebook group for some friends just to talk about what they're doing in the space and to ask questions.
One person asked me how to buy Bitcoin, since I've never done it before I sent him some advice like Coinbase and a few others and he said none of them would work.
You mention LocalBitcoins as an option, but that is even becoming a place that is harder and harder to buy as most reputable sellers only want to sell from reputable buyers.
Wow, hadn't realized LocalBTC had gone that way. Shouldn't be surprised though.
Yeah, earning like with STEEM, Lolli, airdrops, etc. is the way to go, but starting with zero cash invested it's a very slow build. Can't compete with what people can do if they can simply trade a depreciating "asset" (aka fiat) for a good store of value. I hope to see solutions come. For now, Cash App is a good one.
I agree with the banks fighting back. In my profession, forensic investigators are diving deep into blockchain tech to find hidden assets when a spouse tries to hide their assets in crypto to avoid having to divide funds in a divorce. The courts are catching on and slamming people who are caught.
See this is the thing, when people abuse the relative anonymity of crypto in such illegal ways it hurts the entire space. Most people who want to use crypto just want a good investment that allows them 24/7 access to their funds without needing the govt's approval. I for one pay my taxes on capital gains just like with stocks, real estate, etc. and am not looking to cheat any ex. I imagine most people are like me in this regard. But we get screwed by govts justifying draconian levels of control by using these examples of people using crypto to try to skirt the law. This is how it gets harder and harder for everyday people to invest their income in the best performing asset of the last decade, and likely also the next decade.
Oh my goodness, yes! Absolutely! Someone who gets it! I keep seeing these articlez come up at mertings written by actual Judges ok why crypto and its users needs to be crucified and they literally cite people losing their priv keys as being a worthy reason not to get into crypto. These reports essentially say people are too stupid to manage crypto and if they had a bank they could contact customer support and get a replacement card if they lost theirs as opposed to losing priv keys with no recourse.
"Forensic Investigators" are a whole other level of uniformed opinion being posed as facts. I was on one case where a forensic investigator charged a client $7,500 literally to follow the public ledger through like 12 addresses.
I am guessing they will have their own gateways.
Does Binance.US except debit/credit cards?
I never completed the setup of that one, so not sure if the banks know to block them. To be clear, it's happening from the bank end, so depends more on who the banks recognizing as crypto on the backend.
Oh, looks like it does: https://support.binance.us/hc/en-us/articles/360036376792-How-to-deposit-via-Debit-Card
but yeah, they're not making the exchange from fiat into crypto easy. ;)
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