While you were all focused on BTC

Fiat currency comes from the central bank.

The federal reserve.

Banks aren't the enemy as they've been made out to be.

a reply to: neo96

Banks create far more money than the Fed. The system is called fractional reserve lending.

A $100 deposit=$900 as it works it's way through the bank.

originally posted by: seasonal
a reply to: neo96

Banks create far more money than the Fed. The system is called fractional reserve lending.

A $100 deposit=$900 as it works it's way through the bank.

Leverage ratios are considerably better now at 6% of Tier 1 capital.

That whole 1:9 ratio is no longer a thing. It can't be because we all know overleveraging helped cause the 08 financial crisis.

a reply to: projectvxn

Wasn't it 1 to 9? I don't think it was 1 to 99 before 2008.
And I am not aware that the 1 to 9 ratio of fractional reserve lending has been lowered to 1 to 6. If that is the case that is a good step, but still very dangerous and still spurs inflation with no allowance to increase your and my pay.

That whole 99:1 ratio is no longer a thing. It can't be because we all know overleveraging helped cause the 08 financial crisis.

a reply to: seasonal

Banks do not create money.

Only the fed does.

a reply to: seasonal

Sorry yeah...Got that backward. I edited to correct.

But yes, leveraged banks at the levels we saw during the '08 crisis are no longer a thing. Banks have to maintain a 1:6 leverage ratio on tier 1 assets.

originally posted by: neo96
Bitcoins been projected to bottom out at $5000 but they also say it could hit $60,000.

At any rate it's ALWAYS a good idea to hedge your bets.

Ripple is just as good as any.

www.cnbc.com...

Whether you love or hate bitcoin.

As with any investment vehicle.

Timing is everything.

If you time this right.

And GBTC goes back down to its' $70 pre boom level.

You are going to make BANK.

finance.yahoo.com...

a reply to: neo96

Learn about fractional reserve lending=money creation.

a reply to: seasonal

Two totally different things.

Lending is not the same as creation.

It's a service product.

a reply to: neo96

Right, go try to buy a boat without the loan that was created because someone deposited their $200,000 life insurance check off at a local bank. This frees up the 1 to 9 ability the bank has to create the loan for the boat. Or better known as real money (fiat) from fractional reserve lending.

a reply to: seasonal

That's right.

You see something you want.

You need a place to get money to buy it.

You use CREDIT to get a LOAN.

The bank calls up the fed and says give me X amount.

The fed charges the bank.

The bank recoups that cost from the borrower.

After the term ends rinse and repeat.

A service.

a reply to: neo96

The commercial bank does not call up the Fed for a $15,000 boat.

Quick easy video-ignore the ominous music.

That's a propaganda video.

Nice villain all wrapped up in a nice little bow.

Evil banks.

What the hell ever.

a reply to: neo96

Ok.

a reply to: seasonal

Yep.

At least one textbook states that when a loan is made by the commercial bank, the bank is keeping only a fraction of central bank money as reserves and the money supply expands by the size of the loan.[3] This process is called "deposit multiplication". However, as explained below, bank loans are only rarely made in this way.

The proceeds of most bank loans are not in the form of currency

en.wikipedia.org...

This is essentially the same process for equity(Stocks) purchase's, and cryptocurrency.

Put in the least amount of money in for a bigger return.

It's just smart business.

If you are all looking for a quick buck, reddcoin is about to go up (look at the chart) and coin market cap has it really low even though it more than doubled just recently. Almost tripled in value over the last couple days and it's going up as I type this, I just refreshed the market page.

Always at your own risk though, they might turn that one into a pump and dump.

a reply to: JosephKnecht

I bought some reddcoin @ .00133. And if this cyber tipping get adopted, it will be huge.

Good call on this one.

I found out one thing for sure.

I need a better site than poloniex.

originally posted by: projectvxn
a reply to: JinMI

I would put compliance in my own personal list. Reason being is that I would like to legally cash out some someday.

Then how do you square that with this:

Completely agree. However, the problems, aimed clientele, holders and direction of Ripple hit a principled no go for myself.

XRP is regulatory cooperation. What clientele do you think would come with that?

XRP is already hated by a large percentage of the planet..the ONLY crypto that is hated.

Frankly its own protocols will prove insufficient in favor of newer systems that have already surpassed it..and again without bank interaction and regulations.

Time will tell but XRP really garners no excitement in most...

a reply to: neo96

I use bittrex, works fine. The only problem is that new coins are not on bittrex. I think we will see some serious consolidation of the exchanges this year.