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Bitcoin The Almighty Buck

This Whole Bitcoin Thing Could Be Big, Says Bank of America 276

Posted by samzenpus
from the better-than-barter dept.
Nerval's Lobster writes "Bank of America has issued a research report suggesting that the crypto-currency Bitcoin could become 'a major means of payment for e-commerce' on its way to emerging as 'a serious competitor to traditional money transfer providers.' The bank attaches a 'maximum market capitalization' of Bitcoin at roughly $1,300, based on its position as a 'major player in both e-commerce and money transfer' as well as 'a significant store of value with a reputation close to silver.' Bitcoin has come close to exceeding that theoretical ceiling in recent weeks, although its valuation dove today after the People's Bank of China decided to declare it a volatile 'currency' without real legal status; that financial institution is also concerned about its use in money laundering and black markets. Bank of America sees Bitcoins' advantages as low transaction costs, its finite supply (which will protect its value), and its increasing attractiveness as an alternative to 'traditional' cash. As with the People's Bank of China, however, the bank sees the currency's extreme volatility and lack of legal backing as a bad thing, and frowns at the possibility that regulators could step in and increase transaction costs. 'A 50 minute wait before payment receipt confirmation is received will prohibit wider use,' the report adds. 'This is less of an issue for two parties that know each other because they trust the other will not double spend, but when dealing with an anonymous counterparty this creates a high level of unhedgeable risk.' Without a 'central counterparty' to verify transactions and thus mitigate that risk, Bitcoin could fail to break into wider use."
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This Whole Bitcoin Thing Could Be Big, Says Bank of America

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  • by AlphaWolf_HK (692722) on Friday December 06, 2013 @04:25AM (#45616849)

    BoA, Wells Fargo, and Chase are the douche banks. Most banks will do better but not much, but some are pretty good.

    I'm with USAA myself - haven't ever had to pay a single fee for anything I get from them. My checking account even yields interest, and features that the 3 douches charge money for are included for free. USAA was actually the first bank to offer deposits using smartphones in fact, and it always has been free.

  • by JavaLord (680960) on Friday December 06, 2013 @11:23AM (#45618715) Journal

    Bank of America is always looking for new ways to screw over their "customers", be it through fees, lying, or trying to steal their (paid off) houses through foreclosure (and blaming it on "computer error" when caught). They're probably drooling like hungry dogs over all the ways they can fleece people with Bitcoin...

    That's what I found funny about the article. BofA thinks bitcoin could end up with "a reputation close to silver." and all I can think is "As opposed to Bank of America, which has a reputation close to shit, cancer, and child molesters."

  • by Anonymous Coward on Friday December 06, 2013 @11:35AM (#45618859)

    The best thing about credit unions versus other banks is that, for the low cost of a mirror, you can look one of the owners in the eye and say "you're an asshole!"

This place just isn't big enough for all of us. We've got to find a way off this planet.