As U.S. credit card companies and major financial institutions (JPMorgan Chase & Co, Bank of America Corp. and Citigroup Inc.) halt purchases of Bitcoin, the value of the world’s major cryptocurrency keeps declining on the global market. The first company to have issued a ban on BTC transactions, JPMorgan, stated that it wants to avoid the credit risk related to crypto.
Following this example, Bank of America put a hold on credit card transactions with major digital assets such as Litecoin and Ethereum as well. Both personal and business users are affected by the decision, although the ban does not refer to any debit cards. Moreover, Citigroup’s spokeswoman Jennifer Bombardier added that the company’s policy to ban all crypto purchases will be reviewed as the situation on the market unfolds.
Last year in December, BTC reached a staggering $20 thousand USD per unit, only to lose more than half of its value in February and is now followed by a constant declining trend! The current price for one coin is stuck between $7,000 and $8,000 due to regulatory threats and Facebook’s recent decision to ban misleading cryptocurrency ads. In addition, banks are monitoring suspicious money transactions which could lead to potential laundering attempts and stolen credit cards. Allowing further purchases of digital money with this paying method is directly helping thieves and illegal traders, according to industry experts.
Among other financial companies that have stopped supporting these transactions are also Mastercard Inc., Capital One Financial Corp. and Discover Financial Services. Discover’s CEO, David Nelms, stated that financing cryptocurrencies might change in the future, as it depends on the market and customer demand.
Stay tuned if you want to know everything about keeping your Bitcoins safe and take the necessary steps towards protecting your cryptocurrency stash. There are many quacks and swindlers on the market that are trying to get their hands on crypto money, and the recent ban is issued mostly because of them, adds Nelms.
Source:
“Bitcoin Ban Expands Across Credit Cards as Big U.S. Banks Recoil”, Jennifer Surane and Laura J. Kellar, bloomberg.com, February 2, 2018.
coolsongss 6 years ago Hero Member
I think that it is good to block major financial medium from BTC payment. I will certainly factor against the value of BTC. Even if it has plunged down to $7000~8000, it is still too high, considering that the value was only $2000 or less, around Brexit issue. But, the problem is that many countries block Creditcard...
I think that it is good to block major financial medium from BTC payment. I will certainly factor against the value of BTC. Even if it has plunged down to $7000~8000, it is still too high, considering that the value was only $2000 or less, around Brexit issue. But, the problem is that many countries block Creditcard from online payment sites, too, for example, like ecoPayz, :( . I can't use Visacard to pay in ecoPayz, huh. I think that this bad change is also related to BTC...
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Joe Wrinkle 6 years ago Full Member
not a big fan off this, idk how many angles bitcoin can take hits from and still remain the top dog of crypto
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cheztwins 6 years ago Hero Member
Yuck. Chalk up another missed opppertunity for the the average person because banks and other financial giants are greedy pigs. They want to keep bitcoin out because they wouldn't have the self-serving rules and regulations in place that they currently have without crypto-currency. I feel that banks are as corrupt as insurance....
Yuck. Chalk up another missed opppertunity for the the average person because banks and other financial giants are greedy pigs. They want to keep bitcoin out because they wouldn't have the self-serving rules and regulations in place that they currently have without crypto-currency. I feel that banks are as corrupt as insurance. These are the only entities I know of where we willingly give them our hard earned money only to have them tell us how it will and can be allotted back to us. disgusting.
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bigbolox_ay 6 years ago Jr. Member
Nothing but bad news from this, most recently there was a bitcoin robbery in the uk and i just don't see the importance of a new currency when we have so many already. Bitcoin casinos are a no go and have no interest in digital currencies.
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Alex and R 6 years ago Sr. Member
The main highlight of this article is that people from Facebook decided to ban misleading cryptocurrency ads just one or two weeks before major banks of US put a ban on CC transactions. Coincidence? Me not thinks so... They should've synced their strategies better. At least we know who's the boss now.
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james jenicek 6 years ago Full Member
Good news for all mining and investing in BTC. The blockchain will soon be extremely important in the near future. Many crypto's will increase in value. The one's that can handle transactions the fastest and be prepared for any backlogged transactions will come out on top. Bitcoin will eventually trade at 25k, 30k, and...
Good news for all mining and investing in BTC. The blockchain will soon be extremely important in the near future. Many crypto's will increase in value. The one's that can handle transactions the fastest and be prepared for any backlogged transactions will come out on top. Bitcoin will eventually trade at 25k, 30k, and possibly 55k against the dollar.
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Andreas_V 6 years ago Full Member
Times are tough for bitcoin. Incredible nosedive in both value and people's trust in it. In December, it was at the top of the world and now...It may be that these downs happened before, but never has it dropped from such a height. Plus the public eye is extremely negative about it which further adds to the decline. Recovery...
Times are tough for bitcoin. Incredible nosedive in both value and people's trust in it. In December, it was at the top of the world and now...It may be that these downs happened before, but never has it dropped from such a height. Plus the public eye is extremely negative about it which further adds to the decline. Recovery will be tough. I think many people were unrealistically optimistic and overly confident about bitcoin. Were experts saying it was a bubble correct?
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Mila 6 years ago Sr. Newbie
Bitcoin had already its ups and downs, it will overcome this crisis for sure...Still, precaution are needed for those who invest in cryptocurrencies!
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jade 6 years ago Super Hero
I agree with you Markotik it doesn't look good for Bitcoin. I can agree that Bitcoin may be stuck at the current price "due to regulatory threats," but do we really want to give 50% of the blame to "Facebook's position on Bitcoin. Let's not let Facebook have that much power over Bitcoin. Bitcoin was doing fine before...
I agree with you Markotik it doesn't look good for Bitcoin. I can agree that Bitcoin may be stuck at the current price "due to regulatory threats," but do we really want to give 50% of the blame to "Facebook's position on Bitcoin. Let's not let Facebook have that much power over Bitcoin. Bitcoin was doing fine before Facebook got involved and it will be fine again, even without the Facebook's blessing. On a positive note, transaction fees are smaller and transaction times are faster. Only time will tell the ending of this story. Bitcoin will make it, if God is willing!
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Markotik 6 years ago Admin
Another huge blow for bitcoin! At the moment it doesn't look good for this cryptocurrency.
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