Edit 3/22/18: Citi Group has announced new restrictions they have decided to impose on retailers regarding certain firearm purchases. If the banks have the power to restrict legal purchases, who is really in charge in this country, the banks or the government?
We’ve all heard about the banks banning crypto purchases on credit cards. The reason they give, and the reason some customers approve of this measure, is to protect their customers from unwise purchases. Not only that, it has been argued that when buying on a credit card, you are using “their” money, not yours, so they should have some control to make sure you don’t buy anything stupid.
Well, if that’s the case, let’s take a look at what the banks DO allow you to buy with “their” money.
Prostitutes – Yes, the oldest profession in the world, maybe the only one older than banks. You can pay for prostitutes at virtually any legal brothel in the world with your credit card. For example, the Mustang Ranch in Nevada boasts they accept major credit cards and also have an ATM on site, which you can use for cash advances.
But wait, there’s more. There are several “Escort” websites on the internet where prostitutes advertise their services in every major city, cities where prostitution is NOT legal. Sites like The Erotic Review has thousands of listings written by prostitutes offering their services, and many boast that they accept credit cards. And this is no small number of transactions. The number of people engaged in prostitution around the world is far higher than the number of people buying crypto with a credit card, I can assure you.
So banks are more than happy to lend you “their” money so you can buy a prostitute, legally or even illegally. Also, there is no return policy with a prostitute. So banks claim they don’t want people losing money on crypto investments, but what about the money spent at a brothel? That’s never coming back.
Cam sites – I’m sure you have all seen them. Web Cam sites online where girls and guys will do whatever you ask them to do if you pay them or tip them. Well, banks are more than happy to lend you “their” money so you can spend money on these sites. These sites all accept credit cards.
But the worst part about credit card companies having no trouble with cam sites, is the fact that many of these cam models are in third world countries where age verification is difficult or impossible. The credit card companies trust the cam sites to police themselves when it comes to age verification. Not only that, many of these girls are forced to work in foreign “cam studios” for 10 hours or more a day in countries like the Philippines or Thailand. These cam studios are run by local pimps who quickly set them up with only sheets as walls to separate the performers. They then submit fake information for the girls to the cam site then keep the earnings for themselves.
Casinos – And let’s not forget good old fashioned gambling. Most casinos use their own network of ATMs. So the banks know good and well that any cash advance from these locations is most likely being used for gambling. The casinos accept credit cards for everything else, so there is virtually no need to get a cash advance inside of a casino if it’s not to go gamble with.
So as you can see, the banks claim they want to protect their customers by not letting them buy crypto. But please feel free to go out and buy a few hookers or tip an underage girl in a Thai cam studio. The banks are happy to lend you some money for all of those things…..But not crypto.