Nostr Web Client

It's interesting.

Startups are in a situation in which they need to decide if they want to sell the USD they still have in their bank accounts (if able to withdraw) for #Bitcoin and expose themselves to volatility (with risk of losing a %), or remain with their USD and risk of losing everything.

enzø ⚡️ 2y ago

To my knowledge all accounts are covered up to $250k from FDIC insurance. And those that needs more than $250k liquidity they usually spread it around different banks

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Discussion

SovereigntyQuest 2y ago

FDIC doesnt have enough assets compared to deposits in USA banks.

enzø ⚡️ 2y ago

Yeah if multiple banks start failing at the same time they probably would not be able to cover it but we are talking only about one bank

David Coen 2y ago

Right now, yes.

SovereigntyQuest 2y ago

🥺 #[2]

enzø ⚡️ 2y ago

I am aware but don’t underestimate their ability to maintain the status quo. By definition the momentum energy we would need to produce to topple their status quo needs to be orders of magnitude bigger.

SovereigntyQuest 2y ago

Agree. Gangsters are powerful organisations!😊

David Coen 2y ago

Usually.

What if other banks are involved in a bank run?

What SVB did, I bet is not a rare thing.