Bitcoin Forum

Hello everyone,

I am looking to start a Bitcoin business but unsure of what the market could use that is not currently being filled.

My goal is to promote the agenda of a decentralized, peer-to-peer internet currency.  However, I am not sure if a need for a Bitcoin bank of some sort exists or a lending platform for alternative currencies exists.

Are there any innovative ideas out there for someone looking to start a business in internet currencies?

Hopefully the community can help me with this endeavor.

- Start a credit card that can be paid off using Bitcoins (and no fiat in-between).  Allow Bitcoin users to develop credit overtime without the need for fiat.

- Do what bitspend.com is doing, only better.  Simply arbitrage the kickbacks credit card companies give you by purchasing volume and pull it off for free for the end customer.

- Create mega exchange.  Something that gives the best fills across all the other exchanges.

- Create a BTC/Fiat leverage trading platform of some kind.  Others are doing it, but still not there yet.  Let me leverage like Forex 1:50 to 1:1000.

- Do what Bitpay is doing, but integrate it with credit card processing as well.

- Create affiliate software that integrates automatically with Bitcoin.

- Create an automatic split-pay system for affiliate marketers.

- Create a membership site software that fully integrates with Bitcoin.

- Create a software distribution platform that automates Bitcoin billing, generating and retrieving software keys.

- Create a "top up" software solution that dovetales into all current subscription payment models.  And/or a some kind of re-occuring billing solution.

That should get you started...

Create a centralized stock trading market like mpex.co, but instead using the colored coins concept so that people can "withdraw" their ownerships outside from the centralized system.

create an exchange.

Could you expand on:

-  the idea of a mega exchange
-  the possibility of competiting with bitpay
-  a software solution that using subscription payment

Mega exchange:

Leverage the API of the current exchanges.  Allow users to place orders at one mega exchange.  The order is placed at each exchange.  The second it is filled, the unfilled orders are cancelled at the other exchanges.  Giving the best fills, and solves the lag problem some exchanges are having right now.

Bitpay:

Nice idea.  But can be done better with no friction to the end user.  Simply leverage the cash back and perks various credit card companies offer to make the purchases on behave of others Bitcoin users.  And simply do it for free for the end user, ensuring you dominate this wide open space.

Re-occurring billing:

Only way I think it can be done is with a software solution that allows a user to deposit Bitcoins to the account.  When the account gets low the software emails the user reminding them to refill it.

Hosting providers, VPN services, any re-occurring subscription based service needs something like this. 

Coinbase now enables subscription authorizations:
 - http://blog.coinbase.com/post/50530790639/coinbase-launches-subscription-payments

So essentially by subscribing I am authorizing the merchant to pull $N USD (or ฿N BTC) per-month (or per-day, whatever) from my Coinbase account.  I just need to make sure I have sufficient funds in my Coinbase account when the merchant submits the payment request.

Sounds like all we need next is for Coinbase to allow auto withdrawals from your bank account and between Coinbase and Bitpay we'll have a system for complete P2P Bitcoin transactions at what? 2.5%? Still not a VISA, but close, and I imagine it's only going to get better.

Coinbase charges 1% + $0.15 on bank transfers to and from Bitcoin, not 2.5%.  The one rather major downside with the Coinbase recurring payment system is that it requires that both the merchant and the customer use Coinbase.  I don't mind using Coinbase myself, I like them as a business, but I'd rather not lock customers into using them as well.  In my opinion, that runs counter to the whole spirit of Bitcoin.

Oh, and as far as Sage's suggestion to start a Bitcoin based credit card, I can't imagine any business taking on this risk, unless they compile all the information that regular credit card companies do so that they can report you to credit agencies if you don't pay.

I was using 1% Coinbase + 1.5% Bitpay as a measure. I guess Bitpay is 1% though?

Why would you add the fees together?  Companies are either going to use one service or the other, not both.  And yes, Bitpay is 0.99%, essentially 1%. 

There are a handful of folks on here, and I guess I'm included, that see Bitcoin as a threat not just to the Federal Reserve, but also to credit card processors and other aspects of the banking industry. Stuff like this makes it more competitive.

Count me as one of them.  Doing away with the 3% fees is really one of the big advantages of bitcoin in my opinion.  I'm planning on starting up a bitcoin business one of these days, and that's a big part of the appeal to me.