Bitcoin Forum

Well, you wish. Are not you?


In fact the recent delays in MTGOX along with the great transaction volume they have and finally their statement about how much scarce are the LibertyReserve (LR) dollars and how they wait for them to be available to buy or until LR issue new dollars .. these reasons are what got me to write this article.

They (MTGOX) even said that there are a lot of people that use them as an LR exchanger! well bye bye BTC and welcome LR dollars.

The fact that a lot of miners (along with everyone that uses any online currency) need their BTC converted into tangible currency (no matter if it is USD, Euro, zinzbaros, dickheads, .. whatever tangible currency there is) will hold as long as humans can not send themselves as an email attachments and as long as I can not sweep my iphone on that homeless man at the street corner to give him a charity of 0.01 BTC.


In fact, one major advantage of our beloved online BTC fiat currency/online commodity is that the transaction fees are very low compared to 5%-7% usual fees for every bus stop along the road of converting any online currency into a tangible one (or even for just sending the same tangible currency to someone far away that we can not drive to him/her and drop by the money i.e. Hwala). And Usually there are like two to three bus stops for almost any money transfer in the current modern world civilization.

So, bitcoin7, tradehill, please learn teh lesson early and start using something that can be liquidated without many bus stops.


Finally, here is the word ....

A lot of miners along with 5-dollars-article technical writers, 3-dollars-page-rank-promise super-supreme CEO, 0.5-dollar-per-PHP-code-line freelance programmers, ten-thousand-dollar-fantastic-web-site-contract and many others are there to use online currency/exchange-medium/commodity specially when its transfer fees are lower.

So,


Should we start using world-wide reseonable-fees-cash-out exchange partners, western union, money gram, pussy-it, whatever-goes-send.. and such services to withdraw BTC on our exchanges (which would really boost the BTC need,use,economy,production, .. hell everything) or we keep using LR, LT, LZ, bank wires, dwolla, facebook credit , .. along with waiting for LR to issue more of its currency.


I think I might post this into the discussion category and the economy category as well. If that is allowed :D.

You took all of those thoughts straight out of my brain. Thank you, I was dying to say exactly that.

Maria.

PS: MT Gox, once you start accepting Western union withdrawals, please make them fast (24 hrs  MAX) Thanks!!!

Well you are right and that is really what every miner in the BTC community probably thinking right now if not earlier as he/she tried the first liquidation and went through:

1) MTGOX fees.
2) LR fees.
3) LR Exchanger Fees.
4) western union/money gram fees!

See! 4 bus stations! hehe. at some point I thought we are mining for LR and its equivalents not for BTC.

Well maybe that is for small-tiny-little miners. But I am sure no one love extra fees!

I haven't experienced liquidity problems at Mt. Gox besides the long time of wire withdrawals. There are just two steps.. Sell -> withdraw.

Would join Tradehill if they didn't have their ridiculous $45 fee.

What we really need is more exchangers to accept MT GOX USD redeemable codes as E-currency. The guy who exchanges my LR to WU should start accepting MTGUSD. That's the real solution.

WU is no good for volume transactions thanks to all who launder money through their system. they will ban you faster than you can pass your WU#s to the customers. thankfully they diligently return money owed on canceled transactions.

Transferred a few million over Western Union / Money Gram in the past 5 years. Can't relate to your point exactly. 

I guess I don't understand.  I withdrew to Dwolla (the one time I withdrew) and it was fast and cheap.  $0.25.  What's the problem with that?

Agreed. Dwolla seems to have WU beat hands down.

for emphasis

dwolla is american only

I did many transfers for past 10-15 years.. last year they shut me off for sending money to people I communicate over the web, their Indian customer service once heard "internet based business" didn't wan't to hear any voice of reason. that's what I get for being honest :-/       wasn't and am not involved in anything shady and illegal, just running my little web design business and sometime it's easier to pay my vendors in WU and once in a blue moon issue a refund and decided with client to send him back WU.

Now i'm glad i don't have to deal with that junk service with 4% fees. it may be great for occasional money owed / fast cash transfers but not for any type of online business.

Amen to that!

ahhh.  well, then now I do understand.  Thanks.

The point here is not western union or money gram or .... .

The point is to have BTC-to-tangibale-currency-and-viceversa-direct-exchange-service in BTC exchanges (or as a separate one-step exchange service with reasonable fees) as this will grow the demand for BTC. Well at least it will avoid the excessive need for Liberty reserve we having at mtgox.


YES there is a lot of uses for online money and BTC is getting good at that with many more business/charity/... accepting it daily. But it will be an un-complete circle and lower important money/medium if the BTC always needs 3-4 steps to get converted to tangible other  forms of money/gold/silver.. etc.


And about the money laundry bullshit that is something that you will face with any money transfer service. it is a matter of legalizing the BTC-to-tangibale-currency-and-viceversa-direct-exchange-service in its country just like LR-to-western-union exchangers or like western union itself.

Well if the question is...how do you get a computer network that can hold and trade money with banks, the answer is that you pretty much have to be an actual bank.

There are onerous capital demands, especially for an industry that lets firms 'create money.'

But I suspect the typical internet solution to 'hey we need a big stack of money' could work.

Namely, instead of one guy with a hundred thousand dollars, you get a hundred guys with a thousand dollars.

Namecoin would need the same basic strategy. They'd need to get a bunch of people to buy the .bit domain, as a non profit or for profit company. Then they can have it hook up with the namecoin project.

The early adopters of each project have a lot of incentive to participate. To basically, 'double down.'

One advantage would be that by being in control of key infrastructure, they'd be in a position to safeguard their Bitcoin and Namecoin holdings against future replacements.

Say in ten years there are several new crypto currencies and they are gaining in adoption because of superior features. Well, say then that the '1st Bitcoin' decides to pick one of those currencies to start accepting for direct exchange to other currencies. The one they pick gets a huge boost and gradually becomes the successor to Bitcoin maybe.

Sorry is that post relevant to what we are saying ? if yes please xplian it in english !!