You know, on a semi-related note, the value of one BTC now has almost exceeded the 1913 US dollar. Are we to reach parity?

There probably is a market for a pay-for-play model that utilizes bitcoin as both an in-game currency and the only payment option. If anything, an entreprising small company with programmers who want to make money, yet work outside the fiat system could do this. Here is how I could see it happening and getting people "hooked."

1. Build free-to-play RPG, at least average play, have in-game currency drops equivalent to some low denomination bitcoin (like a satoshi).
2. Balance out the game initially so that the created in-game currency is roughly equal to that which is destroyed from buying in game items. Make the better items much more ridiculously priced. Charge in-game fees for excess play beyond 2 or 3 hours a day. Lots of one-time fees for "unlocking" capabilities, areas, etc.
3. Advertise game with something like, "Make digital money while slaying ogres!*"
* Restrictions apply on withdrawing funds to BTC (No more than once a month, fees (to pay Bitcoin network), etc)
4. Phase 1: Players check out the game, perhaps withdrawal a small amount or two (worth less than 1 cent USD) to verify that it works. Start to get the idea that they will at least "break even" on gameplay
5. Phase 2: Players start paying into the game in order to get access to better items and better areas with slightly more loot. They figure (incorrectly) that they could always grind their way for money to get it back in the game. However, the cost of better items is exponential, and the increase in treasure is more linear.
6. Phase 3: Ramp it up. Build a robust in-game auction system, but take a 5% cut off every transaction. Create in-game gambling. Have lots of optional, addictive activities that take a small cut.
7. Don't worry about growing in-game balances. A fractional reserve banking system has been created. Plan on never having to pay out the vast majority of players. LOL
8. If there's ever a run on the bank, declare yourself bankrupt, close up shop, and go live with Pirate40 on his island.

I spent way too long thinking about that. But there is way too much potential there. Just need some programmers willing to be paid in BTC.

You are pissed off because we haven't got around to release source code yet or the fact we did not giving you a free unit?

Thank you for the reply SgtSpike, yes I completely agree, either or both supplier/customer would need to also adopt BitCoin in order for this to have any benefit. I also understand that today's BitCoin economy would be unsuited for the company I work for. However I do think as the future of BitCoin and its economy evolve there could be cost saving options for businesses that will be hard to ignore.  I'm personally of the opinion that if businesses as a whole accepts Bitcoin, this could change the way we look at modern payment systems. For example, we receive overseas payments in BitCoin and pay overseas suppliers in BitCoins. Those transactions wouldn't have any fees attached to them, you would only need to convert your nett profit into your local currency to pay, employees and tax ect. I know it is not that simple, there is the issue of trust, fluctuating prices of currency ect. But its certainly food for thought.

I promise you Matthew I am not stalking you :p We will have to put it down to coincidence this time. Interesting point you make about the market in Asia, what options are available for Asian countries to cash out in there local currency? I would assume not many. But if BitCoin continues to grow, I would assume this gap in the market would be fulfilled.

Here is something I read earlier on BitPay's website:
"Bitcoin will reinvent the way business is conducted around the world.

Paying workers in India, paying suppliers in China, and receiving a payment from Argentina can all be accomplished instantly, with no risk, for very little cost."

That's exactly what my MD will want to hear!

Thank you for the reply Danny, your comment has just come in and echoed what I have just typed "As bitcoin adoption grows, you may find that suppliers or customers begin to express an interest in using bitcoin for payment. As bitcoin adoption grows, you may find that suppliers or customers begin to express an interest in using bitcoin for payment." You made a valid point of being ahead of our competitors, something every business is trying to do.

Thank you MoonShado, I used Intersango to purchase my first BitCoin, so I am familiar with them. I have also herd a few condemning reports of this company as well, but I don't know how much truth there is to that. I think BitPay or a similar service would be better initially, they accept payment in Bitcoin and convert it to GBP and make the payment into your bank on the same day. This way we can accept Bitcoin without having to really do any legwork with currency exchanges. But of course there is a fee to use BitPay's services.

Thank you all so much for your feedback, really pleased that the BitCoin community is so thriving.

I'm inventing a device that will encrypt a private key with holder's DNA.

Well seeing that i sold 125k of boat parts last year I dont think that is the problem. Sorry i cant sell weed on the SR. My products are in demand they sell in dollars. The problem is the coin isnt acting like money.

You guys need to vote with your wallet. Stop using services which don't provide you with the product you desire!

Hello all,

First of I will start by telling you that I have been an infrequent user of Bitcoin for about 6 months now and I am new to this forum. I do have a OK grasp on the Bitcoin concept and understand how to mine, trade, use Bitcoin.

OK, every month one member of the office has to "present" an idea or a product or anything that they have seen that has some relevance to the company. No prizes for guessing it is my turn and I have chosen Bitcoin as my topic.

I'll give you some background information about the company I work for so you can understand what will be relevant: I work for a relatively small UK based company (about 15 office staff). But we do trade a lot overseas, both import and export and we have a relatively large cash flow. We mostly buy from Asia (paying our suppliers with USD) and selling our products within the UK (selling in GBP) and Europe (selling in either EURO or GBP). So you can see that as a company we are constantly swapping between different currencies to process purchase orders and sales orders.

Multiple overseas ingoing and outgoing payments and exchanging between 3 currencies cant be cheap. But I'll be 100% honest here, I don't work in accounts and I don't know what these fee's are. However if there is someone with more information on this, I would be very grateful for any information shared. My theory that trading through Bitcoin could be more cost effective.

So my question to all of you users with more Bitcoin knowledge than myself is: How would a business like the aforementioned benefit from trading in Bitcoin? What are the cost savings for trading overseas (both importing and exporting) in Bitcoin rather than using more traditional methods (banks)?

Thank you for taking the time to read my post, I will be happy to answer any questions that you might have.

P.S my presentation is only going to be a 10-15min power-point slide show, so I'll just be explaining what Bitcoin is and how it could be relevant to my company.

Lee Wright

Half-assed job of security is kinda strong don't you think? I mean where does security on the consumer side start? 2 factor auth is the saving grace if you don't have that you can kiss your coins goodbye. Then you don't need all those bells and whistles which would probably cause more issues then they are worth. I think as long as Mt Gox isn't getting hack and leaking bitcoins from there wallet, I say security is good then. Take some responsibility, don't make Mt Gox your mom.

The private key is a piece of paper, so it should be roughly similar.

I think that the major problems for bitcoin stem mostly from the monopoly status. Markets work because of competition, when btc has a alternative it will start to act right until then it is the gold rush the fools gold rush. 

I think bubbles are mostly unavoidable right now. The market isn't mature. But that means that if you take a strategy that bets on volatility, you can help stabilize the price and make money at the same time. And the more people making money that way, the more stable the market becomes.

As for crooks... I think the biggest suggestion I have is to rein in the ongoing meme of selling Bitcoin based on its potential for growth. Most of us are bullish here. Some think BTC can take over a significant fraction of the online payment universe, in which case bitcoins will be worth hundreds, maybe even thousands of dollars. Some think BTC might start replacing fiat currency wholesale, in which case you've got an even bigger growth potential.

The problem is that getting new people into Bitcoin via these kinds of arguments is screwing up the community. There's a lot of folks who aren't technically apt but are smart with their money, and if you tell them about Bitcoin's growth potential their HYIP flag will go up and they'll stop caring. But if you talk to someone with a lot of hope but not a lot of hard knocks, it sounds like this huge, awesome idea, and they'll buy in. And that's the kind of person that has attracted conmen to the community ever since things took off in early 2011.

So I guess my specific suggestion is, if you're evangelizing, evangelize about how it's a currency that can be transferred online, without having to trust a third party that (coughpaypalcough) can freeze all your money arbitrarily when you need it most. Evangelize about how you can use this system even if you don't trust the BTC/USD exchange rate, because there's services that'll automatically turn your internet monopoly money into "real" fiat as part of checkout. If you focus on the huge growth potential, no matter how true it might be, you will attract naive fools and conmen, and repel smart money, and that's a great way to turn an economy and a community into a scam-infested byword.

Edit: In response to the original post, I'll just echo what other people have been saying and point out that the price of peanut butter hasn't doubled in the last two months.

100% agreed  couldn't have said it better. It bugs me when someone has been taken advantage of and there is a huge outcry blaming the victim. Basically the claim goes like this.. It is your fault for not being a big enough tech nerd. It you read wired magazine everyday and spent 90 percent of your time online learning about bitcoin like I do then you wouldnt have gotten scammed. Bitcoin is beyond reproach and the community shares no blame. 

Slabbed that myself with a holder from here: http://bcwsupplies.com

The label is a Photoshop .psd file which I'll give to anyone that wants it.

Specifically people can stop hoarding coins and use them as currency not just a speculative investment. Specifically people can start saying what can I do for bitcoin not what can bitcoin do for me, but that is not going to happen. What is going to happen is another coin will compete with bitcoin driving the price way down and crushing a lot people in the process. Bitcoins are just hot potatoes right now someone is going to get burned. Deals aren't good deals if they aren't good for everyone. What I am complaining about is not "just the way it has to be" it is just the way users have made it. Bitcoin can and will do better it just might have to be forced into doing what is right.

No you dont get it at all. I love bitcoin . Seriously I think it is the coolest most powerful thing that I have ever seen. I am a true believer in P2P currency. It really think that it is going to radically change the world. I am so crazy that I think it will end war and government and distribute the wealth more evenly. I think individuals being their own bank is awesome I mean truly awesome. What I dont like is how a bunch of assholes are ruining it and driving people away.