I'd like Bitcoin to stay right where it is until we've had a few more years ramp-up in regards to infrastructure. If "they" can control world financial markets, what makes you think they would bat an eye at spending billions to save the profit centers making them trillions? As soon as the banks realize Bitcoin is a threat, the jig is up. If we don't have a massive network already in place with measures to protect it, we're boned.
This assumes that Bitcoin is actually a threat to banks and the banking industry. There are enough Microsoft Windows users out there with computers infected with all sorts of malware to keep the banks very profitable should Bitcoin become mainstream. These users will deposit their Bitcoins with the banks for the same reason people in the 18th century deposited their gold with the Rothschilds: Fear of theft. In many ways the impact that Bitcoin will have on banking is to turn back the clock say 100 or 200 years and may ironically end up saving many banks and bankers. |
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When you are ready with a fully-functional, attractive site. I have a marketing scheme idea for you.
1) Partner with TangibleCryptography, Bitinstant or another one of these cash deposit direct to bitcoin outlets.
2) Ask them to issue a coupon code for your store (say $100 off $1000). Coupons go to people who purchase $1000 worth of btc from them and who are first-time customers (I assume they do KYC to check this).
3) Eliminate coupon code sharing by requiring that the bitcoins used to make the purchase match the bitcoins purchased from the cash to bitcoin outlet
4) Identify a few popular items that you can offer competitive prices for.
5) Post the item and detailed bitcoin purchase, download, and coupon acquisition instructions on "slickdeals.net" Also post a price comparison vs. Amazon, newegg, etc.
Expect to lose some money off this. The goal is to get name recognition for the bitcoinstore + bitcoin acquisition methods in a very widely used deal forum.
Ideally you can get the absolute cheapskates who populate slickdeals.net to regularly scan your site for new offers and post about them autonomously.
Presumably the name recognition will help your partner as well.
[I don't think you should do this until the site has been substantially upgraded. It looks a bit like a low-price scam site right now. (I mean that in the nicest possible way.)
Scam sites often involve purchasing hardware from foreign companies. These companies also ask for wire transfer, etc. less reversible methods of payment than credit cards.
Thus you have to improve your image]
So we are using coin taint to attempt to track customer discounts across multiple merchants? I suspect this will lead to all sorts of customer complaints and ruin the reputation of all the merchants involved rather than generate sales. Anyone actually consider a high degree of privacy to be a useful feature of Bitcoin? |
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Any timeline on the international shipping issue? |
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It is a Windows RT device, which means that all software for this device must be distributed via the Microsoft store. It is a closed censored ecosystem like Apple iPhone / iPad.
Well, I don't have an actual device itself, but my coworker has some evaluation unit from Korea. He is saying that it works exactly like Apple iOS devices except that the cost of development license is zero. On your own device, with your own developer license, you can run whatever you like. This is why I said it would be a good test of open-source-ness: Satoshi Bitcoin client that anyone can build using free development tools (free as in free beer: Visual Studio 2012 Express). It would be a great experiment in portability and resilience of Bitcoin. So one distributes the source code under a FLOSS license, provides instructions on downloading the free as in free beer Visual Studio 2012 Express and compiling the software and bingo the censorship is effectively bypassed. In other words one can have software freedom, but only if one compiles the software oneself. A very interesting idea. |
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Are you aware of the fact that you will not be able to use Bitcoin with this device without first obtaining permission from Microsoft?
Ultimately you are probably right. But the current situation is that anyone can get a developers license for free together with Visual Studio 2012. So for the moment this would be an actual test of open-source-ness. It is a Windows RT device, which means that all software for this device must be distributed via the Microsoft store. It is a closed censored ecosystem like Apple iPhone / iPad. |
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I want to buy a Microsoft Surface with bitcoins. Will you guys stock this item?
Are you aware of the fact that you will not be able to use Bitcoin with this device without first obtaining permission from Microsoft? |
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International shipping is still being worked on, disregard all the numbers currently.
For now we are focusing the test on User Experience. this includes graphics user interface, search, categories, photos, product description and sorts, in addition to gather some stats on the site in general, keep them bug reports coming guys! bonus for screenshots.
Are you planning to offer shipping via USPS for international orders yes or no? By the way the first thing I look at when considering an online retailer is shipping options, and I really do appreciate finding this out without having to load up a shopping cart and going to the checkout. So as far as I am concerned this is critical to the User Experience. |
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There is currently a $1,000 order minium during our beta launch. (This will be removed soon) I will buy some stuff once this is removed. will you ship to Canada? I checked and they do. Expect to pay in the neighborhood of $90 for shipping minimum. They are using Federal Express and private couriers are just awful for shipping internationally. They really need to use USPS for international orders to deal with these outrageous shipping costs. |
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The question in my mind is which option.
1) We have been in a bear market since the June 2011 high and the recent rise from 2 to 15.4 was just a correction.
2) The bear market ended in November 2011 and we are now in a bull market. Any bearish market activity we see now is just a correction.
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I'm actually getting pretty close to launching my newegg.com competitor. It will be Bitcoin only, and competitive with newegg on just about everything. It will have over 500,000 items available with real time inventory checks. Here is a sneak preview:  This looked really exciting to me until I visited the shipping methods page of Memory Dealers http://memorydealers.com/shipping-rates/ when it becomes a clear no deal for me. The reason is you do not offer and advertise the US Postal Service as a shipping option to your customers. Let me explain: When it comes to international and residential package delivery the private shipping companies simply do not get it here in Canada. I have seen UPS charge a $50 brokerage fee to broker a $3.50 GST charge at the border on an Item that cost $50. This got so bad the there was a class action lawsuit in Canada against UPS over this. http://www.classaction.ca/actions/Consumer-Protection/Current-Actions/United-Parcel-Service-Canada-Ltd-%28-UPS-%29.aspx. They have now changed their fees somewhat after the litigation but they are sill far to high. Canada Post charges a flat fee of $8.50 for brokerage. http://www.canadapost.ca/tools/pg/manual/PGcustoms-e.asp#1382719. That is it Then there is the issue of delivery to a residential address especially in the smaller centers. With Canada Post if I am not home I get a notice in my mailbox and I can go to a retail outlet in my neighborhood to pick up my package. This is simple and very convenient as these outlets are typically open evenings and weekends. With private couriers I may get a phone call or in some cases I have to contact them using the tracking information provided by the shipper. Then to arrange for delivery I have to either spend all day waiting of the courier to arrive or drive to some office in the outskirts of town, or in some cases in another community a few hundred miles away, open only from 8:30 to 4:30 on weekdays to pick up my package. Private couriers are very good at delivering documents to a business that has a reception. They fail very badly with delivering packages to residential addresses, and are even worse with international shipments. This may sound like a real hearsay to many in this community, but it must be said: When it comes to shipping items purchased with Bitcoin to residential customers the "State Postal Monopoly" here in Canada http://www.canadapost.ca does an excellent job, while the private sector fails miserably. For me as a customer purchasing online it is very simple: Deliver using the Post Office or no sale. Here are some examples regarding residential deliveries by private sector companies: http://www.youtube.com/watch?v=D7Sb_r7BKTchttp://www.youtube.com/watch?v=ikanns26nDAhttp://www.youtube.com/watch?v=APqvq0Kn55ohttp://www.youtube.com/watch?v=W1qUd9na_PQThe store and pricing is actually very good, but as I suspected the deal killer for a customer in Canada is shipping. I include my post from earlier this year on the subject. When it comes to shipping products from the United States to Canada there are basically 3 options 1) Private Courier by Air with prepaid brokerage. This can be good for certain customers but very expensive. It only really makes sense when one needs the item right away, and for shipment to a business address. For a $20.71 item the most economical shipping is $95.91 to Prince George BC and $87.30 to Vancouver BC. This is the only option offered at this point. 2) Private Courier by Ground with brokerage extra. On the surface this will appear cheap however the customer is charged expensive "brokerage" "bond" and "handling" fees as I noted in my previous post above. This is by far the worst and no self respecting merchant should offer this option. To Memory Dealers credit it is not offered. 3) USPS with various options regarding cost vs delivery time. This is by far the best option for residential customers and also for many small businesses. Unfortunately it is not offered at this time. The bottom line is that to be competitive in the international mail order business a US based merchant needs to offer USPS as a shipping option. |
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this is a great comment.
and very positive. sometimes I feel that in the Bitcoin forum, the percentage of people being negative and complaining about everything is 80%. it should be the opposite.
people trying to see the positive and work jointly on ways to make it grow
Just keep in mind that many people may have and use Bitcoin and not be a registered member of this forum. I for example joined this forum over two months after I bought my first Bitcoin. |
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... their wicked step-sisters at the IRS are known for. ...
No need to go through the SEC for this one. By the way did pirateat40 withhold taxes on the interest payments he paid to non US persons? I suspect the IRS will not consider the fact that these payments were made in Bitcoin to be a valid reason to not withhold taxes. http://www.irs.gov/Individuals/How-Do-You-Report-Suspected-Tax-Fraud-Activity%3F |
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There is nothing preventing fractional reserve banking and credit, based on Bitcoin, just as in the past it was done, based on gold.
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A very good response, that also identifies the one flaw, in an otherwise well written report, namely failing to make the distinction between Bitcoin and Linden Dollars with respect to an issuer in the case of Linden Dollars and the corresponding counter party risk associated with that issuer. |
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Well yeah, the whole point of the ECB is to inform the banks on upcoming market trends, including possible disruptors. From the tone the author is taking, it seems like it's just something they'll have to plan to compete against for their own survival. I interpreted the bolded line as the banks will have to have reserve requirements on holding virtual currencies as that'll be the only way they'll be able to hedge against virtual currencies taking over as a matter of survival. The only avenue they have against bitcoin is through manipulation of legislation to regulate Bitcoin-fiat exchanges, but if Bitcoin plays out how the creators envisioned this protocol faster than the slow process shutting something P2P like Bitcoin down, then that won't matter as we move into a Bitcoin-denominated marketplace.
What if they can implement a concerted actions in cooperation of several big banks to buy and hold substancial reserves of BTC to be able to organize protective/regulative (sell offs) mesaures against other market participants? So called open transations window? Well, they need to find sellers for those substantial reserves first. I feel the ECB report is one of the most significant news for Bitcoin ever. It's creating a lot of buzz everywhere today, it even made it to some mainstream Finnish news sites which is very rare for Bitcoin related news. The legitimacy of Bitcoin in general got a massive boost thanks to the report. I rarely get the "buy while it's cheap" feeling but this is one of those times.
Here was an interesting quote I read: In an extreme case, virtual currencies could have a substitution effect on central bank money if they become widely accepted. The increase in the use of virtual money might lead to a decrease in the use of “real” money, thereby also reducing the cash needed to conduct the transactions generated by nominal income. In this regard, a widespread substitution of central bank money by privately issued virtual currency could significantly reduce the size of central banks’ balance sheets, and thus also their ability to influence the short-term interest rates. Central banks would need to look at their existing tools to deal with this risk (for instance, trying to impose minimum reserve requirements on virtual currency schemes). and who would they impose those requirements on?  I interpreted that as they'll have reserve requirements on holding virtual currencies as that'll be the only way they'll be able to hedge against virtual currencies taking over as a matter of survival. It is on this very point that the ECB report makes a crucial error by attempting the generalize between Linden Dollars and Bitcoin. Linden Dollars are in reality a private form of fiat currency that operates in the same fashion as CAD USD or EUR, but with Linden Labs acting as the central bank. As such it should have minimum "foreign" currency reserves including gold (or Bitcoin?), as any other government fiat currency. Bitcoin acts in this respect like gold or silver, so minimum reserve requirements make no sense, a point that the report completely missed. Cross posted from the Speculation forum. Is the report wrong and I'm interpreting it incorrectly or vice versa? It depends on the virtual currency. For Linden Dollars the report is right. Your interpretation is only part of the story since it could make sense for a central bank to hold reserves of Linden Dollars; however I believe the intent in the report is a legal requirement on Linden Labs to hold minimum reserves of USD, EUR, CAD or some other convertible currency. For Bitcoin the report is wrong and your interpretation is the only reasonable course of action for the central bank to take; namely hold reserves of Bitcoin. |
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I feel the ECB report is one of the most significant news for Bitcoin ever. It's creating a lot of buzz everywhere today, it even made it to some mainstream Finnish news sites which is very rare for Bitcoin related news. The legitimacy of Bitcoin in general got a massive boost thanks to the report. I rarely get the "buy while it's cheap" feeling but this is one of those times.
Here was an interesting quote I read: In an extreme case, virtual currencies could have a substitution effect on central bank money if they become widely accepted. The increase in the use of virtual money might lead to a decrease in the use of “real” money, thereby also reducing the cash needed to conduct the transactions generated by nominal income. In this regard, a widespread substitution of central bank money by privately issued virtual currency could significantly reduce the size of central banks’ balance sheets, and thus also their ability to influence the short-term interest rates. Central banks would need to look at their existing tools to deal with this risk (for instance, trying to impose minimum reserve requirements on virtual currency schemes). and who would they impose those requirements on? It is on this very point that the ECB report makes a crucial error by attempting the generalize between Linden Dollars and Bitcoin. Linden Dollars are in reality a private form of fiat currency that operates in the same fashion as CAD USD or EUR, but with Linden Labs acting as the central bank. As such it should have minimum "foreign" currency reserves including gold (or Bitcoin?), as any other government fiat currency. Bitcoin acts in this respect like gold or silver, so minimum reserve requirements make no sense, a point that the report completely missed. Cross posted from the Speculation forum. |
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I feel the ECB report is one of the most significant news for Bitcoin ever. It's creating a lot of buzz everywhere today, it even made it to some mainstream Finnish news sites which is very rare for Bitcoin related news. The legitimacy of Bitcoin in general got a massive boost thanks to the report. I rarely get the "buy while it's cheap" feeling but this is one of those times.
Here was an interesting quote I read: In an extreme case, virtual currencies could have a substitution effect on central bank money if they become widely accepted. The increase in the use of virtual money might lead to a decrease in the use of “real” money, thereby also reducing the cash needed to conduct the transactions generated by nominal income. In this regard, a widespread substitution of central bank money by privately issued virtual currency could significantly reduce the size of central banks’ balance sheets, and thus also their ability to influence the short-term interest rates. Central banks would need to look at their existing tools to deal with this risk (for instance, trying to impose minimum reserve requirements on virtual currency schemes). and who would they impose those requirements on? It is on this very point that the ECB report makes a crucial error by attempting the generalize between Linden Dollars and Bitcoin. Linden Dollars are in reality a private form of fiat currency that operates in the same fashion as CAD USD or EUR, but with Linden Labs acting as the central bank. As such it should have minimum "foreign" currency reserves including gold (or Bitcoin?), as any other government fiat currency. Bitcoin acts in this respect like gold or silver, so minimum reserve requirements make no sense, a point that the report completely missed. |
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What we really should be asking ourselves is: what are all the reasons PayPal would NOT want to offer BTC as a currency option (whether it's legal, technical, lack of experts, fear of reprisal, etc.), and work on attacking those, rather than attacking PayPal as the enemy. I can think of one serious technical inhibition: how could PayPal hope to enable Bitcoin chargebacks without a protocol change? To make that viable, Paypal would need the ability to prevent the amount that represents an individual transaction from being spent from the merchants wallet, for as long as the chargeback period lasts. I can't picture the dev team accepting that sort of change. Easy the same as they do with CAD, USD etc. 1) Qualify the merchant's credit to cover the chargeback risk 2) Do not release the Bitcoins and hold the funds for up to 6 months if there is a problem. 3) Do not allow the use of the service as a currency exchange as is currently their policy. Bitcoin has one huge advantage for PayPal as a funding method namely that PayPal itself is not subject to chargebacks as is currently the case with credit cards as a funding method. The latter is a huge risk for PayPal hence a lot of their polices that many find so objectionable. What PayPal should never allow is the deposit of funds via a credit or debit card and the subsequnt withdrawal of the same funds as Bitcoin since that would leave PayPal with a huge chargeback risk. This is precisely what PayPal's introduction to BItcoin has been so it is hardly surprising that PayPal would ban Bitcoin on their system. The other way around as BitInstant is proposing with their Bitcoin funded debit card works just fine. |
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Hey All, BitInstant is sponsoring the 3 day Money2020 conference in Las Vegas this week. I'm also doing a panel on Virtual Currency and Payment Monday evening. Erik made sure we got placed next to Paypal   L to R: Roger Ver, Charlie Shrem, Erik Voorhees It is only a matter of time before PayPal accepts Bitcoin as a funding source. If they do not do this themselves somebody else will make this happen. Wait a moment is there not a BitInstant Bitcoin funded debit card in the works? Very good show by the way. |
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You get the federal government to authenticate your documents in order to increase the limits on your bitcoin trading account
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