I'm dissapointed about using bitcoin as a currency, it really should improve

[bitcoin_purist]

I've paid several times in bars and restaurants with bitcoin (I go there especially because of bitcoin) and every time I was ripped of.
Every time I paid a premium of 5 to 10% above FIAT price when I paid in bitcoin.
If bitcoin wants to succeed as a payment in bars and restaurants this really has to change.
The reason I did it was to show the experience to friends whom I sucked into the bitcoin sect.

Now I showed it to them all and I'm not going to use bitcoin for these purpose anymore untill the price is equal or cheaper.


Do other people have the same experience?

Interesting where did you pay using Bitcoin if I might know?

Nijmegen, the Netherlands. Cafe van Ouds.

I haven't tried it out myself but I am looking forward to it in the future.

Hero member did not spend bitcoin? huh?

You're mistaken here right now and the problem is volatility. This is not a problem of Bitcoin itself, but rather the bars and restaurants where you used it. You realize that some websites offer you a discount when you use Bitcoin? Should you be amazed by Bitcoin in this case?

I know about online placed where you can get discount, like Dell.

That was why I was dissapointed about the real life store because I did not have experienced a discount there ever.

[haploid23]

I've paid several times in bars and restaurants with bitcoin (I go there especially because of bitcoin) and every time I was ripped of.
Every time I paid a premium of 5 to 10% above FIAT price when I paid in bitcoin.

5% is a reasonable premium, but 10% is pushing it. It also depends on which exchange you base the price on. Even if you use the highest priced exchange, you can't really use a 1:1 ratio, because it cost money to wire fiat into an exchange or withdraw fiat out, and another small fee to actually make the exchange. These fees are factored in the premium.

[sealberrder]

you will never be able to buy bitcoin and spend it in the same day and the totals balance out

So there will be *no* incentive to spend them then isn't it?
How would bitcoin ever succeed when they are not going to be spent?

Merchants can offer discounts when paying with Bitcoin (when you paying with credit card merchants have to pay few percent to credit card company).

But I doubt the discounts can offset the Bitcoin exchange fee + bank transfer fee (when you buy Bitcoin with your local currency).

So Bitcoin will be best used once you receive Bitcoin payment for your work, this way it becomes much better spend the bitcoins instead of exchanging to your local currency...

[CozyLife]

I don't know if every place does this or not, but you might have hit a scam business who's trying to take advantage of the Bitcoin volatility. The value of a bitcoin will go up over time and they know this, but it sounds like they're trying to act like it will go down so far that they'll loose money. It's implausible that Bitcoin will die out before they get it exchanged for fiat. They should keep the bitcoins in the first place, but if enough people complain, they'll stop slapping everyone with fees and drop the act.

[wasserman99]

I've paid several times in bars and restaurants with bitcoin (I go there especially because of bitcoin) and every time I was ripped of.
Every time I paid a premium of 5 to 10% above FIAT price when I paid in bitcoin.

5% is a reasonable premium, but 10% is pushing it. It also depends on which exchange you base the price on. Even if you use the highest priced exchange, you can't really use a 1:1 ratio, because it cost money to wire fiat into an exchange or withdraw fiat out, and another small fee to actually make the exchange. These fees are factored in the premium.

If you are paying a merchant in bitcoin then you should be receiving a discount verses the exchange rate because the merchant has lower costs of accepting BTC verses accepting a credit card. The merchant also does not need to deal with credit card fraud (they ultimately pay for this).

If I had to guess I would say that the merchant is likely the one who is getting a bad deal and is probably paying much higher exchange rate then they should be paying.

[abercrombie]

Guess some stores use it as a gimmick and for potential headlines in local papers that "we accept bitcoin," even though the exchange rate really isn't in your favor.

[Ron~Popeil]

There will always be good and bad actors in this and any other economy. The bad ones will be weeded out by competition and by consumers that vote with their coins.

[bitcoin_purist]

Guess some stores use it as a gimmick and for potential headlines in local papers that "we accept bitcoin," even though the exchange rate really isn't in your favor.

I think you're right.
We even went there especially for bitcoin payment, so it works in their perspective.

[raveldoni]

You will have to wait few years until price is stable and merchants starts treating it as they do it to fiat.

[Swordsoffreedom]

There will always be good and bad actors in this and any other economy. The bad ones will be weeded out by competition and by consumers that vote with their coins.

Yep some of them will fall, that said I was a bit surprised that the OP had a bar that accepts Bitcoin.
Although I see his point about the rate at least matching the fiat rate.

[haploid23]

You will have to wait few years until price is stable and merchants starts treating it as they do it to fiat.

Well you also have to wait until more stores around the area accepts bitcoin. Otherwise, the ONE store that accepts btc basically has a monopoly and can charge whatever premium he wants in btc.

[Plank]

5-10%? That's injustice imo. Bitcoins are costlier even when compared with physical currency[because its sort of investment].

Things should change..

[itsAj]

You will have to wait few years until price is stable and merchants starts treating it as they do it to fiat.

Well you also have to wait until more stores around the area accepts bitcoin. Otherwise, the ONE store that accepts btc basically has a monopoly and can charge whatever premium he wants in btc.

Why would they charge a premium for customers paying in btc? Since accepting bitcoin will lower a merchants costs they would want to give an incentive for customers to pay in bitcoin. If they don't they will have simply paid for the infrastructure to setup the ability to accept bitcoin and still have to deal with the costs and risks of accepting credit cards.

[Lethn]

I really love the idea of cryptocurrencies, but lately I have been extremely frustrated with the lack of infrastructure in place for Bitcoin nevermind altcoins there are very few options out there on the internet for the kind of proper standalone merchant tools that I've been thinking about and because current solutions involve pegging Bitcoin directly to the U.S Dollar any time an exchange goes down everybody runs around in a panic trying to fix it all.

[melisande]

Until Bitcoin becomes more mainstream I see this happening a lot. I still think we're 10+ years away from having anything standardized enough for merchants to become concerned with public scorn over the prices they charge in BTC.

Once people start adding BTC price gouging to their Yelp reviews that's when change will start.

I completely share your views though  i am yet to perform a transaction in any near coffee shop or restaurant.But i will certainly give it a try to experience it.

[Swordsoffreedom]

I really love the idea of cryptocurrencies, but lately I have been extremely frustrated with the lack of infrastructure in place for Bitcoin nevermind altcoins there are very few options out there on the internet for the kind of proper standalone merchant tools that I've been thinking about and because current solutions involve pegging Bitcoin directly to the U.S Dollar any time an exchange goes down everybody runs around in a panic trying to fix it all.

Well it's never all sunshine and roses but I agree with you lethn more tools would be nice to have handy.
Sometimes its nice to take a little break from bitcoin and see how it turns out in a few months time catch up and smell the roses as the summer starts to end and enter into that tranquil fall.

[oceans]

This is something that is going to continue to happen until bitcoin becomes more mainstream. At the moment to many it's still a fairly new currency and with it not being at a stable price. It's going to take time and while I will admit that 5 - 10% is a lot it's something I feel we may have to deal with for now at least until it becomes more mainstream and the price becomes a lot more stable than it is now.