Crowdsourcing: Ideas and direction as a wannabe bitcoin enabler.

[Dadams]

Hello Bitcointalkers,

I live in a small university town that is crazy about coffee.

In a nutshell:
I would like to approach some coffee shops about buying credit with them.
Initially about 10 coffee shops $500 each. Alternatively fewer shops (depending on how many are interested) with larger amounts of credit.
The plan is to do a pilot study with about $5000. ($5k/6m seems reasonable.)
They then put a "Bitcoin Accepted Here" sign in the window.
People can then buy coffee on my credit with them and send bitcoin to my wallet at the point of sale.

The result:
Customers who want to spend their bitcoin can buy coffee.
I get bitcoin.
The coffeeshop gets money up front and carries no conversion risk.

Worst case scenarios:
1. no one wants to buy coffee with bitcoin and I need to drink $5000 worth of coffee.
2. people end up sending money to the wrong wallet/scam, they get free coffee, I lose money
3. bitcoin fails and I weep silently
4. I go to jail as a money launderer

I would like any feedback, ideas, etc. especially regarding how to avoid scenario 2.

Specifically: if there is anyone out there who owns a restaurant/coffeeshop/other merchant, how would you feel if someone approaches you with an idea like this?
Does anyone have a suggestion on how to handle the Point-of-Sale side of things?
Any lawyers who can give some pointers on what to expect with legal requirements when setting something like this up?
(I am hoping that keeping it small, i.e. 10 customers and sub $10 000, I won't have too many hassles or have to worry that I am technically a money transmitting service or something like that.)

My reasons for wanting to do this is firstly to do a small part in building the foundation of bitcoin economy and secondly to turn $ into bitcoin without using an exchange.

(Also:If this is not the right section to post this, please redirect me.)

[Dadams]

Any ideas or input appreciated.



Really.
Try me.
I will appreciate it.
I will appreciate it passionately.

[CryptoJunky]

I think the toughest part of this might be getting bitcoin users to head to these coffee shops. I will say though that I've been looking for practical ways to use bitcoin at retail shops - it just seems like there's a lack still.

Do you mind me asking where you're thinking about doing this? If it's in Washington State I'll buy coffee at whatever shops you sign on.

Alternatively you could partner with one or two coffee shops and just try and integrate bitcoin with whatever their current POS system is.

Just my 2 cents.

[devlux]

I think we have a real synergy of ideas here.
You aren't money laundering, you are, simply prepaying for boatloads of coffee and then reselling them.

FYI..
Blockchain.info has an api to enable you to generate unique payment addresses on the fly, send you a notification of payment received and forward coins to wherever you like.

It's pretty easy to use if you know what you're doing.  You just need to make sure you implement it securely & correctly to avoid the off chance that someone might rob you for a cup of coffee

I was about to build a payment terminal that leverages this as a component of different project.  You can run it in a browser, or on an android tablet.  No funds are kept on the payment terminal so security is a natch by design even if someone walks off with the machinery they won't get your coins or even any info on how to get at them.

I'll be glad to sell you a custom copy and even set it up and maintain it for you for 1 BTC (this money goes to developing the ideas in my freelancing for BTC post here... https://bitcointalk.org/index.php?topic=941654.0 )

From a non-technical standpoint, you would do wise to promote bitcoin as an alternative to cash handling.  Cash handing is expensive especially in higher crime areas, I know you're in a small college town, but people everywhere are scared of robbery.  Not saying you should use fear tactics, but use the power of bitcoin to reduce their fear of the potential for a robbery.  Very little cash on hand means very little incentive to rob, loot & plunder.  (Stick 'em up and give me all yer satoshis) is not likely to be anything you hear from any but the government any time soon.