Stabilizing the Bitcoin Economy

[Lotus]

Although Bitcoin has it place in specific markets and a good chunk of people are interested mainly in mining and investing in the coins, there are others, myself included, that have an interest in seeing bitcoins hitting the mainstream. After reading a good bit about this and discussing it with others, it seems that the current barriers are non-technical at this time. The size of the economy is still very small to make it rival credit cards (a more reasonable thing to replace before cash) for major merchants and prevent quick price fluctuations. Sellers who are use fiat currencies in their daily life need a reliable way to price their goods with bitcoins, while buyers need some assurances that their transactions will be honored once they send their payment.

What do you guys believe are the best approaches to instilling trust in transacting with bitcoins for tangible products, and bringing it into new people's hands (those that would not bother to use it unless they had a good reason to)?

[QuantumKiwi]

Im also interested in bringing this currency to public view in New Zealand since our banking system is so corrupt.

There needs to be a new standard for bitcoin storage, thats secure and easily purchased.

Im currently looking at options of bitcoin storage there are some currently on the market but cannot slip into enough peoples wallets to make a difference.

[camjenk]

what % of btc do you think is used for legal activity?

RELEVANT-
https://bitcointalk.org/index.php?topic=108330.0

[NRF]

Hi, fellow Kiwi here.  Good to see another interested in the technology!

Im also interested in bringing this currency to public view in New Zealand since our banking system is so corrupt.

HuH??

Is this the same New Zealand that has had the Highest Corruption Index (meaning least corruption) in 9 of the past 10 years?  (Coming second Iceland in 2004).

[Kazimir]

Is this the same New Zealand that has had the Highest Corruption Index (meaning least corruption) in 9 of the past 10 years?  (Coming second Iceland in 2004).

Heh, 'least corruption' is just a relative term, when talking about banks.

[deathsythe]

Personally, I view BTC the same way I view gold and silver.


An alternative currency that is only worth something to the people willing to buy it.


When the SHTF and TEOTWAWKI - it won't be worth the electrons it is printed on.


Situation like that I will rely on my stockpile of ammo to get me by.

[NRF]

Heh, 'least corruption' is just a relative term, when talking about banks.

Yeah, and making grandiose claims despite all contradicting evidence is internet for "i win".

[Lotus]

what % of btc do you think is used for legal activity?

This is precisely my concern, and probably that of QuantumKiwi's. BTC is well suited to transactions requiring a certain degree of anonymity, but is yet to become trusted for open businesses.

QuantumKiwi, by storage are you referring to consumers' BTC wallets? Or merchants'?

[benjamindees]

Well, the first attempt at stabilizing the Bitcoin economy was BitPay.  And it still works pretty well from a merchant perspective.  Then there was Bitcoinica, which seemed to do a pretty good job until it self-destructed.  The next round will be the introduction of Bitcoin payment cards like the one from BitInstant, which will make things easier for consumers.  Then, hopefully we'll see something like the Bitcoincard and the OpenPay network get off the ground, and from there the sky will be the limit.

[Monkey1]

It will come in time.  There will be more ups and downs and bubbles and busts to go through first though, all of which offers profit if you can trade!

[Lotus]

Well, the first attempt at stabilizing the Bitcoin economy was BitPay.

Thanks for the summary benjamin, I did go through BitPay's website and thought they were up to something interesting, but it was lacking details about how it works beyond the few bullet points and half a page of FAQs. What is their model?
The main feature I believe we need is the ability for regular users to make payments using their ordinary money and have the gateway automatically do the conversion to bitcoins, thus increasing demand on the currency while allowing merchants to sell for bitcoins.

Bitcoincard also seems like an interesting notion, although it seems to be a bit early for it to be practical.

In your view, do you believe that the way to mainstream is through portals/gateways of this sort expanding further?