Legitimately paying for Bitcoins seems like a complete chore

[Lethn]

Be warned rant incoming:

I've been looking into how one would get Bitcoins for real money because I wanted a small amount to play with and grow like 5 or so and it seems to me like it's an utter chore to pay for them and would actually be easier to just patiently mine them instead since I only want a small amount anyway. It seems to bring things in perspective though on why Bitcoin was made in the first place, you want to use your own money to pay someone? Fees... Want to buy something online? You have to provide all your details along with your bloody card which the opposite party can do anything they like with, chances are you'll be charged money for that as well. Then there's the so called payment processors who deal in conventional money I can understand security but why the fuck must a company I know nothing about know everything about me and get scanned details of ID cards and even my passport which they could easily steal to use for identity fraud? Even paypal aren't that rabid with their checks which is surprising.

All this datafarming just so people can know you transferred a few measly pounds to buy some bitcoin? I think once I get my fans connected up and working I will just mine what I need since it seems like a cheaper option than paying for it in the traditional fashion. See, this is why I think that GPU mining is still going to continue because there are people like me who won't be in it for profit but will just want to transfer their wealth into something that is much easier to move, use and doesn't charge a bloody fortune. I know there are people here who will say, well why not do a bank transfer? To be honest, that seems like an utter chore as well, I guess I've been spoiled by the idea of Bitcoin because all you need to do to use it is just type in an address and everything just works painlessly.

[deepceleron]

This is purely the fault of Bitcoin - it is too good. If you receive a payment with Bitcoin, you can be 100% sure that the money is yours and it can't be disputed or taken back out of your account. The words "legitimately paying" in the subject is ironic, since credit cards, ACH checking transfer and money transfers, Chase Quickpay, PayPal, Dwolla, and just about anything you can think of for sending old-fashioned money can be reversed - it is less trustworthy than the Bitcoins you are trying to buy.

The environment that exchanges have to operate under makes "knowing your buyer" extremely important. An online merchant or exchange doesn't need to know who you are to receive your Bitcoins, but when you are receiving untrustable government money payments, you want to do everything you can to ensure the buyer is who they say they are (think stolen credit cards, hacked online bank accounts). One also must comply with anti-money-laundering laws.

This does transfer responsibility from "the customer is always right (and you have to kiss their ass because they can threaten and extort or simply take back your payment plus $25 in dispute fees half a year later without notice)" to "the merchant is always right", meaning that when you purchase something with Bitcoin, your coins are gone for good and you must trust the merchant, through reputation only, to uphold their end of the bargain. For merchants, however, it is a dream, because you don't have to deal with scam artists and irrational people that quickly dispute charges without seeking a solution first.

In-person cash transactions are the best for purchasing Bitcoin, one person can walk away with paper money, another can walk away with Bitcoins. Finding someone local who will do this, especially for large purchases, can be harder, but if you find someone, it can save the headaches and delays of online exchanges. Convert some savings into Bitcoin in advance, and they will be there whenever you want to send money to anyone in the world in minutes.

[Stephen Gornick]

I think once I get my fans connected up and working I will just mine what I need since it seems like a cheaper option than paying for it in the traditional fashion. See, this is why I think that GPU mining is still going to continue because there are people like me who won't be in it for profit but will just want to transfer their wealth into something that is much easier to move, use and doesn't charge a bloody fortune.

There is that.  Even running at break-even on electricity (maybe $0.10 per kWh electricity, with typical GPU mining rig configuration), GPUs provide waste heat for free which is useful in much of the northern hemisphere right now.  

Also, utilities are consumed today and payment for that consumption is deferred up to 45 days or more (once the bill arrives and is then due).  So mining provides a method that coins can be obtained on credit.

I've been surprised at the hashrate though.  I really expected a good 10% or 15% drop in the hashrate at the first difficultly adjustment after halving if ASICs weren't out yet.  Looks like another increase, instead of a decrease.

[johnniewalker]

Yes, getting BTC with real money is a pain in the ass. Bitinstant used to not be too bad. I could set up a deposit at my local bank, and the fee was only like 3%+$1.10. Now though bitinstant has contracted with some company "Zip Zap" it seems. There are no more bank deposits. The easiest way to do it now (I think) is via Moneygram at your local drug store, Wal Mart, etc. The fee is like 4% I think. You need to provide a name, address and phone number (although there is no verification). You tell them how much you are "sending" (its like paying a bill-you are supplied with a sheet that contains all acct numbers, $ amounts, etc) in the form of paying a bill, and then are sent to the cash register to pay. Cashiers in my experience have no idea how to perform the operation. They ask "how much are you sending without fees"? I say there are no fees. Confused, they ask again "how much are you sending before fees"? At this point I have to ask for the manager who 90% of the time knows how to do it off the top of their head. You'd think somebody would come up with an easier way to get BTC for cash. The demand is there. Shit maybe I'll do it.

[Stephen Gornick]

You'd think somebody would come up with an easier way to get BTC for cash. The demand is there.

Cash deposit at Chase thorugh BitMe.   No ID required.

There is no doubt there is demand -- too much in fact.  Bidders there are having to offer 2% to 4% above Mt. Gox market rate to find any willing sellers.

[Lethn]

lmao, like I said earlier, just looking at the other solutions people have posted I'd rather mine it >_< Now I know why people compare Bitcoin to a religion, I feel like I've been converted, but honestly, why would you use conventional money when there's something like this available?

[creativex]

People are trained almost from birth to measure the value of things in fiat funny money rather than a currency that has intrinsic value like gold, silver, and BTC. As a result most people will just stare at you blankly if you suggest they convert their FRNs to BTC. You're right about it being a PITA to convert FRNs to BTC. The least painful way I've found is Coinbase and it's far from anonymous, but it is easy.

[Mike Hearn]

Once you buy some coins, buy more than you need then become a reseller via localbitcoins. Reduce the pain for the next person!

[Raoul Duke]

Send me a 100 euro bill in an envelope together with a bitcoin address qr-code and I'll send you your bitcoins.

[TheButterZone]

Same as above, but if you have USD.

[guruvan]

Once you buy some coins, buy more than you need then become a reseller via localbitcoins. Reduce the pain for the next person!

++

Love that site. Have gotten calls from it in the past.

If you're in (very) Northern California, I'll sell ya some bitcoins for cash, in person or by mail. I'll also sell for USPS money order, verified personal check, ACH, or possibly, commodities. I will also sell bitcoins for paypal to well-trusted buyers (no first-time customers for PP)

BitcoinsDirect sells for cash in the mail.

Aurumxchange has offered local bank cash deposits in the past, and made some recent announcements about trading bitcoins directly on their site as well.

on freenode #bitcoin-otc you can find many people who'll sell for cash, check, money order, LR, ACH, SEPA, wire transfer, and, really anything you can imagine

OP, you are quite correct that getting fiat money into the bitcoin-attached financial world isn't terribly easy. However, once you learn your way around the parts of the traditional finance world that you're unaccustomed to dealing with, it does become easier.

[FreeMoney]

It means that Bitcoin is better than what you have to offer.

[FreeMoney]

They ask "how much are you sending without fees"? I say there are no fees.

If someone asked "When are you going to prom without Cindy?" and you weren't going with Cindy how would you answer?

[b!z]

https://www.bitinstant.com/

Easy piecy, lemon squeezy.

[gabbergabe]

I like bitinstant, however I have not tried bitme through chase... will have to try or at least check it out.

[TheButterZone]

I like bitinstant, however I have not tried bitme through chase... will have to try or at least check it out.

I can broker for you on BitMe if it's too hard to figure out.

[molecular]

localbitcoins.com is pretty painless. plus: you get to meet a bitcoiner

[Mjbmonetarymetals]

Shameless plug  if your in the uk try http://bitcoinfridge.co.uk/ if your quick making the bank transfer it's possible to have your btc in 10 mins at 3% over mt gox gbp.

[gabbergabe]

localbitcoins.com is pretty painless. plus: you get to meet a bitcoiner

wow.. how did i net see this?

thank you will be trying out.

[molecular]

Someone more mathematically inclined than myself can expand on this, but isn't it going to become basically impractical for an individual to store the blockchain as the number of transactions increases? Also, won't verifications take drastically more time as more adopt it?

Both of those issues lead the inevitable result towards a "trusted source" handling it, not the individual.

This is not true. You don't have to store the blockchain in it's entirety (read SVP clients, light clients).

This doesn't mean you have to trust a 3rd party with your money: you still get to keep the keys yourself.