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July 22, 2011, 02:12:59 AM |
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what kind of a business thinks its majority income is a touchy subject?
One where the majority of their business exists simply to facilitate a competitor.
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3KzNGwzRZ6SimWuFAgh4TnXzHpruHMZmV8
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fitty
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July 22, 2011, 02:19:22 AM |
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The price of BTC doesn't matter. $5 or $20 it really has no effect. People sell based on usd/euro etc... No one locks in prices at a set BTC. If you sell a $20 item for 1 BTC or 4 BTC it really doesn't change anything. The person buys the bitcoins, sends them, the seller cashes them out. At $5 and at $20 it's the same process. It's always been discussed that 50-80% of miners leaving wouldn't really change a thing. Day traders, investors, people playing the exchanges don't matter. All those people could fuck off right now and people would still be buying BTC, using BTC, and sellers selling the BTC.
Which is why there's no collapse. The people powering BTC, the people using BTC, don't give two shits about how much it's currently worth on the exchanges. There's APIs now that auto convert USD to current market value BTC. Does the API, buying, seller really care if it's $5 or $20? The API just converts it to the USD value and sells the item.
If anything BTC hitting $5 would get rid of the short term for profit miners who are drama queens every time the price fluctuates because they're in a panic to get their money back from their investment. It also gets rid of the people treating BTC like gold bullion.
BTC was never created to be a collectible. It's a virtual currency. Letting people can exchange goods and services. So Jimbo in Poland doesn't need a bank, visa, mastercard, or paypal to sell his homemade bellybutton lint sculptures. He can accept BTC from every corner of the planet. People seem to think that having people profit off of the investing, trading, mining is the core of BTC. It's not. People using BTC as a currency is the core of BTC, will always be the core of BTC, and those people don't give two shits what the current market value is.
They login, buy btc, spend them, get their shit. Whether it's $5 or $50 doesn't change anything. If all the people holding BTC like it's gold bullion cashed out, the people who are using the currency would still be using it the next day, the next week, the next month.
It's true that the price of BTC is irrelevant for trades where it's converted seamlessly at either end.. but in practice there is a fair overhead in both fees and time for conversion. (I'm sure it varies from country to country - but for me it's a couple of days + 5% or so) Once there are significant number of merchants accepting BTC, it seems to me that ironically, the market value of BTC could go up if governments start to make difficulties for the exchange points. The smoother the flow in and out of BTC - the less need to hold a fat wallet. The fee's don't really change. The fee's are based on USD not on BTC. If you're buying $50 worth of Bitcoins, it doesn't matter if you get 25 bitcoins back or 2 bitcoins back. You then go send those 25 or 2 bitcoins to the seller, get your stuff, the fee's are the same. The seller sells 25 bitcoins or 2 bitcoins for $50, the fee's are the same. The core transactions of BTC don't rely on BTC sustaining a magic value. People used BTC to buy stuff when it was $2 and they did the same at $20. If BTC was 50 cents, you'd still load $50 and buy 100 BTC. Then you send the BTC and the seller sells his 100 BTC for $50. Miners would revolt, but even that doesn't change much. We've seen a mass exodus of miners already in Namecoin. Difficulty was way too high, the guys left worked through it, it adjusted, namecoin is running fine. BTC has gotten big enough any mining exodus would take weeks and the difficulty would keep adjusting as it happened. The network works just fine at 1,500 ghash as it does at 15,000 ghash. As long as people use BTC as a currency (which is seems lots of people are) then it will remain very strong. The market, traders, investors, miners, they're all leeching the system trying to make money for themselves and really have little effect on the future of BTC. The importance of the network remaining "profitable" for those people is a joke. The grass roots (no pun intended lol) buyers and sellers run the show.
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lettucebee
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July 22, 2011, 03:57:08 AM |
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what kind of a business thinks its majority income is a touchy subject?
One that doesn't even mention the source of their majority income in their literature.
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Keyur @ Camp BX
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July 22, 2011, 03:58:47 AM |
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We got in June a total of $6,824,168.53 of funds moving around (16640 transactions in both deposits and withdraws) over Dwolla, equivalent of $227,472.28 per day, or $1,592,305.99 per week. Should be noted that the site was closed on June 20th, so in reality amount per day/week is higher.
This is amazing information - thank you for sharing, Mark. Based on our conversations with Dwolla, we knew Bitcoin is big for them. Now we have the numbers about exactly how big it is. We should work with Dwolla to lobby for Bitcoin. Sooner or later we are going need a lobbyist in Washington DC, and Dwolla along with exchanges/platforms can be a major contributor towards this effort. - Keyur
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koin
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July 22, 2011, 04:41:57 AM |
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Sooner or later we are going need a lobbyist in Washington DC, hopefully later. plus, don't you think they have enough stuff on their plate at the moment?
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notme
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July 22, 2011, 05:03:42 AM |
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Sooner or later we are going need a lobbyist in Washington DC, hopefully later. plus, don't you think they have enough stuff on their plate at the moment? You mean like cutting costs? For a relatively small investment (some compute time on existing hardware) they could invest in American bitcoin companies and embrace it, or at least give it a chance to grow. If it works out, it could dramatically reduce the cost of doing business, leaving more for the money grubbers in DC. Not to mention it's usefulness in collecting campaign donations.
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billyjoeallen
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Hide your women
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July 22, 2011, 05:04:51 AM |
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Sooner or later we are going need a lobbyist in Washington DC My hope is that Bitcoin attains legitimacy in Washington after every possible avenue of opposition has been tried and failed. Bill Gate's "embrace and extend" strategy for destroying open source competitors was shockingly effective for killing java. The Federal government could do more harm to bitcoin by regulating it than by banning it altogether.
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insert coin here: Dash XfXZL8WL18zzNhaAqWqEziX2bUvyJbrC8s
1Ctd7Na8qE7btyueEshAJF5C7ZqFWH11Wc
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Jaime Frontero
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July 22, 2011, 05:21:09 AM |
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what kind of a business thinks its majority income is a touchy subject?
One where the majority of their business exists simply to facilitate a competitor. maybe not exactly, error: Dwolla’s CEO Ben Milne (@bpmilne) was interviewed by Silicon Prarie News and in the video of that interview he shares his belief that the products coming out of Dwolla will, in five to ten years, be part of everyone’s daily life. Referring to the next product Dwolla will release he says “I think noone sees this one coming.” [emphasis mine] http://www.bitcoinmoney.com/post/7895143775/dwolla-milestone-one-million-a-daywhat if dwolla didn't compete? what if they... oh, i dunno... facilitated? merged? bet on Bitcoin in a big way? i mean, they know where their money's coming from, right? it's a very interesting quote.
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sunnankar
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July 22, 2011, 04:26:34 PM |
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what kind of a business thinks its majority income is a touchy subject?
Robbery, politics, involuntary prostitution, banking and other forms of business where the pure consent of the customer is not acquired.
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RodeoX
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The revolution will be monetized!
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July 22, 2011, 07:41:50 PM |
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I sent an email thanking Dwolla for providing a bridge for people to buy bitcoins. I can be cruel at times. ![Grin](https://bitcointalk.org/Smileys/default/grin.gif)
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Serge
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July 22, 2011, 07:53:10 PM |
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what kind of a business thinks its majority income is a touchy subject?
One where the majority of their business exists simply to facilitate a competitor. maybe not exactly, error: Dwolla’s CEO Ben Milne (@bpmilne) was interviewed by Silicon Prarie News and in the video of that interview he shares his belief that the products coming out of Dwolla will, in five to ten years, be part of everyone’s daily life. Referring to the next product Dwolla will release he says “I think noone sees this one coming.” [emphasis mine] http://www.bitcoinmoney.com/post/7895143775/dwolla-milestone-one-million-a-daywhat if dwolla didn't compete? what if they... oh, i dunno... facilitated? merged? bet on Bitcoin in a big way? i mean, they know where their money's coming from, right? it's a very interesting quote. Think their primarily goal would be to establish themselves as the payment solution for mobile devices, not necessary based around bitcoin. That's where they are headed I think with such small transaction fees.
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evoorhees (OP)
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Democracy is the original 51% attack
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July 22, 2011, 08:04:19 PM |
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Dwolla should perhaps set up a USD<->BTC exchange within their own site... bam! That would be successful me thinks.
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superpc
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July 22, 2011, 08:25:36 PM |
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It's definitely BitCoin. It seems most of the exchanges use Dwolla for transactions. Because, seriously, who would use Dwolla if it wasn't used for getting BitCoins?
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superpc
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July 22, 2011, 08:26:13 PM |
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Dwolla should perhaps set up a USD<->BTC exchange within their own site... bam! That would be successful me thinks.
Good idea. You should contact Dwolla about doing this.
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bracek
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July 22, 2011, 10:50:40 PM |
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Dwolla should perhaps set up a USD<->BTC exchange within their own site... bam! That would be successful me thinks.
Good idea. You should contact Dwolla about doing this. yea, give it to them as a survival strategy, that way bicoin will no longer be a threat to them. only good things can come out of that symbiosis
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makomk
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July 22, 2011, 11:11:43 PM |
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It must be a very difficult issue for them. Bitcoin will replace the value proposition they offer - Dwolla is made redundant by Bitcoin's success. It's like they're helping to foster a child that will grow up to kill them! Strange relationship.
I've heard speculation that the opposite will happen - that Bitcoin will fail but Dwolla will be the big winner in the end. Certainly right now they offer better value; if both you and the person you're sending to are using Dwolla, you can pay MtGox's 0.6% fee to convert to Bitcoins, plus any Bitcoin transaction fees, and then they can pay another 0.6% MtGox fee, or you can just skip Bitcoin and the associated fees and exchange rate risk and use Dwolla directly. (When MtGox's fees return to normal it'll be even more.)
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Quad XC6SLX150 Board: 860 MHash/s or so. SIGS ABOUT BUTTERFLY LABS ARE PAID ADS
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error
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July 22, 2011, 11:25:23 PM |
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It must be a very difficult issue for them. Bitcoin will replace the value proposition they offer - Dwolla is made redundant by Bitcoin's success. It's like they're helping to foster a child that will grow up to kill them! Strange relationship.
I've heard speculation that the opposite will happen - that Bitcoin will fail but Dwolla will be the big winner in the end. Certainly right now they offer better value; if both you and the person you're sending to are using Dwolla, you can pay MtGox's 0.6% fee to convert to Bitcoins, plus any Bitcoin transaction fees, and then they can pay another 0.6% MtGox fee, or you can just skip Bitcoin and the associated fees and exchange rate risk and use Dwolla directly. (When MtGox's fees return to normal it'll be even more.) You're just making the argument for widespread adoption of Bitcoin. ![Smiley](https://bitcointalk.org/Smileys/default/smiley.gif)
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3KzNGwzRZ6SimWuFAgh4TnXzHpruHMZmV8
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evoorhees (OP)
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July 23, 2011, 12:51:57 AM |
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It must be a very difficult issue for them. Bitcoin will replace the value proposition they offer - Dwolla is made redundant by Bitcoin's success. It's like they're helping to foster a child that will grow up to kill them! Strange relationship.
I've heard speculation that the opposite will happen - that Bitcoin will fail but Dwolla will be the big winner in the end. It will be hard for Dwolla to be "the big winner in the end" when they are just transferring worthless green toilet paper. Bitcoin is a different currency entirely, and you can bet that the open-source enthusiast community of Bitcoin will develop effective, efficient tools faster than Dwolla could ever hope to do. But regardless, Dwolla and Bitcoin have been very helpful for each other thus far.
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tvbcof
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July 23, 2011, 02:42:47 AM |
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It must be a very difficult issue for them. Bitcoin will replace the value proposition they offer - Dwolla is made redundant by Bitcoin's success. It's like they're helping to foster a child that will grow up to kill them! Strange relationship.
I've heard speculation that the opposite will happen - that Bitcoin will fail but Dwolla will be the big winner in the end. It will be hard for Dwolla to be "the big winner in the end" when they are just transferring worthless green toilet paper. Bitcoin is a different currency entirely, and you can bet that the open-source enthusiast community of Bitcoin will develop effective, efficient tools faster than Dwolla could ever hope to do. Yes, I'm an admitted conspiracy theorist, but... I believe that there is a huge value in understanding the relationships between individuals, and that is the reason for the extreme interest in social networks these days. Just ask Mubarak how much he wished he had had actionable information about this in a timely manner. This is at least part of the reason I have avoided Facebook, Twitter, etc, etc, and why I will probably avoid Dwolla. I expect that Dwolla will do fine if it can position itself out in front of it's like competition, though it probably never will make a profit on it's exchange and payment business and probably won't really care that much. Bitcoin also provides a rich tapestry of relationship information. The difference that I can see, to the extent that I understand it, is that it is much more possible to work around the edges if one cares to, and it would be much more difficult for the authorities to manage should enough people take and interest in and succeed in doing so. But regardless, Dwolla and Bitcoin have been very helpful for each other thus far.
And I, for one, hope it continues for as long as it's mutually beneficial. Or actually, I should say for the sake of honesty, for as long as it is beneficial to Bitcoin.
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sig spam anywhere and self-moderated threads on the pol&soc board are for losers.
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Meatpile
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July 26, 2011, 01:22:09 AM |
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So now that dwolla reverses transactions, when do they send out the email about their spiral into obscurity now that noone uses it with bitcoin exchanging anymore?
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