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Author Topic: bitcoin stores are bad for bitcoin / bitcoin atm  (Read 1059 times)
steelhouse
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August 03, 2011, 05:39:44 PM
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So you go to meze grill and buy a sandwich, to help the economy, I think you are doing more harm than good.  The bitcoin system is too slow to use on less than 5 minute transactions.  If you use a wallet, you are not using bitcoin, you are using a centralize play money site.   Paypal, dwolla, and poker sites are examples of play money sites based in U.S. dollars.

Meze grill is based in dollars.  It is basically an exchange.  You buy a sandwich, he gets the bitcoin, he sells the bitcoin on mt gox to buy lettuce.  The transaction could have gone, you have bitcoin, you sell bitcoin for $, you go to Meze grill and pay in cash.  So meze grill is an exchange, why is that bad?  It is bad because the transaction is small 0.5 BTC.  It is just going to load up the system with small transactions.

Now I love the idea that Meze grill offers to sell bitcoin (maybe buy too not sure).  Thus you go in with $100 and buy 10 BTC.  Thus they are a real exchange.  It just hit me you can easily have a bitcoin atm.  You stick a usb stick in the atm, you put a $100 bill in it, a wallet .dat is added to your usb drive.  You can also sell, put a wallet.dat on the usb drive and out pops some cash.

This just made me think of another idea, bitcoin block chain that holds wallets not bitcoins.  Your wallet is stored on the block chain and a monthly fee is added to your wallet, if your balance goes to zero it is deleted.

I is nice to have hundreds of exchanges.  Thus if one goes down you can use another.  But, I forgot what I wanted to say.  But still like the post so I will fix it or delete it later.

 
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August 03, 2011, 07:13:15 PM
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The bitcoin system is too slow to use on less than 5 minute transactions. 


Not quite true. "Green addresses" and trusted nodes are solving this. I have made one or two purchases that took less than 30 seconds, and this response time will get smaller and smaller and the infrastructure grows.
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August 03, 2011, 07:13:43 PM
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So you go to meze grill and buy a sandwich, to help the economy, I think you are doing more harm than good.  The bitcoin system is too slow to use on less than 5 minute transactions.  If you use a wallet, you are not using bitcoin, you are using a centralize play money site.   Paypal, dwolla, and poker sites are examples of play money sites based in U.S. dollars.

Meze grill is based in dollars.  It is basically an exchange.  You buy a sandwich, he gets the bitcoin, he sells the bitcoin on mt gox to buy lettuce.  The transaction could have gone, you have bitcoin, you sell bitcoin for $, you go to Meze grill and pay in cash.  So meze grill is an exchange, why is that bad?  It is bad because the transaction is small 0.5 BTC.  It is just going to load up the system with small transactions.

Now I love the idea that Meze grill offers to sell bitcoin (maybe buy too not sure).  Thus you go in with $100 and buy 10 BTC.  Thus they are a real exchange.  It just hit me you can easily have a bitcoin atm.  You stick a usb stick in the atm, you put a $100 bill in it, a wallet .dat is added to your usb drive.  You can also sell, put a wallet.dat on the usb drive and out pops some cash.

This just made me think of another idea, bitcoin block chain that holds wallets not bitcoins.  Your wallet is stored on the block chain and a monthly fee is added to your wallet, if your balance goes to zero it is deleted.

I is nice to have hundreds of exchanges.  Thus if one goes down you can use another.  But, I forgot what I wanted to say.  But still like the post so I will fix it or delete it later.

 




The Bitcoin system is more than fast enough for sub 5 min transactions, you don't need to worry about confirmations unless you think your customer is going to preform a double spend attack to get out of paying for his sandwich.

Just in case i do something worthwhile: 12YXLzbi4hfLaUxyPswRbKW92C6h5KsVnX
Stephen Gornick
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August 03, 2011, 09:05:29 PM
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The bitcoin system is too slow to use on less than 5 minute transactions.

The current client is probably adequate for retailers like Meze Grill to use.  For retail use involving larger amounts or for other reasons, additional monitoring could detect within seconds if there was a double spend attempt of the form referred to as a "race attack"  See:
 - http://bitcointalk.org/index.php?topic=27417.msg350531#msg350531

So meze grill is an exchange, why is that bad?  It is bad because the transaction is small 0.5 BTC.  It is just going to load up the system with small transactions.

The miners seem to have no problem with providing transaction processing for 0.0005 BTC. That means the fee is under a penny.  Not bad for a $10 transaction. You as the customer then pay about $0.01 worth to be able to pay using bitcoin, Meze Grill doesn't lose a bit to fees for that sale when accepting bitcoin -- versus getting only $9.70 had you paid $10 using visa/mc.

What you are overlooking is that even if Meze Grill were to convert 100% of their bitcoin sales to USDs, ... the customer is served better when providing bitcoin as a payment option.  If I have bitcoins already, for me to convert them to USD so I can buy lunch is a hassle I might like to avoid.

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August 04, 2011, 12:07:44 AM
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  It is bad because the transaction is small 0.5 BTC.  It is just going to load up the system with small transactions.


Wait, volume is a problem for the network? A bunch of small transactions equals a bunch of small transaction fees, giving miners incentive to do their thing, and keeping the whole train chugging along.

This is a joke, right?

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geek-trader
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August 04, 2011, 01:10:32 AM
 #6

Using bitcoins is bad for bitcoin?

Are you high?

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CydeWeys
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August 04, 2011, 01:24:21 AM
 #7

You realize neither end has to make an exchange for every transaction, right?  Most people buying food there are probably going to be miners, who don't need to buy Bitcoin at all, and Meze Grill might only cash out once a week or so.
ffuentes
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August 04, 2011, 01:45:04 AM
 #8

What are you thinking?

Are you saying that is bad for bitcoin use it in micropayments? Bitcoin was not created for you speculators.


If are something bad is which a small transaction takes a long time to be completed. But this would be easily resolved through payment gateways.

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