2013-12-07 gigaom.com : Western Union responds to Bitcoin buzz

[bitfromit]

http://gigaom.com/2013/12/06/western-union-responds-to-bitcoin-buzz/

[kjlimo]

Yeah, Western Union will initially get a bump from people trying to buy bitcoins, but once the bitcoins are in the peoples hands, they'll slowly get phased out.

[beetcoin]

well, now that bitcoin is on their radar.. we'll just have to see how well it can hold against big interests. it hope it doesn't end well for western union.

[empoweoqwj]

More of a book than a blog post. Thanks for summarizing 

Also just read a great new blog posting by Peter Surda on the 4th http://www.economicsofbitcoin.com/

Bitcoin can partially or fully replace the following services by more efficient ones:

1 ) Proof of ownership (obsoletes notaries)
2 ) Dispute resolution (obsoletes mediators)
3 ) Record auditing (obsoletes accountants)
4 ) Smart property (obsoletes the police)
5 ) Decentralised stock exchange (obsoletes centralised stock exchanges)
6 ) Highly efficient payments (obsoletes banks, debit cards, money transmitters)
7 ) Full control over your money (obsoletes central banks and banking regulators)
8 ) Conditional payments (obsoletes lawyers)
9 ) No inflation
10) No business cycle

And now, here's the kicker: points 1-5 does not require that Bitcoin is a medium of exchange (because they do not require Bitcoin to have purchasing power) and points 6-8 do not require that Bitcoin is money (because they do not require that Bitcoin is used as a unit of account). Only points 9 and 10 require that Bitcoin is a unit of account. If that ever happens, that's just the cherry on the top. Some, for example Michael Suede (http://www.libertariannews.org/2011/07/01/could-the-state-exist-if-property-rights-were-impossible-to-violate/), even come to the conclusion that without the ability to steal money, states couldn't exist.

I am not convinced BTC actually needs to hit the shopping malls in a hurry. Its main role right now is wealth transfer to a better financial system. As well as a defense in the age of plunder. Main street can come later.

[exstasie]

It makes sense to try and profit off of this while you can.  There will be a need to easily convert cash into Bitcoins, so why not build a product to profit off it.

[StarfishPrime]

Their business model is essentially unchanged since they began transfering funds using Telegraphic Transfer (aka "T/T"), which was of course a huge innovation over hauling banknotes and gold around in escorted Wells Fargo carriages. Ironically banks still refer to a wire transfer as a "T/T" - a term well over 100 years old.

They will either embrace cryptocurrency or soon become completely irrelevant. The way I see it those are really the only two possible scenarios. (They could easily do this since they already have the "hard part" of KYC/AML in place worldwide)  

With those Q3 results and hesitant, FUD-like statements I'd feel pretty safe shorting WU at this point.

Think I'll send a telex to my broker...

[bryant.coleman]

Can't trust Western Union. But lots of people are using it in Localbitcoins to buy and sell BTCs. I hope WU will not ban users and take away their money as Paypal is doing right now.

[lonelyminer (Peter Šurda)]

It never ceases to amaze me that people read what I write. It looks like doing research full time was the right decision.

[bitfromit]

It never ceases to amaze me that people read what I write. It looks like doing research full time was the right decision.

Following closely. Your a great writer.

[BTCLuke]

Interview of Western Union in 2013:

We will continue to track the use of virtual currency in the market, and expect that it should comply with the same regulations and oversight that the rest of the financial services industry must adhere to, to ensure that consumers are protected.

Interview of the Postmaster General in 1980:

We will continue to track the use of Fax Machines, and expect that they should comply with the same regulations and oversight that the rest of the nation must adhere to, to ensure that consumers are protected.

(Ok not really but you get the point....)

[beetcoin]

if western union got into the BTC business, i'm not so sure i'd use their service. or at least i'd go out of my way from having to use them.

[greenlion]

This is basically a complete fluff statement from an inefficient rent-seeking business that is now obsolete, swaggering with its mouth to fool you into its continued relevance.

"We will continue to track the use of virtual currency in the market, and expect that it should comply with the same regulations and oversight that the rest of the financial services industry must adhere to, to ensure that consumers are protected."

Really?

Western Union, who the hell are you?

[TraderTimm]

I'm just amused that businesses, banks and governments now are forced to comment on Bitcoin, when before they couldn't be bothered to do so. The enhanced attention, positive and negative, has put Bitcoin on the global stage where it deserves to be. It is getting to be the time when someone who is the CFO has to have some kind of response about "virtual currencies" or they'll look incompetent.

Just savoring the whole effect.