[ANN][NOTE]DNotes - Celebrating DNotes 3rd Birthday - Forum Now Open

[SmokeysGardens]

In 2007 I started helping a struggling small business owner to diversify his seasonal heating business to include a second seasonal business to even out cash flow. That gave birth to Smokeys Daylily Gardens, one of the largest Daylily growers in the world today. Our web developer and internet guru, whom I have been working with closely for many years introduced me to Bitcoin in November 2013. When I finally decided to do some serious research, I could not stop thinking that we finally have all the needed parts to help alleviate some significant global problems that had not been possible before.

So... you first heard about Bitcoin in November 2013, and launched DNotes in February 2014. Of course you went into it with plenty of computer and entrepreneurial experience, but even so, that was some serious cramming.

     True. That was a very steep learning curve. I cannot speak for Alan, but I had heard of Bitcoin before that (the story of throwing away millions of dollars worth of Bitcoin on a hard drive). November 2013 was when our internet guru told us about his idea for DNotes. Short incubation time there, though. It is incredible what a team of dedicated, seasoned, and VERY determined people can do when you focus one thing for 16 or 18 hours a day. As a team, when building Smokeys Gardens, the three of us worked our fingers to the bone, working 10 to 12 hours a day in the field, then strategizing till midnight almost every weeknight. There were times when Alan and I put in over 100 hours of labor in the field, literally for months on end. The only other person I know that worked like that is my Dad, who is almost 80 and still comes up to the garden 2 or 3 days a week and does battle with the weeds. We tried hiding the sprayers from him, but he always finds em and goes to work. Guys like my Dad and Alan are like old hunting dogs. They are happiest when they are on a scent. Alan is on a scent, and nothing is gonna stop him. I have seen him in action close-up for many years. Do not underestimate him. I think he could inspire me to move a mountain with a teaspoon. (I would try to talk him into getting a bulldozer though).   

  Smokey

[Dyna]

In 2007 I started helping a struggling small business owner to diversify his seasonal heating business to include a second seasonal business to even out cash flow. That gave birth to Smokeys Daylily Gardens, one of the largest Daylily growers in the world today. Our web developer and internet guru, whom I have been working with closely for many years introduced me to Bitcoin in November 2013. When I finally decided to do some serious research, I could not stop thinking that we finally have all the needed parts to help alleviate some significant global problems that had not been possible before.

So... you first heard about Bitcoin in November 2013, and launched DNotes in February 2014. Of course you went into it with plenty of computer and entrepreneurial experience, but even so, that was some serious cramming.

Welcome to DNotes forum. JBGardner. Hope to see you here often. This is a very friendly and helpful community. Feel free to ask any questions and let us know if there is anything we can be of help.

I have heard of Bitcoin before November 2013 but did not know enough to even form an opinion. So you are correct, that was some serious cramming for a few months. I visited every single forum, invested and studied a few very closely. I still spend a lot of time these days to ensure that I stay deeply informed. This is a very complex and challenging industry with a lot of moving parts. We are fortunate to have a very knowledgeable team.

[DNotes]

In 2007 I started helping a struggling small business owner to diversify his seasonal heating business to include a second seasonal business to even out cash flow. That gave birth to Smokeys Daylily Gardens, one of the largest Daylily growers in the world today. Our web developer and internet guru, whom I have been working with closely for many years introduced me to Bitcoin in November 2013. When I finally decided to do some serious research, I could not stop thinking that we finally have all the needed parts to help alleviate some significant global problems that had not been possible before.

So... you first heard about Bitcoin in November 2013, and launched DNotes in February 2014. Of course you went into it with plenty of computer and entrepreneurial experience, but even so, that was some serious cramming.

Welcome to DNotes forum. JBGardner. Hope to see you here often. This is a very friendly and helpful community. Feel free to ask any questions and let us know if there is anything we can be of help.

I have heard of Bitcoin before November 2013 but did not know enough to even form an opinion. So you are correct, that was some serious cramming for a few months. I visited every single forum, invested and studied a few very closely. I still spend a lot of time these days to ensure that I stay deeply informed. This is a very complex and challenging industry with a lot of moving parts. We are fortunate to have a very knowledge team.

Welcome JBGardner! Look forward to seeing you here again.

[TeeGee]

In 2007 I started helping a struggling small business owner to diversify his seasonal heating business to include a second seasonal business to even out cash flow. That gave birth to Smokeys Daylily Gardens, one of the largest Daylily growers in the world today. Our web developer and internet guru, whom I have been working with closely for many years introduced me to Bitcoin in November 2013. When I finally decided to do some serious research, I could not stop thinking that we finally have all the needed parts to help alleviate some significant global problems that had not been possible before.

So... you first heard about Bitcoin in November 2013, and launched DNotes in February 2014. Of course you went into it with plenty of computer and entrepreneurial experience, but even so, that was some serious cramming.

Welcome to DNotes forum. JBGardner. Hope to see you here often. This is a very friendly and helpful community. Feel free to ask any questions and let us know if there is anything we can be of help.

I have heard of Bitcoin before November 2013 but did not know enough to even form an opinion. So you are correct, that was some serious cramming for a few months. I visited every single forum, invested and studied a few very closely. I still spend a lot of time these days to ensure that I stay deeply informed. This is a very complex and challenging industry with a lot of moving parts. We are fortunate to have a very knowledgeable team.

I recall when I first learned what 'mining' was after purchasing a new computer with a high end graphics card. Technology changes lives, and after seeing a friend on Facebook discussing his 'hash rate', I decided to see what my graphics card could do out of pure interest. After doing a little bit of research, I discovered that the stuff had an actual value! It could even be traded for dollars if one so desired. I then saw the immediate potential of the blockchain; the decentralised nature of it was exactly what I'd been looking for as the solution to ordinary people owning their own money supply again! I couldn't actually believe I hadn't come across it earlier. I had heard of Bitcoin perhaps once before in a brief interview video, but I discarded it as 'fantasy money' much like a rewards program or 'paypal' (which nobody uses here in NZ). I did not learn about Bitcoins decentralised nature at that time, or I would have probably jumped in right then and there (and retired early). The blockchain was clearly so innovative and interesting that I spent months glued to my computer, monitoring my hash-rates, new coins, and general potential behind the technology.

This is such a refreshing community! I remember going through page after page of DarkCoin / XCurrency threads just over a year ago, and it was just flame, flame, flame over 'which is better' or 'who is first'. You come to DNotes forum, and it's all peaceful, on topic, respectful and educated; the thread attracts a certain type of participant. It took me about 2 weeks of reading the forum to finally say hello.

This is some of what I said on March the 17th 2014 on this forum,

Hello all!

Just thought I would sign up especially to say hello to the DNotes community from New Zealand. I love what I see here and have mined your coin for a wee while. I hope to actively work with you guys to aid in marketing and wide spread adoption of the coin - we all have a vested interest in this scenario as stake holders. I reviewed several coins when I got into mining several weeks ago and DNotes seemed to be the most professional looking of the lot. It is great to see the developers actively engaging with the community, and now here I am as a result.

TeeGee

That was my first post on any internet forum. DNotes has come so far since that post. Back then, DNotes just had a newly launched currency, a website, and a few faucets. Today DNotes has Cryptomoms to encourage female participation and crypto education, DNotesvault to make ease of the complicated crypto learning curve, CRISP plans to help people from all backgrounds to save and acquire digital currency, mainstream media attention, and the most mature and task-directed crypto forum on BitcoinTalk.

Now one of the founders is to speak at NASDAQ.

I'm excited.

[DNotes]

MasterCard's assessments on digital currencies....



MasterCard: Digital Currency’s Risks Outweigh the Benefits

[...]

"We would argue that, when compared to MasterCard’s network, the claims pertaining to the speed and safety of digital currencies [do] not hold up, not least given that on average it takes 10 minutes for a block to be verified and that digital currencies are far more susceptible to hacking attacks."

[...]

Consumer protection

MasterCard's submission suggests any new regulation the UK government creates should address the current lack of consumer protections in the digital currency space.

One of the risks it flags is that consumers currently have no form of official redress if they use digital currency to make a purchase and the merchant fails to deliver their goods.

To further highlight the safety of the existing financial system in comparison, the document references the UK’s Financial Services Compensation Scheme, which guarantees customers of registered companies up to £85,000 per person in compensation if the firm goes out of business.

The response makes numerous references to the high-profile failure of bitcoin exchange Mt Gox, highlighting how customers can suffer due to the lack of protections in the digital currency space.

MasterCard also believes bitcoin users are in danger as the cost of mining bitcoins will rise when usage of the currency increases, until the cost becomes unsustainable. It continues:

"To achieve economies of scale, the higher marginal costs of digital currencies will lead to a reduction in the number of miners down to a monopoly miner, defeating the original design of digital currencies and opening them up to system-wide fraud."

[...]

Final recommendations

MasterCard suggests the government should create regulation that addresses the risks associated with cryptocurrency while still enabling lawful digital currency businesses to "flourish".

The "current blockchain process" doesn’t provide sufficient transparency, it says, and regulation should require all transactions to go through regulated and transparent administrators, which would be supervised by relevant domestic, European or global authorities.

Digital currency companies should also be licensed and supervised in the same way non-bank money transmitters are. They should be required to "perform Know Your Customer checks, maintain an AML program, file suspicious activity reports and address cybersecurity vulnerabilities".

Finally, MasterCard believes the government should develop consumer protections which would force digital currency companies to create a formal consumer complaint process and enable the reversal of unauthorised charges.

http://www.coindesk.com/mastercard-digital-currencys-risks-outweigh-the-benefits/

[RJF]

MasterCard's assessments on digital currencies....



MasterCard: Digital Currency’s Risks Outweigh the Benefits

[...]

"We would argue that, when compared to MasterCard’s network, the claims pertaining to the speed and safety of digital currencies [do] not hold up, not least given that on average it takes 10 minutes for a block to be verified and that digital currencies are far more susceptible to hacking attacks."

[...]

Consumer protection

MasterCard's submission suggests any new regulation the UK government creates should address the current lack of consumer protections in the digital currency space.

One of the risks it flags is that consumers currently have no form of official redress if they use digital currency to make a purchase and the merchant fails to deliver their goods.

To further highlight the safety of the existing financial system in comparison, the document references the UK’s Financial Services Compensation Scheme, which guarantees customers of registered companies up to £85,000 per person in compensation if the firm goes out of business.

The response makes numerous references to the high-profile failure of bitcoin exchange Mt Gox, highlighting how customers can suffer due to the lack of protections in the digital currency space.

MasterCard also believes bitcoin users are in danger as the cost of mining bitcoins will rise when usage of the currency increases, until the cost becomes unsustainable. It continues:

"To achieve economies of scale, the higher marginal costs of digital currencies will lead to a reduction in the number of miners down to a monopoly miner, defeating the original design of digital currencies and opening them up to system-wide fraud."

[...]

Final recommendations

MasterCard suggests the government should create regulation that addresses the risks associated with cryptocurrency while still enabling lawful digital currency businesses to "flourish".

The "current blockchain process" doesn’t provide sufficient transparency, it says, and regulation should require all transactions to go through regulated and transparent administrators, which would be supervised by relevant domestic, European or global authorities.

Digital currency companies should also be licensed and supervised in the same way non-bank money transmitters are. They should be required to "perform Know Your Customer checks, maintain an AML program, file suspicious activity reports and address cybersecurity vulnerabilities".

Finally, MasterCard believes the government should develop consumer protections which would force digital currency companies to create a formal consumer complaint process and enable the reversal of unauthorised charges.

http://www.coindesk.com/mastercard-digital-currencys-risks-outweigh-the-benefits/

This brings to mind an old adage: "People who live in glass houses should not throw stones" Their fear is showing...

[infovortice2013]

Playing his game with his rules is obvious they want to appropiate some sistems and continue without compentece like until now.

[IMZ]

"This is such a refreshing community! I remember going through page after page of DarkCoin / XCurrency threads just over a year ago, and it was just flame, flame, flame over 'which is better' or 'who is first'. You come to DNotes forum, and it's all peaceful, on topic, respectful and educated; the thread attracts a certain type of participant."

IndiaMikeZulu has been discussing Dnotes intensively for three months now. (It came to our attention at the beginning of the only 'anomaly' its charts have ever had.) To our surprise -- as a compliment -- we have found ourselves discussing it as a 'corporate coin,' that is, one in which the community has figured out that marketing (to as broad an audience as possible) is The Next Big Innovation.

'Flame flame flame' is wealth goin' up in smoke.

Mark (IndiaMikeZulu), Australia

[TeeGee]

MasterCard's assessments on digital currencies....



MasterCard: Digital Currency’s Risks Outweigh the Benefits

[...]

"We would argue that, when compared to MasterCard’s network, the claims pertaining to the speed and safety of digital currencies [do] not hold up, not least given that on average it takes 10 minutes for a block to be verified and that digital currencies are far more susceptible to hacking attacks."

[...]

Consumer protection

MasterCard's submission suggests any new regulation the UK government creates should address the current lack of consumer protections in the digital currency space.

One of the risks it flags is that consumers currently have no form of official redress if they use digital currency to make a purchase and the merchant fails to deliver their goods.

To further highlight the safety of the existing financial system in comparison, the document references the UK’s Financial Services Compensation Scheme, which guarantees customers of registered companies up to £85,000 per person in compensation if the firm goes out of business.

The response makes numerous references to the high-profile failure of bitcoin exchange Mt Gox, highlighting how customers can suffer due to the lack of protections in the digital currency space.

MasterCard also believes bitcoin users are in danger as the cost of mining bitcoins will rise when usage of the currency increases, until the cost becomes unsustainable. It continues:

"To achieve economies of scale, the higher marginal costs of digital currencies will lead to a reduction in the number of miners down to a monopoly miner, defeating the original design of digital currencies and opening them up to system-wide fraud."

[...]

Final recommendations

MasterCard suggests the government should create regulation that addresses the risks associated with cryptocurrency while still enabling lawful digital currency businesses to "flourish".

The "current blockchain process" doesn’t provide sufficient transparency, it says, and regulation should require all transactions to go through regulated and transparent administrators, which would be supervised by relevant domestic, European or global authorities.

Digital currency companies should also be licensed and supervised in the same way non-bank money transmitters are. They should be required to "perform Know Your Customer checks, maintain an AML program, file suspicious activity reports and address cybersecurity vulnerabilities".

Finally, MasterCard believes the government should develop consumer protections which would force digital currency companies to create a formal consumer complaint process and enable the reversal of unauthorised charges.

http://www.coindesk.com/mastercard-digital-currencys-risks-outweigh-the-benefits/

This is petty and malicious from MasterCard. They are doing the whole 'entrenching' thing I talked about only a few posts previously. MasterCard know that Bitcoin doesn't really have any 'leaders' or people providing direction for it in the way that DNotes does. This is why they are trying to make it expensive to get into the business. MasterCards biggest fear, is a team like DNotes that is led by accomplished business entrepreneurs coming in to actually challenge their model for global payments. So MasterCard moves to make it insanely expensive to run an exchange or online wallet, by lobbying the Government to add barriers of entry to new competitors.

Recognizing that "only the government could ensure the stability and continuity essential to their welfare," men of commerce and industry did not focus upon a "neutralization of the government." On the contrary, "They wanted a powerful government, but one whose authority stood at their disposal; a strong, responsive government through which they could manage their own affairs in their own way." - Robert Wiebe

[Dyna]

"This is such a refreshing community! I remember going through page after page of DarkCoin / XCurrency threads just over a year ago, and it was just flame, flame, flame over 'which is better' or 'who is first'. You come to DNotes forum, and it's all peaceful, on topic, respectful and educated; the thread attracts a certain type of participant."

IndiaMikeZulu has been discussing Dnotes intensively for three months now. (It came to our attention at the beginning of the only 'anomaly' its charts have ever had.) To our surprise -- as a compliment -- we have found ourselves discussing it as a 'corporate coin,' that is, one in which the community has figured out that marketing (to as broad an audience as possible) is The Next Big Innovation.

'Flame flame flame' is wealth goin' up in smoke.

Mark (IndiaMikeZulu), Australia

  
Mark, you are absolutely correct. DNotes has clearly differentiated itself in many ways. Among them, is the creation of a culture of mutual respect and teamwork, for the mutual benefit of everyone.  For DNotes to be truly successful as the digital currency for global commerce it must not be limited to our own benefits but also to others worldwide. This is a huge statement of commitment, scope/scale and reach, but one that is productive and purposeful.

It takes a very strong commitment of leadership and other resources (including funding which we have little) to lead a small group of followers to become a vibrant community that believe and appreciate a respectful and productive environment or culture. Through very clear and consistent messaging; delivering as promised, DNotes is slowly gaining the trust and respect of many, including those who might have been indoctrinated with countless negative headlines.

[infovortice2013]

p2p is unstoppable 

[Dyna]

MasterCard's assessments on digital currencies....



MasterCard: Digital Currency’s Risks Outweigh the Benefits

[...]

"We would argue that, when compared to MasterCard’s network, the claims pertaining to the speed and safety of digital currencies [do] not hold up, not least given that on average it takes 10 minutes for a block to be verified and that digital currencies are far more susceptible to hacking attacks."

[...]

Consumer protection

MasterCard's submission suggests any new regulation the UK government creates should address the current lack of consumer protections in the digital currency space.

One of the risks it flags is that consumers currently have no form of official redress if they use digital currency to make a purchase and the merchant fails to deliver their goods.

To further highlight the safety of the existing financial system in comparison, the document references the UK’s Financial Services Compensation Scheme, which guarantees customers of registered companies up to £85,000 per person in compensation if the firm goes out of business.

The response makes numerous references to the high-profile failure of bitcoin exchange Mt Gox, highlighting how customers can suffer due to the lack of protections in the digital currency space.

MasterCard also believes bitcoin users are in danger as the cost of mining bitcoins will rise when usage of the currency increases, until the cost becomes unsustainable. It continues:

"To achieve economies of scale, the higher marginal costs of digital currencies will lead to a reduction in the number of miners down to a monopoly miner, defeating the original design of digital currencies and opening them up to system-wide fraud."

[...]

Final recommendations

MasterCard suggests the government should create regulation that addresses the risks associated with cryptocurrency while still enabling lawful digital currency businesses to "flourish".

The "current blockchain process" doesn’t provide sufficient transparency, it says, and regulation should require all transactions to go through regulated and transparent administrators, which would be supervised by relevant domestic, European or global authorities.

Digital currency companies should also be licensed and supervised in the same way non-bank money transmitters are. They should be required to "perform Know Your Customer checks, maintain an AML program, file suspicious activity reports and address cybersecurity vulnerabilities".

Finally, MasterCard believes the government should develop consumer protections which would force digital currency companies to create a formal consumer complaint process and enable the reversal of unauthorised charges.

http://www.coindesk.com/mastercard-digital-currencys-risks-outweigh-the-benefits/

This is petty and malicious from MasterCard. They are doing the whole 'entrenching' thing I talked about only a few posts previously. MasterCard know that Bitcoin doesn't really have any 'leaders' or people providing direction for it in the way that DNotes does. This is why they are trying to make it expensive to get into the business. MasterCards biggest fear, is a team like DNotes that is led by accomplished business entrepreneurs coming in to actually challenge their model for global payments. So MasterCard moves to make it insanely expensive to run an exchange or online wallet, by lobbying the Government to add barriers of entry to new competitors.

Recognizing that "only the government could ensure the stability and continuity essential to their welfare," men of commerce and industry did not focus upon a "neutralization of the government." On the contrary, "They wanted a powerful government, but one whose authority stood at their disposal; a strong, responsive government through which they could manage their own affairs in their own way." - Robert Wiebe

There is an inherent tendency for promising emerging technologies to be deceptive at the formative stage, especially when perceived to be highly disruptive. Incumbents, who are the most direct targets of the disruption, often discount Bitcoin as a threat because of its explosive volatility and poor track record as a store of value. Bitcoin as a medium of exchange has not gained meaningful traction either. In such an environment, the immensely promising Bitcoin with the potential to be the greatest technology revolution of our generation can be quite deceptive; causing many to look back a few years from now wondering how they could have missed the early promising signs.

Obviously, MasterCard has been trying to exploit this tendency, taking advantage of the uninformed and misinformed public at large, including political leaders and regulators world wide. As TeeGee pointed out correctly, it does not help when Bitcoin is not only leaderless but divided, in terms of industry support.  First they discounted that Bitcoin is a threat to their outdated and expensive global payment network systems. That alone would be fine, allowing time to be the judge. Clearly they are feeling threatened now; leading them to aggressively lobby for a drastic increase to the cost barrier of entry. This will stifle innovation and eliminate small business operators. I wish our industry can come together and be united to protect and promote the best interest of everyone.

[kanus1113]

"Obviously, MasterCard has been trying to exploit this tendency, taking advantage of the uninformed and misinformed public at large, including political leaders and regulators world wide."

It certainly seems that way.

There is too much to cover in that article that is inaccurate or misleading.

"speed and safety of digital currencies [do] not hold up, not least given that on average it takes 10 minutes for a block to be verified" - So in an hour on average the transaction is completely verified, instead of 24-48 'business' hours like my mastercard? Either way you get instant notification, but verification of transaction, bitcoin wins by a long shot.

"digital currencies are far more susceptible to hacking attacks" - I wonder how one could substantiate that claim? Several times in my life my account (mastercard) had someone withdrawing money from across seas. This also means they hacked have my personal information as well. Yet my bitcoins are still safe and sound since I started.

"To achieve economies of scale, the higher marginal costs of digital currencies will lead to a reduction in the number of miners down to a monopoly miner, defeating the original design of digital currencies and opening them up to system-wide fraud." - It is a competitive industry just like any other. I don't know what possible evidence you could have to substantiate this. Hundreds of thousands of miners are just going to give up?

"The "current blockchain process" doesn’t provide sufficient transparency" - From where I am sitting it is a lot more transparent than the credit card networks. If you ever plan to purchase anything with your bitcoin, it is basically 100% transparent.

"Finally, MasterCard believes the government should develop consumer protections which would force digital currency companies to create a formal consumer complaint process and enable the reversal of unauthorised charges." - Government consumer protections are fine, providing they are logical and don't inhibit progress. I like the use of the word reversal, like they can reverse CC transactions... lol. All they do is add a new transaction for the exact same amount back to the sender.

[DNotes]

p2p is unstoppable  

In a way yes. In the U.S. they have the potential to inhibit innovation and business through regulation. I hope that is not the case. Countries like Argentina, who are embracing digital currency, will eventually become world leaders, while the rest of us watch on the sidelines.

[DNotes]

"Obviously, MasterCard has been trying to exploit this tendency, taking advantage of the uninformed and misinformed public at large, including political leaders and regulators world wide."

It certainly seems that way.

There is too much to cover in that article that is inaccurate or misleading.

"speed and safety of digital currencies [do] not hold up, not least given that on average it takes 10 minutes for a block to be verified" - So in an hour on average the transaction is completely verified, instead of 24-48 'business' hours like my mastercard? Either way you get instant notification, but verification of transaction, bitcoin wins by a long shot.

"digital currencies are far more susceptible to hacking attacks" - I wonder how one could substantiate that claim? Several times in my life my account (mastercard) had someone withdrawing money from across seas. This also means they hacked have my personal information as well. Yet my bitcoins are still safe and sound since I started.

"To achieve economies of scale, the higher marginal costs of digital currencies will lead to a reduction in the number of miners down to a monopoly miner, defeating the original design of digital currencies and opening them up to system-wide fraud." - It is a competitive industry just like any other. I don't know what possible evidence you could have to substantiate this. Hundreds of thousands of miners are just going to give up?

"The "current blockchain process" doesn’t provide sufficient transparency" - From where I am sitting it is a lot more transparent than the credit card networks. If you ever plan to purchase anything with your bitcoin, it is basically 100% transparent.

"Finally, MasterCard believes the government should develop consumer protections which would force digital currency companies to create a formal consumer complaint process and enable the reversal of unauthorised charges." - Government consumer protections are fine, providing they are logical and don't inhibit progress. I like the use of the word reversal, like they can reverse CC transactions... lol. All they do is add a new transaction for the exact same amount back to the sender.

The arguments do clearly lack some knowledge of cryptocurrencies.

[grandmama]

The following article is worth reading and here are my comments:

I am a supporter of Bitcoin and a strong believer that what is good for Bitcoin is good for our industry. Unfortunately, being the pioneer, Bitcoin has certain challenges it may never be able to overcome. Mass acceptance of Bitcoin as a currency is extremely remote but the innovative Blockchain technology will lead to massive new business formation and the new engine of huge job growth and wealth creation.

Without strong leadership and an entity or individual with sufficient self-interest to promote and protect Bitcoin as a currency, it will remain as a speculative trading vehicle and not likely to gain much traction as a medium of exchange to exploit the low transaction cost. The growing excitement today is not on Bitcoin as the currency to replace or supplement fiat currency but the power and potential of the Blockchain technology.

*************************************

Bitcoin: In Search Of Purpose

http://www.forbes.com/sites/jasonbloomberg/2015/06/05/bitcoin-in-search-of-purpose/
Jason Bloomberg  Contributor

The article itself...

One line from that article that really resonated with me was the part where they talked about how merchants are happy to accept Bitcoin because it cuts down on their costs but that customers are not too excited about paying in Bitcoin. Here's the direct quote that expresses a huge reason why I don't pay for much with Bitcoin:

Furthermore, the commission for purchasing Bitcoin (or the spread, in the context of speculation) ranges from five to ten percent – even more than what merchants pay for their credit card support. Why would consumers ever agree to take on this expense if merchants are only too happy to bear such transaction costs today?

Paying for something in Bitcoin makes sense if you happen to have Bitcoin sitting around. But it doesn't make sense to trade fiat for Bitcoin just to pay for something with Bitcoin that you could just as easily pay for with fiat--and he's absolutely right about the credit card costs not being the customer's problem, at least not in a way the customer can easily see. The only reason someone might trade fiat into Bitcoin to pay for something with Bitcoin is if that "something" cannot be bought with fiat. When you think about "somethings" that can't be bought with fiat, the first thing that comes to mind are illegal "somethings." Perhaps that is why such a disproportionate amount of Bitcoin commerce is of the illegal variety. But that would change if it actually saved the customers money to pay with Bitcoin (without it being a complicated process). Since DNotes is a much more stable currency than Bitcoin, it's more realistic to expect that at some point down the road customers may even prefer to pay in DNotes.

As a merchant accepting credit cards I get really tired of paying the credit card companies anywhere from $800 up to $3500 a month!!  When I see that automatically deducted from my account each month it simply drives me more to educate others about digital currency. And yes merchants get it because they see those fees having to be paid for each month and I am one of those thousands and thousands of small businesses out there that pay these credit card institutions each and every month.  They are raking in millions at the expense of small business.

[IMZ]

http://indiamikezulu.com.au/566/cheeky-thesis

[Dyna]

The following article is worth reading and here are my comments:

I am a supporter of Bitcoin and a strong believer that what is good for Bitcoin is good for our industry. Unfortunately, being the pioneer, Bitcoin has certain challenges it may never be able to overcome. Mass acceptance of Bitcoin as a currency is extremely remote but the innovative Blockchain technology will lead to massive new business formation and the new engine of huge job growth and wealth creation.

Without strong leadership and an entity or individual with sufficient self-interest to promote and protect Bitcoin as a currency, it will remain as a speculative trading vehicle and not likely to gain much traction as a medium of exchange to exploit the low transaction cost. The growing excitement today is not on Bitcoin as the currency to replace or supplement fiat currency but the power and potential of the Blockchain technology.

*************************************

Bitcoin: In Search Of Purpose

http://www.forbes.com/sites/jasonbloomberg/2015/06/05/bitcoin-in-search-of-purpose/
Jason Bloomberg  Contributor

The article itself...

One line from that article that really resonated with me was the part where they talked about how merchants are happy to accept Bitcoin because it cuts down on their costs but that customers are not too excited about paying in Bitcoin. Here's the direct quote that expresses a huge reason why I don't pay for much with Bitcoin:

Furthermore, the commission for purchasing Bitcoin (or the spread, in the context of speculation) ranges from five to ten percent – even more than what merchants pay for their credit card support. Why would consumers ever agree to take on this expense if merchants are only too happy to bear such transaction costs today?

Paying for something in Bitcoin makes sense if you happen to have Bitcoin sitting around. But it doesn't make sense to trade fiat for Bitcoin just to pay for something with Bitcoin that you could just as easily pay for with fiat--and he's absolutely right about the credit card costs not being the customer's problem, at least not in a way the customer can easily see. The only reason someone might trade fiat into Bitcoin to pay for something with Bitcoin is if that "something" cannot be bought with fiat. When you think about "somethings" that can't be bought with fiat, the first thing that comes to mind are illegal "somethings." Perhaps that is why such a disproportionate amount of Bitcoin commerce is of the illegal variety. But that would change if it actually saved the customers money to pay with Bitcoin (without it being a complicated process). Since DNotes is a much more stable currency than Bitcoin, it's more realistic to expect that at some point down the road customers may even prefer to pay in DNotes.

As a merchant accepting credit cards I get really tired of paying the credit card companies anywhere from $800 up to $3500 a month!!  When I see that automatically deducted from my account each month it simply drives me more to educate others about digital currency. And yes merchants get it because they see those fees having to be paid for each month and I am one of those thousands and thousands of small businesses out there that pay these credit card institutions each and every month.  They are raking in millions at the expense of small business.

Millions of small business owners struggle to meet payroll, which comes before making any contribution to their retirement accounts. There is another real cost burden. Most small business owners pay a very high price in credit card interest of 27% to 29%. It may sound shocking but many small business owners max out every credit card they have available with six figures or higher unpaid balance.

[grandmama]

The following article is worth reading and here are my comments:

I am a supporter of Bitcoin and a strong believer that what is good for Bitcoin is good for our industry. Unfortunately, being the pioneer, Bitcoin has certain challenges it may never be able to overcome. Mass acceptance of Bitcoin as a currency is extremely remote but the innovative Blockchain technology will lead to massive new business formation and the new engine of huge job growth and wealth creation.

Without strong leadership and an entity or individual with sufficient self-interest to promote and protect Bitcoin as a currency, it will remain as a speculative trading vehicle and not likely to gain much traction as a medium of exchange to exploit the low transaction cost. The growing excitement today is not on Bitcoin as the currency to replace or supplement fiat currency but the power and potential of the Blockchain technology.

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Bitcoin: In Search Of Purpose

http://www.forbes.com/sites/jasonbloomberg/2015/06/05/bitcoin-in-search-of-purpose/
Jason Bloomberg  Contributor

The article itself...

One line from that article that really resonated with me was the part where they talked about how merchants are happy to accept Bitcoin because it cuts down on their costs but that customers are not too excited about paying in Bitcoin. Here's the direct quote that expresses a huge reason why I don't pay for much with Bitcoin:

Furthermore, the commission for purchasing Bitcoin (or the spread, in the context of speculation) ranges from five to ten percent – even more than what merchants pay for their credit card support. Why would consumers ever agree to take on this expense if merchants are only too happy to bear such transaction costs today?

Paying for something in Bitcoin makes sense if you happen to have Bitcoin sitting around. But it doesn't make sense to trade fiat for Bitcoin just to pay for something with Bitcoin that you could just as easily pay for with fiat--and he's absolutely right about the credit card costs not being the customer's problem, at least not in a way the customer can easily see. The only reason someone might trade fiat into Bitcoin to pay for something with Bitcoin is if that "something" cannot be bought with fiat. When you think about "somethings" that can't be bought with fiat, the first thing that comes to mind are illegal "somethings." Perhaps that is why such a disproportionate amount of Bitcoin commerce is of the illegal variety. But that would change if it actually saved the customers money to pay with Bitcoin (without it being a complicated process). Since DNotes is a much more stable currency than Bitcoin, it's more realistic to expect that at some point down the road customers may even prefer to pay in DNotes.

As a merchant accepting credit cards I get really tired of paying the credit card companies anywhere from $800 up to $3500 a month!!  When I see that automatically deducted from my account each month it simply drives me more to educate others about digital currency. And yes merchants get it because they see those fees having to be paid for each month and I am one of those thousands and thousands of small businesses out there that pay these credit card institutions each and every month.  They are raking in millions at the expense of small business.

Millions of small business owners struggle to meet payroll, which comes before making any contribution to their retirement accounts. There is another real cost burden. Most small business owners pay a very high price in credit card interest of 27% to 29%. It may sound shocking but many small business owners max out every credit card they have available with six figures or higher unpaid balance.

Which in turn means the credit card companies are laughing at small business all the way to the bank month after month after month. Just imagine if small businesses had the ablility to put that money back in their businesses or to afford whatever they needed to grow their businesses including hiring and raises what a difference that would make.  As a society we have been force-fed the "buy on credit" garbage, and believe me I have been at the trough a bunch myself. Financial institutions are the ones fueling this fire and we as a society need to put a whole ton of water on it. Digital currency is the tool we need to stamp out this injustice that we all have been fed.  Media has helped fuel the credit card industry, just look at all the commercials you see for credit cards, digital currency at some point has to get on the bandwagon as well and get itself promoted.  Daughter was in Indianapolis over the weekend and low and behold there was a sign in front of a shopping mall that read "Bitcoin Accepted Here".  She went as far as to take a picture and send it to me.

[grandmama]

"Obviously, MasterCard has been trying to exploit this tendency, taking advantage of the uninformed and misinformed public at large, including political leaders and regulators world wide."

It certainly seems that way.

There is too much to cover in that article that is inaccurate or misleading.

"speed and safety of digital currencies [do] not hold up, not least given that on average it takes 10 minutes for a block to be verified" - So in an hour on average the transaction is completely verified, instead of 24-48 'business' hours like my mastercard? Either way you get instant notification, but verification of transaction, bitcoin wins by a long shot.

"digital currencies are far more susceptible to hacking attacks" - I wonder how one could substantiate that claim? Several times in my life my account (mastercard) had someone withdrawing money from across seas. This also means they hacked have my personal information as well. Yet my bitcoins are still safe and sound since I started.

"To achieve economies of scale, the higher marginal costs of digital currencies will lead to a reduction in the number of miners down to a monopoly miner, defeating the original design of digital currencies and opening them up to system-wide fraud." - It is a competitive industry just like any other. I don't know what possible evidence you could have to substantiate this. Hundreds of thousands of miners are just going to give up?

"The "current blockchain process" doesn’t provide sufficient transparency" - From where I am sitting it is a lot more transparent than the credit card networks. If you ever plan to purchase anything with your bitcoin, it is basically 100% transparent.

"Finally, MasterCard believes the government should develop consumer protections which would force digital currency companies to create a formal consumer complaint process and enable the reversal of unauthorised charges." - Government consumer protections are fine, providing they are logical and don't inhibit progress. I like the use of the word reversal, like they can reverse CC transactions... lol. All they do is add a new transaction for the exact same amount back to the sender.

And all the time the credit card companies are still smiling because they have earned their fees along the way.  Someone returns something guess what... the credit card company does not return your fees, shoot even paypal charges you to reverse a transaction, ok well they don't "CHARGE" you they just simply do not return all the fees to you.  So not only did they "charge" me for the initial transaction they also "charge" for the return by not giving all your money back.  I would say that is a little bit of double dipping there!! Just like Ebay, you charge for shipping and they charge you a fee on that now where it used to be only the item amount that you only were charged for.  Gee thanks, I do not gouge for shipping but for some reason they believe now that I need to pay them for covering my shipping cost.  Oh now you have gotten me started.... LOL