I got a restaurant "Stacked" interested in bitcoins. Read from bottom to top:
I am very eager to explain how bitcoin works. Right now there are about 20+ bitcoin exchanges that convert USD to BTC and BTC to USD. Last year there were no exchanges but bitcoin has been growing really fast.
Bitcoin derives its value from supply and demand. There are people on exchanges that are willing to pay for bitcoins. For example, if you go to bitcoinwatch.com you can see the current value of bitcoin which is around $4.50 a coin. This value fluctuates since bitcoin is so new, but in the long run (maybe many years) it may become a stable currency.
Why do people want bitcoins? Bitcoin has certain properties that people desire. First, there will only be 21 million bitcoins in existence so in essence there is a limited supply. Bitcoin also has little or no transaction fee compared to credit cards (where they charge the merchant a percentage fee.) Another property of bitcoin is that it is global and you can send it to China in a hour or less. Other methods of international payment may take days or weeks and there is an international fee. Bitcoin, I believe, is sort of like digital gold.
I can understand why you need USD to pay your staff. I think bit-pay.com allows you to convert any BTC daily into USD. Again, I am not affiliated with them and I am just excited about bitcoins and it's ability to end Wallstreet dominance since it does not require a central authority to perform a transaction (no PayPal, Citibank, etc.)
On Fri, Oct 7, 2011 at 9:22 AM, brian wrote:
Thanks Jim, although I looked at the site, I have to admit, I don't understand how a bitcoin derives value.
Does it have a tie to the US monetary system? If I can't pay my suppliers and staff with it, how can I accept it for payment?
Interested in continuing this dialogue.
On Fri, Oct 7, 2011 at 9:15 AM, Jim wrote:
Thanks for your response. Just an idea, but your business could gain some media attention if you used bitcoins. There is a restaurant in New York called Meze Grill that accepts bitcoins and they were featured on CNN. Also, there could be a niche market of people that would go to your restaurant to specifically spend bitcoins. Please see this mobile checkout program: https://bit-pay.com/aboutMobile.html
I am not affiliated with that company, but I am a bitcoin enthusiast.
Thanks for your time,
On Fri, Oct 7, 2011 at 9:00 AM, brian wrote:
Jim, thanks for your note. I hadn't heard of bitcoins before, but did take the time to look at their site. It's not something we support currently, but if it gains mass appeal we will certainly take a look at it in the future. Thanks for your note.
On Thu, Oct 6, 2011 at 7:10 PM, Jim wrote:
Can you support buying food with bitcoins? If you don't know what bitcoins are see weusecoins.com