[2018-08-05] The truth about Starbucks bitcoin payments

[bbc.reporter]

I have seen some old members and known people from the bitcoin community hype and celebrate the Starbucks news in social media. But reading the truth about it now makes me question. Are they nothing but overexcited people the same as the altcoin pumpers that spread any hype news as long as it will pump the price?



The press release by ICE (the parent company of the New York Stock Exchange), the second-largest owner of financial exchanges (by revenue) in the world, said that ICE "plans to form a new company, Bakkt, which intends to leverage Microsoft cloud solutions to create an open and regulated, global ecosystem for digital assets", and that it is partnering with Microsoft, Boston Consulting Group, Starbucks, and others to "create an integrated platform that enables consumers and institutions to buy, sell, store and spend digital assets on a seamless global network."

Naturally, this announcement created a great deal of excitement amongst crypto enthusiasts, traders/investors, reporters, and analysts. In fact, as reported by CryptoGlobe, Brian Kelly of CNBC's Fast Money calling this the "biggest news of the year" for Bitcoin.

However, late afternoon on the day of the Bakkt (a play on the word "Backed", as in "Asset-Backed Securities") announcement, according to a report by Motherboard, the coffeehouse chain tried to make it clear that it didn't actually want bitcoin, but it was interested in working with Bakkt to development solutions that allowed its customers to convert their bitcoins (or other digital assets) into fiat currency, which they could then spend at Starbucks.

A Starbucks spokesperson contacted Motherboard reporter Jordan Pearson to say:

“It is important to clarify that we are not accepting digital assets at Starbucks. Rather the exchange will convert digital assets like Bitcoin into US dollars, which can be used at Starbucks... At the current time, we are announcing the launch of trading and conversion of Bitcoin. However, we will continue to talk with customers and regulators as the space evolves... Customers will not be able to pay for Frappuccinos with bitcoin."

Read in full https://www.cryptoglobe.com/latest/2018/08/the-truth-about-starbucks-and-crypto-payments/

[orions.belt19]

It's important to note how deceiving these headlines are and there's a difference between the acceptance of digital assets at Starbucks and it's partnership with Bakkt to allow its customers to convert their bitcoins (or other digital assets) into fiat currency, which they could then spend at Starbucks. I'm betting that many people have understood differently and the true message did not come across most news articles.

It's quite possible that these crypto enthusiasts are over-hyping this news once again so that a pump would happen since it has been quite some time since there has been good news like this regarding bitcoin or crypto. It's also possible that these crypto enthusiasts are genuinely excited of the thought that a mainstream merchant store or coffeehouse chain has finally made an acceptance for crypto as a payment -- which has been the dream of many crypto enthusiasts to happen.

[snipie]

In the near future most of the payments process using Bitcoin will be like this. Companies will use an exchange service like BitPay or other so the customers pay with bitcoin and they receive fiat. I do not consider it as bad, it is rather a first step in the long road to accept Bitcoin directly in final.

[BitHodler]

It could also be a desperate hype attempt to reverse the market, but since the reaction hasn't been there it's safe to say that the market simply doesn't care. People need to stop hoping for merchant adoption. It's not 2014 anymore.

I will only get excited when merchants start to physically accept Bitcoin and not through a third party, which might take a while considering that the volatility won't be going anywhere in the coming years.

Overall, it's a fairly decent step forward. It's the first step that's important because no first step means no potential second step. As long as the conversion process isn't slowing people's transactions down it's fine.

No one wants to waste time on simple tasks as buying a coffee. If it's slow it's bad money.

[bbc.reporter]

In the near future most of the payments process using Bitcoin will be like this. Companies will use an exchange service like BitPay or other so the customers pay with bitcoin and they receive fiat. I do not consider it as bad, it is rather a first step in the long road to accept Bitcoin directly in final.

Agreed, but no one said it was bad. What I found that I disliked is the way the news was delivered. They distorted the facts and tried to make it appear that bitcoin was going to be directly accepted by Starbucks.

Then some bitcoiners with thousands of followers in social media also began spreading the fake news. Is this what the bitocin community has become? Now maybe we know why Warren Buffet calls bitcoin rat poison.

[Kakmakr]

Yes, it might be true that Bakkt might be some kind of intermediary and in a way a form of payment processor for Starbucks, but the fact still stands that Bitcoin would be involved in this process and this gives legitimacy to the currency.

When a major franschise like Starbucks allow Bitcoin payment <no matter how it is done>, it gives some kind of legitimacy to Bitcoin. Like what we saw when Overstock/Dell/Microsoft started to accept Bitcoin payments.

We have to celebrate the small victories and we should celebrate that with a cup of coffee.   In the early days, people said Bitcoin was impractical and useless, because you cannot even buy a cup of Coffee with it at Starbucks and look at us now.

[1Referee]

Is this what the bitocin community has become? Now maybe we know why Warren Buffet calls bitcoin rat poison.

Discard the Bitcoin and basically the entire crypto community. It's shit.

Bitcoin is indeed rat poisen, but for the sole reason that it is working against banks and governments, which are the rats of this world.

I however have to agree with traditional bobos that the crypto market is one big mess, and I honestly would love to see everything except a few projects go to zero and burn. It has gone so far that absolute scam projects are stealing resources and mindspace from legitimate projects that are struggling to build themselves up for that sole reason. What world are we living in where scam projects are more successfull than legitimate ones?

[hatshepsut93]

Then some bitcoiners with thousands of followers in social media also began spreading the fake news. Is this what the bitocin community has become? Now maybe we know why Warren Buffet calls bitcoin rat poison.

Don't bother checking non-technical Bitcoiners who only talk about the price, instead follow engineers who work on the protocol and cryptographers. You will learn a lot about the fundamentals and will be able to form some educated opinion about where Bitcoin is heading. It's kinda ironic that most of people here are just for quick gains, but those who are in for the software have higher chances of becoming rich, because they have much better understanding of cryptocurrencie's value.

[fattycoins]

it would be a dream come true for a lay man to hear such a news but the accuracy and clarity of the news is very important. if it promotes the free flow of bitcoin and make it a credible currency it is the most important matter.bigshots will make this easy.

[stompix]

Yes, it might be true that Bakkt might be some kind of intermediary and in a way a form of payment processor for Starbucks, but the fact still stands that Bitcoin would be involved in this process and this gives legitimacy to the currency.

When a major franschise like Starbucks allow Bitcoin payment <no matter how it is done>, it gives some kind of legitimacy to Bitcoin. Like what we saw when Overstock/Dell/Microsoft started to accept Bitcoin payments.

Why would the NYSE need "legitimacy" from Starbucks?
It's like Facebook asking CandyCrushSaga to support it.

We're talking about the biggest stock exchange in the world here, they don't need anybody to promote them.

Then some bitcoiners with thousands of followers in social media also began spreading the fake news. Is this what the bitocin community has become? Now maybe we know why Warren Buffet calls bitcoin rat poison.

Most of the bitcoin community has turned into money grabbers and mindless zealots.
I saw it before with different projects if you try to criticize anything you're labeled a FUDster and a government puppet.
The hate for everything that criticizes bitcoin is at maximum level, any rumor that is good for bitcoin is praised as an hiv vaccine or end of the famine in Africa and so on.

The so-called community is no longer a community.
It's driven by greed and hate and it has no way of turning back.

[milewilda]

Is this what the bitocin community has become? Now maybe we know why Warren Buffet calls bitcoin rat poison.

Discard the Bitcoin and basically the entire crypto community. It's shit.

Bitcoin is indeed rat poisen, but for the sole reason that it is working against banks and governments, which are the rats of this world.

I however have to agree with traditional bobos that the crypto market is one big mess, and I honestly would love to see everything except a few projects go to zero and burn. It has gone so far that absolute scam projects are stealing resources and mindspace from legitimate projects that are struggling to build themselves up for that sole reason. What world are we living in where scam projects are more successfull than legitimate ones?

We are seeing it actually which i have seen some undervalued projects which have been surpassed by trash projects instead and i would like to see those projects being burned to death and would give out to those projects which do have real usage and would loosen up the space to expand and give more exposure and because of those shitcoins these good coins cant really be given a chance to be recognized due to high numbers flooding on the entire market.

[squatter]

It could also be a desperate hype attempt to reverse the market, but since the reaction hasn't been there it's safe to say that the market simply doesn't care. People need to stop hoping for merchant adoption. It's not 2014 anymore.

Indeed, seems like the market doesn't care. And frankly, I don't either. It's just another way to sell coins for fiat money. It doesn't mean anything for adoption of the protocol.

I will only get excited when merchants start to physically accept Bitcoin and not through a third party, which might take a while considering that the volatility won't be going anywhere in the coming years.

I think it'll be quite a while. Merchants aren't in the business of currency speculation and they have no reason to expose themselves to that sort of volatility risk. So they'll lag pretty far behind user adoption IMO.

[Carlton Banks]

I will only get excited when merchants start to physically accept Bitcoin and not through a third party, which might take a while considering that the volatility won't be going anywhere in the coming years.

I think it'll be quite a while. Merchants aren't in the business of currency speculation and they have no reason to expose themselves to that sort of volatility risk. So they'll lag pretty far behind user adoption IMO.

Good businesses often do think about currency speculation, especially in regions with unstable currencies (or those who trade with others in regions with unstable currencies). Whether they think more in terms of risk is only semantic, avoiding risk is speculation by another name. Some would call this actual capitalism, as every business has to account for changes in the market in every material they use to operate, whereas today's businesses are more often very insulated from market conditions as a result of centralised price-setting on the commodities markets, or worse still by government subsidies.

[vy99]

Then some bitcoiners with thousands of followers in social media also began spreading the fake news. Is this what the bitocin community has become? Now maybe we know why Warren Buffet calls bitcoin rat poison.

Don't bother checking non-technical Bitcoiners who only talk about the price, instead follow engineers who work on the protocol and cryptographers. You will learn a lot about the fundamentals and will be able to form some educated opinion about where Bitcoin is heading. It's kinda ironic that most of people here are just for quick gains, but those who are in for the software have higher chances of becoming rich, because they have much better understanding of cryptocurrencie's value.

This is so important and so often understated in the cryptocurrency community. Unfortunately over the last year the whole thing has become more about the price than the technology itself and how it will reform the current (and unfair) financial structure.

[darkangel11]

It's quite possible that these crypto enthusiasts are over-hyping this news once again so that a pump would happen since it has been quite some time since there has been good news like this regarding bitcoin or crypto.

Are you trying to tell us that there are no good news regarding BTC and other cryptocurrencies and that this is the reason for this manipulated piece about SB?
MtGox creditors finally getting paid back and i n crypto = no huge selloff from the trustee.
Coinbase and Bitmain expoanding like crazy.
ETFs waiting for approval with one of the members of SEC being a crypto supporter

THere's a lot going on and fake news won't change it.

[1BTC EQUALS 1CAR]

Well, too bad that we still need to wait a few more years to see it happen. Starbucks has a lot of customers so I hope bitcoin is just a split second when you do your transactions on them because customers don't want to stay less than an hours just for their orders to get confirmed and get what they have ordered.

[Alexbelov23]

well, Starbucks and hype news goes usually one in one 
what do you think about the future guys? I actually start to think that someday bitcoins will be accepted everywhere.... digital currencies will become normal I think.... not sure what to think about the Starbucks statement.. what do you think, when will paying with bitcoins become normal?