..

[Devin Chow]

..

[bitgold]

What did I learn? Coinbase is awful to use as a practical, every day wallet.
...

[Aditya]

Helping stranger carrying two massive couches *priceless*

Help each other   Share the spirit  

I pray more people will buy Bitcoin from you, because they will get extra bonus: couches porter  

_______________

Lesson of the story: A wallet should not only secure but also reliable

[damiano]

NEVER use Coinbase as a wallet like you just did.  If your going to buy from them then buy and xfer out to another wallet.  At least use blockchain wallet

[mrbitbank]

After what happened with MTGOX and others ~I would trust noone not even coinbase to be a third party wallet holder for me  , keep all my coins in cold storage offline until the moment I need to transfer them with armory

[koshgel]

As others have said the coinbase wallet doesnt necessarily confirm transactions right away. Sometimes they are pending for hours. There are other bitcoin wallets for phones where you could store small amounts to transfer. I dunno how safe I would feel with 10 BTC in them though

[gijoes]

Frankly, Coinbase is turning into a worst kind of fascist dictatorship. Not only are their services unreliable (many people reported their bitcoin purchases being reversed, or their out withdrawals not going through). Now they have new AML/KYC policies in place which are the opposite of everything bitcoin stands for. And their enforcers have already started profiling their customers using KYC pretext, and refusing services to anyone they don't like.

Here is my story: I've purchased non-negligible amount of BTC via Coinbase lately. Even though I was fully verified with RL data, bank account, phone number, SSN and stuff, their KYC enforcers contacted me to get a full breakdown of who am I, what kind of business I run, where did I get the funds to purchase BTC, the purpose of my withdrawal transactions an so on. And this was not just a formality - they asked me a lot of questions, some of them suggesting that they studied my social network profiles carefully. Like: what is your role in Company A (the only way they could get any idea about my association with Company A is because it was in my profile). They literally demanded explanation for every single transaction and statement on the source of every purchase I made. They wanted to know EVERYTHING, and have all the supporting evidence! I mean, what the FUCK? Is this some kind of new Bitcoin Gestapo they are building there. If this is the case, WHY would anyone from this community support this Gestapo?!

What was the explanation for this outrage? Here you go: "Coinbase is a regulated Money Service Business under the FinCEN division of the U.S. Treasury Department and as such, we are required to review accounts to ensure compliance with regulations."

The experience I had with this questioning was, frankly, humiliating and sickening. After giving them a lot of explanations, they were still not satisfied and informed me that they are going to close my Coinbase account. Way to treat your customers who have paid you fat commissions on currency exchange. Comparing this experience with AML/KYC interaction in traditional banking system, I can only say that "Coinbase-style KYC" is much worse. Banks are more subtle while Coinbase thugs come across as completely unprofessional, rude, capricious and extremely intrusive.

I suggest that anyone holding, or moving non-negligible amount of BTC through Coinbase, consider their Coinbase account exactly as traditional bank account - completely at mercy of an organization that is "holding your money", but working for regulators, not for you. It would be even better to boycott Coinbase entirely - I repeat, the new policies they have in place are the opposite of everything bitcoin stands for.

[Sydboy]

wow that story sucks.
I do not know what I would of done in that situation. You did the right thing to stick by him, just a shame you had to help move furtniture. you are very very lucky the buyer was so honest. He could of easily just not met up with you and ignored you. Imagine if that had happened. Coinbase would of told you, tough luck, you would of got no support from the.. THis is a scary situation.

When I sell Bitcoins I make sure it is using my local client, I never rely on a 3rd party to stop scenarios like yours from happening.

great news he was honest and things did turn out OK

[Arvicco]

Anyone using Coinbase service is just asking for trouble. It is well known that they routinely reverse your bitcoin purchases if the price was "too good" with only a bullshit explanation (https://bitcointalk.org/index.php?topic=654098.0). BTC withdrawals are often left unprocessed for a long time, and sometimes do not come through at all. And now, they also started profiling customers and closing their accounts!

At the very minimum, it is not a good idea to keep any BTC balance on Coinbase. If you are lucky to purchase BTC through them, immediately withdraw it to a safe place. This company is nothing but a bad joke.

[dave111223]

I think I found the problem.

I was wearing dress pants and flip flops

But joking aside, why didn't you just transfer the bitcoins to your phone wallet (such as "Bitcoin Wallets" or Mycelium) before you went to the meeting?  That you know for sure that you have the bitcoins available.

I've seen people do trading in this way directly from Bitstamp and run into the same problem.  When the withdraw is delayed they are a screwed.

[JorgeStolfi]

The Original Post story smells of a scam. I bet that the "bitcoin buyer" runs a clandestine moving company, and that is how he gets his free manpower: he pretends to buy bitcoins for cash, then hacks into Coinbase to delay the transfer... Of course he paid for the coins the next day: that is not where he gets his profit, and it is not easy to find bitcoin sellers in passable physical shape.  Besides, I bet that the bitcoin price was 10% up when he finally paid, at the old price of course.  I wonder if he would have shown up if the price had been down 10%...

(Do I need to put a "" here?)

[nahtnam]

I was talking with support yesterday. Turns out they had a backlog for a few hours. The transaction got cleared in about 5 hours.

It occasionally does that.

Its worth it though since they pay a 0.0002 tx fee for every transaction over 0.001!

[Xiaoxiao]

Coinbase is WORSE than paypal.  They are straight up liars and thieves.  I wish I could prove this in a court of law.  In fact, I might just make it my life's goal to take down coinbase.  I am a persistant and capable person.


WHERE is my compensation?  oh i get it, it would cost you guys too much to compensate me

[One Six]

I liked Coinbase.

That is, until last night.

I sell a lot of BTC locally. I met up with a new buyer last night that was going to buy 10 BTC in cash.

First time, new buyers, with a lot of cash on them are nervous people. Rightfully so, I suppose. After all, they are meeting a stranger from the internet to buy an intangible item that is shrouded in unknowns to the average Joe.

I have the Coinbase wallet on my Android phone. So, I sent 10 BTC from my laptop to my phone and met up with the buyer 2 hours later at a Starbucks.

We're sitting there, he counts out the money for the first transfer. Then I count it. It's correct. The money stays on the table underneath the edge of his laptop.

I scan his QR code with my android and send him the first transfer to his address.

10 seconds go by...nothing showing up on blockchain.
A minute goes by...nothing showing up on blockchain.
5 minutes go by...nothing showing up on blockchain.
15 minutes go by...nothing showing up on blockchain.

His nervousness is starting to become obvious. The transfer is sent according to my Coinbase app, having been deducted from my Available BTC balance.

30 minutes go by...nothing showing up on blockchain.
AN HOUR goes by...nothing showing up on blockchain.
TWO HOURS go by...nothing showing up on blockchain.

After two hours of sitting there, he informs me that he has to go pick up 2 couches from a guy on Craigslist. The problem is, he doesn't want to leave without his cash if the blockchain isn't showing the transfer. I can't leave without the money because I've already sent the coins.

We're in a bit of a quagmire.

He's sitting there, skeptical as can be. He thinks I'm trying to hustle him...and I'm definitely not.

Long story short? I end up helping him carry 2 *MASSIVE* couches out of one apartment and into his truck. Then driving the couches 20 minutes away to his girlfriends house and carrying them UP THREE FLIGHTS OF STAIRS. The one couch was so large it took us 45 minutes to get it through the final door into the apartment. It was probably 90-100% humidity and 85 degrees. I was wearing dress pants and flip flops. I wasn't planning on playing Sanford and Son.

At this point it is FOUR HOURS after I sent the transfer...and surprisingly it is *STILL* not showing up on the blockchain.

I had enough. I give him the cash back and tell him I'll meet up with him the next day. I'm trusting that he won't take the coins and run, something my better judgement tells me not to do.

9 hours later he texts me. The transfer finally went through. He met me at an IKEA this afternoon and settled up. A man of his word. I definitely respect that.

What did I learn? Coinbase is awful to use as a practical, every day wallet. They ultimately decide how YOU spend YOUR bitcoin. This is very much reminiscent of Paypal. No thanks.

I sent a support ticket to Coinbase Support and received a reply that they were "having an issue syncing to the blockchain". I think we all know this is nonsense. Loss prevention tactic of some sort is more likely. Like some sort of stunt Paypal would pull.

In my last reply to Coinbase Support, I asked for compensation for the entire ordeal. You know how they give referral fees to people for referring new customers? I told them they should send me that as damages for the entire ordeal. I promised to buy an extra large slurpee with the Bitcoin, if they send it.

If they actually send me the free btc, I'll post a pic of the slurpee.

Either way, I won't be using Coinbase as my "hot" wallet anymore.

Blockchain Android app it is!

I could really use that slurpee right about now..

Very interesting situation. Thank you for sharing. Coinbase $10 compensation was 

[ninjaboon]

For face to face txs, I use mycelium or the blockchain app on my droid.
Coinbase tx takes 1 hour to usually show up on the blockchain.

[nahtnam]

For face to face txs, I use mycelium or the blockchain app on my droid.
Coinbase tx takes 1 hour to usually show up on the blockchain.

For me, it usually takes a few seconds. Rarely for it take more than 5 minutes.

[gijoes]

Very interesting situation. Thank you for sharing. Coinbase $10 compensation was  

Sure it's all nice. Until Coinbase decides to rip you off completely. Then you're pretty much fucked up.

[Xiaoxiao]

Coinbase always does little things, such as compensate you $10-$50.  But when they need to compensate you $2000 or $10,000.  They don't do it! lol.

[spiceminer15]

Face of face transfers I use team viewer into my box and transfer using bitcoin core. Works in seconds never failed me.

[ABISprotocol]

I recently closed my Coinbase.com account permanently.  Or tried to.  I demanded they erase all record of my data they have on their servers (except for transactions, duh, because they are on the blockchain), and they told me they planned on keeping my data for FIVE YEARS.  I told them they'd be hearing from my lawyer.  (Not sure if I actually want to go down that legal road yet, but I do know I'll never be talking to, or using Coinbase again.)

I've recently closed my BitPay account, too, and have asked them to delete all my data, also. BitPay is behaving more intelligently than Coinbase.  They're "looking into it" and taking their time with my request (while sending me little updates letting me know that they're seriously working on it) instead of just telling me that they are going to keep my data for the duration of the life of a guinea pig.  Bear in mind, though, I don't recommend you use BitPay - they are one of the supporters of the Windhover proposal to regulate your digital identity (because hey, let's discard any hope of freedom, because a bunch of companies controlling your identity in line with the corporation-state regulatory interests is so much more preferable! **sarcasm**)

In case you are wondering, yes, I posted this:
https://bitcoinfoundation.org/forum/index.php?/topic/1132-open-letter-to-bitcoin-businesses-why-im-closing-my-accounts/
which now has over 15,000 views.

I'm currently using Electrum and OpenBazaar for BTC (and some other things that are not reliant upon websites), and am transitioning a good portion of my BTC to BCN (which has a good degree of anonymity, in the context of its Cryptonight algo and schnorr ring signature process), until such time that Zerocash is released (http://zerocash-project.org/ for those interested, anticipated release is sometime in December 2014 or January 2015, at the moment).

BTW, for those tracking WebCrypto issues (you know, for those that are still working on handling issues relating to decentralized crypto in your browser instead of in a P2P app), the W3C just (finally) opened up to inclusion of both Curve25519 and secp256k1 in WebCrypto ~ the Curve25519 request was originally made by someone (Matt Corallo, specifically) from Open Whisper Systems and TextSecure. Link to some of that discussion is here: https://www.w3.org/Bugs/Public/show_bug.cgi?id=25839  A variant of Curve25519 is used in BCN. For the other, secp256k1, which is used in bitcoin, a good description came from Hal Finney (R.I.P.) which he posted in bitcointalk, in which he described sec256k1 as "a variant on a so-called Koblitz curve, and 1 means it is the first (and only) curve of that type in the standard."  In that same bitcointalk thread where Hal Finney made those remarks, the user ByteCoin in January of 2011 stated, "One plausible option for a future bitcoin-like system is to allow a selection from a numbered range of pre-selected curves. Smaller transactions or balances could use smaller keysizes if necessary."  [[ ByteCoin is associated with development of BCN, which uses the Cryptonight algorithm (based from CryptoNote with adaptive limits) / a schnorr ring signature in the Curve25519 group ~ and has received favorable remarks from some bitcoin developers. ]]

Maybe a short way of saying all this is as follows:

Screw you, Coinbase!  We're going trustless.

 

Admittedly TL;DR, but if you made it this far:  Disclosure:  I am a candidate for an Individual Director seat for the Bitcoin Foundation (election is in Jan. 2015), nominated by Mike Hayes and Jon Matonis.