CoinStar

[marhjan]

I had this idea today - and should probably try to develop it myself but that won't really happen.  So - anyway I'm just going to leave this here and see if anyone will run with it.

You know those CoinStar machines in supermarkets etc?  (in USA afaik)  They convert small change into USD for a fee of about 9% - most of them now also have the option to buy various gift cards for the full value of your change (Amazon, ITunes, various restaurants etc...)

What if someone set up a venture to sell btc this way??  It's irreversible once the customer prints out the voucher - so no worries about chargebacks etc.  You could either print out both the public and private keys on the voucher or some redemption code valid on Coinbase or Circle or some other yet to exist site.  This would never be a way to buy large amounts of btc (or even other alt coins) but pretty much everyone has at least $50 in change laying around and a good way to get people 'on the fence' involved.

Anyway - it strikes me as a good idea.  Feel free to discuss and develop it.  I really hope one day soon it's an option to convert my spare change into btc!

[cma3]

I had this idea today - and should probably try to develop it myself but that won't really happen.  So - anyway I'm just going to leave this here and see if anyone will run with it.

You know those CoinStar machines in supermarkets etc?  (in USA afaik)  They convert small change into USD for a fee of about 9% - most of them now also have the option to buy various gift cards for the full value of your change (Amazon, ITunes, various restaurants etc...)

What if someone set up a venture to sell btc this way??  It's irreversible once the customer prints out the voucher - so no worries about chargebacks etc.  You could either print out both the public and private keys on the voucher or some redemption code valid on Coinbase or Circle or some other yet to exist site.  This would never be a way to buy large amounts of btc (or even other alt coins) but pretty much everyone has at least $50 in change laying around and a good way to get people 'on the fence' involved.

Anyway - it strikes me as a good idea.  Feel free to discuss and develop it.  I really hope one day soon it's an option to convert my spare change into btc!

You mean like an ATM? They're out there:
http://www.coindesk.com/bitcoin-atm-map/

[marhjan]

Not really like an ATM at all - and based on that map the closest one to me is several hundred miles....   There is also a huge existing network of CoinStar machines - and I highly doubt these btc ATMs are going to accept a bucket of change either.  But thanks for the read and reply

[cma3]

i see what you mean -- literally a coinstar machine -- got you.

that would be crazy. it would also provide a purpose for that big ass water jug full of pennies at my in-laws house. i'd commandeer that sh!t quick-fast.

[marhjan]

i see what you mean -- literally a coinstar machine -- got you.

that would be crazy. it would also provide a purpose for that big ass water jug full of pennies at my in-laws house. i'd commandeer that sh!t quick-fast.

Yep - that's EXACTLY my point.  Hopefully someone with some business sense will run with this and make a little money while providing a service as well

[CincyFan]

I think it's a smart idea marhjan.  It would certainly get the bitcoin ideal in front of more people.  The only trouble I see with it is fiat price volatility.  People will likely choose a gift card payout that will maintain its fiat value for more than a few minutes.

Unfortunately, for now, people don't really understand the true value of bitcoin.

[coinableS]

I love the idea! Someone make it happen and I would definitely use it

[franky1]

well i just sent them a message

There has been a lot of developments lately in the financial area known as bitcoin.
Just like itunes and other gift cards, alot of people are looking to find the simplest ways to buy bitcoins without the hassle of using credit cards and/or doing so online. as we both know, many folk still prefer to use proper cash locally in shops they can walk into.
So it came to my attention whilst using one of your wonderful machines that your company can fill this niche market whilst yourselves making profits on the conversion process (transaction fee).
Thus I and many customers around the world would look forward to seeing Coinstar adopt bitcoin as one of your conversion options in the near future.
I look forward to any response you may have on any current plans to adopt bitcoin as part of the conversion services you offer or of course any future plans you may decide to take involving bitcoin

ill update if I get a reply.

(message was sent to Outerwall Inc, their main company)

and before rebuttals start about that i did not explain bitcoin in all of its great ways.. the reality is that techno waffle doesnt work at first contact, especialy if its seems too sales-pitch 'pushy'. (subtlety works best)

[franky1]

I think it's a smart idea marhjan.  It would certainly get the bitcoin ideal in front of more people.  The only trouble I see with it is fiat price volatility.  People will likely choose a gift card payout that will maintain its fiat value for more than a few minutes.

Unfortunately, for now, people don't really understand the true value of bitcoin.

the volatility is something drummed into you by media.. if you have not learned yet, coinbase, circle, bitpay don't care about volatility and neither do their merchants.

i do not see it as something that NEEDS to be released today, but to be thought about and to grow in the minds of outerwall inc, so that its ready for when bitcoin moves out of innovation phase and into mass adoption phase.

[EnFinlay]

Seems like a decent idea - I'd definitely use it if I had a chance.  One trouble with using the existing coinstar network is I'm not sure if they're internet connected - anyone know the answer to this one?

I think it's a smart idea marhjan.  It would certainly get the bitcoin ideal in front of more people.  The only trouble I see with it is fiat price volatility.  People will likely choose a gift card payout that will maintain its fiat value for more than a few minutes.

Unfortunately, for now, people don't really understand the true value of bitcoin.

the volatility is something drummed into you by media.. if you have not learned yet, coinbase, circle, bitpay don't care about volatility and neither do their merchants.

i do not see it as something that NEEDS to be released today, but to be thought about and to grow in the minds of outerwall inc, so that its ready for when bitcoin moves out of innovation phase and into mass adoption phase.

I think CincyFan was saying that consumers will be too paranoid about volatility to put their money into bitcoin.  Not a coinbase etc. side issue.

[BayAreaCoins]

Good idea.

My friend thinks the hopper would be $10,000+, but I think the idea would still be a great one.

Put the first location in SF.

I see this being far more important than Bitcoin ATM's.  

I will bring more people into Bitcoin which is just as powerful if not more so than huge sums of cash or one large vendor.

[marhjan]

On the east coast at least there is a CoinStar in most grocery stores and Wal-Mart's already.  This for me is a central point of the play - no one really needs any major capital expense to start this up.  The network of machines exists - and I'm 99% sure they are internet connected.  I'm not sure if distributing private keys at the location is feasible or if some sort of redemption code would make it simpler.

But this would reduce one of the major barriers to entry for people wanting to 'dip their toe' into btc.  Anyway - glad to see people are liking the idea - I hope it happens

[CincyFan]

That's correct.  I was talking about volatility with regard to the consumers.  That being said, I still think it's a great idea.

[franky1]

i can think of several different ways to implementing it. with a variety of ways of being anonymous or being a simple solution for customers. hopefully i get a positive reply from coinstar and can get a little more detailed with options, methods, explanations

That's correct.  I was talking about volatility with regard to the consumers.  That being said, I still think it's a great idea.

people wanting bitcoin to then instantly buy something is not the mindset of bitcoin 2014 (innovation stage) once bitcoin moves into the mass adoption stage the volatility would be smaller and more manageable so think long term picture. not just about today.

alot of people still think bitcoin will disappear in a couple months and get emotional about 1% fluctuations. relax people bitcoin is still like a toddler. screaming at its superiors and peers for attention, crying when it doesn't get what it wants and doesn't like being told what to do.

bitcoin has a long life ahead to grow up and become independent. so stop imagining the problems it will have running before its started to even walk

[ffe]

- and I'm 99% sure they are internet connected.  I'm not sure if distributing private keys at the location is feasible or if some sort of redemption code would make it simpler.

Even without internet the machine could print a dollar denominated voucher for Coinbase or a similar operator. The user would go to the website and be guided through setting up an account if he doesn't have one. His dollars would be converted to Bitcoin at the time he enters the voucher number on the site at the then current rate. Coinbase would collect dollars from CoinStar.

[franky1]

- and I'm 99% sure they are internet connected.  I'm not sure if distributing private keys at the location is feasible or if some sort of redemption code would make it simpler.

Even without internet the machine could print a dollar denominated voucher for Coinbase or a similar operator. The user would go to the website and be guided through setting up an account if he doesn't have one. His dollars would be converted to Bitcoin at the time he enters the voucher number on the site at the then current rate. Coinbase would collect dollars from CoinStar.

one thing im learning from the research im doing now is that coinstar do not pick up the coins and put it into their bank. instead the shop empties the machine and then puts it into the shops bank account. thus i think if i get a reply it would be something like the retailer has to offer a bitcoin exchange service to be able to offer it through their box. as the funds never really reach outerwall inc

[marhjan]

one thing im learning from the research im doing now is that coinstar do not pick up the coins and put it into their bank. instead the shop empties the machine and then puts it into the shops bank account. thus i think if i get a reply it would be something like the retailer has to offer a bitcoin exchange service to be able to offer it through their box. as the funds never really reach outerwall inc

That makes sense - there is really not much point in sending a truck around to pick up the change - the supermarket/Wal-Mart already has that happening - so yes some existing service would ideally be involved.  In the US either Coinbase or Circle spring to mind.  I suppose they might both have problems with AML/KYC type issues - and now that I think about it there's probably no viable way to get around those regulations in the United States.  But again I doubt that anyone using CoinStar to get some fraction of a btc will be all that concerned about strict anonymity.

[ytr8]

ultra-low cost contributes to the payment function,but  the payment functions now is not reflected, more and more people hold the Bitcoin only used to store value

[ScreamnShout]

one thing im learning from the research im doing now is that coinstar do not pick up the coins and put it into their bank. instead the shop empties the machine and then puts it into the shops bank account. thus i think if i get a reply it would be something like the retailer has to offer a bitcoin exchange service to be able to offer it through their box. as the funds never really reach outerwall inc

That makes sense - there is really not much point in sending a truck around to pick up the change - the supermarket/Wal-Mart already has that happening - so yes some existing service would ideally be involved.  In the US either Coinbase or Circle spring to mind.  I suppose they might both have problems with AML/KYC type issues - and now that I think about it there's probably no viable way to get around those regulations in the United States.  But again I doubt that anyone using CoinStar to get some fraction of a btc will be all that concerned about strict anonymity.

If the store deposits the coins to their bank account directly (or uses the coins as change at their registers) then the stores are likely paying coinstar some percentage of the revenue in exchange for the machine, or some kind of other franchise type arrangement. I would think in order for this to be potentially implemented that the individual stores would need to be on board to do this.

[deepceleron]

I had this idea today - and should probably try to develop it myself but that won't really happen.  So - anyway I'm just going to leave this here and see if anyone will run with it.

You know those CoinStar machines in supermarkets etc?  (in USA afaik)  They convert small change into USD for a fee of about 9% - most of them now also have the option to buy various gift cards for the full value of your change (Amazon, ITunes, various restaurants etc...)

In a Bitcoin ATM thread two years ago:

How about a business like CoinStar machines giving out BitCoins. They already have a business model charging dummies 9.8% for exchanging USD->USD. You'd only need a better way of giving machines your address than typing in 34 digits, a "print qr code for this address" in Bitcoin is a first step. Make a good usage model where interacting with the machines isn't hard (starting with a universal "pay to me" card that can give differing machines your bitcoin address) and they might consider it.

"An estimated 84 percent of coinstar users are women". Not going to comment on this one.

They recently sold off their money transfer business to Sigue, a company that profits from what Bitcoin does for free (http://www.sigue.com/index.php?option=com_content&view=article&id=122&Itemid=114), so they don't have a conflict of interest in now promoting an instant and free money transfer method.