business idea

[albert11]

I know this has already been done in several asian countries but i havn't heard of such service in europe/US/africa,etc...

The idea would be to be able to buy a token in any newsagents(could even be a bitcoin scratch card) and redeem it on a website for btc, a bit similar to how ukash operates, when redeeming the code your euro/dollar/etc. balance will be credited and you could then trade for btc on that same site/app.

Bitcoin aim to bank the unbanked but most btc exchanges require you to have a bank account so the unbanked don't have easy ways to buy bitcoin.
If anyone could just hand over some cash at any newsagent ,redeem and buy bitcoin with their smartphone it will help mass adoption.

This would also allow btc users to have more privacy.

let me know what do you think?

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[Kprawn]

How do you make sure, that the "token" creator did not have access to the private keys of every "scratch card" he created?

We will see scams like this, pop up over night when this takes off.

It is a great idea, and it will surely make things easier for people to buy into bitcoin.. BUT the operator will have to find a way to make the token fully secured.

[lyth0s]

Token would be the QR code for a small amount of bitcoin of which are swept into your own wallet. I think this is a very good idea OP.

[bitfilliates]

I think this could work very well if everything is secure. If I am getting this right it is like a giftcard you can redeem but for bitcoin?

[Q7]

never heard about this before. Is it something like a scratch card? How does the coin gets delivered once payment is done?

[albert11]

here is an example of how it could work.

Say the company is called bitcash

The company will issue every newsagents with bitcoin scratch cards that have fiat value, say: 5$ cards , 10$ card , 20$ card , 50$ card etc...

Customers go to any newsagents, say he buys a 20$ card with cash

Then goes to bitcash.com , create an account with email,password and username

Scratch the card to discover his token, enter the token in the website and the 20$ balance will be credited automatically to his account.

Then he can just create a buy offer for whatever amount and will receive BTC.

bitcash.com will have a build in trading plateform as well as the redeem system.


Security wise i'm not sure what could go wrong unless operators issue fake/unredeemable token, in this case his business will sink before it evens starts

What would be the regulatory requirement of running such business?

note: bitcash.com was just used as an example,

[bitfilliates]

here is an example of how it could work.

Say the company is called bitcash

The company will issue every newsagents with bitcoin scratch cards that have fiat value, say: 5$ cards , 10$ card , 20$ card , 50$ card etc...

Customers go to any newsagents, say he buys a 20$ card with cash

Then goes to bitcash.com , create an account with email,password and username

Scratch the card to discover his token, enter the token in the website and the 20$ balance will be credited automatically to his account.

Then he can just create a buy offer for whatever amount and will receive BTC.

bitcash.com will have a build in trading plateform as well as the redeem system.


Security wise i'm not sure what could go wrong unless operators issue fake/unredeemable token, in this case his business will sink before it evens starts

What would be the regulatory requirement of running such business?

note: bitcash.com was just used as an example,

So pretty much buying paper wallets but connected to a third party site?

[Q7]

Then, how do they ensure that the private key has not been redeemed before or compromised? Also there's some opportunity for some fake scratch cards getting issued.

Note: I'm not against the business idea, just would like to know more how all these work

[albert11]

here is an example of how it could work.

Say the company is called bitcash

The company will issue every newsagents with bitcoin scratch cards that have fiat value, say: 5$ cards , 10$ card , 20$ card , 50$ card etc...

Customers go to any newsagents, say he buys a 20$ card with cash

Then goes to bitcash.com , create an account with email,password and username

Scratch the card to discover his token, enter the token in the website and the 20$ balance will be credited automatically to his account.

Then he can just create a buy offer for whatever amount and will receive BTC.

bitcash.com will have a build in trading plateform as well as the redeem system.


Security wise i'm not sure what could go wrong unless operators issue fake/unredeemable token, in this case his business will sink before it evens starts

What would be the regulatory requirement of running such business?

note: bitcash.com was just used as an example,

So pretty much buying paper wallets but connected to a third party site?

No it is not similar to paper wallet, it is just a way for people to deposit money in a trading website without using a bank account.

[albert11]

Then, how do they ensure that the private key has not been redeemed before or compromised? Also there's some opportunity for some fake scratch cards getting issued.

Note: I'm not against the business idea, just would like to know more how all these work

The scratch cards will not display any private key, just a random number that will credit your bitcash.com account with a fiat balance

Not sure about the fake scratch cards, for example when i buy a ukash voucher at a news agent i don't ask myself if the number will be valid or not , i know it will be because the company is reputable and i have never heard of anyone getting a fake code.
Iit will be the same for this company i guess, they will have to gain trust, would be interesting to know how ukash started their business too.

To start this kind of business you would have to have a hefty investment and very good connection /partnership etc.. but if owner charges a small fee on their site for each trade i think it could be a big money maker.

I dont have investment and marketing skills to do that on such a big scale but im sure people do so thought i'd put the idea out there.

Then regulation wise not sure what the requirements are...

[ajaxmoor]

Then, how do they ensure that the private key has not been redeemed before or compromised? Also there's some opportunity for some fake scratch cards getting issued.

Note: I'm not against the business idea, just would like to know more how all these work

The scratch cards will not display any private key, just a random number that will credit your bitcash.com account with a fiat balance

Not sure about the fake scratch cards, for example when i buy a ukash voucher at a news agent i don't ask myself if the number will be valid or not , i know it will be because the company is reputable and i have never heard of anyone getting a fake code.
Iit will be the same for this company i guess, they will have to gain trust, would be interesting to know how ukash started their business too.

Definitely a good thing to have, but seems its also a way to be scammed. I wonder how does Ukash does it, but they don't have a system of private keys like bitcoin and a 3rd party can't really have the code without having to scratch the code.

[Elwar]

Here in Germany you can buy a phone card with a bar code.
When you make your purchase a code is printed on your receipt. You then take that code to the online phone website and get credited for the amount.

It avoids people stealing the cards.

[lolled]

Then, how do they ensure that the private key has not been redeemed before or compromised? Also there's some opportunity for some fake scratch cards getting issued.

Note: I'm not against the business idea, just would like to know more how all these work

The scratch cards will not display any private key, just a random number that will credit your bitcash.com account with a fiat balance

Not sure about the fake scratch cards, for example when i buy a ukash voucher at a news agent i don't ask myself if the number will be valid or not , i know it will be because the company is reputable and i have never heard of anyone getting a fake code.
Iit will be the same for this company i guess, they will have to gain trust, would be interesting to know how ukash started their business too.

Definitely a good thing to have, but seems its also a way to be scammed. I wonder how does Ukash does it, but they don't have a system of private keys like bitcoin and a 3rd party can't really have the code without having to scratch the code.

Well the scratch code can always be the private key in this case so people won't be scammed by other users having access to the card.

[noma]

Here in Germany you can buy a phone card with a bar code.
When you make your purchase a code is printed on your receipt. You then take that code to the online phone website and get credited for the amount.

It avoids people stealing the cards.

I think the QR code idea would be the most successful one. But how will you be certain the card had not been claimed before you bought it ?

[hhanh00]

Here in Germany you can buy a phone card with a bar code.
When you make your purchase a code is printed on your receipt. You then take that code to the online phone website and get credited for the amount.

It avoids people stealing the cards.

I think the QR code idea would be the most successful one. But how will you be certain the card had not been claimed before you bought it ?

It's like a gift certificate. The card has a unique serial number and is activated once you pay for it. For the company that issues it, it avoids locking money into a bunch of cards that are sitting on a display. For the merchant, it prevents theft of expensive cards. Until ringed by the merchant, they have no value. Finally, the buyer can immediately transfer the balance to his wallet if he wants or give it to someone else as a gift.

[xDan]

I'm sure this kind of thing will be critical to widespread Bitcoin adoption. Making buying bitcoin as easy as buying mobile credit.

But it might not be worth doing until there is more widespread utility for Bitcoin... So, it's a bit of a chicken and egg thing.

[Bitcoinexp]

I like the idea a lot. Could speed up mass adoption. I have a few question, based on your examples... you said that it is a scratch card, but you gave an example that 20$ price tag = 20$ worth of bitcoins. If it's a scratch card shouldn't there be a range of 'prizes' that the buyer can get? Just 20$ worth for 20$ is kinda boring for a scratch card. 2nd question, how would the bitcoins be maintained. Because it's price is volatile...through a site?

[Elwar]

Here in Germany you can buy a phone card with a bar code.
When you make your purchase a code is printed on your receipt. You then take that code to the online phone website and get credited for the amount.

It avoids people stealing the cards.

I think the QR code idea would be the most successful one. But how will you be certain the card had not been claimed before you bought it ?

Having the private key in stores makes it way too prone to abuse. The store manager would go to the card rack only to find they've all been scratched off and the coins gone.

A deal between the merchant and company is the way to go, they either have codes corresponding to the bar codes already loaded or they get paid upon sale electronically and are given a code. There's not a lot of up front cost if you don't buy the bitcoins until the actual sale. And it allows for people to buy it at market value at the time of purchase.

A receipt with "You have .12312809 bitcoins waiting for you at bitcard.com/IF3392J29LP"

[steveturk]

how would the shop make money ? how would the scratch card supplier make money?

[croato]

This could be great, sure we need more simple ways to buy bitcoin. I think that is one of things which could make great push for mass addoption.