re: Predict the 12/31/2014 bitcoin price (plus 2013 year in review)

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Man, I try to understand it, I really do, but what I don't get is if I own a business, and I am selling a product for $800, or the price of 1 bitcoin, why would I accept a bitcoin as a method of payment with the chance I will not get the true price of the product I sold if bitcoin tanks again? Are these businesses who accept them not taking on major unnecessary risks?

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Most merchants that accept bitcoin today utilize third party services that remove the exchange rate risk. These services process the transactions and remit US dollars to the merchant, and take a usually less than 1% fee. This is better than the standard 3-4% fees for credit cards, so you can see why merchants would choose this options. Plus the merchant is not on the hook for any chargebacks or fraud.

Some merchants choose to keep a small percent in bitcoin, and even fewer choose to never convert to US dollars.

Also, despite the volatility, the trend has always been beneficial for holders.



Looking out longer term, when volatility is no longer an issue, why would merchants want to accept bitcoin? Because it's much cheaper and faster than current options, there is no risk for chargebacks, they will not be on the hook for fraud, they can offer their goods and services globally (which cannot be done with credit cards or paypal as they limit certain countries), and they can never be subject to censorship either at the corporate or government levels (for instance, paypal and credit card companies have been known to shut off access to their network to certain participants for a variety of reasons....Wikileaks, certain porn companies, etc.)

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It can and will eventually be used for other purposes, such as notary, title, escrow and stock exchanges.

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You are just so dishonest.

BitPay, which is one of the third parties you have frequently touted for businesses to use to remove exchange risk, takes an incredibly high haircut on the exchange rate.

For example, as I post this BitPay shows it will credit a merchant who uses its service to lock in an exchange rate $806.01 for 1 btc. The rates are updated "every minute" according to their website.

At the exact same time the exchange rate on Mt Gox, the largest btc exchange site in the world, is $879.00/btc.

So that "less than 1% fee" translates into costing the merchant $73. It is actually costing him an exchange fee equal to 8.3% for using your "third party service that removes exchange risk."

I can't believe anyone would ever believe anything you post.

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This is really pathetic, even coming from you.

You deliberately post lies in order to bait me into replying to you, and normally I just ignore you but this post is so wrong that I had to reply.

PSA to everyone: LSURussian is a liar when it comes to bitcoin threads. He will never debate it honestly. If you have any questions about bitcoin I will happily answer them. I am even willing to talk about the weaknesses of bitcoin.

Now onto the lies:

LSURussian's entire post is based on the price disparity of MtGox versus other exchanges. LSURussian is fully aware of the USD withdrawl issues that MtGox is experiencing because it has been discussed numerous times in threads he's posted in and he's even made posts on it himself.

Getting USD out of MtGox is damn near impossible and has been for the last 7 months or so. Thus there is a premium on USD bitcoin purchases there. Therefore, other exchanges are generally used as a more accurate price. For instance, Bitstamp is probably the most popular exchange for Americans right now, and their price as I type is $807, quite close to the price that LSURussian said BitPay was exchanging for ($806.01).



I think what is most disturbing in all of this is that the Money Board community is so terrified of LSURussian that they won't call him out on his bullshite. C, Broke, Benny, you are all smart enough to see through his games but you never call him out. Why?

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How?

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LINK

LINK

better explanations than I could ever give

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In that case, I'd say the exchange rate on MtGox is actually $0.

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They deal in currencies other than the USD. And there is still an active USD market on it, so no, it's not $0. Maybe it is for you personally, but not for everyone.

When do you think this volatility will cease?

What about all these "altcoins"?

I mean, if they won't give you any dollars for it, it's worth zero dollars. Right? Something is only worth whatever someone will pay for it. Like, when we were kids my brother had a magazine that told him what his Pokemon cards were "worth." But his Pikachu was never really worth $35, because no one would actually have paid him that much for it. The listed prices were essentially made up.

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They deal in currencies other than the USD.

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Well that's a different story. Are you saying you can get actual money from MT Gox, but not dollars, specifically? So you could cash out by exchanging bitcoins for pesos (or whatever), then exchanging those pesos for dollars somewhere else? That doesn't make a lick of sense to me, but whatever.

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LSURussian's entire post is based on the price disparity of MtGox versus other exchanges.

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I was using the price from the same exchange YOU are using in the OP of THIS THREAD.

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Bitcoin began 2013 valued at approximately $13.30 on MtGox*.

Bitcoin ended 2013 valued at approximately $815.00 on MtGox.


That is an increase of 6027.82%.

*MtGox price is used because it was the only exchange with substantial volume throughout the entire year, and thus it's difficult to compare the beginning of the year price to the end of the year price using other exchanges.

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If MtGox is NOT an accurate measure of the value of bitcoin, WHAT'S THE POINT OF USING THAT EXCHANGE FOR YOUR THREAD'S CONTEST!?!

You get really, really grouchy when you get caught in one of your lies.

I see you added an edit to your post calling me a liar when I used YOUR preferred btc exchange for establishing the value of btc.

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C, Broke, Benny, you are all smart enough to see through his games but you never call him out. Why?

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Could it be they know I'm not lying and YOU are?

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the Money Board community is so terrified of LSURussian

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WTF? Have you gone completely nuts? Nobody is terrified of anyone on this board! They have all called me out on things when I've been wrong! Your delusions are getting worse and worse!

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see you added an edit to your post calling me a liar

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uh no, you moron. I posted it at 5:42 and edited at 5:45 to fix typos and shite.