- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
re: Bitstamp Halts Withdrawls
Posted on 2/13/14 at 9:25 am to OnTheBrink
Posted on 2/13/14 at 9:25 am to OnTheBrink
quote:
Most businesses that accept bitcoins, immediately receive those bitcoins and convert to cash, right? I could be wrong on that. But if I am correct, doesn't that kind of defeat the purpose?
Yes, they typically convert to cash. BitPay and Coinbase both offer these services, they also give the merchant an option to keep a set percent in bitcoin as well if they so choose.
I don't believe it defeats the purpose at all. The problem is that most people think of bitcoin as a currency first. But really bitcoin is a transaction ledger with its own network. The "bitcoins" are just chits on the network that are used to track the movement of value. At its core, bitcoin is a revolutionary value transmission network. This is the true greatness of bitcoin that unfortunately gets ignored. So, a merchant can use bitcoin as a transaction network for much cheaper than the traditional transaction networks (Visa, MC, PayPal, cash, etc.)
quote:
If a business does receive bitcoin and immediately transfer it to cash, where does that bitcoin go? Back to the mining pool, or do they transfer it to someone who buys it?
BitPay and Coinbase sell those coins on various exchanges at the time of sale. So basically, it's just other people that are buying them.
5
Posted on 2/13/14 at 9:27 am to WikiTiger
quote:
The problem is that most people think of bitcoin as a currency first.
I disagree. I think they see it as a way to speculate.
Posted on 2/13/14 at 9:28 am to WikiTiger
quote:
So, a merchant can use bitcoin as a transaction network for much cheaper than the traditional transaction networks (Visa, MC, PayPal, cash, etc.)
Much cheaper because of the low volume.... Or what data do you have to suggest that the bitcoin network could handle the amount of transactions Mastercard deals with "daily" for less.
This post was edited on 2/13/14 at 9:28 am
Posted on 2/13/14 at 9:33 am to WikiTiger
quote:
The problem is that most people think of bitcoin as a currency first.
That's what it is right? A crypto-currency?
quote:
But really bitcoin is a transaction ledger with its own network. The "bitcoins" are just chits on the network that are used to track the movement of value. At its core, bitcoin is a revolutionary value transmission network. This is the true greatness of bitcoin that unfortunately gets ignored.
That's where I, and most of the common folk get lost.
quote:
So, a merchant can use bitcoin as a transaction network for much cheaper than the traditional transaction networks (Visa, MC, PayPal, cash, etc.)
Then why are more not doing it?
Also, the other day on the OT, a guy used a poor example, IMO, of how he used bitcoin and did it with ease. Went to gyft.com(sp?), bought an amazon gift card, then went to amazon and made his purchase. What would make the everyday consumer attracted to that?
Posted on 2/13/14 at 9:36 am to WikiTiger
quote:I thought that was the purpose of bitcoin...to be a digital currency not issued by fiat. So if "most people think of bitcoin as a currency first" how can that be a "problem"??
most people think of bitcoin as a currency first.
Your inconsistency cracks me up.
Posted on 2/13/14 at 10:18 am to WikiTiger
quote:So now you are saying Bitcoin is really just an innovative accounting system. Except for one problem, what about all of the off-the-books transactions? Off-the-books transactions allow for all sorts of manipulation. Remember Enron with its off balance sheet entities?
But really bitcoin is a transaction ledger with its own network. The "bitcoins" are just chits on the network that are used to track the movement of value. At its core, bitcoin is a revolutionary value transmission network.
Page 1 of 1
Popular
Back to top
Follow TigerDroppings for LSU Football News