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I think it's a bit far-fetched to claim that MtGox failing is an existential threat to Bitcoin. Once it becomes widespread knowledge that merchants can accept B

by natrius 13y ago

I think it's a bit far-fetched to claim that MtGox failing is an existential threat to Bitcoin. Once it becomes widespread knowledge that merchants can accept Bitcoin with no fees (up to $1M) and get the exact dollar amounts in their bank accounts, they will accept Bitcoin, and they'll prefer it. Some will prefer it to an extent that they'll offer discounts for using it. Consumers will buy Bitcoin in small increments the way they buy gift cards to get lower prices at grocery store gas stations. Coinbase or BitPay losing their customers' money would be an existential threat to Bitcoin. MtGox? Not really.

unclebucknasty 13y ago
>Coinbase or BitPay losing their customers' money would be an existential threat to Bitcoin. MtGox? Not really. If MtGox was still the massively dominant exchange that it once was, I would say that it would be at least an equal existential threat to BTC. To this point, BTC has survived (even thrived) without much use as a payment currency (relatively speaking). It's been more about trading. So, to the extent that a MtGox failure is survivable for BTC, it's because there are now other exchanges with significant market share to support liquidity and trading activity until its use for payments takes hold (if ever).
- anigbrowl 13y ago
  Many individuals grew suddenly rich. A golden bait hung temptingly out before the people, and, one after the other, they rushed to the tulip marts, like flies around a honey-pot. Every one imagined that the passion for tulips would last for ever, and that the wealthy from every part of the world would send to Holland, and pay whatever prices were asked for them. The riches of Europe would be concentrated on the shores of the Zuyder Zee, and poverty banished from the favoured clime of Holland. Nobles, citizens, farmers, mechanics, seamen, footmen, maidservants, even chimney sweeps and old clotheswomen, dabbled in tulips. - Charles Mackay, Extraordinary delusions and the madness of crowds
JohnTHaller 13y ago
> Once it becomes widespread knowledge that merchants can accept Bitcoin with no fees (up to $1M) and get the exact dollar amounts in their bank accounts, they will accept Bitcoin, and they'll prefer it. Completely glossing over the fact that nearly all consumers have credit cards and have never heard of bitcoin. And that consumers won't have any of the consumer protections they enjoy with credit cards or those fancy cash back rewards (consumers really like cash back cards). And that whole 15 minute confirmation time, which would make it extremely difficult to use in retail.
- natrius 13y ago
  Consumers didn't have gift cards for gas, either. Lots do now. Those gift cards have no consumer protections. When I buy items with Bitcoin, I pay and I walk away, so confirmation time is a non-issue in practice. Cash back is a fair point, but if merchants offer discounts greater than one percent, it's a moot point.
  - JohnTHaller 13y ago
    So, does the retail establishment keep the consumer there for 15 minutes while the transaction is verified to avoid that whole double-spend issue? Consumers know to treat gift cards like cash (they lose em, they lose everything) and that they have no protections. Credit cards and debit cards are a very different thing. And they're backed by these things called banks which are regulated and insured, as opposed to bitcoins which some people keep in unregulated exchanges that can lose nearly 7% of the entire bitcoin currency without anyone noticing.

by natrius 13y ago

unclebucknasty 13y ago

>Coinbase or BitPay losing their customers' money would be an existential threat to Bitcoin. MtGox? Not really. If MtGox was still the massively dominant exchange that it once was, I would say that it would be at least an equal existential threat to BTC. To this point, BTC has survived (even thrived) without much use as a payment currency (relatively speaking). It's been more about trading. So, to the extent that a MtGox failure is survivable for BTC, it's because there are now other exchanges with significant market share to support liquidity and trading activity until its use for payments takes hold (if ever).

anigbrowl 13y ago
Many individuals grew suddenly rich. A golden bait hung temptingly out before the people, and, one after the other, they rushed to the tulip marts, like flies around a honey-pot. Every one imagined that the passion for tulips would last for ever, and that the wealthy from every part of the world would send to Holland, and pay whatever prices were asked for them. The riches of Europe would be concentrated on the shores of the Zuyder Zee, and poverty banished from the favoured clime of Holland. Nobles, citizens, farmers, mechanics, seamen, footmen, maidservants, even chimney sweeps and old clotheswomen, dabbled in tulips. - Charles Mackay, Extraordinary delusions and the madness of crowds

JohnTHaller 13y ago

> Once it becomes widespread knowledge that merchants can accept Bitcoin with no fees (up to $1M) and get the exact dollar amounts in their bank accounts, they will accept Bitcoin, and they'll prefer it. Completely glossing over the fact that nearly all consumers have credit cards and have never heard of bitcoin. And that consumers won't have any of the consumer protections they enjoy with credit cards or those fancy cash back rewards (consumers really like cash back cards). And that whole 15 minute confirmation time, which would make it extremely difficult to use in retail.

natrius 13y ago
Consumers didn't have gift cards for gas, either. Lots do now. Those gift cards have no consumer protections. When I buy items with Bitcoin, I pay and I walk away, so confirmation time is a non-issue in practice. Cash back is a fair point, but if merchants offer discounts greater than one percent, it's a moot point.
- JohnTHaller 13y ago
  So, does the retail establishment keep the consumer there for 15 minutes while the transaction is verified to avoid that whole double-spend issue? Consumers know to treat gift cards like cash (they lose em, they lose everything) and that they have no protections. Credit cards and debit cards are a very different thing. And they're backed by these things called banks which are regulated and insured, as opposed to bitcoins which some people keep in unregulated exchanges that can lose nearly 7% of the entire bitcoin currency without anyone noticing.