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> 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
by 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 agoConsumers 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 agoSo, 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.