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The way I see it, unless you are a speculator/miner, there is no upside to using bitcoin for transactions right now. The risks are too high for almost existence

by FigBug 13y ago

The way I see it, unless you are a speculator/miner, there is no upside to using bitcoin for transactions right now. The risks are too high for almost existence benefits. I understand when merchants would be pushing bitcoin, no fees, no charge backs etc. But what is the benefit for the consumer?

berberous 13y ago
The reduced fees could be split by consumer and merchant, so that the consumer gets lower prices. Practically though, I agree with you; right now the ability to reverse transactions is probably worth more than any price savings.
- FigBug 13y ago
  I just ran the numbers for curiosities sake: The average American spends $20,000 on their credit cards. If credit card fees are 4% and the retailer gives half back, the customer saves: $400 a year. To save $400, the customer: - Gives up access to credit - Gives up 30 day interest free on purchases - Gives up 1% back rewards ($200) - Gives up fraud protection - Takes on the risk of carrying 'virtual cash' Of course all these services could be built on top of bitcoin, but that's going to cost money and eat into what little saving there already was. I can't see bitcoin working in retail. Maybe for easy currency exchange between people in different countries it'll succeed. Not sure where else.
- wpietri 13y ago
  One important barrier to this is that merchant agreements, at least years ago when I last read one carefully, prevented you from offering lower prices to non-credit-card payers.
  - einhverfr 13y ago
    Although I am not that big of a fan of Dodd-Frank on the whole, one good thing in that bill, at least in the US, is that it outlawed such clauses in merchant agreements.
    - wpietri 13y ago
      Wow, I missed that. Great to hear!
MichaelGG 13y ago
I'm not sold on the dream of Bitcoin. But I will say that for a high-risk, international service (VoIP), Bitcoin via Coinbase is a fantastic thing. Fraud is massive, yet we have customers all around the world. With Bitcoin, they can buy locally from Egypt to China and instantly transfer to us. They get service with less payment hassle, we get risk-free cheap transfers. The most popular alternative is using Western Union, which is more work and more expensive. And Coinbase eliminates the exchange risk (well in theory). But general consumers? Yeah I can't see myself buying something with BTC.

by FigBug 13y ago

berberous 13y ago

The reduced fees could be split by consumer and merchant, so that the consumer gets lower prices. Practically though, I agree with you; right now the ability to reverse transactions is probably worth more than any price savings.

FigBug 13y ago
I just ran the numbers for curiosities sake: The average American spends $20,000 on their credit cards. If credit card fees are 4% and the retailer gives half back, the customer saves: $400 a year. To save $400, the customer: - Gives up access to credit - Gives up 30 day interest free on purchases - Gives up 1% back rewards ($200) - Gives up fraud protection - Takes on the risk of carrying 'virtual cash' Of course all these services could be built on top of bitcoin, but that's going to cost money and eat into what little saving there already was. I can't see bitcoin working in retail. Maybe for easy currency exchange between people in different countries it'll succeed. Not sure where else.
wpietri 13y ago
One important barrier to this is that merchant agreements, at least years ago when I last read one carefully, prevented you from offering lower prices to non-credit-card payers.
- einhverfr 13y ago
  Although I am not that big of a fan of Dodd-Frank on the whole, one good thing in that bill, at least in the US, is that it outlawed such clauses in merchant agreements.
  - wpietri 13y ago
    Wow, I missed that. Great to hear!

MichaelGG 13y ago

I'm not sold on the dream of Bitcoin. But I will say that for a high-risk, international service (VoIP), Bitcoin via Coinbase is a fantastic thing. Fraud is massive, yet we have customers all around the world. With Bitcoin, they can buy locally from Egypt to China and instantly transfer to us. They get service with less payment hassle, we get risk-free cheap transfers. The most popular alternative is using Western Union, which is more work and more expensive. And Coinbase eliminates the exchange risk (well in theory). But general consumers? Yeah I can't see myself buying something with BTC.