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"...despite companies trying to get free PR by saying they'll accept it, almost nobody uses it to buy anything other than drugs." I stopped reading right there

"...despite companies trying to get free PR by saying they'll accept it, almost nobody uses it to buy anything other than drugs." I stopped reading right there.

ssharp 12y ago
I don't really want this type of drive-by snark from a newspaper, but I think there is some truth to what was written. It's seems like any time a merchant announces they'll accept BitCoins, it will get pushed to the front page of /r/bitcoin and probably drum up some business because of it. I know of some local businesses who got online and print coverage for announcing that they're accepting BitCoin have hardly had any actual BitCoin activity. I'd be interested to see if any of the big companies, e.g. NewEgg, Overstock, etc., have seen sustained business increases from accepting BitCoins.
- jkyle 12y ago
  The overwhelming majority of those companies also don't actually accept bitcoin. They've brokered a deal with an exchange. Bitcoin payments are made to the exchange and the exchange pays the vendor in U.S. currency. So, the company isn't actually transacting in bitcoins.
  - drinkzima 12y ago
    By that token most companies do not take anything but their own currency. Currency hedging is something corporations do to align costs and revenues - companies generally are not trying to make money wagering on currency positions.
  - ssharp 12y ago
    Absolutely. They are accepting BitCoin for the convenience of customers, not because they hold a positive opinion of it.
Igglyboo 12y ago
It's hyperbole but it has some truth to it. Why would you go through the hassle and possibly loss of money to convert fiat to bitcoins then purchase things with bitcoins instead of just buying with fiat? You wouldn't, except that bitcoin is anonymous so you can use it to buy things privately. Most people really don't care enough about the privacy of an average amazon purchase to go through all this hassle. When you're buying illegal goods, however, privacy is #1. And what is the most popular item on the most popular illegal goods marketplaces? Drugs. Almost everyone I know that uses bitcoin is either speculating to make a quick buck, or using it to buy something on a darknet market. I'm sure there are people using it for everyday goods but it really doesn't make much sense to do that now unless you value your privacy very highly.
- ingler 12y ago
  > that bitcoin is anonymous It used to be anonymous. It's now highly traceable due to AML and KYC having been introduced into the Bitcoin ecosphere by regulation.
- wmil 12y ago
  It's also useful for bypassing currency controls. Some countries have an official exchange rate, but a very different black market exchange rate. In Venezuela , local bitcoin sites are selling BTC for the equivalent of over $6000USD at the official exchange rate. If you manage to exchange them without being robbed a few BTC can pay for a hell of a vacation.
moe 12y ago
They keep bringing that up as if it was a flaw. What's wrong with people using BTC to buy drugs? How is it better or worse than people buying drugs with any other currency? Why is it "bad" for Bitcoin to be useful and first adopted in that niche?
- 0xDOOD 12y ago
  >What's wrong with people using BTC to buy drugs? Other than it being illegal? Nothing.
  - moe 12y ago
    So the USD is also wrong, because most drugs are being paid for with USD?
    - 0xDOOD 12y ago
      No, the buying drugs part is what's 'wrong,' if you consider breaking the law to be a bad thing. But you're right to point out that, in sheer usage, Bitcoin really has nothing on the USD when it comes to buying drugs. Still, when you're asking why anyone would consider buying drugs with bitcoin to be wrong, you have to understand that not everyone considers that to be a positive or even entirely neutral act. Most people consider a currency whose primary use case involves breaking the law to be a net negative for society.
      - moe 12y ago
        not everyone considers that [buying drugs] to be a positive or even entirely neutral act Most european governments do. Germany, UK, Spain, Italy etc. include revenue from drug trade (and prostitution) in their GDP. Most people consider a currency whose primary use case involves breaking the law to be a net negative for society. Do you really believe any law would be broken any less if Bitcoin didn't exist? Should we also condemn BitTorrent for the same reason?
- dragonwriter 12y ago
  > What's wrong with people using BTC to buy drugs? The flaw that is raised isn't that BTC is used to buy drugs, but that it (in the view of those raising the complaint) doesn't have a strong use aside from buying drugs (and, while "drugs" are usually mentioned, the substance of the complaint appears to be more about drugs-as-popular-form-of-contraband rather than drugs-qua-drugs.) And given the way governments tend to respond to things that (1) are primarily used to facilitate unlawful trade, and (2) become increasingly popular, its a real, if political, risk for the Bitcoin ecosystem.

"...despite companies trying to get free PR by saying they'll accept it, almost nobody uses it to buy anything other than drugs." I stopped reading right there.

ssharp 12y ago

I don't really want this type of drive-by snark from a newspaper, but I think there is some truth to what was written. It's seems like any time a merchant announces they'll accept BitCoins, it will get pushed to the front page of /r/bitcoin and probably drum up some business because of it. I know of some local businesses who got online and print coverage for announcing that they're accepting BitCoin have hardly had any actual BitCoin activity. I'd be interested to see if any of the big companies, e.g. NewEgg, Overstock, etc., have seen sustained business increases from accepting BitCoins.

jkyle 12y ago
The overwhelming majority of those companies also don't actually accept bitcoin. They've brokered a deal with an exchange. Bitcoin payments are made to the exchange and the exchange pays the vendor in U.S. currency. So, the company isn't actually transacting in bitcoins.
- drinkzima 12y ago
  By that token most companies do not take anything but their own currency. Currency hedging is something corporations do to align costs and revenues - companies generally are not trying to make money wagering on currency positions.
- ssharp 12y ago
  Absolutely. They are accepting BitCoin for the convenience of customers, not because they hold a positive opinion of it.

Igglyboo 12y ago

It's hyperbole but it has some truth to it. Why would you go through the hassle and possibly loss of money to convert fiat to bitcoins then purchase things with bitcoins instead of just buying with fiat? You wouldn't, except that bitcoin is anonymous so you can use it to buy things privately. Most people really don't care enough about the privacy of an average amazon purchase to go through all this hassle. When you're buying illegal goods, however, privacy is #1. And what is the most popular item on the most popular illegal goods marketplaces? Drugs. Almost everyone I know that uses bitcoin is either speculating to make a quick buck, or using it to buy something on a darknet market. I'm sure there are people using it for everyday goods but it really doesn't make much sense to do that now unless you value your privacy very highly.

ingler 12y ago
> that bitcoin is anonymous It used to be anonymous. It's now highly traceable due to AML and KYC having been introduced into the Bitcoin ecosphere by regulation.
wmil 12y ago
It's also useful for bypassing currency controls. Some countries have an official exchange rate, but a very different black market exchange rate. In Venezuela , local bitcoin sites are selling BTC for the equivalent of over $6000USD at the official exchange rate. If you manage to exchange them without being robbed a few BTC can pay for a hell of a vacation.

moe 12y ago

They keep bringing that up as if it was a flaw. What's wrong with people using BTC to buy drugs? How is it better or worse than people buying drugs with any other currency? Why is it "bad" for Bitcoin to be useful and first adopted in that niche?

0xDOOD 12y ago
>What's wrong with people using BTC to buy drugs? Other than it being illegal? Nothing.
- moe 12y ago
  So the USD is also wrong, because most drugs are being paid for with USD?
  - 0xDOOD 12y ago
    No, the buying drugs part is what's 'wrong,' if you consider breaking the law to be a bad thing. But you're right to point out that, in sheer usage, Bitcoin really has nothing on the USD when it comes to buying drugs. Still, when you're asking why anyone would consider buying drugs with bitcoin to be wrong, you have to understand that not everyone considers that to be a positive or even entirely neutral act. Most people consider a currency whose primary use case involves breaking the law to be a net negative for society.
    - moe 12y ago
      not everyone considers that [buying drugs] to be a positive or even entirely neutral act Most european governments do. Germany, UK, Spain, Italy etc. include revenue from drug trade (and prostitution) in their GDP. Most people consider a currency whose primary use case involves breaking the law to be a net negative for society. Do you really believe any law would be broken any less if Bitcoin didn't exist? Should we also condemn BitTorrent for the same reason?
dragonwriter 12y ago
> What's wrong with people using BTC to buy drugs? The flaw that is raised isn't that BTC is used to buy drugs, but that it (in the view of those raising the complaint) doesn't have a strong use aside from buying drugs (and, while "drugs" are usually mentioned, the substance of the complaint appears to be more about drugs-as-popular-form-of-contraband rather than drugs-qua-drugs.) And given the way governments tend to respond to things that (1) are primarily used to facilitate unlawful trade, and (2) become increasingly popular, its a real, if political, risk for the Bitcoin ecosystem.