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I don't see how this doesn't cost us money unnecessarily, otherwise I wouldn't really care one way or another if we start accepting internet fun bucks. The Sta

I don't see how this doesn't cost us money unnecessarily, otherwise I wouldn't really care one way or another if we start accepting internet fun bucks. The State is still going to do business in USD; looking at the volatility of USD/BTC exchange rate, exchange fees and infrastructure/training, I don't see how this is anything but a loosing proposition.

dragonwriter 12y ago
> I don't see how this is anything but a loosing proposition. Its a winning proposition to the third-party payment processor mandated to be contracted by the bill, and -- presuming the method of accepting bitcoins is that the payment processor takes bitcoins and provides the state with USD -- its not a losing proposition for the State so long as the bitcoin costs are set at a level such that the state always gets the full USD value of the taxes and fees. I don't see how its really a losing proposition.
- tw04 12y ago
  So what happens when there is a massive fluctuation in price and that third-party payment processor declares bankruptcy? It's not like this is being backed by a major financial institution. We're talking about a currency that could lose half it's value in a matter of hours. And when their total tax revenue is $3.2 BILLION, what third party processor is going to be able to soak up the potential losses?
  - EricSchleien 12y ago
    Q: "So what happens when there is a massive fluctuation in price" A: Nothing, as all bitcoins would be instantly converted into US Dollars removing all currency volatility risk. I directly made sure that was in the bill to address that concern. Best, Rep. Schleien Prime Sponsor of New Hampshire House Bill 522
    - JoeAltmaier 12y ago
      What can 'instantly' possibly mean in this context? The same day? minute? millisecond? Triggered by how big of a change?
      - dragonwriter 12y ago
        > What can 'instantly' possibly mean in this context? "Before the transaction with the State is legally considered complete and the taxpayers liability settled" would seem to be the relevant thing. The taxpayer might lose in this case, but the State would not (and, the risk the taxpayer faces is pretty much the same risk as they would face holding money they need to pay taxes in bitcoins whether or not there was a standard payment processor for bitcoin-to-pay-taxes for the state.)
      - celticninja 12y ago
        Using a payment processor like BitPay would allow this. Essentially you click to pay in bitcoin, you redirect to the BitPay site, you pay them bitcoin and they transfer the USD value to the recipient (in this case the state). So an individual could pay $10k in bitcoin and the state would receive $10k in USD. BitPay currently offer their service for free that would meet these requirements. https://bitpay.com/pricing https://bitpay.com/pricing so to answer your question instantly means instantly.
        JoeAltmaier 12y ago
        Ah. I misconstrued the comment to mean the conversion would happen upon some massive fluctuation. Thanks for the clarification.
        EricSchleien 12y ago
        I've been in contact with BitPay directly. They would be in my view certainly suitable for this kind of thing. And yes instantly means instantly. Eric Schleien Prime Sponsor
smackfu 12y ago
They charge extra to accept credit cards, they could easily charge extra for bitcoins to cover fees.
- fnordfnordfnord 12y ago
  CC merchant contracts used to forbid this, IIRC.
  - smackfu 12y ago
    True, yet paying your taxes by credit card has always had fees, for the last decade or two. The government really has zero incentive to accept credit cards and eat the fees, so I'm guessing the credit card companies allowed it in this case.
  - sokoloff 12y ago
    Effective January 27, 2013, this was no longer against the merchant agreements with Visa and Mastercard (it was previously). Whether there is a state law forbidding the practice (or more likely, requiring specific language to advertise the 'cash discount price') is likely to vary by jurisdiction.

dragonwriter 12y ago

> I don't see how this is anything but a loosing proposition. Its a winning proposition to the third-party payment processor mandated to be contracted by the bill, and -- presuming the method of accepting bitcoins is that the payment processor takes bitcoins and provides the state with USD -- its not a losing proposition for the State so long as the bitcoin costs are set at a level such that the state always gets the full USD value of the taxes and fees. I don't see how its really a losing proposition.

tw04 12y ago
So what happens when there is a massive fluctuation in price and that third-party payment processor declares bankruptcy? It's not like this is being backed by a major financial institution. We're talking about a currency that could lose half it's value in a matter of hours. And when their total tax revenue is $3.2 BILLION, what third party processor is going to be able to soak up the potential losses?
- EricSchleien 12y ago
  Q: "So what happens when there is a massive fluctuation in price" A: Nothing, as all bitcoins would be instantly converted into US Dollars removing all currency volatility risk. I directly made sure that was in the bill to address that concern. Best, Rep. Schleien Prime Sponsor of New Hampshire House Bill 522
  - JoeAltmaier 12y ago
    What can 'instantly' possibly mean in this context? The same day? minute? millisecond? Triggered by how big of a change?
    - dragonwriter 12y ago
      > What can 'instantly' possibly mean in this context? "Before the transaction with the State is legally considered complete and the taxpayers liability settled" would seem to be the relevant thing. The taxpayer might lose in this case, but the State would not (and, the risk the taxpayer faces is pretty much the same risk as they would face holding money they need to pay taxes in bitcoins whether or not there was a standard payment processor for bitcoin-to-pay-taxes for the state.)
    - celticninja 12y ago
      Using a payment processor like BitPay would allow this. Essentially you click to pay in bitcoin, you redirect to the BitPay site, you pay them bitcoin and they transfer the USD value to the recipient (in this case the state). So an individual could pay $10k in bitcoin and the state would receive $10k in USD. BitPay currently offer their service for free that would meet these requirements. https://bitpay.com/pricing https://bitpay.com/pricing so to answer your question instantly means instantly.
      - JoeAltmaier 12y ago
        Ah. I misconstrued the comment to mean the conversion would happen upon some massive fluctuation. Thanks for the clarification.
        EricSchleien 12y ago
        I've been in contact with BitPay directly. They would be in my view certainly suitable for this kind of thing. And yes instantly means instantly. Eric Schleien Prime Sponsor

smackfu 12y ago

They charge extra to accept credit cards, they could easily charge extra for bitcoins to cover fees.

fnordfnordfnord 12y ago
CC merchant contracts used to forbid this, IIRC.
- smackfu 12y ago
  True, yet paying your taxes by credit card has always had fees, for the last decade or two. The government really has zero incentive to accept credit cards and eat the fees, so I'm guessing the credit card companies allowed it in this case.
- sokoloff 12y ago
  Effective January 27, 2013, this was no longer against the merchant agreements with Visa and Mastercard (it was previously). Whether there is a state law forbidding the practice (or more likely, requiring specific language to advertise the 'cash discount price') is likely to vary by jurisdiction.