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I would, inbox me
Interesting. I've actually been considering having IRE accept btc lately, as I'm pretty interested in it. We pay a lot of money every year to Visa/Mastercard/Paypal to facilitate transactions, and Bitcoin is a potential new payment avenue that has nominally lower fees. I'll consider it more strongly given your post!
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So the question really is: Can Bitcoin provide a similar level of service to end users at a lower cost to them/merchants?
Bitcoin is interesting for me because the Paypal "frozen funds" stories are far too common and too scary, and coupled with their hilariously poor customer support, seem quite real.
Vadimuses said:Though from what I know about it, converting real money into BTC money is somewhat of a pain (afaik there is no established marketplace for this?) and that's putting me off.
Bitcoin is interesting for me because the Paypal "frozen funds" stories are far too common and too scary, and coupled with their hilariously poor customer support, seem quite real.Though from what I know about it, converting real money into BTC money is somewhat of a pain (afaik there is no established marketplace for this?) and that's putting me off.
What is bitcoin? What is cryptocurrency? (Please don't answer this, just showing that I have no idea what they are and I really don't care).
@Sylvance : Explain like I'm five: Bitcoin for a basic overview/introduction.
Read it. Even more confused. So it's a made-up currency (yes, I get that that's redundant). Who owns it? Who guarantees its value (like the government does with real money)? Where does one buy bitcoins, and what are they bought with? Real money? Labour? So confused...
Read it. Even more confused. So it's a made-up currency (yes, I get that that's redundant). Who owns it? Who guarantees its value (like the government does with real money)? Where does one buy bitcoins, and what are they bought with? Real money? Labour? So confused...Since the 5-year-old explanation was too tough for you, Sylv, here's a 2-year-old explanation.
And, just like that, it makes perfect sense. Thanks, @Lynara! *mwah*ETA: Next question - how much money do I need to make a computer capable of farming bitcoins? It kinda sounds like a (free) license to print money.
According to Tom's Hardware, using a CPU to mine bitcoins now costs more in electricity than you get from the bicoins themselves; thus, GPUs are needed. Most people do it as part of a group, and take a share in the value of any bitcoins mined.You'll want an AMD GPU, because they outperform Nvidia cads by a factor of five to seven, at a comparable price point (because Nvidia cards are good at floating-point operations, but bad at the integer operations needed for this particular algorithm).Costs will likely be in the region of $600 for the initial hardware (a dedicated machine, rather than your own computer), plus your electricity bill. Quoting directly from the article I linked above,"As we will explore in more detail on the next page, assuming your 230 W, 230 MH/s graphics card runs 24/7, it costs you about $1.05 per day to mine in California, but only 35 cents in Georgia and a mere 15 cents in Douglas County. At current difficulty, this GPU generates about 0.01 Bitcoins per day, or about $1.15 worth. If the Bitcoin exchange rate drops below $105, the miner in California would be well advised to turn off his GPU mining rig immediately. When difficulty rises to 10 times its current value, which is expected by fall, it would be prudent even for GPU-based Bitcoin miners in Douglas County, WA, to take off their hard hats and cease mining operations."(Note that that's using your GPU to give 230 MH/s (I don't know what those are), rather than the $600 setup above, which runs 800 MH/s.)In summary, your best bet is to join a group, and run it on your GPU in the background.Important disclaimer: I've taken the vast majority from the article above, which I've skim-read rather than looking at it in depth. I know very little abut this, myself.
Taking bitcoins is both a hilariously good and bad idea simultaneously.It's hilariously bad because the price is so inherently unstable (because a finite currency encourages speculation and there's nobody to stabilize the currency) that accepting $100 of bitcoins today might very well mean it's worth like $25 two hours later.It's hilarious good because if the price ever stabilizes chances are nobody who buys credits actually calculates the real interest rate on BTC correctly so it's really easy to gain a few extra % points of profit when accepting BTC.
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I'm so glad to hear you say that. 'Nominally lower fees' is right - I have to use CC transactions and PP for my business too, so I understand all of the headaches that come along with them. I got into bitcoin as a hobby more than anything (it has a truly fascinating subculture), and now I try to use them to make payments whenever possible. I look forward to buying official credits with bitcoin!
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Buying/selling/trading collectives like bitcoin-otc use a 'web of trust' styled rating system. Trust is really the only protection buyers and sellers have at this point, as you illustrated with the camera example. Obviously, this is problematic/infeasible for most businesses. I haven't looked into Coinbase too much, but I imagine an insurance guarantee of some kind could inch btc closer to mainstream appeal, if the middleman fulfills your caveat of reasonable transaction fees, which will incentivize businesses to use the service.
Having said that, I think the average bitcoin user has a certain degree of understanding on these points. I wouldn't buy a camera with bitcoin either, but you can bet that I would buy credits with them. I know that IRE isn't going to rip me off; the trust is there.
Call me an idealist, but I'd like to say yes. Eventually.
As I said before, I'm just a hobbyist and I've only experienced bitcoin from the consumer viewpoint, but I believe that's what MtGox and similar organizations are for. A full description is available on the bitcoin wiki, which you can find with a simple search (there's a huge list of other rate exchange services as well). However, I did see in the news that the Feds have been raining on their parade lately, so take all of this as interesting information, not advice!
I love that whoever wrote this thinks five year olds know what 'fungible' means.
(The Midnight Crew): Micaelis says, "Lynara coded periods out of his DNA."
And all this to mine for scrip coins.
Honestly, I find the mining portion of bitcoin a bit uninteresting. The real purpose of mining is to incent people's rigs to confirm transactions (hard to explain), and while it was printing money if you were there in the early days (it is believed that the fellow who started bitcoin, whose real identity nobody knows, is sitting on $100 million in bitcoin), it's a very efficient 'market' for them now, so profit margins are razor thin.