Exchange Methods
Hi everyone. I’d like to see a good discussion on different methods for transferring into and out of cash. It has been touched on elsewhere, but I’d like to create a definitive thread for it. This discussion should include, but shouldn’t be limited to the following…
1.) Methods mentioned previously on the forum, along with their pros and cons. 2.) New ideas including ones that are “outside of the box” 3.) As a customer, which method do you prefer? What is more important to you? Anonymity, security, convenience or other?
NewLibertyStandard is using direct transactions with Paypal. I think Sirius-m is working on several different direct transactions that the customer may select from. I am using a deposit and withdraw system using Paypal (for the time being).
Let’s dicuss everything from satoshi’s sophisticated “e-bay-like” idea, to madhatter2’s “money in the mail” idea, and everything in between.
When there’s enough scale, maybe there can be an exchange site that doesn’t do transfers, just matches up buyers and sellers to exchange with each other directly, similar to how e-bay works.
To make it safer, the exchange site could act as an escrow for the bitcoin side of the payment. The seller puts the bitcoin payment in escrow, and the buyer sends the conventional payment directly to the seller. The exchange service doesn’t handle any real world money.
This would be a step better than e-bay. E-bay manages to work fine even though shipped goods can’t be recovered if payment falls through.
— satoshi, March 03, 2010, 04:28:56 AM
Nice!
I might do ‘well hidden cash in the mail’ here for small amounts.
— madhatter2, February 24, 2010, 04:59:55 AM
One last thing. Legality can be listed as a pro/con but let’s not get wrapped up in it here. NewLibertyStandard already has a good thread started on that topic.
Add this to the ‘cons list’ for cash:
- Possibility of RFID imbedded into the bills. They could be read by the machines at your local post office and throw a red flag on the destination address.
LR and Pecunix have many established exchanges to paper currencies by various payment methods, and a number of vendors accept them as payment, so an exchange link between Bitcoin and LR/Pecunix would give us 2nd-hop access to all that. The possibility to cash out through them would help support the value of bitcoins.
Bitcoin has unique properties that would be complementary. LR/Pecunix are easy to spend anonymously, but hard to buy anonymously and not worth the trouble to buy in small amounts. Bitcoin, on the other hand, is easy to get in small amounts anonymously. It would be convenient to buy LR/Pecunix with bitcoins rather than through conventional payment methods.
Most customers who convert to LR to buy something would probably ask the seller first if they accept Bitcoin, encouraging them to start accepting it.
I already tried to ask a lot of existing exchangers if they would trade BC, they all said “no”.
Perhaps this will change with more demand and adoption.
There is a massive gold prospector community in my country that sells gold nuggets on ebay.com.au
Someone purchases a gold nugget and puts the mailing address as my post office box and then receives bitcoins in return.
😁
There is a massive gold prospector community in my country that sells gold nuggets on ebay.com.au
Someone purchases a gold nugget and puts the mailing address as my post office box and then receives bitcoins in return.
It seems that the nuggets can vary quite a lot in price.
$1,290 AUD for 31.1 g
http://cgi.ebay.com.au/48-Australian-gold-nuggets-total-weight-31-1-grams-/270605077888?cmd=ViewItem&pt=AU_Metalware&hash=item3f0151cd80
$5.50 AUD for 0.06 g
http://cgi.ebay.com.au/NATURAL-CLEAN-AUSTRALIAN-SOLID-GOLD-NUGGET-0-06grams-/270599831814?cmd=ViewItem&pt=AU_Bullion&hash=item3f0101c106
How much BTC do you have to exchange for nuggets?
Also, have you thought of a website listing the reputable sellers you want to buy from (i.e. you know they are not selling fool’s gold) and the price/gram you want to pay so that scouts could make money buying these nuggets for you?
I have heard that the easier it is to participate in a transaction the more people will be attracted.
What do you think?