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General Bitcoin adoption, I think we're missing a big piece of the puzzle...

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ning_chang

So this is just my opinion, i'm not sure about the legality of this stuff but it makes sense in my head. Also it's from the perspective of the UK so i'm not sure what the crazy laws just put into place in America have to say about this system.

So at the moment there's a massive drive to try and get businesses to adopt bitcoin as a payment processor and that's great, there's loads of stuff in the press about it whether it be Bitpay or Cryptopay here in the UK or projects like XBTerminal for hardware payment processing.

That’s all good and well but i don't think we're addressing one of the issues with bitcoin, well I’m not sure if it's an issue, lets call it an aspect... which is hoarding. no-one wants to spend it as everyone thinks it's going to go up in value. It's seen as digital gold or some newfangled speculative asset. I think the main reason for this is the process you have to go through to have to buy it. the key word being BUY. you either have to go to a ATM or buy it online with localbitcoins or something similar. you have to spend your money generally at a few % premium to get hold of it. It's a pain in the arse and your exchanging/upgrading your money for some other money which costs slightly more. It becomes this magical special asset that you wanna clutch to your chest and hold onto, it's almost like it's your entry pass to some elite club of people in the know. Thus, your reluctant to spend it.

I think we need to normalise (the spending of) bitcoin, make it feel like money, so you put a bit back, you save for a rainy day but you don't mind going out and having a good time with it. You'd buy a new computer with it, you'd buy your groceries with it, whatever.

I think the way to do this is to promote paying people with it. That IMO is the way to get adoption, you give people the option to get 5%, 20%, 50% of their wages in bitcoin. Once you have it coming in on a regular monthly basis this idea of it being this speculative asset becomes less and less relevant, cause if you spend some, not to worry you get some more at the end of the month. PAYDAY, Wahey!.

At the moment we do have a system, but it's a one way system, people tend to buy and hold. Noted this isn't universal and some people spend it but I think they're in the minority. What we need is an ECOsystem which has a self sustaining cycle of payment and spending.

I think we should be approaching digital recruiters, recruiters that put IT specialists and digital designers in software houses and digital agencies (folks in digital and IT are probably the most receptive to bitcoin). Specifically looking at freelancers who have Limited companies (LTD) this means that the freelancers look after their own taxes so there's no need to mess about with paying the taxes with bitcoin. The recruiter basically pays the VAT in cash and can then give the freelancer the option of a percentage of their wages in bitcoin through one of these payment processing systems.

The payment processors should be running drives to approach these businesses and offer them the services, they should be approaching freelancers and asking them to ask their recruiters to allow them to be paid in bitcoin.

I'm sure i'm preaching to the choir here and this has already been covered somewhere or other but i never hear anyone talking about it and i think it's one of the biggest pieces of the puzzle.

Just my 2 Satoshis...

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  • irnhnve

    Most places that accept bitcoin offer some sort of a discount for paying with it. I have no doubt that even people uninterested in the technology would be interested in saving on weekly purchases such as groceries. The hardest part is to show those kinds of people that its not a scam and thats its easier to use than they think. It kind of sounds 'too good to be true' when it's presented as 'you know that thing you pay for every week? well know you can save 10% every single time you buy the exact same thing'. In reality it is exactly that, but just helping people understand why they are getting the discount is a major hurdle. It is an indirect way of showing them the real value of crpyotcurrency.

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  • TheWittyHawk

    I think you are missing one key point here. You don't have to just "buy" bitcoin. You can offer a service or sell something for bitcoin. You can create growth in the bitcoin economy without ever needing to "buy" bitcoin.

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  • Mike

    I think that you're addressing a rather serious problem with the current ecosystem. People need incentives to adopt bitcoin. In this regard, I will specifically draw the line between adopting bitcoin and purchasing some bitcoin to hold onto.

    Many businesses have begun this process by offering huge discounts to consumers purchasing their products/services in bitcoin. I think one of the major problems in this area is that people do not feel comfortable from a security perspective when spending their bitcoin. Checking out in bitcion is still an imperfect process, and very, very foreign to people. Hopefully this will be corrected going forward, but we have to do our part to encourage people to interface with the software and become more familiar with it.

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  • cmason

    You're missing something obvious. Hoarding and spending are not mutually exclusive. As the Mad Money Machine has signed off many times: "Buy some Bitcoin, spend some Bitcoin, donate some Bitcoin, and replenish your Bitcoin."

    So if you want to buy something worth roughly $100, buy about $200 (or even $110!) in Bitcoin, and then make the purchase. You have both increased your holdings (and hoarding), and spent Bitcoin, all at the same time. I have been practising this recently. Every time I buy something with Bitcoin, I also buy at least a bit more Bitcoin than I am spending. So, instead of using a credit card to make the purchase, I am possibly saving money, while also increasing the amount of Bitcoin I hold.

    I lose nothing by doing this (and potentially get some small benefit), while contributing to the Bitcoin economy at the same time.

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  • Rob

    I encourage people, no matter what they do for a living, to market themselves as accepting Bitcoin. There are plenty of people wanting to pay for goods in services in Bitcoin.

    If you don't work for Bitcoin, just buy Bitcoin regularly, and then you can spend it freely, without diminishing your hoard!

    (just realized a lot of responses were added in since I loaded this thread, so sorry for any redundancy in my post)

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  • ning_chang

    @cmason

    You're missing something obvious. Hoarding and spending are not mutually exclusive. As the Mad Money Machine has signed off many times: "Buy some Bitcoin, spend some Bitcoin, donate some Bitcoin, and replenish your Bitcoin."

    So if you want to buy something worth roughly $100, buy about $200 (or even $110!) in Bitcoin, and then make the purchase. You have both increased your holdings (and hoarding), and spent Bitcoin, all at the same time. I have been practising this recently. Every time I buy something with Bitcoin, I also buy at least a bit more Bitcoin than I am spending. So, instead of using a credit card to make the purchase, I am possibly saving money, while also increasing the amount of Bitcoin I hold.

    I lose nothing by doing this (and potentially get some small benefit), while contributing to the Bitcoin economy at the same time.

    I kinna addressed that in my original post "At the moment we do have a system, but it's a one way system, people tend to buy and hold. Noted this isn't universal and some people spend it but I think they're in the minority." I do as you say above. but recently i've been less bothered about doing it. it's such a laborious process to do and quite frankly i've got better things to do with my time.

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  • ning_chang

    @thewittyhawk I think you are missing one key point here. You don't have to just "buy" bitcoin. You can offer a service or sell something for bitcoin. You can create growth in the bitcoin economy without ever needing to "buy" bitcoin.

    Thats what the original post was about, exchanging services for bitcoin. But encouraging places that employ freelancers to allow them to have part of all of their invoice paid in bitcoin.

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  • cmason

    @ningchang ... I kinna addressed that in my original post "At the moment we do have a system, but it's a one way system, people tend to buy and hold. Noted this isn't universal and some people spend it but I think they're in the minority." I do as you say above. but recently i've been less bothered about doing it. it's such a laborious process to do and quite frankly i've got better things to do with my time.

    It did used to be a tough process, and I admit I'm using a central exchange in Canada to purchase my Bitcoin, but I can do so easily and within an hour. Mind you, I had to go through the whole verification process to get an account that allows me to do this. With all the startups and ATMs and everything else, this will hopefully become much easier so that buying Bitcoin is not a difficult and complicated process. And ideally, people will be able to do this without providing a lot of personal information.

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  • ning_chang

    @cmason

    @ningchang ... I kinna addressed that in my original post "At the moment we do have a system, but it's a one way system, people tend to buy and hold. Noted this isn't universal and some people spend it but I think they're in the minority." I do as you say above. but recently i've been less bothered about doing it. it's such a laborious process to do and quite frankly i've got better things to do with my time.

    It did used to be a tough process, and I admit I'm using a central exchange in Canada to purchase my Bitcoin, but I can do so easily and within an hour. Mind you, I had to go through the whole verification process to get an account that allows me to do this. With all the startups and ATMs and everything else, this will hopefully become much easier so that buying Bitcoin is not a difficult and complicated process. And ideally, people will be able to do this without providing a lot of personal information.

    Sure, but i'm looking at this through the eyes of someone whos never bought bitcoin. i've mentored alot of folk through purchasing at localbitcoins and people are generally terrified that they're gonna get scammed, it's a big gulf of uptake, if the company you worked for who are trusted, offered you a easy, no nonsense way to get paid in bitcoin where you didn't have to run around to ATMs or deal with mysterious characters on localbitcoins and generally learn a new way of getting money would you do it? I would. better than faffing around with the other options, especially if i were someone who wasn't particularly knowledgeable about how bitcoin works.

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  • Mike

    @cmason

    @ningchang ... I kinna addressed that in my original post "At the moment we do have a system, but it's a one way system, people tend to buy and hold. Noted this isn't universal and some people spend it but I think they're in the minority." I do as you say above. but recently i've been less bothered about doing it. it's such a laborious process to do and quite frankly i've got better things to do with my time.

    It did used to be a tough process, and I admit I'm using a central exchange in Canada to purchase my Bitcoin, but I can do so easily and within an hour. Mind you, I had to go through the whole verification process to get an account that allows me to do this. With all the startups and ATMs and everything else, this will hopefully become much easier so that buying Bitcoin is not a difficult and complicated process. And ideally, people will be able to do this without providing a lot of personal information.

    Absolutely. Getting in and out of the system as been probably one of the biggest obstacles for average users to overcome. Why spend when it will be a whole extra headache to reload?

    There are a lot of companies working to reduce this friction but it will take time. I think Coinbase is actually one of the fastest ways (but requires verification, like your canadian exchange). I can instantly buy up to $1000 in bitcoin from my bank account every week. So, there's definitely progress being made.

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