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Trace Mayer  

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  • Bitcoin Seems To Be An Unstoppable Force Of Nature, Not Unlike The Jet Stream [View article]
    This really is not a surprise for those of us who have been around and recommending Bitcoin since it was $0.05. Participate in the largest bull market in history because smarter.

    With the Bitcoin vortex sucking in so much human capital it is only a matter of time before it reaches millions of USD per bitcoin due to the six sided network effects now taking place and extremely unlikely to be overcome.

    This inforgraphic from over a year ago explains how:

    http://bit.ly/179PwSl
    Jun 12, 2014. 02:35 PM | Likes Like |Link to Comment
  • Bitcoin Is Far From Dead [View article]
    Very wise to use Kraken because they know what is up. Did you read their tweet on the subject?

    'Kraken halts nothing! Because planning. Carry on :)'

    http://bit.ly/1obEQIo

    And neither Bitpay nor Armory were affected by transaction malleability either. There are Bitcoin actors who understand the protocol and others who do not.

    And if you do not solely hold the private keys to your bitcoins, like in Armory cold storage, then you do not truly own bitcoins.
    Feb 28, 2014. 01:39 PM | 2 Likes Like |Link to Comment
  • Why Target Must Accept Bitcoin Like Zynga And Before Walmart Or Amazon [View article]
    J. Sheehan,

    Haha, the government sells all types of assets they confiscate through civil forfeiture proceedings. If anything the selling of the SR stash should be seen as a positive for the currency and recognition of the value of bitcoins by the government.
    Jan 19, 2014. 09:10 PM | Likes Like |Link to Comment
  • Why Target Must Accept Bitcoin Like Zynga And Before Walmart Or Amazon [View article]
    BeepBeepImAJeep3,

    I am not sure why Bitcoin security, which takes place away from the point of sale with Target, is even relevant to the discussion?

    But to make that better is a reason I funded the seed round of Armory (http://bit.ly/KnVo3g). Alan pioneered the entire concept of 'cold storage' that thing like the Bitcoin Vault most likely use and the wallet software we develop there is available to anyone for free.
    Jan 19, 2014. 09:06 PM | Likes Like |Link to Comment
  • Why Target Must Accept Bitcoin Like Zynga And Before Walmart Or Amazon [View article]
    J. Sheehan,

    The insured Bitcoin Vault, which is under a Lloyd's of London policy if I understand it correctly, is a very interesting proposal and I think the rates they are charging are extremely high.

    The reason for this is because in December one of the other Bitcoin start-ups I funded, Armory (http://bit.ly/KnVo3g), released the new version which includes fragmented back-ups which uses SSS to split up the private keys. In the next few months multi-signature will soon be released.

    The reason this is significant from an insurance perspective is because the procedure for distribution of bitcoins can be built in such to protect the private keys that (1) completely offline computers are used and (2) no bitcoins will move unless a signature from the insurance company is included in the transaction. If you really want to learn about how the guts of Bitcoin work then I would highly recommend this presentation starting around 18:00 by Alan Reiner, Founder of Armory, at the Inside Bitcoins conference (http://bit.ly/KnVo3i).

    Consequently, the insurance company could reduce their risk to almost nothing. Very exciting!
    Jan 19, 2014. 09:04 PM | Likes Like |Link to Comment
  • Why Target Must Accept Bitcoin Like Zynga And Before Walmart Or Amazon [View article]
    BeepBeepImAJeep3,

    On the surface, the counter-party issue with the merchant processor appears reasonable but if you dig a little your thesis falls apart.

    First, Bitpay is hooked into the various exchanges via API so the exchanges to fiat can take place immediately thus removing Bitpay's financial exposure. Then the issue shifts to the performance risk of the exchange and bank to timely move the fiat currency around.

    Second, as a major investor of Bitpay I have access to the financial statements and while I cannot and will not disclose any trade secrets I will assert that their financial position is extremely solid and a $2m transaction would most likely pose no issue to their processing ability. Bitpay already announced they processed a $1m transaction with no issue. And even though processing volumes have increased at a rapid rate as far as I am aware they have had no significant or material processing problems.

    http://bit.ly/1hErx24

    Thus, I think the counter-party risk issue is larger with the exchanges than the merchant processor Bitpay. In the investor updates they have already mentioned taking immaterial losses from the failure of various exchanges. So we are actively working to eliminate this potential risk.
    Jan 19, 2014. 08:57 PM | Likes Like |Link to Comment
  • Why Target Must Accept Bitcoin Like Zynga And Before Walmart Or Amazon [View article]
    Stephen,

    I think your advice to get around $100 worth of bitcoins and do a few transactions is great advice and why I mentioned my Free Bitcoin Guide in the article (http://bit.ly/1dozyJk).

    So many people think about Bitcoin, even smart ones who have spent hundreds of thousands of dollars on education like MBAs or law degrees,etc., but never actually do any Bitcoin and therefore are extremely ignorant because of a lack of any practical experience. John seems to want to understand Bitcoin and if he would just use it then he would not need to ask such a basic noob question because he would see exactly how it is applied in the real world when trying to order some honey caramels form Bees Bros (http://www.beesbros.com).

    But this just illustrates that part of the Bitcoin social network is all the experience, education, etc. that has gone on in helping people learn about and use this new technology so it is only to be expected. And as the network grows the more valuable Bitcoins, the unit of account within the network, will grow in price and value.
    Jan 12, 2014. 10:14 PM | 1 Like Like |Link to Comment
  • Why Target Must Accept Bitcoin Like Zynga And Before Walmart Or Amazon [View article]
    John,

    Using a merchant processor, like Bitpay, the merchant can set the price in any currency Bitpay supports including USD, EUR, YEN, GBP, BTC, etc. and merchants can set what percentage of currencies they receive from each payment (30% BTC and 70% USD or 100% USD or 100% GBP, etc.)

    When a customer goes to checkout then Bitpay serves an invoice with a certain BTC amount that is good for 15 minutes and the amount is based on the best price based on current exchange liquidity. The current exchange liquidity is important because Bitpay recently processed a $1,000,000 Bitcoin transaction without any issue. If the customer pays within the 15 minute time frame then the invoice is marked as paid. Bitpay takes on all exchange rate risk and volatility during that 15 minutes.

    Does that help?

    On another note, a fun Tweet from Overstock's CEO:

    #Bitcoin's first full day on @overstock.com was a huge success: 840 orders, $130,000 in sales. Almost all new customers. #stunned
    — Patrick M. Byrne (@OverstockCEO) January 10, 2014

    And on his CNN appearance (http://bit.ly/19l0kkO) he specifically called out Amazon and said the major retailers will have to accept Bitcoin because otherwise they will be giving up this market segment without a fight and he doubts they will do that. Considering Bitcoin's first 24 hours of sales at Overstock accounting for about 4.5% of annualized revenue, far greater than the 2.7% based on Reddit's numbers, I think any retail CEO worth his salary has to be seriously considering Bitcoin now.

    And as a public service announcement, if you have shopped at Neiman Marcus then with their recent hack I bet you have wished they accepted Bitcoin which has identity protection built in.

    http://abcn.ws/19l0kB2
    Jan 11, 2014. 04:53 PM | 1 Like Like |Link to Comment
  • Why Target Must Accept Bitcoin Like Zynga And Before Walmart Or Amazon [View article]
    e-mar,

    Thank you for the comment and I think it hits on an very important point.

    In 72+ comments to the article there was only one of substantive logical and coherent argument. To be honest, I am fairly disappointed because I thought the Seeking Alpha community was a lot more sophisticated, less emotional, more logical and consequently could do a lot better a tackling the other side of the case!

    Ignorance and arrogance are a recipe for poof financial performance. You would think 'sophisticated' investors would be putting more time and effort into understanding what has been the best performing investment every year for the past five years.

    And when it comes to investments one's emotions do not really matter; what matters is the scoreboard. And to reiterate the scoreboard when it comes to Bitcoin's returns:

    DATE - PRICE in USD
    13 Dec 2010 - $0.23
    13 Dec 2012 - $13.70
    01 Jan 2013 - $13.30
    13 Jun 2013 - $103.95
    13 Sep 2013 - $140.66
    13 Dec 2013 - $899.80
    31 Dec 2013 - $736.51
    09 Jan 2014 - $916.25

    Last 3 months - 539.70%
    Last 6 months - 765.62%
    2014 year to date (9 days) - 24.4%
    Last 1 year - 5,437.67%
    Last 3 years - 391,287.56%

    But this article is about whether Target should accept Bitcoin and not whether Bitcoin is a good or bad investment; on the latter question I think that if the comments are representative of the investing community then it is an awesome contrarian bullish indicator for Bitcoin as an investment. Perhaps such ignorance and arrogance resulting in such widely differing opinions as expressed in Bitcoin's price volatility.
    Jan 9, 2014. 09:27 PM | 2 Likes Like |Link to Comment
  • Why Target Must Accept Bitcoin Like Zynga And Before Walmart Or Amazon [View article]
    J. Sheehan,

    You seem to be making arguments in favor of Bitcoin and conflating that with the issue of whether Target should accept Bitcoin.

    Regarding the difficulty with getting Bitcoin, consumer behavior or usage of it or whether to hold Bitcoin instead of USD; all those issue are, in my opinion, irrelevant to whether Target should accept it. With that question all that really matters is how much it will cost to accept Bitcoin and what the expected ROI would be.

    We do not know what actual adoptions numbers would look like because of the sparse data points. I used actual data from Reddit and their user adoption has grown over time.

    Today Overstock announced they are accepting Bitcoin and did $10,000 of transactions in the first two hours. The Bitpay processing plan for that type of monthly volume, assuming it is only $10,000 on an average day, would be around $30 and save approximately $3,000 in credit card transaction fees per month. Given such a low cost to accept and integrate Bitcoin therefore the ROI seems to add shareholder value.

    And given network effects the more retailers who accept it the larger percentage of users will use it due to the lower costs in terms of time, money and privacy. Just like has been seen with Reddit.

    http://read.bi/1bXageV
    Jan 9, 2014. 09:17 PM | Likes Like |Link to Comment
  • Why Target Must Accept Bitcoin Like Zynga And Before Walmart Or Amazon [View article]
    Just a friendly suggestion but if you want to be completely protected against the stealing of credit card data then you can use Bitcoin which has identity protection built in or cash.

    And ever major city usually has at least a handful of merchants that accept Bitcoin and the amount is growing rapidly. Assuming you do not want to carry large amounts of cash due to security reasons then there are usually directories one can search like: http://coinmap.org
    Jan 9, 2014. 09:09 PM | Likes Like |Link to Comment
  • Why Target Must Accept Bitcoin Like Zynga And Before Walmart Or Amazon [View article]
    I am not sure what you are trying to imply about counterfeit dollars since this article mentions nothing of the sort and if a merchant processor like Bitpay, Coinbase, etc. were used then they would be transferring completely legitimate currency to Target.

    In the article I link to the United States Senate Hearings and discussed how representatives of several major agencies including Treasury, FinCEN, Secret Service, etc. all testified and stated Bitcoin is legal, has many legitimate uses and current regulation is applicable for corporations to be comfortable to accept it.
    Jan 9, 2014. 09:06 PM | Likes Like |Link to Comment
  • Why Target Must Accept Bitcoin Like Zynga And Before Walmart Or Amazon [View article]
    J. Sheehan,

    I think there are plenty of otherwise ordinary consumers who want to pay with Bitcoin due to the identity protection that is built in. And it would be interesting to know what you are basis your speculation on consumer adoption rates on; because my estimation of 2.7% is based on hard data from Reddit's customer base.

    Ignorance and arrogance are a very bad combination when it comes to investment performance. And based on your comments I agree with your assessment of the SA community. Your would think more people would spend more time and effort attempting to understand the best performing asset over the past 5 years. But I suppose that just speaks to the reasons for the price volatility and the tremendous upside potential still available. Personally, in a way I like ignorant and arrogant people because it is easier to transfer their wealth away and is a reason why they generally have extremely poor investment performance.

    For example, with this recent data breach I have now made it policy for myself and all of my employees and contractors that there will be no credit card purchases made at Target unless it is an absolute emergency and there is no possible way to use a competitor. It is a simple business decision, we do not need to be spending valuable time cleaning up after messes made by Target and their obsolete payment methods. Sure, the small business only has between $50k-150k spent on credit cards every month and some of it used to go to Target on a regular basis but now that sales volume will never go to Target again until they accept Bitcoin.
    Jan 8, 2014. 11:29 PM | Likes Like |Link to Comment
  • Why Target Must Accept Bitcoin Like Zynga And Before Walmart Or Amazon [View article]
    Stephen,

    It is completely ridiculous that we entrust retailers and other merchants with name, address, zip code, etc. when making a payment with credit cards.

    Hence one of the arguments in my article for why Target must accept Bitcoin. Not only would costs be lower but it would be more convenient and helpful for customers. Personally, I will no longer buy anything from Target if payment has to be made via credit card. The identity theft risk is simply too high given their history given the competitors that are available like Wal-Mart and Amazon.
    Jan 8, 2014. 11:19 PM | 1 Like Like |Link to Comment
  • Why Target Must Accept Bitcoin Like Zynga And Before Walmart Or Amazon [View article]
    On its face this argument looks very appealing.

    But when you dig into the substance, accepting Bitcoin actually helps a corporation shore up risk particularly when using the merchant processor Bitpay because all the security aspects of accepting Bitcoin are shifted to Bitpay and Bitcoin has identity protection built in.

    As another comment addressed, if there is risk then it would primarily be with PR but that could be spun by the PR department to be a positive.
    Jan 8, 2014. 02:53 PM | Likes Like |Link to Comment
COMMENTS STATS
151 Comments
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