On: BitcoinStore Launch - Cheaper In Bitcoin

[rdl]

I'm curious what licit, low volume, etc. products actually would make sense to sell in Bitcoin vs. something else.

The best thing I can come up with is online-delivered services from non-US (and ideally, non-developed financial system) countries, to other non-developed-financial-system countries. Like, a guy in Zimbabwe who wants to provide an online service to someone from PNG. Which is really a stretch to imagine.

[BitcoinStore → rdl]

The advantage to using Bitcoin is that there are no payment processing fees. What we're able to cut with BitcoinStore is that 1-10% fee that Visa, PayPal, et al. charge especially when dealing with products that have a high chargeback risks. So the products that sell best when using Bitcoin have high chargeback risks associated with them.

[srdev → BitcoinStore]

How do you fill the gap for me, the consumer, of not having chargebacks available? Chargebacks are a net plus for me.

[ewillbefull → srdev]

This is usually filled by escrow services which I'm not sure this website has implemented. Even Silk Road has implemented this, so it's a deal-breaker for me.

[r2DEYdly → ewillbefull]

Silk Road has implemented this because it is a market between sellers and buyers. BitcoinStore is a company selling stuff, having escrow would have no point at all.

[mikeash → r2DEYdly]

How does the fact that it's a company instead of an individual change the picture at all? In both cases, escrow serves the same purpose: to safeguard against getting ripped off.

[rdl → mikeash]

Assuming bitcoinstore hasn't ripped off their previous N customers, I'm fairly confident being purchaser N+1, especially if my transaction isn't "special" in any way.

They would have a lot to lose by ripping off customers, vs. a random seller on silkroad, so I'd feel comfortable up to a few thousand dollars.

I think I've actually bought something from Memorydealers before. I'm not sure of the relationship between bitcoinstore and Memorydealers. If they're the same entity, then I'd be fine up to $100k or so -- it's a real business.

[mikeash → rdl]

That makes escrow less likely to be useful, but the chance doesn't go to zero, so it hardly has "no point at all".

[rdl → mikeash]

Escrow has its own risk and cost. The hilarious thing with previous online currencies (E-Gold, OSGold, Pecunix, ...) was that the escrow providers themselves were often the weak link.

[mikeash → rdl]

Well sure, but it's still useful, just not something you might automatically want.

My credit card issuer effectively acts as an escrow agent, and I love that fact when ordering from companies. It has saved me more than once, too.

[rdl → BitcoinStore]

High chargeback risk makes sense; the 1-3% fee otherwise doesn't really make a business, given how widespread credit cards are, etc., IMO.

So, selling prepaid cards online would be a particular niche, maybe, or other things which are cash-equivalent.

[BitcoinStore → rdl]

For the 1-3% fee businesses, it does actually make sense. Especially with really low-margin sites. Think of your local grocery store offering a cash discount because of credit card fees, those businesses really do exist on the margin.

[Frozenlock → rdl]

Anything: the advantage is in not requiring any credit card and still being able to buy/sell on the Internet.

There's some countries where receiving pre-approved credit cards monthly in your inbox isn't the norm.