One of my favorites:
Well they refunded the BTC. In order to get a response, all I had to do was post on several BTC related forums and chat, contact the founders on Twitter, LinkedIn, and Facebook, and file a complaint with the government.
What a company. Now hopefully I am able to successfully transfer the coins out (doubtful).
Note that the user did not actually have to do any of those things for a response. It made no difference. Coinbase has a queue and they get through the whole thing - you're attended to when they get to your place in line. You can make all those other posts if you want, however there's no evidence to suggest that any of it affects how quickly they get back to you.
Also, by "verification process" you really mean "ach bank transfer", which is not exactly something Coinbase invented. Interfacing with banks is difficult and time consuming and stupid - that's part of why bitcoin exists - but as long as ach is around you kind of have to deal with that. Two parties are involved in an ach transfer, and the banks are the end that take that long. You're blaming Coinbase for the problem they're helping to solve.
I can't comment on their customer service as I have yet to need it.
For a process that sometimes takes 3 days, I can easily envision someone else having a 7-10 day turnaround. You make it sound like it's an order of magnitude off, but it really isn't.
They have some sort of yodelee integration with online banking that lets you verify within seconds.
With Coinbase I haven't found a way to have that tightly integrated experience.
Their investors (USV et al) definitely understand marketplaces back-and-forth and are in it for the long game. It makes sense to do anything possible to spur merchant adoption, and this is an eye-popping way to do it. Without merchants broadly and happily accepting Bitcoin, the marketplace just can't mature properly.
What % of Coinbase's value of is captured in merchants that will process less than $1mm lifetime? I'm sure it pails in comparison to the potential profits on the (hopefully huge and forthcoming) merchants that will drive Bitcoin at the same order-of-magnitude as Paypal, traditional credit cards, etc.
I'm open-minded, but how can they afford to offer this for free? Will this offer be attractive paying customers, and why do they want to attract non-paying customers?
Yes, it's a loss leader. However, if they have the cash to support it for a time they might tie some very profitable businesses to their infrastructure.
Forgive me but won't they make money by selling the Bitcoins they receive?
If they are handling bitcoins then they will be making and losing their daily bread on those obscure forex spreads. The point of using a payment processor is that you don't want to accept bitcoins without a support network and hold them over time by yourself. If that's all you wanted to do, you would use the Satoshi wallet and write some RPC-JSON hooks.
All I'm saying is that just because they do something day in and day out doesn't make that their business.
To be honest I think doing this to get BTC to sell is a great business model if they trust the price to climb.
Coinbase's main thing going with it is that they're the only competitor that seems to have not let the entire operation burn down(bitinstant).
> Your ID could not be verified at this time. Insufficient Data for Questions
I've emailed, tweeted, and posted to their support center about it with no response over the last week. They need to get that support staff up and running quick.
PS: In terms of adoption, Bitpay has several companies doing $1M+ monthly, so this promotion isn't without meaningful value to someone.
Also, on the increased value (deflation) of Bitcoin they already hold from the increased adoption caused by the allure of fee free e-commerce.
The answer is simple: volume.
In that direction, it seems like charging customers has become untenable since PayPal (and credit cards, really).
- Bitcoin: ~50k transactions/day (http://blockchain.info/charts/n-transactions)
- Litecoin: ~5k transactions/day (http://ltc.block-explorer.com/charts)
Also this: http://www.google.com/trends/explore?q=bitcoin%2C+litecoin#q...
Or vice versa, of course, Alice buys something, Bob ships it, Alice never pays.
Those who need to use a credit card, will.