So it looks like bitcoin's founder is [sort of] my neighbor

[mikedt]

I remember quite some years ago hearing that we would one day be a "cashless society," and I thought, "IMPOSSIBLE!!" Wow. How wrong I was. It's been years and years since I even carried cash--I'm notorious for rarely having ANY cash in my purse at all, and almost never more than $10. It's been eons since I needed cash--for many years now, it's come down to "if I can't pay for it with a debit card, credit card, or--gasp--check, then I guess I don't need it!" Of course, actual money is still behind it all, but in terms of using/handling/keeping cash, that's been a thing of the past for me for ~25 years or so.

I tried to be like that in the UK for a while, going cashless, but then found many smaller places have a minimum amount for credit card transactions, like 5 pounds, which is a problem when trying buy small items like sandwiches, chocolate bars or sweets. Mind you if you come to this part of the world with a Mastercard, Visa, Amex or whatever, you're quite likely to get a puzzled look or "sorry we can't deal with that"....even from hotels and travel agents. As for Bitcoin, think I'd rather invest in something a bit more tangible like gold or something.

When I went to the UK last year for 3 weeks, I took cash, but put most of it into pre-paid Travelex Mastercard as soon as I got to Heathrow Airport, so I didn't have to carry it around with me, and much less risky as well. Had to do that because no places in Bristol accept China Construction Bank or Bank of Communications UnionPay cards.

 

[MoodyBlues]

I tried to be like that in the UK for a while, going cashless, but then found many smaller places have a minimum amount for credit card transactions, like 5 pounds, which is a problem when trying buy small items like sandwiches, chocolate bars or sweets. Mind you if you come to this part of the world with a Mastercard, Visa, Amex or whatever, you're quite likely to get a puzzled look or "sorry we can't deal with that"....even from hotels and travel agents.

Really? That's interesting--and unexpected, to me. I guess I was under the impression that those were as ubiquitous everywhere else as they are here in the US.

As for Bitcoin, think I'd rather invest in something a bit more tangible like gold or something.

This leads to something that has confused me (and I'm way too lazy to actually look it up). Last night on the local news they had a story about bitcoin, including the recent frenzy over its purported founder, and they said things like "since a finite number of bitcoins were created" they can't be forged or...other stuff. Anyway, the point was that they were CREATED. But where? I thought they only existed in cyberspace. I thought the whole point was that they were NOT tangible. So if X amount was created to begin with, why can't Y amount be created later?

 

[huh]

they are created by "mining" people help the open source network by processing transactions etc..they earn bitcoins in exchange..Bitcoin's protocol is set up to decrease the number of bitcoins created per year..I think there is a mathematical algorithm attributed to it.

It sort of works like stock in a company. There are only so many shares available and the value of the shares fluctuate depending on different factors. You can "earn" it by working for the network much like stock options are given as a bonus for working for a company.

 

[huh]

PS

I don't believe that Bitcoin has only one founder. I think that it was a group effort. If you ever get around to reading the first published paper it refers to "we" throughout. It's just my opinion though....

furthermore I believe the anonymity is necessary and essential to bitcoin, not only to keep or enhance it's value...but also as part of it's core principle of currency relying on peer to peer trust without the need for an institution as a middleman.


and Yes...yes it is me!!!:0 kidding

 

[mikedt]

Really? That's interesting--and unexpected, to me. I guess I was under the impression that those were as ubiquitous everywhere else as they are here in the US.

In the large cities like Beijing and Shanghai it's quite ubiquitous, particularly if there's a significant foreign presence, like tourists and expats. But even here, find many restaurants and smaller stores are cash only, or if they do take electronic payments, it's Chinese UnionPay debit cards only. In Xilinhot a small city, very few foreigners, I've actually got to look hard for a place that takes Mastercard, Visa or Amex, which is usually the large(expensive) hotels. Most stores and restaurants don't have them.

Basically the situation is in China you've got to have equivalent of something like $2,000 in your account before the bank will consider you for a Mastercard or Visa credit card. Normally you get a UnionPay debit card, which is what most people have. I think it can cost the vendors a significant amount as well, like transaction fees, merchant services and the cost of the terminals. There's a significant population, particularly in rural areas that just don't have bank accounts, and the nearest ATM can be a long way away. Villages often have small credit unions, that do things the real old fashioned way with paper ledgers, calculators, and sometimes abacuses. Computers are expensive, virus prone and not to be trusted.

There's another aspect of China that integrated cashless EPOS systems might not be able to deal with, particularly if they work on predetermined inventory and prices....haggling...i.e. the business of negotiating for the lowest price on an item. Usually it's only unwitting foreigners (laowai) that pay the prices on the barcoded tags. ...many local stores in my neighbourhood don't even have cash registers.