Topic: In order for bitcoin to appeal to the masses, there needs to be a 3rd party - page 2. (Read 1772 times)

when people invest in bitcoin its because the banks are not as good. for those that want 3rd party trust. stick with FIAT. for those that want to OWN their wealth because they know that banks are not as good. then just like investing in gold. they would buy themselves a safe and write the combination down multiple times in different places, should they forget the combination.

its all about teaching basic self security, self management and self control.

Except the bank gives you full protection on your money.

Your example would be more like: dedicated machine = your mattress, 3rd party service = money you have in your pocket

What happens if you lose your wallet(s)? Or if you screw something up and lose the private keys somehow, or send money to the wrong account? There needs to be a 3rd party that manages security and gives you full protection against anything that happens.

Yes, there ARE people who don't trust banks and keep money in their mattress, or hold onto a bunch of gold coins, but those are a very small minority. The typical person keeps their money in a bank.



Ok, so if you're buying physical goods from an online merchant, what benefit exactly do you get by paying with bitcoin over a credit card?

what people need to learn is to hoard 90% of their wealth in THEIR OWN control.
this means supplying easy to follow information on how to do this.

the other 10% is what most would call disposable income or pocket money amounts that they would use with third parties.

i think once people use a dedicated machine thats not filled up with randomly downloaded programs (risk of trojans) such as a clean PC, a raspberry PI, a phone or hardware wallet, even a paperwallet. they can then once a day or once a week, transfer funds to third party wallets, for daily use.

Example of real world FIAT scenario: dedicated machine= bank, 3rd party service=mastercard/bank note

Yeah, you have to take responsibility and get nothing in return. That sounds stupid to me.

For example, tigerdirect accepts bitcoin, but why would you?

For one, if you're unhappy with anything, you have to deal with their customer service only, and if you're unhappy with the results, too bad. If you use a credit card, you have recourse by going to the credit card company (which generally sides with the cardholder).

And you pay the same amount of money, actually more money when you consider the fact that a lot of times you get cash back or reward points with credit cards.

No chargebacks benefits the MERCHANT, NOT the user. I've had issues with merchants before (big companies too), and it was either spend hours on the phone trying to get it resolved, or take 5 minutes, do a chargeback, and let things work themselves out on their end (they eventually contacted me about it).


Identity theft is a whole separate issue. The information you give when making a credit card tx is nowhere close to what someone needs to steal your identity. All you're giving with a credit card tx is the account #, expiration date, CVV code (and all those 3 can be changed instantly by the card issuer), your name and billing address (which is information you can find on public records).

Bitcoin only offers merchant protection when it comes to most things (if you're ordering something you need to give your name and address anyway). With credit cards, there is no due diligence required by the consumer. You're not liable for any fraud, only the merchants are.

The only time bitcoin protects the user is when you're doing something you want to keep anonymous.

What happens if your identity is stolen along with your credit card information. Bitcoin offers merchant and user protection, if due diligence is used.

Taking responsibility is so haard.

Here's the issue with bitcoin.

No chargebacks, and you need to store/protect your private keys.

That's a BAD thing.

When I buy things online, I buy with a credit card. I don't have to do any research into whether a merchant is reputable or not. If it doesn't show up or is not as advertised, I make a phone call and get my money back. I don't have to worry about protecting my information, because if it's stolen, I make a phone call, get my money back, and get a new card issued.

For fiat, it by itself has no protection, but banks, a trusted 3rd party, and the FDIC protect it. If your bank account is hacked, you get your money back. If there's fraud of some kind involved, you get your money back. If your bank goes bankrupt, the FDIC covers up to 250K of it, which is sufficient protection for most people.

In order for bitcoin to appeal to the masses, there needs to be a trusted 3rd party who can offer a payment solution that includes dispute resolution and chargebacks, 100% protection for your account being hacked, basically removing any kind of responsibility or liability from the end user. And I'm not talking about a "trusted" 3rd party like coinbase, or bitstamp. The service would have to be offered by an organization like bank of america.

To the average person, there's no appeal of bitcoin. It puts the onus on YOU to protect your money and making sure the merchant is reliable. I've lost one of my credit cards while on vacation, didn't even worry about it till I got back. If that were bitcoin then I'd be panicking about losing a ton of money if I didn't resolve it immediately.