Topic: Is Accesscoin (bitcoin with credit cards) gonna last? (Read 1409 times)
I have no clue about this one but I have just recently come in with Bank By Bitcoin, it is an epic site just started on with their very FIRST product and service. That is The Bitcoin Card, it is as cheap as you could imagine at just 10 USD. The best move is that even then it is preloaded with some Bitcoin near 3-4 USD. And, the free shipping plus the name tag in that is just makes it all awesome.
Another challenge for this particular service is that Google Checkout's terms of service prohibit currency exchange. I vaguely recall a similar service being shut down last year, but can't find the forum posts now
It will fail.
Legit users will say "cool idea but too expensive". Thus they buy where it is cheaper.
Fraudulent users will say "shit I would buy it for $9 per BTC. It isn't my money". They buy where it is possible to commit fraud.
Over time ratio of fraudulent to legit users continually rises thus fees have to keep rising resulting in a downward spiral.
I don't see how facebook accounts is much of a deterrent. Don't we hear everyday about facebook accounts getting hacked. The sophistication of average facebook users isn't much higher than average credit card user and single trojan can acquire both.
Legit users will say "cool idea but too expensive". Thus they buy where it is cheaper.
Fraudulent users will say "shit I would buy it for $9 per BTC. It isn't my money". They buy where it is possible to commit fraud.
Over time ratio of fraudulent to legit users continually rises thus fees have to keep rising resulting in a downward spiral.
I don't see how facebook accounts is much of a deterrent. Don't we hear everyday about facebook accounts getting hacked. The sophistication of average facebook users isn't much higher than average credit card user and single trojan can acquire both.
www.accesscoin.com seems to have found a way to sell bitcoin for credit card money without immediately getting scammed to death: using facebook connect to verify the buyers identity.
But is this model going to last, or will the scammers outsmart them?
I can already see that their rate is a bit higher than the exchange rate, which I guess is to cover the losses of the fraudulent purchases that currently get through. Do you think this discrepancy is just gonna continue to rise as scammers come up with more elaborate methods, essentially elimininating the business? Or is it a viable method that will see more widespread adoption?
But is this model going to last, or will the scammers outsmart them?
I can already see that their rate is a bit higher than the exchange rate, which I guess is to cover the losses of the fraudulent purchases that currently get through. Do you think this discrepancy is just gonna continue to rise as scammers come up with more elaborate methods, essentially elimininating the business? Or is it a viable method that will see more widespread adoption?
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