Topic: Physical Bit Dollars (BETA) (Read 4064 times)

that on a type of paper or plastic with a hologram over it

I also thought just having the QR code and when it gets read it says the code for the BTC.

I was thinking of something like this.



The reverse will have the private key or a wallet.dat in qr code and denomination in plain text.

The paper represents the wallet with X amount of bitcoins not the bitcoins themselves.

Perhaps not call it anything with 'dollar' in it, to avoid confusion with USD. Perhaps bitcoin bill or note is better? or cupon?

For what it's worth, I didn't think you were a scammer (and I apologize if I sounded like I was accusing you of that or implying that). I think you meant well but didn't really have a good idea of what you were getting yourself into. We actually badly need an e-wallet service run by someone truly trustworthy. The problem is, trustworthy people understand what a complex job it is to really do that right, and unless you intend to scam people, it's not likely to be all that profitable and you may have to defend your reputation against false accusation after false accusation. So that drives away the honest people and attracts the scammer.

Imagine if you did your bit dollars plan, and I started claiming that I bought 10 BTC from you and then when I went to claim it, you said it had already been claimed. Say you were honest, sold me the 10 BTC, and all you know is that someone claimed them. You don't know whether I'm scamming you and I claimed them or someone somehow got the code and you can't prove the 10 BTC you sent was to someone who knew a code that only you and I should know. (Maybe they peeked at my bit dollar, maybe not, you don't know.) What do you do? Do you pay me back the 10 BTC to preserve your repuation? Out of what? It's not like this is a high-profit service.

And what if you get hit by a car while holding lots of other people's money?

Once again I have gone over my head. This happens to much so for now on I am giving up on projects and I may still run my pyramid/ponzi that seems to be my only success. But with school starting in about a month I would not be able to handle BitDollars. People may think I am a scammer but I am far from one. I simply get in over my head time after time. And this will be the last time.

The site is not even ready yet. I can understand everyones fear, but that doesnt mean you should be against new projects. I am on my ipod and can not reach my cpu right now. But tonight I will tell you all how it will work, I know there will be some negativity towards it but not everything can be perfect.

This project doesn't seem very serious tbh. Look at the website, no information about who is running the site.

Why should i trust you and buy bitdollars? This will end like mybitcoin... As soon as the site owner has enough btc in his wallets, he will disappear and going to sell out and make big cash. Your bitdollars will become worthless because, nobody is willing to pay you any bitcent for this redemtion codes...

Wherever they are held, if that disappears, every bitdollar becomes worthless. That's a pretty high risk considering how bitcoin-related business have a habit of disappearing.

There are a few ways to work around that:

1) Have a really good reputation, have people know your real identity, and operate completely in the open.

2) Hire independent auditors to provide independent configuration that how you say you run your business is the same as how you really run it.

3) Design your business in such a way that it's not easy for you to cheat people and get away with it. For example, document the amount of outstanding obligations you have and prove you have the reserve you claim you have.

But honestly, your system as proposed doesn't seem very useful. Pretty much the same thing can be done in ways that don't have the risks your method has.

Also, this could be a language barrier issue or just me being hypersensitive, but you seem a bit slow to understand the things people are telling you. I'm not suggesting you are stupid, just that you're not deeply familiar with the issues with running a business like this and the threats you will face. They're not obvious, and you can't magically know them just be being a smart guy. It seems like you might lack the experience necessary to run a business where you may be safeguarding hundreds of thousands of dollars of other people's money.

People asked the most obvious questions, the ones you should already have the answers for because you know people are going to ask them, and it seemed like you didn't understand the questions. In fairness, they weren't very detailed. But because you should already have thought through all the threats and how you will address them, it should have been sufficient to just point out the type of threat to hear your plan to address that threat. And it wasn't.

Ok, but we need to know how it works!! Either you are keeping something or are you just taking a private key, making an address, depositing the money, and then printing a bill with the private key/address?

Codes aren't held on the site or anything like that.

Worst answer ever. Especially in the wake of the mybitcoin fiasco.

If you are unwilling to explain the system - nobody in their right mind will use it.

I was willing to give you a chance - You just blew it.

nothing is going to disappear..

Which implies you will be storing the private keys somewhere.
If this is the case - please
a) Stop claiming the system is 'like bitbills'.   (bitbills store *nothing* - everything is on the card.)
b) explain exactly how your system works... and what would happen to the BTC for a particular piece of paper you issued if you and your entire IT infrastructure disappeared.

I wouldn't store them on my regular wallet 

Say you have 50,000 BTC in bitdollars "out there". And say you typically redeem 1,000 BTC per day. You might "invest" 30,000 BTC in the market to try to make some extra money. But if you lose those BTC, eventually some customer will want to redeem a bitdollar and you won't be able to cover it.

To assure us that you are not "borrowing" your customers' money, you should do three things:

1) Publish the list of account(s) that are holding customer's funds.
2) Regularly publish the serial number and denomination of every outstanding bitdollar (but not the claim code).
3) Any time a new account is added to list 1, you should prove that it is your account. (There are various ways you can do this.)

That way, if I have a bitdollar, I can 100% confirm that it is valid and I can 100% confirm that you actually have the bitcoins to back all outstanding bitdollar. You cannot easily cheat this system because if one bitodollar isn't on the list, the owner of that bitdollar at least will know it. And if you don't have enough bitcoins to cover the total of all bitdollars, we can see that from the accounts.

You can still cheat people by refusing to honor bitdollars either one by one or just disappearing one day. But at least this will ensure that as soon as you start cheating, people will know to stop trusting you. (If they ever start.) It will also ensure you can't secretly "borrow" customer funds.

Site is still being worked on..

the thing with a security hologram is that they are pointless unless you get a custom made one, and hope the same company don't sell them to another entity. otherwise your just wasting your time and the customers money.

I looked into hologram stickers but paper and stickers don't like each other.

I print them for you and ship the to you