Hello everyone. My question might come as been stupid or childish so constructive criticism would be appreciated.
I have come across a lot of users that plans on accepting Bitcoin in their business and I'm curious on how they tackle fraudulent problems.
- If for example a user of a custodial wallet sends Bitcoin to buy some goods and the seller voluntary chooses not to meet their end of the bargain, who are they going to complain to?
For a person to person trade, Escrows exist for a reason, if you choose to trust your trade partner to first send your bitcoins to them directly without making use of escrow, that is the risk you choose to take and if the partner abscond with the bitcoin without keeping their own part of the deal, that's your loss, you have no one to blame except yourself.
- In countries where crypto are considered illegal isn't it risky to accept Bitcoin as a medium of exchange? Then why are some people still accepting it?
Will you go announcing to the government that you just accepted bitcoin as a means of payment for your goods or service? who does that? bitcoin transactions might be declared illegal by the government but they still do not have access to your bitcoin wallet or address, so you are still very free to spend your bitcoin, and also receive bitcoin from other parties without any government knowledge or interference, except you decide to report yourself to them, or maybe your trade partner decides to report you, which also means him or her also reporting him or her self.
- In a trade does the buyer send their Bitcoin first or the seller send their goods/service?
The normal standard of trade requires that you pay first, then the seller of the goods, or service will release whatever you have paid for to you, but like i said earlier, if the trade as to do with direct person to person, use a trusted escrow if you do not know or trust your trade partner, there is no need trying to be a hero by sending your bitcoin or goods, service first, use escrow, it only cost a very small fee which both of you can agree to split to make trade mutual.
- Lightning network has been praised for its speed in transactions thus used by many individuals. Does transactions only involve those you trust? Or there's a basis for the confidence of not been scammed?
I am still a student learning how bitcoin lightning network truly works, so i cant comment on this at the moment until i have a better understanding of how the technology works.
- I'm well aware of the dangers that centralized exchange poses, but doesn't their access to customers data make it feel safer to run a business? (Not to be confused for safekeeping of coins, just a means to run the trade)
Even the centralized exchanges cant be trusted because they also are scamming many of their users, and besides, a business partner who want to scam you will not make use of a centralized exchange, except if the central exchange is also run by scammers as well and they happen to be in partnership with your supposed business partner, so centralized exchanges play little to no role at all in safeguarding the bitcoin ecosystem in terms of fraud and scams, you as an individual is basically your own security, and the moment you begin to realize this, the sooner you start learning how to keep your bitcoins, and other crypto assets safe from scammers, hackers and fraudsters.