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?
- 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?
- In a trade does the buyer send their Bitcoin first or the seller send their goods/service?
- 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'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)
I have been contemplating this for sometime now so assistance would be appreciated. Thank you.
1. File a complaint for fraud/scam to the local authorities like they would when making a purchase with a regular currency (FIAT currency). If the seller isn't "anonymous" and is from your area, there is a chance you will get back your funds. If not, there is no way you will get back your coins.
2. If bitcoin is illegal, then yes, they shouldn't be using it. I don't know why business would want to accept bitcoin and risk everything. Are you sure you don't mean legal tender? Because even if it isn't a legal tender, but using bitcoin is allowed, business can accept crypto currencies, but they can refuse to accept payments in bitcoin if they want.
3. The buyer is going to send first just like when shopping online. What's stopping the buyer from paying after receiving the goods?
4. Lightning network or not, both requires each party to trust each other.
5. Yes, it does make it safer. Hence there are those "wallet payment" services that lets you pay directly from the exchanges to the merchants. But yes, decentralization is lost.