Topic: Why Bitcoin is doomed to fail, and there's nothing you can do about it. - page 5. (Read 39330 times)

The only reason Bitcoin is doomed to fail is, EVERYTHING is doomed to fail. The ONLY question is WHEN?

 

Yeah, but when you're right, you're right... gotta brandish the troll stick once in a while 

Here's a little 'old news' to whet everyone's appetite: http://www.mobilepaymentstoday.com/article/216119/M-PESA-meets-Bitcoin-with-new-service-in-Kenya, with numbers like 80% of the 44 million citizens of Kenya having a cellphone... next stop... THE MOON!

Exactly, very true.  Thank you for bringing that back up.  I got distracted arguing one small point   that wasn't even btc related.  Thanks for bringing us back OT.

But yeah, you're right this is going to be a huge area of bitcoin growth and practical application.  Also, 3rd world peoples will like btc much more than unstable local currencies ran by local corrupt dictators.

Wow, there are some big egos around here that seem to think they know a lot about the world... I don't claim to know it all, but maybe some "seniors" around here need to look up things like M-Pesa and Africa being the fastest growing cellular market in the world... yes, that's a 3rd world country being the biggest growing market in the world!

Think about all the migrant workers all over the world and the amount they lose on fees when sending money back home to their families... then maybe you can form a clearer understanding how bitcoin can be useful to the the rest of the world and not only the elitist smartphone owners... maybe you'll start to recognize the walls of the box you're living in.

Keep going OP (and friends), Divide and Conquer!

Care to explain this?, Average food services is at 8.08% net profit.  I said being generous and for ease of calculation, 10%.  Why am I a dumb ass?




I'm sure you learned more about economics and business while working at the pizza place than I did while working doing Equities analysis making stock recommendations, writing detailed reports tearing apart companies to figure out which ones are the best to sell to different types of clients, or doing manual HFT for a hedge fund. 

Though the first time I learned to do a google search before talking out of my ass on a forum, I think I was maybe 11  or 12, and I figured that out on my own.  Don't feel too bad, sometimes people are just slow.  Try doing a google search on "Bitcoin pros and cons from a merchants perspective" There you will find a whole bunch of business owners talking about how the difference in transaction costs is a huge boon for them in terms of profits.  But what do they know? They are only realy business owners who have started accepting bitcoin as a payment method, and seen the results first hand.

Even if this append ... block the IP in hardcoded and it's done. 
Like in many P2P file sharing software, you have an ipfilter. 

if those computers come up new algos and new encryption will also come up. Circle begins again. No, bitcoin and crypto in general will not die in any way. It will only evolve from this point. Bitcoin is here to stay. Maybe other digital currency comes up, but that will be based on bitcoin in most parts for now.
At this moment in time there is no better thing then btc freedom-wise and also technology-wise. It will only become more free and more advanced. I think most if not all future attacks on btc will fail.
Just in case bitcoin fails: there are around 120 other blockchains out there that just want to take over. So who really cares? Even if btc fails: Some other altcoins come up.

Conclusion: buy yourself some good alts Bitcoin is far from over.

But if Bitcoin DOES die, it will come from a fully operational quantum computer that is controlled by the banks or governments.

The only other thing that will kill Bitcoin is a massive disruption of the Internet. But this will take down the banking system, as well.

See: https://bitcointalksearch.org/topic/m.5084101.

I think Bitcoin has crossed the border risk, and cant die, maybe will addapt to survive

add this to the list of Bitcoin fails haha: https://bitcointalksearch.org/topic/--459979

Bitcoin news about money lost or stolen because of this in 3.2.1

How much profit would you say your average mom and pop small business makes? After rent wages, everything.  I was being generous with 10%.   You can't possibly thing the pizzeria around the corner is doubling their money every year.  I'd really like for you to explain how what I said is incorrect.  I've been involved in business for a while, so I know I'm right.  Econ degree, Stock broker, hedge fund, my own business, which as a small business, after all costs are accounted for makes around 10%.  If I were talking about BestBuy I would say their margins are between 1-3%, but I didn't cause I'm talking about a hypothetical pizza place.

Edit: Gross Income:

$5,000 per week average for first year. $10,000 per week average 2nd, 3rd and 4th years. $15,000 per week 5th year.

Breakdown:

Assumptions: Store is open 12 hours per day (11 am – 11 pm) 7 days a week, average order is $20, 50/50 delivery/carryout split, average delivery is 2.5 miles.

Friday and Saturday bring in 1/2 of the total gross income. The rest is spread out evenly among the other days.

Costs:

Labor:

108 cook hours – 50 owner hours = 58 cook hours.
(1 insider Sunday - Thursday, 2 insiders Friday and Saturday)
84 driver hours.
(1 driver all week)

58 * $9.00 / hour = $522
84 * $7.25 / hour = $609

Labor before taxes: $1131

$1131 * .0765 = $86.52
$1131 * .015 = $16.97

Worker’s Comp: $250 per month/ 4
$62.50 per week

Fifty percent health insurance for 2 full-time employees:

.5 * $300 * 2 = $300/month /4

$75 per week.

($5,000/ $20 per order )*.50 = 125 deliveries per week
125 deliveries/week * 2.5 miles * .55 cents per mile = $171.88 in mileage

Total Labor: $1543.87 per week.

*Keep in mind this is an extremely conservative estimate and it is assuming that the owner will work every day of the week and that he can hire some tremendously productive staff.

Food Costs:

This I am not all that familiar with but reading around I’ve seen 10% mentioned so I will go with that. If anyone has any better insight please let me know and I’ll adjust.

$5,000 * .3 = $1500 per week.

Rent

This may still be a little low but I would assume starting a new business you would want to keep rent expense low and with the low volume having a strip mall location probably wouldn't be a bad idea.

$2,500 per month (rent + CAM)/4
$625 per week.

Utilities

According to https://www.northernpizzaequipment.com/v/vspfiles/pdf/ mmps360.pdf a Middleby Marshall oven uses 135,000 BTU per hour per rack. In my town 1 million natural gas BTUs cost $8.624.

135,000 * 7 days * 12 hours per day = 11,340,000 BTU per week
11,340,000/1,000,000 BTU * $8.624 = $97.80 per week for gas. Figure another $300 per month for heating and cooling + lights.

$172.80 per week for utilities.

Insurance

This one I am having trouble even taking a guess at. I’m guessing that since you are only purchasing liability that it isn’t that expensive. I’m going to call it $200 per month.

$200/4 = $50 per week for insurance

CC Machine / Transaction Fees (Assume ¼ of orders)

$5,000 / 4 = $1250
$1250 * .02 = $25 per week

Advertising

$5,000 * .05 = $250 per week

One time costs:

(1)   Used oven - $16,000 – 10 years
(2)   Pans/Dishes - $1000 – 5 years
(3)   Computer + Software - $1,000 – 5 years
(4)   Make line - $6000 – 15 years
(5)   Walk in - $5000 – 10 years
(6)   Hood - $5000 – 10 years
(7)   Cut table - $1000 – 15 years
(   Dough Table - $1000 – 15 years
(9)   Phone counter - $1000 – 15 years
(10)   Hot Rack - $1000 – 10 years
(11)   Hot bags - $500 – 5 years
(12)   Shelving - $3000 – 15 years
(13)   Signage - $5000 – 20 years
(14)   Phone System - $1500 – 5 years
(15)   3 Compartment Sink - $500 – 15 years

5 year - $16.67 per week
10 year - $56.25 per week
15 year - $17.36 per week
20 year - $5.21 per week

One time costs: $95.49 per week

Incidentals (office supplies/cleaning supplies/etc)

$200 per month / 4 = $50 per week

Maintenance

$700 per month / 4
$175 per week

Phones

$200 per month / 4
$50 per week

Accounting and Legal

$100 per month (went with low estimate because starting out it is probably easy enough to do accounting with QuickBooks).

$25 per week

Pest Control
$40 per month / 4
$10 per week

Garbage

$100 per month / 4
$25 per week

Total Costs of Operation Per Week: $4603.16.

Profit: $396.84

After at least 35% aggregate taxes:

$396.84 * .65 = $257.95 per week.

With an average of $5,000 gross sales per week the owner of this store could expect to make $12,381.60 his first year of ownership. This would equate to a net profit margin of approximately 5%.

I told you I was being generous.

Edit 2:  HAHAHAH I just realized, Game, Set, and match is from tennis.  You tried to insult me with a chess joke, after being wrong on both; your premise, the 10% profit margin you focused on to draw attention away from the fact that  credit card companies charge fees, and if those fees are 5%, and the profit a store makes on each sale is 10%.  10% of $100 is $10.  5% of $100, is $5. 10-5= 10/2.  Half. 

Or if they make 25% profit, and pay a 5% fee, they make 25, pay 5, profit is now 20.  This owner increases his profit by 20% by using bitcoin instead of credit cards. That's [1-(20/25)]*100.
Dumb shit.

I'm not even going to bother with you lmao, 10% profit margins lmaoooo good one. Yes digital currencies are the banking revolution wtf does that have to do with Bitcoin? Or wait do you think Bitcoin is the only digital currency? P.S you little magical chess player, Charlie is in Jail. lmao ohh man Bitcoins bright minds crack me up.

10% profit margin on revenue.  CC companies charge fees on revenue, not profit.  a $10 meal.  5% fee from Visa= $0.50, profit was $1, is now $0.50.  with bitcoins, the pizza man makes his 10% profit on the $10 meal, so $1 profit, and pays little to no fee to bitcoin.  Each sale he accepts bitcoins he makes 2x as much profit.  Simple.

Oh, and bill gates agrees with me on the Banking revolution in 3rd world countries.
http://www.cryptocoinsnews.com/2014/02/11/shremgates/

Game, Set, and Match.

Soo I guess you haven't been paying attention to whats actually happening in the world the past couple of years? and I'm not talking about Bitcoin.

What was once the most desirable is no more....

Why Bitcoin will fail, 3rd world country folk failings at math. How does a 5% visa fee equal 100% gain in profits? lmfao

unfortunately there is no solution because Gavin has CIA CFR meetings on the regular.

US Dollars have lost ~94% of their value since 1900.  And bitcoin stopped falling the moment people realized that it was just mt. gox that sucked, not btc.  And how is btc useful?  Things like micro payments, micro loans which will enable economic growth in 3rd world countries (yes they do have cell phones in Africa).  A pizza place that sells 10$ worth of food with bitcoins instead of with credit card doubles his profit.  After rent, wages, food, etc.  he has a 10% profit margin, maybe.  Visa will charge him 3-5%, for arguments sake, taking 1/2 his profit.  He sells in btc, he keeps the whole 10%.  If he made $50, 000 last year, the first year he sells pizza using btc, he makes 100,000.  That seems beneficial.. oh and it can change the stock market, contracts, etc.

he's not a moderator.