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Why would anyone spend bitcoins?

purse.io

2 points by 2drew3 12 years ago · 5 comments · 1 min read

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"Merchant adoption is not THE barrier to Bitcoin commerce - it’s the lack of incentive to spend."

Accepting Bitcoin from a merchant perspective is a brain dead decision. "Save over 50% on your transaction costs" is an easy sales pitch. Convincing people to spend bitcoins - that's the real challenge.

2drew3OP 12 years ago

"Merchant adoption is not THE barrier to Bitcoin commerce - it’s the lack of incentive to spend."

Merchants accepting Bitcoin is a brain dead decision. "How would you like to save over 50% on payment processing?" is the easiest sales pitch around. The real challenge is convincing Bitcoin holders to spend.

dublinben 12 years ago

This is an even greater hurdle to overcome now that spending a Bitcoin is a taxable event. According to the IRS, precisely which Bitcoin you spend has significant consequences. Without fungiblity, Bitcoin is not a practical currency.

  • mrkent 12 years ago

    Applications that will automatically keep track of these events are on the horizon. The cryptocurrency industry is still in its infancy.

  • 2drew3OP 12 years ago

    Great point. Hopefully, IRS will reconsider and treat BTC as a currency.

masoneyewear 12 years ago

love what you guys are doing at purse.io. We plan on accepting bitcoin soon as well!

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