Bitcoin: What Merchants Need to Know - Chargebacks911

How do bitcoin charge backs work?

I sell a lot of digital products online and despite offering a 100% money back guarantee, sometimes people still issue chargebacks through their banks.
If I were to ever start accepting bitcoin as payment, and someone wanted to dispute the transaction they made with me, how would that even work? With no centralized agent to investigate a transaction, once money is sent between two users, is the money gone forever?
I'm just trying to understand how cryptocurrencies will work in the event of fraud or returns or reoccurring payments that sometimes get messed up.
submitted by phaskellhall to Bitcoin [link] [comments]

I have become a victim of an eBay / PayPal Bitcoin charge back scam.

I'm trying to work with ebay, paypal, and I would like for the police to get involved as well. I am being scammed out of approximately $2000.00 worth of bitcoins that I sold on ebay over the last several weeks. There are two users who have filed PayPal chargebacks against me.
The users are: fiedlerhm3224 and auscooter12.
I believe this is a very sophisticated scam since both of these users have been ebay members for many years and have many positive feedbacks. So I believe what has happened is a perpetrator has stolen and taken over these userids and has orchestrated the scam, gaining my trust, sending me money for which I sent the bitcoins, and then, once the real owner found out (perhaps they got a call from the credit card company?) at that point the real user activated a charge back. Either that, or these two users really are the scam artists themselves, which I find unlikely. I was able to trace the IP number of one of them who claims to be living in VA to a CA location, to a server that has been marked as a potential "botnet" threat. This is why I think this was a highly sophisticated attack and that ebay/paypal/law enforcement should investigate it thoroughly.
I am ready to cooperate fully and have all the records of the bitcoin transactions, as well as email communications that I have had with these two scammer buyers
The most disgusting thing is these scammers had left me a string of positive feedbacks, only to stick the knife in, in the end! Look at this:
Very good seller. Fast shippingBuyer: Member id auscooter12 ( Feedback Score Of 89) Feb-20-12 19:46 70 BTC Bitcoin (#160740963378)US $470.00
Very good seller. Fast shipping.Buyer: Member id fiedlerhm3224 ( Feedback Score Of 146) Feb-17-12 05:14 60 BTC Bitcoin (#160738639037)US $400.00 60 BTC Bitcoin
Very good seller. Fast shipping.Buyer: Member id fiedlerhm3224 ( Feedback Score Of 146) Feb-17-12 05:14 60 BTC Bitcoin (#160739132632)US $400.00
Fast delivery, good communication. Thanks.Buyer: Member id fiedlerhm3224 ( Feedback Score Of 146) Feb-16-12 02:55 10 BTC Bitcoin (#160737080405)US $71.00 10 BTC Bitcoin
Fast delivery, good communication. Thanks.Buyer: Member id fiedlerhm3224 ( Feedback Score Of 146) Feb-16-12 02:54 20 BTC Bitcoin (#160736894807)US $122.50
I'm absolutely furious over this and want to persue this to the end. This sort of behavior does nothing for the ebay community or for any community for that matter.
If anyone has any advice for me I would be very interested in hearing from you.
Just as an update -- as expected, paypal ruled in the buyer's favor. I'm SOL.
I will append a couple of details here for everyone to see and learn from my mistakes as I continue to persue alternate routes/ways of recovering the funds.
Transaction Details
Express Checkout Payment Received (Unique Transaction ID #5T647976NY518660U)
This transaction has been reversed. For further details please see transaction 27C86689XG7949251 Original Transaction Date Type Status Details Gross Fee Net Feb 17, 2012 Payment From Heidi Fiedler Reversed PayPal reversed this payment because of a dispute or payment review. The money has been returned to the sender's PayPal account. PayPal reversed this payment because of a dispute or payment review. The money has been returned to the sender's PayPal account. ... $540.00 USD -$15.96 USD $524.04 USD
Related Transactions Date Type Status Details Gross Fee Net Feb 22, 2012 The funds that were placed on temporary hold have been reversed Removed Details -$540.00 USD $15.96 USD -$524.04 USD Feb 28, 2012 The funds that were placed on temporary hold have been reversed Removed Details -$540.00 USD $15.96 USD -$524.04 USD Mar 2, 2012 Update to Reversal Canceled Details $524.04 USD $0.00 USD $524.04 USD Mar 2, 2012 Reversal Completed Details -$540.00 USD $15.66 USD -$524.34 USD Total: $0.00 USD -$0.30 USD -$0.30 USD
Shopping Cart Contents
Qty Item Options Price 1 80 BTC Bitcoin Item # 160739744029 $540.00 USD Amount $540.00 USD
Item Total: $540.00 USD Sales Tax: Shipping: $0.00 USD Seller discount or charges: $0.00 USD
Total amount: $540.00 USD Fee amount: -$15.96 USD Net amount: $524.04 USD Date: Feb 17, 2012 Time: 07:57:18 PST Status: Reversed
Insurance: $0.00 USD
Shipping Address: Heidi Fiedler 418 Horatio Ct Cary, NC 27519-9383 United States Confirmed Heidi M Fiedler 209 Erskine Court Erskine Ct, NC 27511
Payment From: Heidi Fiedler (The sender of this payment is Verified) Buyer's ID: fiedlerhm3224 Buyer's Email: [email protected]
Payment Type: Instant
Description:

Shopping Cart

Transaction Details
Express Checkout Payment Received (Unique Transaction ID #3VN97714PW215963M)
This transaction has been reversed. For further details please see transaction 7LV14979GH153700D Original Transaction Date Type Status Details Gross Fee Net Feb 18, 2012 Payment From Scott Austin ReversedPayPal reversed this payment because of a dispute or payment review. The money has been returned to the sender's PayPal account.PayPal reversed this payment because of a dispute or payment review. The money has been returned to the sender's PayPal account. ... $470.00 USD -$13.93 USD $456.07 USD
Related Transactions Date Type Status Details Gross Fee Net Feb 18, 2012 Payment Review Placed Details -$456.07 USD ... -$456.07 USD Feb 18, 2012 Payment Review Cleared Details $456.07 USD ... $456.07 USD Feb 22, 2012 The funds that were placed on temporary hold have been reversed Removed Details -$470.00 USD $13.93 USD -$456.07 USD Feb 28, 2012 The funds that were placed on temporary hold have been reversed Removed Details -$470.00 USD $13.93 USD -$456.07 USD Mar 2, 2012 Update to Reversal Canceled Details $456.07 USD $0.00 USD $456.07 USD Mar 2, 2012 Reversal Completed Details -$470.00 USD $13.63 USD -$456.37 USD Total: $0.00 USD -$0.30 USD -$0.30 USD
Shopping Cart Contents
Qty Item Options Price 1 70 BTC Bitcoin Item # 160740963378 $470.00 USD Amount $470.00 USD
Item Total: $470.00 USD Sales Tax: Shipping: $0.00 USD Seller discount or charges: $0.00 USD
Total amount: $470.00 USD Fee amount: -$13.93 USD Net amount: $456.07 USD Date: Feb 18, 2012 Time: 18:06:28 PST Status: Reversed
Insurance: $0.00 USD
Shipping Address: Scott R Austin 4981 Pine Glen Rd NE Roanoke, VA 24019-5878 United States Confirmed
Payment From: Scott Austin (The sender of this payment is Verified) Buyer's ID: auscooter12 Buyer's Email: [email protected]
Payment Type: Instant
Tracking Number: No Shipment Tracking Carrier: None Order Status: Shipped (Feb 21, 2012)
Description: Shopping Cart
Note:

BTC Address : 1Asa5o6edBG9BBhXKshqbB7BWKJr84sUci

submitted by micko1911 to Bitcoin [link] [comments]

How do bitcoin charge backs work? /r/Bitcoin

How do bitcoin charge backs work? /Bitcoin submitted by BitcoinAllBot to BitcoinAll [link] [comments]

Bitcoin Charge backs or Forced Refunds?

Hi,
I've been wondering what could possibly stop mass adoption of Bitcoin in the future and comparing it to current payment methods. One thing that I can't see a way that Bitcoin protocol handling is charge backs or forced refunds?
Is there anything similar in Bitcoin-land?
Thanks,
kD
submitted by KillerDr3w to Bitcoin [link] [comments]

OKEx Leads Strong Bitcoin Futures Market Off the Back of CFTC Charges

OKEx Leads Strong Bitcoin Futures Market Off the Back of CFTC Charges submitted by CoinjoyAssistant to OKEx [link] [comments]

This whole "omg the transaction fees r so high, bitcoin is dying" thing is getting ridiculous. As a small business owner, I am charged 3% per credit card transaction and I am ALSO at risk for charge backs.

Crypto currency and bitcoin specifically is a game changer though we still are in the early phases of adoption. Transaction fees really aren't that much, especially when the transaction queue's aren't kept artificially high. As more people start to use bitcoin, this will stabilize.
Regardless though, I am just trying to show perspective. When you say that bitcoin transaction fees are too much, consider what merchants have to pay for credit card fees and the potential loss from chargebacks. And let's also think about cash usage. Just because a business accepts cash doesn't mean that they don't also incur additional costs such as armored trucks, security systems, etc that they need to use as a precautionary measure for security.
Bitcoin would alleviate so many of those costs and give businesses more security over time. As Bitcoin continues to evolve such as Lightning we can expect to see faster and cheaper transaction times.
Don't buy in to that Bitcoin is a terrible currency. As a matter of fact, it is a brilliant one and as time goes on, it will become more efficient and resilient.
submitted by NosillaWilla to Bitcoin [link] [comments]

Facts about Adam Back (Bitcoin/Blockstream CEO) you heard it right, he himself thinks he is in charge of Bitcoin.

Via: u/ydtm
Who is Adam Back?
Why do people think he's important?
If he hadn't convinced some venture capitalists to provide $75 million to set him up as President/CEO of Blockstream - would he be just another "nobody" in Bitcoin?
Consider the following 4 facts:
(1) Go to the list of Bitcoin "Core" contributors do a Find for "adam":
https://github.com/bitcoin/bitcoin/graphs/contributors
Hmm... Apparently, he is not a Bitcoin "Core" dev.
Here is his GitHub page:
https://github.com/adam3us
Hmm...
zero contributions
zero repositories
Now, ask yourself:
(2) Look at his profile on his Twitter home page:
https://twitter.com/adam3us
It says:
  • "inventor of hashcash"
  • "bitcoin is hashcash extended with inflation control"
Both of these statements have been publicly exposed as false - but he still refuses to take them down.
" 'Bitcoin is Hashcash extended with inflation control.' ...[is] sort of like saying, 'a Tesla is just a battery on wheels.' " -- Blockstream's Adam Back #R3KT by Princeton researchers in new Bitcoin book
https://np.reddit.com/btc/comments/45121i/bitcoin_is_hashcash_extended_with_inflation/
Adam Back did not invent proof of work
https://np.reddit.com/btc/comments/46vq7i/adam_back_did_not_invent_proof_of_work/
Now, ask yourself:
  • Do you trust someone who puts false statements like this on their Twitter profile?
(3) Recall his history of failures regarding Bitcoin:
He was personally informed by Satoshi about Bitcoin in 2009 via email - and he did not think it would work.
He did not become involved in Bitcoin until it was around its all-time high of 1000 USD, in November 2013.
He opened his Github account within 48 hours of Bitcoin's all-time high price. Presumably he sat and watched it go from zero to 4 figures before getting involved.
https://np.reddit.com/btc/comments/45n462/adam_back_on_twitter_virtuallylaw_jgarzik/czyzso5?context=1
  • Why didn't Adam understand the economics of Bitcoin from 2009 until 2013?
  • If you want a "leader" of Bitcoin, do you think it should be someone who didn't understand it for 4 years?
  • Do you think he can really understand the economics of Bitcoin now?
(4) Adam wants to radically "fork" Bitcoin from Satoshi's original vision of "p2p electronic cash" and instead encourage people to use the highly complicated and unproven "Lightning Network" (LN).
However, unfortunately, he hasn't figured out how to make LN decentralized.
Lightning network is selling as a decentralized layer 2 while there's no decentralized path-finding.
https://np.reddit.com/btc/comments/43oi26/lightning_network_is_selling_as_a_decentralized/
Unmasking the Blockstream Business Plan
https://np.reddit.com/btc/comments/42nx74/unmasking_the_blockstream_business_plan/
It's time for people to start asking some serious questions about Adam Back:
  • about his lack of contributions to the Bitcoin codebase;
  • about his unethical style of communication;
  • about his rejection of Satoshi's vision for Bitcoin;
  • about his lack of understanding of economics, p2p, and decentralization.
Bitcoin was never even supposed to have a leader - but somehow (because some venture capitalists and Adam found each other), now we apparently have one: and it's Adam Back - someone who never contributed any code to Bitcoin, never believed in the economics of Bitcoin, and never believed in the decentralization of Bitcoin.
Whether you're decentralization-loving libertarian or cypherpunk - or a Chinese miner - or just someone who uses Bitcoin for your personal life or business, it's time to start asking yourself:
  • Who is Adam Back?
  • Why hasn't he contributed any code for Bitcoin?
  • Why is he lying about Bitcoin and HashCash on his Twitter profile?
  • Why did he fail to understand the economics of Bitcoin from 2009 to 2013?
  • Does he understand the economics of Bitcoin now?
  • If he rejects Satoshi's original vision of "p2p electronic cash" and prefers a centralized, "Level-2" system such as Lightning Network, then shouldn't be doing this on some alt-coin, instead of radically "forking" Bitcoin itself?
  • If he hadn't convinced some venture capitalists to provide $75 million to set him up as President/CEO of Blockstream - would you still be listening to him?
Bitcoin was supposed to be "trustless" and "leaderless".
But now, many people are "trusting" Adam Back as a "leader" - despite the fact that:
  • he has contributed no code to Bitcoin "Core" - or any other Bitcoin code repository (eg: Classic, XT, BU);
  • he never believed in Bitcoin until the price hit $1000;
  • he rejects Satoshi's vision of "p2p electronic cash";
  • he is dishonest about his academic achievements;
  • he is dishonest about the Lightning Network's lack of decentralization.
Maybe it's time for everyone to pause, and think about how we got into this situation - and what we can do about it now.
One major question we should all be asking:
Would Adam Back enjoy this kind of prestige and prominence if he didn't have $75 million in venture capital behind him?
There is, of course, a place for everyone in Bitcoin.
But Bitcoin was never about "trusting" any kind of "leader" - especially someone whose main "accomplishments" with Bitcoin have consisted of misunderstanding it for years, and now trying to radically "fork" it away from Satoshi's vision of "p2p electronic cash".
TL;DR:
  • Adam Back's history with Bitcoin is a long track record of failures.
  • If he hadn't convinced some VCs into backing him and his company with $75 million, you probably wouldn't have ever heard of him.
  • So you should not be "trusting" him as the "leader" of Bitcoin.
submitted by defconoi to btc [link] [comments]

0.12.8.9457 Content Discussion and Questions Megathread

https://forum.escapefromtarkov.com/topic/139581-patch-notes-for-01289457/
Please post all questions related to the new update in this thread.
NOTE: There will be no wipe with 12.8
Added:
New equipment:
New weapons and weapons parts:
Quality of Life changes:
Optimization
AI improvements:
Fixed:
Changed:
submitted by bobbypower to EscapefromTarkov [link] [comments]

Coinstar now has bitcoin at my local Safeway!! Adoption is early but this makes me bullish asf!! 4% fee so I’d never buy from this but good to see!!!

Coinstar now has bitcoin at my local Safeway!! Adoption is early but this makes me bullish asf!! 4% fee so I’d never buy from this but good to see!!! submitted by Cutti87 to Bitcoin [link] [comments]

09-22 07:53 - '"Charging customers for deposits instead of paying for them is simply another way of saying a bank doesn’t want deposits."[link] / Earn 8% on USD, EUR, GBP 100% Asset-Backed Guarantee [link]' by /u/petskup removed from /r/Bitcoin within 109-119min

'''
"Charging customers for deposits instead of paying for them is simply another way of saying a bank doesn’t want deposits."[link]1
Earn 8% on USD, EUR, GBP 100% Asset-Backed Guarantee [link]2
'''
Context Link
Go1dfish undelete link
unreddit undelete link
Author: petskup
1: *ww.*u*omo*ey.c**/article/b1gx1*w61*b8y7*banks*p*ss-the***in-of-*e**t*ve*r*tes-to-*heir-depos**o*s 2: nexo*io*ea*n-in*e*es*/eur
Unknown links are censored to prevent spreading illicit content.
submitted by removalbot to removalbot [link] [comments]

Preliminary patch notes for 12.8 patch!

Added:
New equipment:
New weapons and weapons parts:
Quality of Life changes:
Optimization
AI improvements
Fixed:
Changed:
The 12.8 patch will NOT be on this week! Need to polish everything!
submitted by trainfender to EscapefromTarkov [link] [comments]

r/bitcoin - I just got back from India. Banks there actually CHARGE people to make deposits. I swear I am not making this up. Bitcoin will be an instant hit there.

I went to a bank in Mumbai (State Bank of India) with my mom and grandfather running an errand. After waiting in line for 1.5 hours we made deposit. The person charged us a 100 Rupee "deposit fee". It simply blew my mind.
Somebody from Mumbai verify this please.
submitted by mastermind1228 to Bitcoin [link] [comments]

The banks know this too, that's why they try to make vendors who accept Bitcoin stop or they threaten to not allow you the "privilege" of paying high rates and charge backs. I can't even count how many times I've had my livelihood threatened by Visa/MasterCard and I'm sure I'm not the only one.

The banks know this too, that's why they try to make vendors who accept Bitcoin stop or they threaten to not allow you the submitted by bitbybitcrypto to Bitcoin [link] [comments]

I sold bitcoin for Chase Quickpay. The person charged back after a while, but I have, in writing, that the person wanted to buy it, as well as his ID and signature.

When I sell bitcoin, I have my customers write the amount they’re buying, as well as picture of their state ID. The person who bought it from me gave me this information and I still have the picture. He tried to charge back and a case is open right now, is there a way for me to utilize this information and evidence so I win the case? My account is currently negative. Located in Chicago IL.
submitted by dustincrypto to legaladvice [link] [comments]

Bitcoin [BTC] investor hits back at Warren Buffet citing Wells Fargo’s $14 billion fine over fraud charges - AMBCrypto News

Bitcoin [BTC] investor hits back at Warren Buffet citing Wells Fargo’s $14 billion fine over fraud charges - AMBCrypto News submitted by ulros to fbitcoin [link] [comments]

Bitcoin [BTC] investor hits back at Warren Buffet citing Wells Fargo’s $14 billion fine over fraud charges

Bitcoin [BTC] investor hits back at Warren Buffet citing Wells Fargo’s $14 billion fine over fraud charges submitted by ThrillerPodcast to thrillerpodcast [link] [comments]

Bitcoin [BTC] investor hits back at Warren Buffet citing Wells Fargo’s $14 billion fine over fraud charges

Bitcoin [BTC] investor hits back at Warren Buffet citing Wells Fargo’s $14 billion fine over fraud charges submitted by leftok to atbitcoin [link] [comments]

03-12 10:52 - 'Bitcoin [BTC] investor hits back at Warren Buffet citing Wells Fargo’s $14 billion fine over fraud charges' (twitter.com) by /u/kecuoicap removed from /r/Bitcoin within 167-177min

Bitcoin [BTC] investor hits back at Warren Buffet citing Wells Fargo’s $14 billion fine over fraud charges
Go1dfish undelete link
unreddit undelete link
Author: kecuoicap
submitted by removalbot to removalbot [link] [comments]

Got scammed by Xapo. Unable to move the money out and close the account

I've been trying to unlock my Xapo wallet but they keep rejecting my proofs. I've submitted my driver's license, my bank statement. Both keep getting rejected again and again.
The same documents have been accepted in Coinbase and some other finance sites which needed identity verification.
Now suddenly they're becoming a digital bank that'd charge $150 an year, but they won't let me just move the money out and close it so I don't get stuck with their bill.
What do I do?
PSA for anyone planning to use it, please don't. Their service is shit, support is worse. They keep locking accounts without warning with no way to unlock or use it.
Update: Got it resolved! They wanted me to use my passport for verification this time, and asked me for some more bank statements. I had already used my driver's license for verification (which they previously said they'd accept), and sent some bank statements before. They said it wasn't original but it was. In the end, they said they'd unlock my account for a week, to withdraw any money I had, and they'd close it afterwards.
submitted by Rini94 to Bitcoin [link] [comments]

Putting $400M of Bitcoin on your company balance sheet

Also posted on my blog as usual. Read it there if you can, there are footnotes and inlined plots.
A couple of months ago, MicroStrategy (MSTR) had a spare $400M of cash which it decided to shift to Bitcoin (BTC).
Today we'll discuss in excrutiating detail why this is not a good idea.
When a company has a pile of spare money it doesn't know what to do with, it'll normally do buybacks or start paying dividends. That gives the money back to the shareholders, and from an economic perspective the money can get better invested in other more promising companies. If you have a huge pile of of cash, you probably should be doing other things than leave it in a bank account to gather dust.
However, this statement from MicroStrategy CEO Michael Saylor exists to make it clear he's buying into BTC for all the wrong reasons:
“This is not a speculation, nor is it a hedge. This was a deliberate corporate strategy to adopt a bitcoin standard.”
Let's unpack it and jump into the economics Bitcoin:

Is Bitcoin money?

No.
Or rather BTC doesn't act as money and there's no serious future path for BTC to become a form of money. Let's go back to basics. There are 3 main economic problems money solves:
1. Medium of Exchange. Before money we had to barter, which led to the double coincidence of wants problem. When everyone accepts the same money you can buy something from someone even if they don't like the stuff you own.
As a medium of exchange, BTC is not good. There are significant transaction fees and transaction waiting times built-in to BTC and these worsen the more popular BTC get.
You can test BTC's usefulness as a medium of exchange for yourself right now: try to order a pizza or to buy a random item with BTC. How many additional hurdles do you have to go through? How many fewer options do you have than if you used a regular currency? How much overhead (time, fees) is there?
2. Unit of Account. A unit of account is what you compare the value of objects against. We denominate BTC in terms of how many USD they're worth, so BTC is a unit of account presently. We can say it's because of lack of adoption, but really it's also because the market value of BTC is so volatile.
If I buy a $1000 table today or in 2017, it's roughly a $1000 table. We can't say that a 0.4BTC table was a 0.4BTC table in 2017. We'll expand on this in the next point:
3. Store of Value. When you create economic value, you don't want to be forced to use up the value you created right away.
For instance, if I fix your washing machine and you pay me in avocados, I'd be annoyed. I'd have to consume my payment before it becomes brown, squishy and disgusting. Avocado fruit is not good money because avocadoes loses value very fast.
On the other hand, well-run currencies like the USD, GBP, CAD, EUR, etc. all lose their value at a low and most importantly fairly predictible rate. Let's look at the chart of the USD against BTC
While the dollar loses value at a predictible rate, BTC is all over the place, which is bad.
One important use money is to write loan contracts. Loans are great. They let people spend now against their future potential earnings, so they can buy houses or start businesses without first saving up for a decade. Loans are good for the economy.
If you want to sign something that says "I owe you this much for that much time" then you need to be able to roughly predict the value of the debt in at the point in time where it's due.
Otherwise you'll have a hard time pricing the risk of the loan effectively. This means that you need to charge higher interests. The risk of making a loan in BTC needs to be priced into the interest of a BTC-denominated loan, which means much higher interest rates. High interests on loans are bad, because buying houses and starting businesses are good things.

BTC has a fixed supply, so these problems are built in

Some people think that going back to a standard where our money was denominated by a stock of gold (the Gold Standard) would solve economic problems. This is nonsense.
Having control over supply of your currency is a good thing, as long as it's well run.
See here
Remember that what is desirable is low variance in the value, not the value itself. When there are wild fluctuations in value, it's hard for money to do its job well.
Since the 1970s, the USD has been a fiat money with no intrinsic value. This means we control the supply of money.
Let's look at a classic poorly drawn econ101 graph
The market price for USD is where supply meets demand. The problem with a currency based on an item whose supply is fixed is that the price will necessarily fluctuate in response to changes in demand.
Imagine, if you will, that a pandemic strikes and that the demand for currency takes a sharp drop. The US imports less, people don't buy anything anymore, etc. If you can't print money, you get deflation, which is worsens everything. On the other hand, if you can make the money printers go brrrr you can stabilize the price
Having your currency be based on a fixed supply isn't just bad because in/deflation is hard to control.
It's also a national security risk...
The story of the guy who crashed gold prices in North Africa
In the 1200s, Mansa Munsa, the emperor of the Mali, was rich and a devout Muslim and wanted everyone to know it. So he embarked on a pilgrimage to make it rain all the way to Mecca.
He in fact made it rain so hard he increased the overall supply of gold and unintentionally crashed gold prices in Cairo by 20%, wreaking an economic havoc in North Africa that lasted a decade.
This story is fun, the larger point that having your inflation be at the mercy of foreign nations is an undesirable attribute in any currency. The US likes to call some countries currency manipulators, but this problem would be serious under a gold standard.

Currencies are based on trust

Since the USD is based on nothing except the US government's word, how can we trust USD not to be mismanaged?
The answer is that you can probably trust the fed until political stooges get put in place. Currently, the US's central bank managing the USD, the Federal Reserve (the Fed for friends & family), has administrative authority. The fed can say "no" to dumb requests from the president.
People who have no idea what the fed does like to chant "audit the fed", but the fed is already one of the best audited US federal entities. The transcripts of all their meetings are out in the open. As is their balance sheet, what they plan to do and why. If the US should audit anything it's the Department of Defense which operates without any accounting at all.
It's easy to see when a central bank will go rogue: it's when political yes-men are elected to the board.
For example, before printing themselves into hyperinflation, the Venezuelan president appointed a sociologist who publicly stated “Inflation does not exist in real life” and instead is a made up capitalist lie. Note what happened mere months after his gaining control over the Venezuelan currency
This is a key policy. One paper I really like, Sargent (1984) "The end of 4 big inflations" states:
The essential measures that ended hyperinflation in each of Germany,Austria, Hungary, and Poland were, first, the creation of an independentcentral bank that was legally committed to refuse the government'sdemand or additional unsecured credit and, second, a simultaneousalteration in the fiscal policy regime.
In english: *hyperinflation stops when the central bank can say "no" to the government."
The US Fed, like other well good central banks, is run by a bunch of nerds. When it prints money, even as aggressively as it has it does so for good reasons. You can see why they started printing on March 15th as the COVID lockdowns started:
The Federal Reserve is prepared to use its full range of tools to support the flow of credit to households and businesses and thereby promote its maximum employment and price stability goals.
In english: We're going to keep printing and lowering rates until jobs are back and inflation is under control. If we print until the sun is blotted out, we'll print in the shade.

BTC is not gold

Gold is a good asset for doomsday-preppers. If society crashes, gold will still have value.
How do we know that?
Gold has held value throughout multiple historic catastrophes over thousands of years. It had value before and after the Bronze Age Collapse, the Fall of the Western Roman Empire and Gengis Khan being Gengis Khan.
Even if you erased humanity and started over, the new humans would still find gold to be economically valuable. When Europeans d̶i̶s̶c̶o̶v̶e̶r̶e̶d̶ c̶o̶n̶q̶u̶e̶r̶e̶d̶ g̶e̶n̶o̶c̶i̶d̶e̶d̶ went to America, they found gold to be an important item over there too. This is about equivalent to finding humans on Alpha-Centauri and learning that they think gold is a good store of value as well.
Some people are puzzled at this: we don't even use gold for much! But it has great properties:
First, gold is hard to fake and impossible to manufacture. This makes it good to ascertain payment.
Second, gold doesnt react to oxygen, so it doesn't rust or tarnish. So it keeps value over time unlike most other materials.
Last, gold is pretty. This might sound frivolous, and you may not like it, but jewelry has actual value to humans.
It's no coincidence if you look at a list of the wealthiest families, a large number of them trade in luxury goods.
To paraphrase Veblen humans have a profound desire to signal social status, for the same reason peacocks have unwieldy tails. Gold is a great way to achieve that.
On the other hand, BTC lacks all these attributes. Its value is largely based on common perception of value. There are a few fundamental drivers of demand:
Apart from these, it's hard to argue that BTC will retain value throughout some sort of economic catastrophe.

BTC is really risky

One last statement from Michael Saylor I take offense to is this:
“We feel pretty confident that Bitcoin is less risky than holding cash, less risky than holding gold,” MicroStrategy CEO said in an interview
"BTC is less risky than holding cash or gold long term" is nonsense. We saw before that BTC is more volatile on face value, and that as long as the Fed isn't run by spider monkeys stacked in a trench coat, the inflation is likely to be within reasonable bounds.
But on top of this, BTC has Abrupt downside risks that normal currencies don't. Let's imagine a few:

Blockchain solutions are fundamentally inefficient

Blockchain was a genius idea. I still marvel at the initial white paper which is a great mix of economics and computer science.
That said, blockchain solutions make large tradeoffs in design because they assume almost no trust between parties. This leads to intentionally wasteful designs on a massive scale.
The main problem is that all transactions have to be validated by expensive computational operations and double checked by multiple parties. This means waste:
Many design problems can be mitigated by various improvements over BTC, but it remains that a simple database always works better than a blockchain if you can trust the parties to the transaction.
submitted by VodkaHaze to badeconomics [link] [comments]

Charge backs on bitcoins

The bitcoin wiki says the bitcoins don’t allow chargebacks.
In the current system, credit cards provide a system of checks and balances and provide arbitration when there are disputes. If I buy a item on the internet and find out that I didn’t receive the correct item, I can complain to the credit card company, and they will look at both sides and make a decision whether my dispute is correct or not. Further, when I buy an item off a eccomerce store (which is going to become more and more prevalent in the next few decades), I cant check that the item I am receiving is correct or according to what the merchant said.
If I were to use bitcoins instead, I have no way to getting my money back, if the merchant turned out to be a fraud. As a result, I will have less trust on buying items off the internet, as a result, eCommerce wont work as a result bitcoins wont work. eCommerce is definitely going to be here, so this leads me to the conclusion that bitcoins maynot work, unless there are other services that provide that arbitration service. Are there companies that are providing that arbitration (insurance against fraud) for bitcoin transactions?
submitted by alpha_hxCR8 to Bitcoin [link] [comments]

Things i prefer over gambling

Peace of mind Not lying Not getting angry Not rushing Knowing my credit card wont be declined Having heat during the winter Not being in a foggy or sad state Not associating with gamblers Not chasing a dream of riches as your life becomes a living nightmare Not eating spaghetti on the regular so I can save up for gambling My sanity
submitted by SnooOpinions7601 to problemgambling [link] [comments]

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BITCOIN REVERSAL AFTER THIS SIGN!!! TRUST BACK IN THE STOCK MARKETS ?!?

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