This is what third party escrow services are for. They can use the Bitcoin as a framework to utilize customer protection if it's implemented right.
Re:Flexcoin is shutting down
by JohnTHaller on Tuesday March 04, 2014 @10:28AM
(#7340740)
A 3rd party escrow I have to trust. Also without regulation. Likely, consumers wouldn't trust such an entity unless it was rather large, already known, and otherwise regulated. Like a bank. Consumers can trust those. Of course, the bank would want an escrow fee. Probably on par with the standard credit card fees.
Re:Flexcoin is shutting down
by BrokenPipe on Tuesday March 04, 2014 @08:06PM
(#7344542)
Or much much lower cause you bring worldwide competition with no infrastructure.
Disclaimer: I'm with GreenAddress.it
Re:Flexcoin is shutting down
by JohnTHaller on Tuesday March 04, 2014 @10:00PM
(#7344975)
Yeah, see, consumers like infrastructure. Someone they can call with issues. And to know that it's not just a server rack in some random semi-secure data center run by another fly-by-night-hacked-next-week bitcoin startup. And that you have insurance on the whole thing against theft, fire, hacks, etc. And that you're properly following all the government regulations for being a money transmitter.
Bitcoin needs a solution to address this for it to be a valid way of spending money. And irreversibility, pseudonymity, and no regulation make it impossible.