Why would anyone spend bitcoins?

Posted by 2drew3 on Tuesday May 06, 2014 @11:12AM
from the purse.io dept.

https://purse.io/blog/post/84922967188/why-would-anyone-spend-bitcoins/

"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.

( 5 comments | 2 points | on HN )

Re:Why would anyone spend bitcoins? by 2drew3 on Tuesday May 06, 2014 @11:15AM (#7704951)

"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.

[ Parent | on HN ]

Re:Why would anyone spend bitcoins? by dublinben on Tuesday May 06, 2014 @11:45AM (#7705141)

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.

[ Parent | on HN ]

Re:Why would anyone spend bitcoins? by mrkent on Tuesday May 06, 2014 @12:12PM (#7705339)

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

[ Parent | on HN ]

Re:Why would anyone spend bitcoins? by 2drew3 on Tuesday May 06, 2014 @12:00PM (#7705259)

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

[ Parent | on HN ]

Re:Why would anyone spend bitcoins? by masoneyewear on Tuesday May 06, 2014 @04:42PM (#7706965)

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

[ Parent | on HN ]