Bit Coin replacing Physical Currency Article

[mjwalsh]

I just posted the below over on our Coin Laundry Assn forum. Just in case some of you have some actual facts to share & not just comments on the trend away from all physical money like Robert Roman always has ... just because something is a trend ... does not mean that is a good fit for all of us operators ... especially those of us in lesser crime areas.

http://www.newsmax.com/Finance/Ecuador-dollar-digital-currency/2014/08/15/id/588937/

This article shows an example of how misleading anybody or group in positions of authority in our country ... who state from a high level of our government or whatever media ... that the greater danger of counterfeiting is in $1 &/or $2 coins rather than $1 &/or $2 dollar paper bills. Remember these smaller bills have very low level counterfeiting protection within them.

It also sheds light on just some of the serious concerns about "BitCoin".

In the self service car wash industry the "norm" has been precise "magnetic signature" coin mechs for well over 25 years now. It is encouraging that our self service laundry industry is finally adopting some of these better coin mechs & the availability of the more secure coin mechs for us laundry operators that will fit is gradually growing. This is a plus for not just our economy ... but for economies all over the world where USA coin & currency is the best fit for them.

mike walsh http://kingkoin.com/USA_Deficit_Reduction.html

 

[Earl Weiss]

Never seen a counterfeit $1 or $2 bill. Would seem to be more trouble than it's worth

 

[robert roman]

The trend of less cash to more plastic payment in the carwash industry is an undeniable fact, not a fad.

Of course, anyone can buck a trend. However, those that do, usually find themselves in small company.

I love cash but cannot deny the convenience of plastic payment.

Consider the trend in legalization of pot.

This trend isn’t driven by government or some unseen hand. Rather, it is being driven by people who, for whatever reason, want to consume pot.

The demand is such that several states have legalized it and many more are lining up to do the same.

In the not so distant future, pot will be no different than alcohol.

Today, the vast majority of young people prefer to shop online and pay with plastic.

So, if you don’t have a website and accept plastic, they will most likely pass-by.

So, you can buck this trend, but expect to be in small company.

The internet makes bit coin a possibility.

Given the trend of the internet, I wouldn’t bet against it.

 

[mjwalsh]

Consider the trend in legalization of pot.

This trend isn’t driven by government or some unseen hand. Rather, it is being driven by people who, for whatever reason, want to consume pot.

The demand is such that several states have legalized it and many more are lining up to do the same.

In the not so distant future, pot will be no different than alcohol.

The internet makes bit coin a possibility.

Given the trend of the internet, I wouldn’t bet against it.

Robert,

I along with many others do find some good common ground with you ... I think ... but I am not sure yet. For pot to become 100% legal across the USA there really should be safeguards ... so limited legal medicinal use should be defined & enforced enough ... so like other problems ... it does not get "out of hand". The lure of being able to add significant taxes ... from high volume selling of it ... to make the bureaucracies even bigger & more dominant most likely could be an unintended consequence. Legalizing some things actually has a sanctioning effect for large numbers of people whether we want to believe it or not.

Your analogy to the "all power to the encryption insiders" trend with the trend towards "pot" is a fair comparison. However, I do not see either as being an all or nothing proposition. The inaccuracy that is being propagated that most USA citizens dislike the dollar coins more than the one dollar paper money & actually like being charged between 5 - 10% more for smaller transactions credit card wise ... is just that ... misinformation for the most part. If they are uncomfortable with the dollar coin ... it has more to do with the proper availability of the coins based on ours & others actual plus side for our industry.

Remember most of us ... especially the ones who are more self service wand style ... are much smaller individual transactions than your internet example & the big department, hardware, & grocery stores etc. Like the small family farms have weighed in with some success on many issues ... the smaller "mom & pop" businesses like most of ours ... need to also weigh in against the steamroller when it comes to being coerced with the "credit card only" one size fits all mindset.

mike walsh http://kingkoin.com/USA_Deficit_Reduction.html

 

[MEP001]

The inaccuracy that is being propagated that most USA citizens dislike the dollar coins more than the one dollar paper money...

People DO NOT prefer dollar coins over bills as a currency. For you to claim otherwise is an outright lie.

...& actually like being charged between 5 - 10% more for smaller transactions credit card wise...

What sense does that make? Of course they don't like being charged more. What's your point in making this ridiculous comment other than to try to reveal some secret information that credit card use costs more than cash?

Remember most of us ... especially the ones who are more self service wand style ... are much smaller individual transactions than your internet example & the big department, hardware, & grocery stores etc. Like the small family farms have weighed in with some success on many issues ... the smaller "mom & pop" businesses like most of ours ... need to also weigh in against the steamroller when it comes to being coerced with the "credit card only" one size fits all mindset.

No one ever said that accepting credit cards is a "one size fits all" model. If it doesn't work for you, don't do it. By the way, there are solutions to the high costs such as processors that do not have a transaction fee.

So why are you trying so hard to "steamroll" everyone into switching to gold dollar acceptance if it isn't purely for your own benefit?

 

[mjwalsh]

Maybe it is just poor pitiful me but I am really struggling with how some people are so attached to those extra filthy one dollar paper bills that clear evidence shows ... have on them so much more harmful bacteria & other pertinent germs. Now five dollar bills are so much more cleaner & not needed to be in such quantity & handled near as much to meet payroll & other needed expenses. I also notice the five dollar bills do not stick like glue together at such a high rate as the ones. To be fair ... it is true that has something to do with the 5x difference in quantity.

At any rate the article that I linked to was more focused on Bitcoin actually attempting to take a long term hold in a somewhat close by Latin American country that had been using USA coin & currency as their previous medium of exchange. The author was in a position to & shared his honest observations in my humble opinion. He also included some comments about how & why the one dollar coins were a better value for those citizens than specifically the one dollar paper money.

With the coming "liability shifting" changes in chip - pin credit card acceptance including part of the encryption concerns with Bitcoin ... I still think that it gives "disproportionate power & financial remuneration" to those involved in encryption & other supervisions of the processes etc. I understand that not everyone agrees with me & if there is rationale that does not lower to derogatory personal attacks on specific individuals acting in good faith ... those are the kind of people that most of us should respect more & listen ... to hear both sides of the various issues.

mike walsh http://www.kingkoin.com/USA_Deficit_Reduction.html

 

[MEP001]

I find it amusing that you made a completely false claim about something, and instead of addressing that when confronted, you actually refocus to the original topic. Funny because you're usually the one who tries to drag things off-topic.

You're also lying in your claim that you're acting in good faith. You've proven time and again that promotion of dollar coins is for your own benefit to avoid the costly retrofit of credit card acceptance.

 

[Earl Weiss]

Maybe it is just poor pitiful me [/url]

Any doubt should have been removed long ago.

 

[mjwalsh]

I find it amusing ....

And here I thought that I was the one who was guilty of a strange sense of humor ...

 

[Dcalhoun]

I think this is an interesting topic. Most, if not all, of us recognize we must endure the higher cost of doing business by accepting credit/debit cards. In so doing, we agree to forgo a portion of our profit to the banking industry who bears the risk in collecting on credit card transactions. We used to see some value in having the money in our bank accounts sooner and earning a little interest. However, we aren't earning so much interest on our deposit accounts these days. Further, there is nearly no risk assumed by the banks for debit card transactions because they instantly take the money, yet retailers are still paying the 5% to our card processors for that service. No such fees exist for cash transactions. For me, I very much prefer cash transactions.

My concern with the electronic currency is now I will be paying a fee for the expense of security and programmers and financial gurus to establish its value etc. Not to mention the ease of creating financial chaos when less than honorable people are in charge of 'monetary' policy. We are seeing the early problems with this right now in America. The government is artificially propping up the stock market because they just infuse electronic dollars into the economy. These infusions are not, and never will become, actual paper currency. This is exactly what the author of the article is warning against for Ecuador. I believe this will increase the cost of doing business, not reduce it by somehow creating safer money.

 

[Earl Weiss]

I think this is an interesting topic. ........... Further, there is nearly no risk assumed by the banks for debit card transactions

They even shift the cost for stolen cards to the merchant where they can seeking copies of the signed sales slip. First of all it's a PITA to locate and if you have a non face to face option like pay at the pump there is no slip and they chrge the bad card to the merchant.

Like many things the users should absorb extra costs and the card companies should absorb fraud costs they could easily prevent like requiring a PIN for all transactions and not just the Billing Zip which may likely be in the same stolen wallet that has the credit card.

 

[robert roman]

I’m not a fan of banks or insurance companies. However, they are a necessary evil for most of us.

For example, I had back surgery this year. Without insurance, I would have had to plunk down a cool $83,000 or I would have ended up in a wheelchair.

Who bears this risk are members who belong to my network and company stakeholders. Here, the bet is total premiums collected will exceed total payouts.

“….there is nearly no risk assumed by the banks for debit card transactions because they instantly take the money, yet retailers are still paying the 5% to our card processors for that service.”

What is the difference between the interest collected on home mortgage, commercial loan, line of credit, auto loan and credit card account? The answer is nothing.

$0.05 collected on one dollar of an auto loan is the same as $0.05 collected on one dollar of a commercial loan.

The concern should be the ease of creating financial chaos when people are unable or unwilling to pay their bill (interest and principal) and when the whores (hackers, Ponzi schemers) steal people’s money.

“The government is artificially propping up the stock market because they just infuse electronic dollars into the economy.”

Economy is sum of human activities and events whereas stock market is only a small portion of the economy.

Some people believe printing paper and/or pumping electronic “money” into economy is an investment. Many financial experts say this actually has the reverse effect. Meaning it hinders performance of stock market.

 

[Earl Weiss]

What is the difference between the interest collected on home mortgage, commercial loan, line of credit, auto loan and credit card account? The answer is nothing.

$0.05 collected on one dollar of an auto loan is the same as $0.05 collected on one dollar of a commercial loan.

t.

Huge differences.

Auto, Home, Commercial etc. Borrower / Purchaser pays cost. Lenders transaction and bad debt costs s passed along 100% to it's customers. Loans are collateralized.

Credit cards: Seller pays cost transaction costs. Lenders attempt to shift fraud costs to Sellers. Uncollateralized.

 

[robert roman]

Credit card is unsecured debt. Lenders can try to shift fraud costs to customers and stakeholders, not merchants.

If credit card debt is deemed uncollectable, it is charged-off to lost profits (cost of doing business) but never frees debtor’s responsibility. If charge-offs become excessive, Federal Reserve may impose constraints, even closing bank if necessary.

Same applies to collateralized loans.

For example, what happens to the collateral for an auto loan when the buyer/lessor has an accident and totals the car and the insurance is expired?

 

[Earl Weiss]

Credit card is unsecured debt. Lenders can try to shift fraud costs to customers and stakeholders, not merchants.

If credit card debt is deemed uncollectable, it is charged-off to lost profits (cost of doing business) but never frees debtor’s responsibility. If charge-offs become excessive, Federal Reserve may impose constraints, even closing bank if necessary.

Same applies to collateralized loans.

For example, what happens to the collateral for an auto loan when the buyer/lessor has an accident and totals the car and the insurance is expired?

Wrong on 2 Counts.

Fraudulent / stolen CC will result in the merchant being asked for a signed slip which does not exist for non face to face like pay at the pump and merchant will be charged back. Seller is directly paying for the fraud.

Bad debt etc being charged against profits ignores that profits comein part from merchant fees.

So, in both of the above Seller pays which is not the case with other forms of credit.

 

[llanosline]

The government is afraid that people will start using a currency they cannot control, which will be the first step to freedom. Look how hard they are trying to restrict bitcoin in our country. They are using social media to make people believe that cryptocurrencies are used only by the mafia and drug dealers. In my opinion, if you want to exit the matrix, you need to start trading with crypto. I started my trading career a long time ago. If you need any advice regarding crypto trading, let me know. I will be happy to help you. If you decide to invest your money in crypto, I suggest using this site https://hodlrate.com/ to check the most reliable exchange services.