ACCEPT BITCOIN AS A PAYMENT OPTION!

THAT IS ALL...
BITCOIN

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very funny, joker...

 

I am in support of bitcoins as a payment. Using a service such as bitpay, then Portalarium has no risk of not getting their money. The bitcoins are converted by bitpay, and then deposited into Portalarium's bank account (as real dollars) the next day. Credit Cards don't deposit money this fast, and bitpay's service fees are less than a credit card company's.

I don't have very many bitcoins left (I spent most of them early on), but I still support this idea.

 

I have a few questions about bitcoins,
#1 what exactly are they? all i've heard is that people can somehow "farm" them from their computers.
#2 who supports them as currency, what makes them equal to regular money?

 

Lord British has been a proponent of bit coin in the past actually. OP if you are more specific and have any good ideas, you may get some traction on that!

 

It probably happen. American law treats BitCoin as capital asset now, not currency. For every single BitCoin sale, Portalarium would have to track:

• The date of the purchase
• The price that was paid for each BitCoin

So if Portalarium sells 100 pledges at 100 BTC each, Portalarium's "BTC Acquisition" spreadsheet would contain 100 entries, each with the date of the interaction that brought in the BTC and with the amount at which each BTC was valued for the acquisition.

Next, Portalarium finds itself holding 1,000 BTC. Those BTC are assets, and they're not liquid. They might be worth money, but Portalarium can't just go out and spend them (unless it trades or barters them), sort of like a diamond ring. In order to convert those BTC to US dollars (USD), you need to sell them. But the value of each BTC you've sold might have changed since you bought it. For tax purposes, the US federal government requires you to report the difference in price between when you purchased and when you sold any capital asset and to report that gain or loss on your annual federal taxes. So every time Portalarium sells a BTC, they'd add have to track:

• Which BTC, exactly, they're selling
• The date of the sale
• The price at which each BitCoin was sold

This gets complicated for high frequency trading because BitCoins are very rarely traded as whole units. If Portalarium trades in those 1,000 BitCoins it holds in its BitCoin collection, it'll be easy for them to track the date and price of each BitCoin at the time of sale. But it won't be so easy to figure out how much in capital gains or loses Portalarium has made on the sale. The reason for this is that the first collection, which lists when and at what prices Portalarium acquired all those BitCoins, contains 100 different entries, and Portalarium's tax calculator has to figure out the difference between the purchase price and the sales price for every single one of those entries. Naturally, this is easy when there is only one entry in your BitCoin Sales account (the second spreadsheet) and if that one entry accounts for all your BTC holdings. But things get more complicated when you make more frequent sales.

All of this property exchange tracking can be managed by a computer application (or even in Excel), of course, but American companies have to be wary of misinterpreting the law or messing something up, as they could be hit with heavy tax penalties if they don't get it exactly right. To be safe about it, Portlarium should hire an accountant to vet the accounting. Regardless of how they approach it, though--by hiring an accountant or not--accepting capital assets as a payment method means a much, much heavier accounting workload, which is expensive. I doubt Portalarium is willing to take a heavy hit on revenue generated on BTC sales, as it's not likely that accepting BTC would increase sales significantly enough to cover those added expenses and liabilities.

 

Bitcoin?.... Why?

Sorry I simply don't get it.

 

hhehehehe

 

I never heard of it.

 

Thanks for the explanation, Trenyc. It's a pity the US law complicated it so much. Bitcoin is a great project.

 

I agree. It's kind of a bizarre complication, too, since BitCoins can be traded totally anonymously if you make an effort to do. But hey, I don't write the laws.

 

If Portalarium uses a service like bitpay, then Portalarium doesn't have to track any of that. They get cash. The company that keeps track of that is bitpay (or some other currency exchange service). Portalarium gets the money the same as any other transaction that they currently use.

Now if Portalarium decides to accept bitcoin directly, then you're right. Otherwise, no, only bitpay does that.

 

Sounds like alot of trouble...

 

Sounds like it is as easy as just deciding to accept money with Bitcoin. If you get paid in cash everyday instead of coins then what could possibly be the issue to not liking it. Accepting Bitcion is cheaper, faster, and better than all credit card options combined. Seems a slam dunk.

 

My Thoughts: I am very much in favor of this. I've been a fan of Bitcoin and Lord British for many years, I'd love to see one embrace the other to their mutual benefit. A simple google search will show you a list of major corporations (Dell, Expedia, DISH, Newegg, TigerDirect, Overstock, etc...) that have recently begun accepting Bitcoin using Bitpay and Coinbase, it is also evident in all these articles that the process was quick and painless, and has brought in thousands of dollars of additional income from the Bitcoin community showing it's support for major adoption. At the end of this post, I'll include a few of these links along with some pertinent information.

My Agreement: As Sir Jhorus pointed out, there are no legal or regulatory hurdles to overcome if they accept Bitcoin using a payment processor like BitPay or Coinbase. Bitcoin is collected by the processor, and Portalarium collects USD, just like accepting credit cards through Amazon or Paypal... just without the ridiculous fees associated with credit card processing and transactions.

My Pledge: My current pledge status is Knight, and I have already purchased a Collector level pledge for my brother. If Bitcoin becomes accepts as a payment option, I promise to upgrade my account to Knight Marshall and my brother's account to Ancestor. In addition, I'll purchase a Player Owned Town (most likely Hamlet level, as I haven't explored all options yet).

My Proof: Here are a few articles about major corporations and how accepting Bitcoin has affected their bottom line:

http://moneymorning.com/2014/08/15/check-out-how-many-overstock-sales-are-done-using-bitcoin/ - This article discusses Overstock's sales that use Bitcoin as a payment method. Since January (When Overstock started accepting Bitcoin as payment), they have more than $2 Million in Bitcoin sales. Purchases made with Bitcoin account for nearly 1% of all purchases made at Overstock and are generally higher than purchases made with Credit Cards or Paypal ($240 per Bitcoin purchase vs. $165). Averaging out to nearly $15,000 in Bitcoin purchases PER DAY, Overstock is definitely satisfied with their decision to accept Bitcoin.

http://www.coindesk.com/tigerdirect-tops-1-million-total-bitcoin-sales/ - This article discusses TigerDirect, and how after just 2 months accepting Bitcoin, they had already made more than $1 Million in sales!

http://dealbook.nytimes.com/2014/07/18/dell-begins-accepting-bitcoin/?_php=true&_type=blogs&_r=0 - This article discusses Dell's decision to accept Bitcoin, and also touches on some figures from other retailers who have allowed their customers to use Bitcoin at checkout though payment processors like Coinbase.

http://www.coindesk.com/expedia-exec-bitcoin-payments-have-exceeded-estimates/ - This article discusses Expedia's decision to use Bitcoin, as well as, how much they underestimated the amount of new business that they would receive by making that decision. They don't release figures, but are very impressed with the amount of money coming in from Bitcoin, and can't wait to see what happens once Bitcoin can be used to book Flights and Cars (currently only used to book Hotels).