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Mastercard Denies Plans For BitCoin Credit Card

Unknown Lamer posted more than 2 years ago | from the bad-idea-was-bad dept.

Bitcoin 167

judgecorp writes "Reports that BitCoin is to issue a credit card have turned out to be false — or at least premature. Mastercard has denied there are any such plans and given details of the procedural barriers to creating such a card."

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other? (2, Insightful)

Anonymous Coward | more than 2 years ago | (#41079879)

How did "a major international bank" turn into "only MasterCard?" Surely there are other international banks -- or have I missed recent news?

Re:other? (2, Informative)

Anonymous Coward | more than 2 years ago | (#41079913)

How did "a major international bank" turn into "only MasterCard?" Surely there are other international banks -- or have I missed recent news?

I don't really understand what you're asking, but MasterCard isn't an international bank, or any other sort of bank. Where did you get that from?

Re:other? (0, Flamebait)

Desler (1608317) | more than 2 years ago | (#41080223)

It's funny that you actually think bitcoin people actually even know anything about this topic. 99% of them are clueless Internet tards who parrot the "fiat currency is teh bad!!!" slogans they hear from other Internet tards.

Re:other? (0, Funny)

Anonymous Coward | more than 2 years ago | (#41080263)

And you're better how?

Re:other? (4, Insightful)

Desler (1608317) | more than 2 years ago | (#41080315)

Because I realize that bitcoin is a giant scam? Because I know that Mastercard is not a bank?

Re:other? (1)

Anonymous Coward | more than 2 years ago | (#41080633)

How is it scam?

I have first hand experience buying and paying with bitcoins. I got what i paid for, and no, those were not drugs.

Re:other? (-1)

Anonymous Coward | more than 2 years ago | (#41080767)

Who did you kill? What sort of assault weapons did you get? Are you a big enough pedo to pay for CP with bitcoins?

Re:other? (1, Funny)

Anonymous Coward | more than 2 years ago | (#41081355)

I got what i paid for, and no, those were not drugs.

So child pornography, then?

Re:other? (0)

Anonymous Coward | more than 2 years ago | (#41082085)

It's a scam because of how the "coins" are "mined" and the limited "supply". It benefits the creators and the early adopters. They have the bulk of the coins, and you late adopting freetards run the cash value of these "coins" up so the creators and early adopters can convert them to a usable currency.

Re:other? (2)

harks (534599) | more than 2 years ago | (#41082377)

Stock offers from legitimate successful companies also benefit creators and early adopters. By your definition, does that make all stock offers scams?

Re:other? (0)

Anonymous Coward | more than 2 years ago | (#41081221)

Because I realize that bitcoin is a giant scam?

2010 translation: "I'm not smart but I have a huge ego; please pay attention to me".
2012 translation: "TROLOLOLOLOLOLO!".

Re:other? (1)

Anonymous Coward | more than 2 years ago | (#41080291)

It's funny that you actually think bitcoin people actually even know anything about this topic. 99% of them are clueless Internet tards who parrot the "fiat currency is teh bad!!!" slogans they hear from other Internet tards.

fiat currency, eh? Well, if Italian auto makers do have their own currency, then yes, I expect it is quite bad.

Re:other? (0)

Anonymous Coward | more than 2 years ago | (#41080703)

How did "a major international bank" turn into "only MasterCard?"

It didn't. The original story said that the BitCoin card was going to be a MasterCard. MasterCard says that it isn't. That casts doubt on the original story, although there is still the possibility that the "major international bank" is going to do this in a way that doesn't require MasterCard's approval. That of course would depend on the agreement between MasterCard and the bank. This article suggests that that isn't possible: "Before being able to issue a card with a MasterCard logo on it, both the issuer and its banking partners need to go through a rigorous screening process, a MasterCard spokesperson told TechWeekEurope."

They do leave open one possibility: "There are issuers who allow the conversion of Bitcoins to US dollars and other currencies, delivered on prepaid cards." This would be much less than the previous proposal though. I was expecting the BitCoin MasterCard to work the same way that the PayPal MasterCard does, not a one-time throwaway.

Re:other? (2)

idontgno (624372) | more than 2 years ago | (#41081891)

You would have had to read TFA [paritynews.com] in the original story [slashdot.org] , but all indications were explicit that it would be a Mastercard debit card.

Besides, "a major international bank" is not mutually exclusive of "Mastercard." Banks issue Mastercards. Both are needed. (It's not a debit card unless it's backed by a bank, and it's not a Mastercard if Mastercard doesn't say it's a Mastercard.)

So Mastercard saying "hell no" is actually a little bit of a roadblock.

Not too mention (1)

kaizendojo (956951) | more than 2 years ago | (#41079881)

...the almost complete lack of interest or trust expressed in just about every online forum or news outlet we leaked this to.

bitcoin is coming, deal with it financial fags (-1)

Anonymous Coward | more than 2 years ago | (#41079897)

when bitcoins are illegal only criminals will have bitcoins

Re:bitcoin is coming, deal with it financial fags (2, Insightful)

kelemvor4 (1980226) | more than 2 years ago | (#41080423)

It's not illegal now, and still bitcoin owners seem to be mostly criminals. The only significant use I've heard of for them are buying things on that online dope store.

Re:bitcoin is coming, deal with it financial fags (4, Informative)

Anonymous Coward | more than 2 years ago | (#41080793)

this tells us more about you than about bitcoin.

Re:bitcoin is coming, deal with it financial fags (1)

mekkab (133181) | more than 2 years ago | (#41081041)

hey now, currency speculation is a noble, time-honored pursuit, and a perfectly legitimate way to round out your portfolio with some very risky investments.

/no risk, no reward!

Re:bitcoin is coming, deal with it financial fags (1)

kelemvor4 (1980226) | more than 2 years ago | (#41081493)

LOL sounds like you must make a living as an exec at one of the world's major banks!

shocker (4, Interesting)

slashmydots (2189826) | more than 2 years ago | (#41079903)

A worldwide, multi-billion dollar company doesn't want to help promote a new competitor that undercuts their price and their control over the global flow of money? I never saw that one coming!
Oh and also, bitcoin is 100% digital so any internet-capable device can send bitcoins anywhere in the world in under 10 minutes "to clear" time. So a plastic card would just help regulate it and add another layer of complication and control by an outside force. Not 1 single bitcoin user would have gone for such a product. This story had fake written all over it from the beginning.

Re:shocker (0)

Anonymous Coward | more than 2 years ago | (#41079977)

"So a plastic card would just help regulate it and add another layer of complication and control by an outside force"

You're not helping. :-)

Re:shocker (3, Insightful)

Anonymous Coward | more than 2 years ago | (#41079981)

I think you are completely missing the reason for having a bitcoin credit card in the first place. It would have been accepted anywhere a normal mastercard would (according to tfa). This would've meant bitcoin could be used to buy stuff pretty much anywhere in real-life instead of some small online black markets or bitcoin exchanges.

Re:shocker (1)

shentino (1139071) | more than 2 years ago | (#41080169)

In other words, unwanted competition for the credit card companies.

No wonder mastercard didn't approve of it.

Re:shocker (3, Informative)

Desler (1608317) | more than 2 years ago | (#41080269)

Competition to what exactly? Assuming it would have taken off Mastercard would have been raking in money off the conversion fees on each transaction.

Re:shocker (5, Insightful)

Anonymous Coward | more than 2 years ago | (#41080383)

They didn't say they don't approve it. They said they were never asked about it.

Seriously, Bitcoin people say "we'll have a global Mastercard-branded credit card avaolable to you all very soon". Mastercard say "Whadafuk? Who are you and how can you offer a Mastercard-branded card very soon if we've never heard of you?!". This only shows the lack of professionalism by Bitcoin.

Re:shocker (2)

Bam_Thwok (2625953) | more than 2 years ago | (#41080573)

"Didn't approve of it" is not the same as "Never heard of it".

Re:shocker (1)

slashmydots (2189826) | more than 2 years ago | (#41081503)

Actually "the" reason is so Mastercard could skim off a couple percent from it as a currency conversion fee. I run credit cards so trust me, someone pays me in Euros and I get totally screwed. It's like 4%+.

Re:shocker (0)

Anonymous Coward | more than 2 years ago | (#41080019)

The amateur-hour bullshit bitcoin "exchanges" don't even meet PCI's extremely lax security standards? Never saw that one coming either!

Tell me, what's the current exchange rate for one bitcoin to one USD on "Magic The Gathering Online Exchange"? Or are we still trying to pretend that one has always been "Mt. Gox"?

Re:shocker (2)

larko (665714) | more than 2 years ago | (#41080105)

1 BTC = 9.93 USD

Re:shocker (1)

Anonymous Coward | more than 2 years ago | (#41080127)

Mastercard is a payment processor, they really and truly don't care what the currency they're processing bills are denominated with. The reason why they're not likely to ever accept bitcoin is that they would have to guarantee it and at present bitcoins are just a fancy ponzi scheme.

Re:shocker (2)

Bam_Thwok (2625953) | more than 2 years ago | (#41080583)

That, and I'm sure their legal team would have a seizure trying to figure out their potential liability from helping to launder monopoly drug money back into the economy.

Re:shocker (1)

Desler (1608317) | more than 2 years ago | (#41080195)

How does Mastercard have control over the global flow of money? It's saying stupid things like this for why people mock bitcoin and its supporters.

Re:shocker (0)

slashmydots (2189826) | more than 2 years ago | (#41080375)

How does Mastercard have control over the global flow of money? It's saying stupid things like this for why people mock bitcoin and its supporters.

How do they not?! If you use your card in another country, the can charge whatever fees they want. If they don't like Africa, they jack up the fees. They can charge merchants whatever they want to accept the card too. If they haven't made the profit they want, they pass it along to the merchant. If they don't want money going to Wikileaks, they simply pull the plug. If they don't like what a certain vendor does, they just say they had too many instances of chargebacks and don't process for them anymore. They can basically do anything they want with international commerce. That's why bitcoins were invented.

Just to be clear, I do think BTC is an extremely stupid idea and isn't practical and is too easily stolen. The theory is sound, the reasoning is sound, but the execution is idiotic. Bitcoins will work great...just as soon as nobody's computer ever catches a virus. If it catches, a virus will instantly grab your wallet file. Now it can be encrypted but still. Weak password = your money in their pocket. Why convince people to pay a fake FBI fine or say their computer has a virus and they need to buy some software or pretend to be Dell support and charge $200 to fix a non existant problem when they can simply swipe your digital wallet. BUT that doesn't mean Bitcoin doesn't work at the moment and it certainly doesn't mean that I didn't make a good bit of money of them so far.

Re:shocker (2)

Bam_Thwok (2625953) | more than 2 years ago | (#41080627)

MasterCard is a payment processor that merchants and consumers CHOOSE to use for convenience, not a boa constrictor wrapped around the neck of international commerce. If WikiLeaks wanted to, they could accept donations from dollar bills stuffed in envelopes, but they wanted an online processing instead. MasterCard shut them off because they didn't want to known as one of the companies processing charitable contributions to an international espionage suspect, not because they're some megalomaniacal superpower.

Re:shocker (1)

makomk (752139) | more than 2 years ago | (#41080717)

Have you ever heard of network effects? Most companies don't accept cards other than Mastercard and Visa for payment because there's no point accepting a payment method hardly anyone has, most consumers don't have other cards because there's no point having a card that you can't actually pay anywhere with, and most banks don't offer anything else because no consumer wants them. So Mastercard and Visa effectively have a strangehold on the payments market.

Re:shocker (1)

Bam_Thwok (2625953) | more than 2 years ago | (#41080857)

Except for cash, lines of credit, checks, money orders, wire transfers, et al. Just because Visa/Mastercard payment processing is more convenient than other methods doesn't put them in charge.

Re:shocker (1)

slashmydots (2189826) | more than 2 years ago | (#41081483)

You could accept rocks, food, bartering, Eve Online currently, magical spells (but not on ebay lol) and nintendo 64 games as payment and your company is still a joke if you don't take credit cards. There's a thrift store next to my computer repair store that attempted to not take credit cards for 2 months. He lost so many sales and had so many pissed off customers, he had to find a processor. Speaking of processors, ask any merchant services sales rep what they think of how Visa and Mastercard control everything, set all the prices, and repeatedly try to totally screw them.

Re:shocker (1)

Desler (1608317) | more than 2 years ago | (#41081327)

Actually most companies accept more payment options than just Visa and Mastercard. Name me a company, not some niche store that 10 people shop at, that many people deal with on a daily basis that doesn't take either cash, checks, have their own line of credit, another payment service like Paypal or things like western union payments.

Re:shocker (1)

fridaynightsmoke (1589903) | more than 2 years ago | (#41081853)

Have you ever heard of network effects? Most companies don't accept cards other than Mastercard and Visa for payment because there's no point accepting a payment method hardly anyone has, most consumers don't have other cards because there's no point having a card that you can't actually pay anywhere with, and most banks don't offer anything else because no consumer wants them. So Mastercard and Visa effectively have a strangehold on the payments market.

Heh, I applied for an AmEx card last week, sounds like I shouldn't have bothered ;)

Re:shocker (0)

Anonymous Coward | more than 2 years ago | (#41082413)

The only place I've been too that doesn't take Amex is Dollar General. And all they have is shit, anyway.

Non mastercard/visa credit is everywhere (0)

Anonymous Coward | more than 2 years ago | (#41082139)

Discover Card and American Express are also accepted at a majority of US businesses. The big box stores are constantly soliciting their customers for to sign up for their in store credit cards. Try buying something on paypal, without them hawking their revolving line of credit product. Then there are PIN based debit card for which transactions which Visa/Mastercard don't get their cut.

Re:shocker (1)

Bigby (659157) | more than 2 years ago | (#41080621)

People generating fear or misinterpreting what Mastercard does. Mastercard does have substantial control over inter-currency exchange rates. But that's it.

Re:shocker (1)

LurkerXXX (667952) | more than 2 years ago | (#41080233)

More like they have no interest in a ponzi scheme started by an anomomous coward, which has seen its value drop like a rock on severa occasions already.

Re:shocker (2)

slashmydots (2189826) | more than 2 years ago | (#41080407)

And yet I made a bunch of money mining bitcoins with a high powered dual GPU system. Wow, I sure got taken! Like 99% of other bitcoin enthusiasts, I read every last detail about how the system works, potential problems, and thoroughly protected my wallet file on cold storage (not attached to my PC). And oh look, I made money. Stupid, careless people get their money stolen whether it's BTC or USD. Don't use sketchy exchanges. Don't leave your wallet file live and then download 50 illegal software packages with viruses. Don't use the same password on a forum as the exchange. This is security basics, people, it's not a problem with bitcoins. By the way, I've never heard of a Ponzi scheme that doesn't have any central authority running it. That's a new one, lol.

Re:shocker (0)

Anonymous Coward | more than 2 years ago | (#41080657)

Don't use sketchy exchanges.

Sure. Now all we have to do is find one that isn't.

Re:shocker (1)

slashmydots (2189826) | more than 2 years ago | (#41081437)

MTGox -- this one. Look up their company history.

Re:shocker (0)

Anonymous Coward | more than 2 years ago | (#41082023)

You're right! I'll place my currency trades with the Magic: The Gathering Online Exchange, just as soon as I've finished these futures trades with My Little Pony Friendship Forum.

Re:shocker (0)

Anonymous Coward | more than 2 years ago | (#41082235)

No, I want an exchange that started out life trading Pogs and Spiderman comics. That is the true hallmark of a quality financial institution. Magic the Gathering!?! That's just as trustworthy as people who trade Pokemon cards.

Re:shocker (1)

MachineShedFred (621896) | more than 2 years ago | (#41081517)

So you made actual money, without doing any actual work in order to generate that "wealth" other than running a program on your computer for an extended amount of time. You created wealth without creating value.

Explain how this isn't a massive fiduciary jerk-off again? Sounds a lot like the much-maligned speculators of the futures markets to me.

Re:shocker (1)

Rude Turnip (49495) | more than 2 years ago | (#41082381)

Value is purely a matter of perception, as is reality. The perceived value is in the GPU time, the scarcity of the current Bitcoin pool and the potential size of the Bitcoin pool.

Re:shocker (5, Insightful)

Kjella (173770) | more than 2 years ago | (#41080239)

Oh and also, bitcoin is 100% digital so any internet-capable device can send bitcoins anywhere in the world in under 10 minutes "to clear" time.

Which is one of many reasons the last story smelled bad, who'd wait 10 minutes for their grocery payment to clear. The alternative would be that MasterCard or somebody guarantees the merchant gets paid before you disappear out the door with the goods, never to be seen again while your transaction bounces 10 minutes later. At the very best it would be something like having a credit card in a foreign currency where they take an exchange fee for converting your Bitcoins to US Dollars or whatever the local currency is, since I guess nobody would take Bitcoins.

Re:shocker (0)

Anonymous Coward | more than 2 years ago | (#41080615)

Which is one of many reasons the last story smelled bad, who'd wait 10 minutes for their grocery payment to clear. The alternative would be that MasterCard or somebody guarantees the merchant gets paid before you disappear out the door with the goods, never to be seen again while your transaction bounces 10 minutes later. At the very best it would be something like having a credit card in a foreign currency where they take an exchange fee for converting your Bitcoins to US Dollars or whatever the local currency is, since I guess nobody would take Bitcoins.

Nobody will take bitcoins directly because there exist no turn-key solution yet. Sure, anyone with a PC can do it, heck even with a smart phone and a remote client, but that is beyond the grasp of many merchants at the moment since they are accustomed to the slide-card machine that does all the hard work for them. In the future, I'm sure that will change unless the big corps knock it down all the time. I do foresee a future where digital currency such as the bitcoin, timekoin, etc. out there will eventually take root and replace the current system of "trust" we have with the big corps.

Re:shocker (1)

ceoyoyo (59147) | more than 2 years ago | (#41080973)

Nobody (big) will take bitcoins directly because at the end of the day you've got no idea how much they're going to be worth.

Re:shocker (0)

Anonymous Coward | more than 2 years ago | (#41081821)

How is that different from US dollars?

Re:shocker (1)

LF11 (18760) | more than 2 years ago | (#41082779)

How is that any different than regular government-issued currency?

cej102937

Re:shocker (0)

Anonymous Coward | more than 2 years ago | (#41082859)

They have to be useful to have value. The more useful, the more value?

Re:shocker (0)

Anonymous Coward | more than 2 years ago | (#41080707)

Oh and also, bitcoin is 100% digital so any internet-capable device can send bitcoins anywhere in the world in under 10 minutes "to clear" time.

Which is one of many reasons the last story smelled bad, who'd wait 10 minutes for their grocery payment to clear. The alternative would be that MasterCard or somebody guarantees the merchant gets paid before you disappear out the door with the goods, never to be seen again while your transaction bounces 10 minutes later. At the very best it would be something like having a credit card in a foreign currency where they take an exchange fee for converting your Bitcoins to US Dollars or whatever the local currency is, since I guess nobody would take Bitcoins.

I am not sure how this is insightful.It's blatantly wrong.

  A card issuer gives you a bitcoin "debit" card as opposed to a "credit" card. So you either have bitcoins or you don't when you purchase. If you don't have bitcoins on the card the issuer knows about it. It does not matter to the grocery store if the transaction appears 10 minutes after you walk out of the store or 2 or 3 days after like in your current bank block and then process debit system.

If you have bitcoins on your prepaid card it's effectively in escrow with mastercard or the issuer of the card until you spend it. Once you spend it there is a block on your card. Your card's bitcoin account is not available to you and it's possible to have coins transferred out of a different bitcoin account to the store. Your bitcoin account number which you don't know which is used for your card is debited the amount to move the money into mastercard or issuers account. They can even cycle of bitcoin account number every 10 minutes for security at their end. So you have no way of defrauding the pre-paid card issuer.

All in the game. So this isn't the reason or the card not being issued.

Re:shocker (0)

Anonymous Coward | more than 2 years ago | (#41080715)

The latter is exactly how the card was going to work. You deposit bitcoins to an address on the card, held by bitinstant, and then sometime later spend it, with bitinstant doing the currency conversion on the fly and charging a %1 fee for the conversion.

It's supposed to be a tool, just like paypals credit card. Not useful for most people, but if you happen to deal with bitcoins a lot it can be useful for you to spend those coins on demand without hassle.

Anyway, who knows how bitinstant planned to actually get the cards. Look at wiki leaks, they've figured out a solid way of accepting credit cards now that visa can't shutdown due to local French regulations. Essentially there is a government run subsidiary of visa in France where the agreement between the government am France was that visa can not shutdown accounts. If they want to shutdown wiki leaks they now have to exit the whole market.

Re:shocker (2)

makomk (752139) | more than 2 years ago | (#41080735)

The alternative would be that the payment provider requires you to have a Bitcoin balance loaded onto the card that's already safely under their control before you use it to pay for anything, which was I think exactly what they've said they're going to do.

Re:shocker (1)

JesseMcDonald (536341) | more than 2 years ago | (#41081809)

Which is one of many reasons the last story smelled bad, who'd wait 10 minutes for their grocery payment to clear.

Ignoring for the moment the fact that from the merchant's point of view the last story was about a traditional debit card, not actual Bitcoin transfers, ten minutes is still quite an improvement over the current system, which generally takes months to "clear" the payment beyond the risk of a chargeback. With Bitcoin, after about 10 minutes (the time it takes, on average, to incorporate the transaction into the next block in the chain) the payment is effectively final, and within an hour or so (six confirmations) there is no credible risk of reversal whatsoever.

Re:shocker (1)

geekoid (135745) | more than 2 years ago | (#41080817)

Mastercard didn't do for it because it's a non starter. bitcoin is shit, and it's full of issues. If not, Mastercard would use it to make money they way they do. Mastercard only care about the ability of the currency you can charge against.

Re:shocker (0)

Anonymous Coward | more than 2 years ago | (#41081905)

You say: "and it's full of issues".
I'd like to read more about these issues - do you (or anyone else) have a link / links to more info ?

Re:shocker (0)

Anonymous Coward | more than 2 years ago | (#41082617)

He doesn't need to waste his time finding links or explaining the obvious. His point is stated that Mastercard would essentially already be doing this with bitcoins if they were NOT "full of issues."

Bitcoin is a scam to benefit the creators and early adopters. Here's your link, you pedantic little fagget: http://en.wikipedia.org/wiki/Bitcoin#Initial_distribution

You'll have to use some logic to conclude that the late adopters are the ones that drove the price of the coins up so the early adopters could convert them to a usable currency. Though, I'm aware that bitcoin proponents aren't capable of that kind of logic.

Re:shocker (2)

ceoyoyo (59147) | more than 2 years ago | (#41080955)

Why should Mastercard care what currency you're using? They'd probably love to offer bitcoin services... then they get to charge the merchant a transaction fee AND the customer a transaction fee plus currency exchange. It would be like everyone was suddenly shopping abroad.

However, Mastercard isn't going to go for an anonymous system.

Re:shocker (1)

MachineShedFred (621896) | more than 2 years ago | (#41081471)

How does the end customer being charged an extra 1% "undercut their price" exactly?

Only room... (2)

o_ferguson (836655) | more than 2 years ago | (#41079911)

...for one racket in this town, son...

Don't listen (0)

Anonymous Coward | more than 2 years ago | (#41079919)

I have confirmation re the Bitcoin MasterCard from the most authoritative source imaginable. I read about it on Slashdot.

Re:Don't listen (2)

Desler (1608317) | more than 2 years ago | (#41080213)

True and it was sourced from a discussion in an IRC channel.

Re:Don't listen (0)

Anonymous Coward | more than 2 years ago | (#41080669)

But, did Netcraft confirm it?

Redundant Comment For Redundant Article (-1)

Anonymous Coward | more than 2 years ago | (#41079927)

Anonymous Coward denies wanting to hear anything more about Bitcoin!

Of course (0)

Anonymous Coward | more than 2 years ago | (#41080077)

...given details of the procedural barriers to creating such a card

Like you can't block Wikileaks with it.

Where are the screening details? (0)

Anonymous Coward | more than 2 years ago | (#41080141)

TFS says "Mastercard has denied there are any such plans and given details of the procedural barriers to creating such a card.". TFA doesn't give those details - there is only a vague reference to "screening". Is there another article about this?

Re:Where are the screening details? (0)

Anonymous Coward | more than 2 years ago | (#41080171)

I believe they're talking about PCI DSS [wikipedia.org] audits, at the very minimum.

a bitcoin credit card (3, Insightful)

nimbius (983462) | more than 2 years ago | (#41080281)

from MasterCard...would introduce a serious flaw into the bitcoin model. Namely, the ability to override the corporate and political will of a major multinational financial processor with strong ties to the US Government.

the huge appeal of BitCoin is the ability to treat it like anonymous cash, a privilege previously enjoyed only by the upper echelons of the rich and powerful as they finance things like proposition 8 or the next GOP candidate.

Re:a bitcoin credit card (0)

Anonymous Coward | more than 2 years ago | (#41080613)

Yeah, I get your point, and it would be truly crazy to use bitcoin only with such a card.

But there's a valid use for one -- there's still some stuff you can't buy directly with bitcoin, or locally with cash, and a lot of it you may not care about anonymity, so if I'm running a business that turns a profit in bitcoins, I gotta turn some of that into USD (or whatever), either in a bank account or prepaid debit cards, to buy, say, a keyboard from newegg. Being able to deposit those bitcoins directly into a debit card and pay with it does add a level of convenience, and growing the bitcoin economy this way may induce the merchants to accept bitcoin themselves (saves them credit card processing fees, so it makes sense given enough bitcoin-paying customers) -- then again, it could cause the classic OS/2 windows-compatibility problem. Hard to say if it's good or bad for the bitconomy at large...

Re:a bitcoin credit card (1)

geekoid (135745) | more than 2 years ago | (#41080847)

", the ability to override the corporate and political will of a major multinational financial processor with strong ties to the US Government."
BWahahaha.. no.
The huge appeal of bitcoin is from people who don't understand macro economic.

Re:a bitcoin credit card (0)

Anonymous Coward | more than 2 years ago | (#41082489)

Or people who want to buy drugs over the Internet.

Re:a bitcoin credit card (0)

Anonymous Coward | more than 2 years ago | (#41080921)

The bitcoin model is the serious flaw.

Re:a bitcoin credit card (1)

GuldKalle (1065310) | more than 2 years ago | (#41081583)

the huge appeal of BitCoin is the ability to treat it like anonymous cash

That's not how I see it. To me, the appeal is that it's not centralized, so nobody can decide for me that I can't support Assange. And if I don't agree with my bitcoin exchange, I can just use another. I can avoid monopolies like Visa/Mastercard

Re:a bitcoin credit card (0)

Anonymous Coward | more than 2 years ago | (#41082239)

a privilege previously enjoyed only by the upper echelons of the rich and powerful as they finance things like proposition 8 or the next GOP candidate.

Chris Matthews called and left a message for you. He wants you to return his tingling leg.

"BitCoin is to issue a credit card" (4, Funny)

Wonko the Sane (25252) | more than 2 years ago | (#41080317)

BitCoin is going to issue a credit card right after LiNux opens up a app store and HTTp holds a networking conference.

Re:"BitCoin is to issue a credit card" (-1)

Anonymous Coward | more than 2 years ago | (#41081559)

BitCoin is going to issue a credit card right after LiNux opens up a app store and HTTp holds a networking conference.

*sigh* What a shame. You rushed so much to get your post out that quickly, not even ChEcking to MAke sURe you wERe pressing the shift key properly before hitting submit, and yet you STILl didn't get first post. A pity.

Re:"BitCoin is to issue a credit card" (0)

Anonymous Coward | more than 2 years ago | (#41081631)

**whoosh**

No surprise (0)

Anonymous Coward | more than 2 years ago | (#41080429)

BitInstant does not have anything to do with Mastercard directly. The bank that they are working with are doing that. So, there is nothing Mastercard could have to deny.

Re:No surprise (1)

Wonko the Sane (25252) | more than 2 years ago | (#41080529)

Not to mention that Bitinstant described it as a debit card, not a credit card. Those are two very different beasts.

Re:No surprise (0)

Anonymous Coward | more than 2 years ago | (#41080667)

Exactly.
Bitinstant card is nothing other than a debit card tied to a bank account in your name.

Let me draw it up for you:
1. You submit documentation and pay a fee to bitinstant, they open a 0-overdraft account in your name at their partner bank.
2. Partner bank issues a MC debit card for that account and sends it to you.
3. You send bitcoins to bitinstant, they convert to USD and credit that amount to your account at the bank.
4. ???
5.. Debit card that can be "recharged" with bitcoin!

It's the exact same way you can get debit cards from exchangers that can be refilled with LibertyReserve, PerfectMoney, c-gold, WebMoney or any other fad "private currency".

Oh, slashdot... (0)

Anonymous Coward | more than 2 years ago | (#41080629)

These days I get the feeling the frequent slashdot posts are the main thing keeping bitcoin "alive"...

idiot banks/credit companies (0)

Anonymous Coward | more than 2 years ago | (#41081261)

There are no "Barriers" There is no magical thing blocking them from using this technology. They simply choose not to and that's it, period. Who do you think made the.. err I mean bribed the government officials to get all the asinine rules and regulations we have now in the first place? So it's not like they can't just do what they want and use Bitcoin.

They really should too. I've used it several times at various sites and a couple of places and it's far faster, easier and more secure than a credit card or a bank. And BTW no, my purchases did not have anything to do with drugs directly or indirectly, some games, computer parts for cheap, some clothes, some snacks...

I always see people trying to point how insecure it is, because of all these site owners that have no idea what they are doing, end up getting hacked. So you see these articles like OMG the world is ending, bitcoin site lost 50,000 coins or yet another exchange hacked blah blah ... bitcoinica zomg.... But in the scheme of things, it's nothing. Now look over at the big media and "real" players or whatever you want to call them, you know the huge corporations, banks and credit companies?.... oh yeah what was that a little while back... *cough* Sony? How many Millions of user credit card and other personal information did you have stolen not long ago? And that's piddily crap. There have been several security breaches resulting in HUNDREDS of Millions of credit numbers, names, personal information... getting stolen and it's not like it's just a one time thing. There are lots. Several billion if you count up the big ones, plus all the minor ones of just a few million.

but OMG bitcoin is so insecure right? lol

In other news... (0)

Anonymous Coward | more than 2 years ago | (#41081353)

BitCointards manage to squeeze in yet another Bitcoin story on Slashdot.

Its not MasterCard ... (1)

PPH (736903) | more than 2 years ago | (#41081477)

... its the banks that create the largest roadblock to a BitCoin (or other anonymous cash) based debit card. MasterCard could really care less about who keeps a particular bank account topped off in dollars. You would have to find a bank willing to accept the exchange rate risk and violations of various anti money laundering regulations [wikipedia.org] .

Daily Bitcoin story? Check. (1)

MachineShedFred (621896) | more than 2 years ago | (#41081597)

Today's Bitcoin story retracts yesterday's Bitcoin story, and tomorrow's will probably refute today's.

Can we just stop with the Bitcoin horseshit already? The news about Bitcoin is just about as stable as the "currency."

Re:Daily Bitcoin story? Check. (1)

Wonko the Sane (25252) | more than 2 years ago | (#41081685)

Did you know that modern web browsers have added new feature that will let you avoid reading stories which make you feel uncomfortable? All you have to do is not click on the link.

Try it out sometime and see if it works on your browser.

Re:Daily Bitcoin story? Check. (0)

Anonymous Coward | more than 2 years ago | (#41081829)

Yeah, but remember when slashdot used to run bittorrent stories every fucking day and it was like for fuck sakes enough of this bittorrent shit and then.... suddenly bittorrent is the next big thing. i'm not saying bitcoin is the next big thing but sometimes when slashdot mushes turds against the wall long enough they stick,

Market manipulation (1)

catmistake (814204) | more than 2 years ago | (#41081959)

How strong did bitcoin get before investors dumped their bitcoins and developed a rumor to eliminate buying confidence and dramatically reduce the bitcoin value against the dollar? What was the bitcoin exchange rate trend before the story broke, and what is it now?

I don't think that bitcoin development is a bad idea on its face (anonymous money), and I don't see any pyramid scam, but without regulation or oversight, the bitcoin market is ripe for manipulation with impunity.

Ponzi (0)

Anonymous Coward | more than 2 years ago | (#41082263)

If bitcoin is a ponzi scheme, then so is life. People who are born earlier in life have an advantage of people who are born later in life.

This also makes video games ponzi schemes too... people who start playing video games early have advantage over late adopters! PONZI SCHEME!

Getting money out of Bitcoin - the problem (1)

Animats (122034) | more than 2 years ago | (#41082815)

The Bitcoin ecosystem has always had trouble converting Bitcoins to something more useful. Most of the ways to get money out of the Bitcoin system involve multiple intermediaries, payment rate limits, delays, and finger-pointing between the intermediaries when the system breaks. Mt. Gox finally, as of June 26, 2012, started offering wire transfers out of their system.

Mt. Gox is in Japan, which allows non-banks to operate money transfer services. [sidley.com] This is a new law from 2009, and specifically addresses electronic transfers and "server-based electronic money". In Japan, cell phone companies are in the money transfer business in a big way. Companies which take that route have to maintain a bank balance in a real bank representing all the customer assets they're holding. They cannot engage in "fractional reserve" banking, and they're supposed to be audited.

Under this law, companies which offer "server-based electronic money", like gift cards, must have a bank balance of half the value stored. Bitcoin might be considered to qualify, which would reduce the reserves Mt. Gox must have in banks. Half the value of the Bitcoins Mt. Gox holds should be in a bank in a non-Bitcoin currency.

It's not known if Mt. Gox is in compliance. There are supposed to be audits, but no figures have been published.

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