[djpilot]

I've been piloting this program and I've got to say it's been a convenient way to pay without draining my real bank account. IMO this is a killer product compared to everything else I've experienced with Bitcoin and cryptocurrency this far, it really bridges the gap.

Heck, I even used it to pay my back taxes to the IRS.

[simias]

>IMO this is a killer product compared to everything else I've experienced with Bitcoin and cryptocurrency this far, it really bridges the gap.

So it solves the usability problem of cryptocurrency by... working like a regular bank, more or less? And mostly getting rid of the actual blockchain to use off-chain transactions while having the convenience of the centralized Visa system?

This might be the killer product for cryptocurrency, but in a more literal sense. It shows that the market seems to inexorably converge towards the good old solutions, and the cryptocurrency ecosystem slowly (and rather inefficiently) reinvents the modern banking system.

I wonder when Coinbase will start doing fractional-reserve banking with they off-chain "cryptocurrency" accounts.

This is no more "cryptocurrency technology" than if I set up a script to sell some of my Bitcoins to replenish my bank account when its balance reaches a certain value.

[Geee]

Cryptocurrency is both a monetary system and a payment system. You don't lose all of the benefits of cryptocurrency if the payment layer is scaled up with centralized solutions.

[seppin]

> You don't lose all of the benefits of cryptocurrency if the payment layer is scaled up with centralized solutions.

What are the benefits if you relay solely on existing payment networks for transactions?

[Geee]

Well, a cryptocurrency monetary system is just code rather than a bunch of old guys with nukes.

[simias]

It's a bunch of "hodler" whales who, if the currency is successful enough, will become the next "old guys with nukes".

If most people use bitcoin off-chain then it means that it's the cryptocurrency exchange cartel who gets to decide what is and isn't bitcoin. Who cares if the node in your basement disagrees if all the exchanges have forked away and nobody can trade with you.

The whole "it's just code" shtick is really shortsighted. It's never only just code, it's a complex consensus. Look at all the drama around segwit/bitcoin cash for instance.

[seppin]

exactly, if it was "just code" it wouldn't be worth anything, and they'd be no stakes.

[headsoup]

So the IRS accept bitcoin or is there a conversion behind the scenes? If the latter, how do you ensure you've actually covered the balance exactly?

[hanniabu]

It's converted by Coinbase. Whatever the charge is, they sell that amount worth of your holdings plus fees.

[headsoup]

So in this case rather than just pay cash it's paying cash with a little bit extra for coinbase? Is there any genuine value to justify this extra cost?

[hanniabu]

Everyone charges a fee. This is just a different provider. The proposition is that conversions are seamless so you don't have to worry about manually cashing out assets for payment and you can stay invested until the time of sale.

[isolli]

What kind of fees do you pay to exchange coins from your balance into dollars?