[bdcs]

You can do clever things with BTC to make them reversible in cases where reversibility is nice. First, you can implement a centralized PayPal-type company that clears after X days to implement chargebacks. Boring, but easy to understand and effective. The clever way to do it is with M-of-N transactions, http://www.bitescrow.org/

PS. When I order from Amazon, etc. I trust them. I get 2% back using bitcoins (from Coinbase.com (-1%) -> Gyft (+3%)). I like the 2% discount more than the credit risk of Amazon not making me happy at the end of the day : )

[caw]

Fidelity offers a 2% cash back on everything card. Amazon's credit card also gives you higher than 2% on Amazon purchases. Could you elaborate more why you do a double conversion to buy something rather than a straight credit card transaction?

[pfisch]

Basically at this point it is tax avoidance. By using btc you avoid paying capital gains tax since basically everyone who holds bitcoins right now has seen their investment go up in value. Converting back to usd is not as good as spending the btc.

It is kind of nice having a currency that appreciates in value over time vs slowly getting robbed by inflation or capital gains tax.