Not to mention the fact that the recipient needs a bank account anyway if they want to convert their bitcoin into something that they can actually spend outside of the dark web. Worse, the recipient also needs a bitcoin exchange account to even make the conversion possible, then they have to wait two days for the exchange to ACH the money into their bank. This all assumes the exchange will even do business with them following their extensive KYC checks.
I've never had a bank require that I OAuth with Facebook or give them copies of my passport in order to get an account. Bitcoin is just not the solution to this problem.
> needs a bank account anyway if they want to convert their bitcoin into something that they can actually spend outside of the dark web
That's not true. Americans (Facebook's intended audience for this Messenger money-sending feature) can spend bitcoins directly at Microsoft, Dell, Expedia, Overstock, Newegg, Tiger Direct, DISH Network, etc. They can use and spend bitcoins theoretically received from FB friends without having a credit card, without even having a bank account.
Admittedly, my dark web remark was an exaggeration, however, it remains a practical truth for every day life. In the overwhelming majority of locales, bitcoin cannot be used to pay for groceries, insurance, utilities, rent/mortage, fuel, student loans, daycare, tuition, taxes, medical expenses, phone service, car payments or pretty much any of the common expenses someone might need to pay for. Newegg, Tiger Direct, Microsoft etc are all great companies, but for most people those companies only account for a small number of purchases per year.
The reality is that using bitcoin as money is very impractical, that's just a fact.
All systems that require adoption are, initially, impractical.
Bitcoin is becoming more and more practical as more and more merchants adopt it. Again: 100,000 merchants accept Bitcoin today, and this number is (so far) increasing rapidly.
> All systems that require adoption are, initially, impractical.
I agree with that. It seems we agree that bitcoin is currently impractical, which is the crux of my argument. Bitcoin is not a practical way to send money unless the recipient already has a bank account and a bitcoin exchange account.
Do you know where that 100k number comes from? I see it said a lot but the only source listed is an ibtimes story saying "an industry source says 100k". Has anyone figured out how it was calculated?
I'd be curious to see what the active merchants per month actually are for Bitpay and Coinbase. Until then I have a hard time believing they actually have those numbers live given the number of stories I've seen of people visiting stores/restaurants that accept bitcoin only to be told they don't do that anymore.
I think we need to kill the "bitcoin requires a passport" myth as well. I have used bitcoin for 4 years and have never had to present a passport for anything.
> You brought up having to present a passport as if it were a requirement to using bitcoin
I'm not sure how you read, "a passport is required to use bitcoin" from "I've never had a bank ask me for a passport when opening a bank account". My point, which I substantiated with those /r/bitcoin posts, is that it's not unusual for a bitcoin exchange to ask for a copy of a customer's passport as part of their KYC procedures.
> One can deduce from the context that a passport is required to use bitcoin.
You deduced incorrectly. I'm saying that if the KYC system flags the recipient, for whatever reason, then they will likely be required to produce a passport.
>Not to mention the fact that the recipient needs a bank account anyway if they want to convert their bitcoin into something that they can actually spend outside of the dark web.
No, I haven't read the list of locations where bitcoin is accepted. The reason for this is, like most people, I have a bank account and don't need to double check that I can actually pay for dinner and a movie before I patronize an establishment.
What you call "FUD", the rest of the world calls "reality". Bitcoin is currently impractical as money, that's just a fact. The few businesses that accept bitcoin aren't even close to enough to make bitcoin practical for every day needs.
I'm not saying bitcoin is practical as money. I'm saying it is practical as a payment system, if anything. Just look at the gigantic $100,000,000 bitcoin transactions that happen and only pay a $0.20 or so fee.
Besides that, bitcoin is so profoundly different than traditional money systems it can't possibly be practical as money so soon. It shouldn't be practical as money so soon, but it is making progress.
I've never had a bank require that I OAuth with Facebook or give them copies of my passport in order to get an account. Bitcoin is just not the solution to this problem.