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BitCoin

Sitebee

UFO Hunter
NLC
I see lot's and lot's of hosting provider's now accepting BitCoin as payment. My question is have you actually had any sign-up's with BitCoin and have they been good clients? Lastly if they have used a money back guarantee, how has the refund process gone?

Cheers guy's, the reason I ask is BitCoin is becoming more popular I'm trying to weigh up the pro's and con's.

Sent from my ME173X using Tapatalk
 

Peo

Administrator
Staff member
Admin
I don't think any of the big serious hosting companies accept BitCoins or do they? I've never used BitCoin and I don't plan to ever use it or accept it as payment. It's not a reliable currency and it has lots of serious issues.
 

deeplist

Entrepreneur
NLC
There's a lot of fraud associated with bitcoin, not just with the mining procedures, but the currency as a whole. I don't really want anything to do with it.
 

[JSH]John

JSHosts.com
NLC
We accept Bitcoin but it's not very popular yet. Most customers prefer to pay by Credit Cards or PayPal.
 

fsd

Active Member
While I don't use bitcoins I love companies that take them.

It shows that you are probably not a security concern, with the whole NSA issues. A company that takes bitcoins probably won't go snooping and most likey doesnt have all that crap some others do.
 

sarmth

Active Member
To my knowledge, Bitcoin is completely anonymous (which is good if you're going to conduct illegal activities OR if you want a completely anonymous VPN service) but, as Peo mentioned, there are quite a number of concerns, especially with the entire anonymous aspect of Bitcoin, how do you handle fraud?
 

RH-Calvin

Member
Bitcoins are less prone to chargebacks as compared to credit card payments. Like paypal it is more secure type of payment gateway and hosting providers are always at a less risk to fraud chargebacks.
 

deeplist

Entrepreneur
NLC
Have you guys saw some of these mining rigs that people put together with several GPUs? The power consumption on these are huge and their sole purpose is mining these BitCoins. It all seems very lucrative.
 

[JSH]John

JSHosts.com
NLC
Are those mining rigs even worth it now? It takes hours and possibly costs a lot more than you'd make.
 

deeplist

Entrepreneur
NLC
In the beginning, yes. But the bottom fell out a while back and these days it depends. Once you factor in the hardware costs, and the costs to run them (ie/ electricity, HVAC, etc) sometimes it is, sometimes it's not. I don't like the idea of possibly not getting my return on investment back soon enough, or at all.
 

sarmth

Active Member
In the beginning, yes. But the bottom fell out a while back and these days it depends. Once you factor in the hardware costs, and the costs to run them (ie/ electricity, HVAC, etc) sometimes it is, sometimes it's not. I don't like the idea of possibly not getting my return on investment back soon enough, or at all.
But no matter where you invest, you have this exact same issue.
 

deeplist

Entrepreneur
NLC
But no matter where you invest, you have this exact same issue.
No. Not really...

I do well on government surplus auctions and online sales these days. Monetary investments to purchase government surplus is small, the returns on the sales afterwards are high. The only real investment is my time.
 

deeplist

Entrepreneur
NLC
Like I couldn't see this coming from a mile away. Oh well. The value of the other crypto-currencies will inevitably drop because of this and high end gfx cards may actually return back to reasonable prices too.
 

sarmth

Active Member
In light of yesterday`s news with BitCoin, I doubt I will be using it any time soon.

I was unsure in the first place but now I have made up my mind.

MT Gox goes offline
When I heard about this, I was laughing my butt off. I know it sounds harsh, but c`mon, the programming behind bitcoin puts too much trust in the hands of anonymous people (whom no one knows they are, and thus there is no security)

Would you trust a complete stranger to hold your suitcase (with no lock) filled with $5,000 of your hard earnt cash?
 

Seraphim

Active Member
The issues with MtGox are specific to MtGox having used shoddy code years ago that came back to bite them. They knew there was a problem with their trade platform, yet did not take sufficient action to fix it- and over time theft using that exploit drained their reserves and bankrupted them. What we have seen with MtGox is the first ever cryptocurrency 'bank run'. MtGox is not the only exchange out there- I personally am using Coinbase to get in and out of bitcoin as needed while trading dogecoin for bitcoin.

Yes it has its issues, but it also has a lot of neat capabilities too. The wallets for bitcoin can integrate with any other system- it is all electronic, has little to no fees, and doesn't rely on any kind of central processor like paypal does.

On top of that, bitcoin payments cannot be reversed or charged back- once you send a payment it is gone unless the person you send it to is generous enough to send it back.

Really the biggest hinderance to it is a lack of understanding of how it actually works and widespread usage to stabilize its value. Dogecoin is the same way.

I would accept either method- bitcoin or dogecoin as valid payment. Mind you it would have to be processed manually on my end, but that isn't a big deal. If enough people start using it, I'll add an automatic payment handler for it. The wallet software provides a JSON API for doing so if you choose to.

As for the fraud issues, the bulk of them come from people being careless in handling it or trying to treat it like something it isn't. When exchanging it for Fiat for instance, always go with a reputable exchange or escrow service. Fiat transactions can usually be charged back, cryptocurrency transactions can't. Having a neutral party in between helps avoid complications with this happening and keeps both parties honest.

Mining itself isn't fraud at all other than the usual bad apples using botnets to do it. All you are doing is using your CPU/GPU/ASIC power to solve hashes that contribute to forming a valid block. Each block is a page in a ledger of transactions that describe the entire network from the very beginning till now, they don't actually store the coins themselves because the coins don't actually exist.

So what happens when you make a transaction is it is sent to the miners, who code it into the blocks, and when a block is accepted by the blockchain that transaction becomes a part of the permanent record- the blockchain contains every two or more party transaction in the history of the entire network. Exceptions to this include transactions that happen within a single exchange or service and are not broadcast out to the network. After a sufficient number of blocks have been made that contain the same transaction, the transaction is considered permanent and indisputable.

Now to keep your bitcoins from getting stolen, use an OFFLINE wallet. The standard wallet software creates a private key to identify the wallet, and then generates public keys for transaction addressing. Keeping a secure backup of this private key is absolutely critical to the safety of your bitcoins, and at all times your bitcoins should be returned to your wallet when not actively being used. To date there is no known method of stealing from an offline wallet, but online wallets and exchanges can easily be hacked or can suffer from stability problems like MtGox is experiencing. Effectively everyone who was storing their bitcoin at MtGox just lost their bitcoin, but those who were smart and withdrew it to local wallets didn't lose a thing.

When I heard about this, I was laughing my butt off. I know it sounds harsh, but c`mon, the programming behind bitcoin puts too much trust in the hands of anonymous people (whom no one knows they are, and thus there is no security)

Would you trust a complete stranger to hold your suitcase (with no lock) filled with $5,000 of your hard earnt cash?
On the contrary- bitcoin transactions have more trust to them than fiat transactions. Anyone can steal your credit card info and drain your bank account, or buy something expensive and then dispute the charge. With bitcoin that's not possible- they would have to first gain control of your wallet and send those bitcoins out to another wallet, resulting in a transaction visible on the blockchain which can in fact be tracked. There is no chargebacks at all anywhere in the system.

Now if you were leaving your cryptocurrency on an exchange platform or in an online wallet service, THEN you are leaving your life savings in the hands of a total stranger and trusting them to not help themselves.

For people who are actively trading these currencies- the markets behave similar to Forex, but much wilder from lack of regulation, it is sort of unavoidable to leave some or all of it in an exchange for fast access when trading. Everyone else should always keep it in a local wallet and have multiple backups of the private key.
 
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