Quote:
Originally Posted by Mason Malmuth
Hi G.Nouveau:
I don't know enough about bit coins to know whether this would work or not, but one thing I do understand, and correct me if in error, is that the value of bitcoins fluctuates greatly. And if this is the case, wouldn't these fluctuations be the equivalent to a hidden cost making the type of transactions that you are describing much more expensive?
Best wishes,
Mason
Mason,
Maybe I can help clarify a few things about Bitcoin for you. First of all, Bitcoin (capital B) is a protocol, and it functions as a currency, which is denominated it "bits" (one millionth of one BTC) or "bitcoins" (1 BTC).
Vendors and merchants DO NOT need to accept any risk of price fluctuation, as there are many ways for BTC to be converted instantly into dollars.
Coinbase and other companies offer ways for merchants to accept BTC with zero risk, with lower fees than any credit card or paypal.
It isnt possible for Stars to accept bitcoins directly because to do so they would have to register as a money transmitter in all 50 US states, along with similar regulations in other countries. However trying to circumvent the UIGEA through the use of Bitcoin, even though technically legal, could easily hurt their relationship with the US Gov.
CLIFF NOTES: Pokerstars cant accept BTC directly without a ton of red tape and expenses, but could possibly do so via Coinbase (or similar company), if Coinbase decided the money was worth the risk and scrutiny, but at this point that seems unlikely.
PS: Mason, as a devout libertarian Im frankly shocked you dont know more about Bitcoin. Political and philosophical concerns aside, if you have doubts about the sustainability of the fractional reserve banking system and current Federal Reserve monetary policy, cryptocurrency offers another avenue to diversify your investments outside of the market along with real estate, precious metals, and fine art.