I've seen endless pleas for businesses to accept bitcoin.
Mostly what this means is use a processor that transfers bitcoins back into dollars instantly. This is counterprouctive, and misses the whole point of why bitcoin is useful.
This means each time you spend your bitcoin, some processing company is making 8% moving it back and forth across the fiat line. ug. This eats up all teh air in the room for the benefits of peer to peer money.
What do businesses need?
(1) Holding and using bitcoins, securely. Huge problem: how does a business hold their coins? Somebody needs to solve this for both small and large businesses. What does a company like IBM do with a reasonable store of bitcoins? How do the manage 25M in bitcoins without an IT tech walking out teh front door? Unsolved. How does Bob corner Greek restaurant hold and use the bitcoins he's been paid? How does it integrate with his accounting system? Unsolved.
(2) Businesses need to make payroll. How does a business who holds coins pay people with them who want them? Currently most businesses outsource payroll, just like the outsource banking services. Someone else deals with it. Want to pay people with bitcoin? Not solved.
(3) Businesses need to pay suppliers, this works with invoices usually. That means businesses need to be able to issue invoices to other businesses with bitcoin payment as an option. Bob's corner Greek restaurant needs to pay the janitorial service, and the tomato delivery guy - both of which send him invoices to pay. Those businesses have problems 1 and 2 above, and need to issue invoice to Bob's with bitcoin QR code on it. Not solved.
People are getting tired of banging on the doors of business asking if they will accept bitcoin, because the businesses don't have a solution that keeps the financial flow in the bitcoin system.
Who's working on this problem? Until this is solved, Bitcoin will remain entirely fringe as a niche consumer interest.
Submitted September 29, 2015 at 10:29AM by jmdugan http://bit.ly/1FEV7Ev
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