Why I Think Paying With Bitcoin At Starbucks Is Positive News, Although I Would Never Spend Bitcoin At Starbucks

in bitcoin •  2 months ago

Now that the dust has settled over the big news that Intercontinental Exchanges will create a platform for digital assets, allowing, among other things, to pay with Bitcoin at Starbucks, I think it's time to take a closer look at it.

But since you probably don't remember it, let me refresh your mind: so, ICE will make a company, dubbed BAkkt (in Romanian, this sounds awful, by the way, kkt being the de facto shortening for shit). powered by Microsoft cloud and being in charge with managing digital / crypto assets. In other words, it will make a regulated Bitcoin-powered exchange (it already announced plans for Bitcoin futures). Companies using this exchange will be able to accept Bitcoin as a payment, since BAkkt will manage the conversion of the received Bitcoin into fiat and then remitting the fiat to the company.

Among the companies that announced support for this was Starbucks. A timeline for the project is not yet clear, but November 2018 seems to be the date from which the settlements (at least for futures) will be possible.

Why Is This Major News?

Well, because Bitcoin will suddenly become a legit payment buffer for bigger and more visible companies, like Starbucks, helping with mass adoption.

I don't think Bitcoin is a proper currency, though, but as a buffer, I think it will function well.

In other words, I won't be paying at Starbucks with my hard earned Bitcoins (like if I have some) but with my altcoins. With STEEM.

The existence of a legitimate buffer for Bitcoin as a means of payment will drive the need for consumption of alternate coins. You just swiftly change your STEEM, EOS, Cardano or other altcoins into Bitcoin, swipe your card and voila, you just got yourself a macchiato. The exchange will be totally transparent (if we use STEEM, where the transaction time is 3 seconds) so the ledgers will always be in sync. Something that doesn't happen yet even with credit cards operators like Visa and MasterCard.

So, yes, that means I'm really looking forward to pay for my tea (I don't drink Starbucks coffee) with the STEEM I make by blogging about being able to pay for my tea at Starbucks.


I'm a serial entrepreneur, blogger and ultrarunner. You can find me mainly on my blog at Dragos Roua where I write about productivity, business, relationships and running. Here on Steemit you may stay updated by following me @dragosroua.


Dragos Roua


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I want to be able to use crypto everywhere I go , because knowing I make Steem everyday is sort of a relief

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I hear you :)

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I was getting CASH from starbucks and CVS in 2014 using the GYFT App bro, lol u could always buy starbucks with bitcoin,

Owk I think I get the reason why you wouldn't want to use bitcoin but altcoins to perform day to day transactions . Is there any other way if getting bitcoin apart from either minning or buying? I doubt. But just by blogging, you could earn steem and use it for such transactions. I think that feels better to do while you just leave your Bitcoins as an investment .

Still need to see what the transaction fee will be.
You have my witness vote and a cup of tea when I'll have enough Steem ;)

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Thanks for the witness vote, appreciate it!

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Thank you for this update. Alternate currencies are starting to make sense to business as well as consumers. It will take time, but we have seen a big change in just over a year. Starbucks will be the last place I spend my treasured coins. Thanks again. 🐓🐓

I've always been a big proponent of the idea that BTC and major alt coins will need to become something more than investment vehicles and ways to transfer money if they are to become truly mainstream.

When I can walk down the street in my town and there are "Bitcoin accepted here" on a few shop doors, that's when we've moved on from just being a "fringe novelty." And when players like Starbucks, Amazon, eBay and others accept BTC as a form of payment, it's also going to make it that much harder for governments and regulators to "outlaw" cryptos... you don't want to anger your biggest taxpayers!

Not a fan of Starbucks myself, but this does sound like a great opportunity to start using different kinds of altcoins as currency without having to trade it into bitcoin or to fiat first.

Microsoft is good to have on board, too, though I don't use there products much. Not sure what the other company is. They didn't really publish a list. I wonder who the other companies are and how regularly they might be used? Microsoft is mostly a larger purchase type of company, that the common consumer isn't going to be buying from every day, whereas Starbucks has the potential for daily purchases by the same customer.

Still, as you suggest, it's a step in the right direction. It's nice to have bitcoin put to good use, too. :)

This is really great news. I still don't think I'll actually be spending even my STEEM, or any crypto for that matter, but I think even just having the option there popularizes the idea that crypto is real. That brings more investors into the overall market, and that's what we need.

The issue we have here in the US is the 20% capital gains tax being applied to all crypto transactions as of this year. Until Congress changes that tax law to at least exempt trades of under $600, there aren't going to be many people using crypto to buy a cup of anything at Starbucks. The tax on gains may not be much, but the time it takes to calculate and track gains and losses on every transaction will prove prohibitive.

I don't want to be that guy, who bought a coffee for 50 bucks, when BTC runs to 100k. So I agree with you that neither I will pay with bitcoins at starbucks, but find it quite good that they implement it for the first steps of adoption.

I'd love to spend more of my crypto. Of course I'll still hold plenty as I think it has potential. I'm using my Wirex card to allow me to spend some anywhere.

resteemed
i exchange my btc to dash
i love dash
it is free fee for trx

Well that would be really cool the more is the merrier slowly and slowly it will grow :)

Han this is good

I can clearly see many parallels to the Internet of Money by A. Antonopulous in this article.

He states that there will be many crypto-currencies used around the world and that there will be one (doesn't specify) that we will use as a bridge before ultimately exchanging to fiat.

The problem I have with this is that we are adding more layers. More currency exchanges are being made, which cannot be efficient in the end. It's like buying from CZK into EUR into GBP, instead of going straight from CZK to GBP. To me, it doesn't make sense. Maybe you have an explenation?

On the other hand, I can see how this would ratify Bitcoin as digital gold, being the prime Currency.

While I don't think you're wrong about this boosting visibility and adoption of cryptos, I don't see this as a good thing. Not that I don't want cryptos more broadly adopted. The reason this isn't good is because this is a vector for capture of cryptos for regulatory, tax, and fee extraction of our valuables (crypto, or any other money) by nefarious and corrupt actors, such as extant banksters and their captive governments.

"a trusted, name custodian — [such as] a Japanese bank or HSBC or ICE or Goldman Sachs — [is what would ultimately] allow institutional investors to feel comfortable.”

From the article linked. IMHO, the whole reason for cryptos is that these named institutions aren't trustworthy, and involving them in our transactions utterly defeats the purpose of crypto altogether, while losing the advantages of cash. Subjecting our crypto transactions to these same institutions whose swindles with fiat currencies have made them a vector for theft by fraud simply creates of cryptos a new vector for that exact same problem.

I have no interest or intention of allowing HSBC, Goldman Sachs, or Japanese banks to involve themselves in my transactions. That's why I don't have a bank account, and why I don't use any exchange or provide any KYC to any entity whatsoever.

Thanks!

I get what you’re saying completely. It’s cool that it’s there and gets positive media coverage but just wouldn’t actually do it.

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Here, I voted you a Macchiato! Or well, I wish I was able to, maybe the foam on the Macchiato :') Enjoy! :D

hey @dragosroua I voted on you as witness. Should have long ago because I use Steem Supply all the time. Great app. It seems to be erroring out today?

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All good this morning! I'm back in business. I check steem supply obsessively :)

Somehow I don't see myself spending my crypto on buying stuffs.

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So, yes, that means I'm really looking forward to pay for my tea (I don't drink Starbucks coffee) with the STEEM I make by blogging about being able to pay for my tea at Starbucks.

kinda incredible that MATHS is paying for real world beverages! :)

As soon as they start doing that, other countries and more exchange companies will swing and accept bitcoin and alt. coin as mood of exchange. These are other way where imvestors can easily buy coin directly while exchanging it to fiat while they hodl it since the market is red. If i had other means of earning, wouldn't risk my hard earned steem

Sounds very promising, I can't wait to see how the platform unfolds and companies start to offer its clients all kind of crypto assets as payment.