Bitcoin Convenience - Perennial Oxymoron.

Experiencing a place where "Bitcoin Convenience" is Not a Fantasy.

From the Author:

To answer a recent inquiry from a new Steemian friend, "Yes, I am an E.B. White fan."

Salutations!

I am JaiChai.

If I haven't had the pleasure to make your acquaintance, it's very nice to meet you.

Please Note:

Classically, the term "bitcoin" (lower case "b") identifies the cryptocurrency; while "Bitcoin" (capital "B") denotes the blockchain technology.

But now, simply using the term "Bitcoin" for both entities appears to be the acceptable - albeit confusing - journalistic norm amongst the prominent distributors of cryptocurrency news media.

So, in spite of my personal beliefs of its inherent ambiguity, I am aligning myself with the rest of the professional cryptocurrency writers.

All instances of "Bitcoin" will deal strictly with the cryptocurrency, not the technology - unless otherwise clearly stated.

Disclaimer:

I am not an employee, nor paid sponsor of any businesses mentioned in this article.

Any statements resembling financial advice or investment recommendation is not my intention and should not be perceived in that manner.

Although there are opportunities in the cryptocurrency space that are potentially lucrative, they are also extremely volatile and unpredictable.

Due diligence must be taken before committing any of your hard earned funds.

Never, ever invest money in cryptocurrency that you are not willing to loose.

Namaste,

JaiChai

Spaghetti Westerns - The Early Days

(Key background music: "Ooh-ah-ooh-ah-ooooh, wuh-waw-waaaaw. Ching, ching-ching, ching...)

The Good, The Bad and The Ugly

I can remember the first time I wanted to buy some Bitcoin. This was around mid-2011.

The experience was so frustrating that I almost gave up.

It was very tempting to take the coward's way out, quit and "sour grape" it; smuggly convincing myself that this is just too much trouble over fake, internet funny-money.

Fortunately, my innate stubbornness and insomia-inducing curiosity kept me going. "Other people have Bitcoin, so it can't be that hard for me to get some too, right?" I thought.

My marching orders were clear: Get some Bitcoin - no matter how long it takes, in any legal way possible. Period.

(Little did I know, I was in for a long, hair-pulling; and oftentimes, disheartening emotional roller coaster ride before completing my mission.)

Although things have gotten a little better, the majority of people who want to acquire Bitcoin for the first time are confronted with confusing, time-consuming and outrageously expensive alternatives - the same things I wrestled with in those early days.

For the neophyte of today, mining for Bitcoin is not a very attractive proposition.

CPU mining is neither practical, nor very profitable; relegated to the few cryptocoins aimed at securing all the customers without expensive GPU mining rigs.

GPU mining is fascinating, but the price of mining rigs, the complicated fee plans for cloud mining and the inherent steep learning curves can be intimidating for even the most experienced cryptocurrency user.

For the Noob, it represents an impenetrable barrier for entry.

New cryptocurrency enthusiasts routinely get fleeced when they buy Bitcoin for the first time - I know I did. But I was so stoked about having my first Bitcoin - boldly displayed in my shiny, brand new Bitcoin wallet - that the inflated prices didn't bother me.

It wasn't until I got more savvy at things, that I felt a twinge of buyer's remorse over those first few Bitcoin purchases.

Nowadays, I scrutinize every penny, percentage and potential hidden costs before I buy, trade or sell cryptocurrency.

Over the years, I've learned - usually the hard way - that even what appears as minute, trivial amounts can quickly stack up and obliterate your profits.

And anybody who has been in the cryptocurrency space for awhile can attest to this:

"The potential to get nickel and dimed to death is an ever-present hazard. Droves of scam artists are out there, just looking for the next sucker. Unless you're a financial masochist, 'Death by a Thousand Cuts' is not a very pleasant thought, no?"

That's why it helps me to visualize "physically carrying the costs".

In my mind's eye, I transform the costs into tangible, physical objects. Then I picture myself stuffing all those costs - big and small - into a backpack.

Finally, I put on the backpack, get out my trusty, 30-year-old SUUNTO MC-1 compass (no GPS allowed) and trek towards my intended "financial destination".

Since I spent the bulk of my military career lugging around a 75 lb.+ Marine Corps Alice Pack or U.S. Army Rucksack, I instantly remember the motto of all grunts:

"When ya got'ta hump for miles with your house on your back, every freakin' ounce counts!"

Buying Bitcoin - Take Your Patient Pills Now

First off, a new cryptocurrency enthusiast must take into account their geographic location and nationality. This is vital because many Bitcoin-centric institutions are mandated by their country's laws to limit their client base strictly to citizens of that country.

Of course, I must accept reality.

All businesses must comply with their area's laws or cease being a going concern. And there is no arguing that in many countries around the world, a foreigner can not have a local bank account.

Consider the players, extrapolate, and the picture becomes quite clear:

There's no avoiding the tons of red tape; especially when someone desires to fund his exchange account with fiat currency from a personal bank account - via a Bank Wire or an ACH transfer.

Legal concerns aside, isn't it rather ironic in the case of Bitcoin - and all cryptocurrencies? Aren't they supposed to be "decentralized, democratizing currencies, accessible to anyone around the globe"?

(Yeah right. And shaking a plate of jello doesn't resemble a fat hooker on a cold night, no? Just saying.)

In the end, many people forego acquiring Bitcoin from these "bank, exchange or hybrid" style companies because of the long, drawn out and quite invasive AML/KYC process.

The French Connection

The next option to consider for acquiring Bitcoin is to buy it from someone in your local area.

In the old days (within the context of "internet time"), gatherings of Bitcoin enthusiasts would get together at popular bars or restaurants to socialize and trade local fiat currency for Bitcoin. It was a fun way to meet new, like-minded people and introduce others to the technology.

Then this "local scene" type of Bitcoin acquisition morphed into the many online entities of our current times using the LocalBitcoin model.

One only had to contact a local seller and arrange a transaction. In the early days, face-to-face (QR-Code to QR-Code) transactions were necessary.

Although this "French Connection" scenario didn't bother me; for many, it was not their cup of tea.

Privacy-centric (and especially, agoraphobic individuals) view this acquisition method as severely dissonant with their personal beliefs and lifestyle. It's definitely not what they would gravitate towards, nor personally choose to do.

Convenience - Inversely Proportional to Price?

Debit and Credit Cards

At first blush, buying Bitcoin via a debit or credit card is alluring. The thought of simply whipping out your card and using the familiar shopping cart/check-out process online is quite seductive, indeed.

I have experimented with many of these so-called "convenient and inexpensive" businesses who accept debit or credit card payment for Bitcoin.

Sadly, they were all the antithesis of "convenient and inexpensive".

Funny thing (now). Looking back, I get a sense that maybe, just maybe, I'm not as smart as I thought I was after all?

Verification - Deliciously Convenient?

I can remember thinking:

"Damn, if I wanted to be tied up, have a blinding bright light searing into my eyes and listen to some Hannibal Lechter type whisper, 'Come on. You know you want it as much as I do. Just sign zee papers ole' man and this will be all over. (Drooling) Fe-fe-fe-fe-fe-fe... I just know that your liver will be delicious with some fresh fava beans and a nice chianti...'

...then I could simply apply for a bank account in Israel - stating that I am a practicing Nazi and an active member of the Fourth Reich!"

Inexpensive Bitcoin with Nominal Fees?

To add insult to injury, the price of the Bitcoin was so high that it was insulting to anyone with half a brain and a functioning internet connection.

Seriously.

Some places had prices that were 65% higher than the prevailing rate on the major exchanges and other region-specific or nationality-centric businesses that run their transactions along the lines of Coinbase's "fund-convert-transfer, then rinse and repeat in the opposite direction" scheme.

More salt into the wound?

The vast majority of these Bitcoin-via-card-payment businesses tack on official sounding, but otherwise superfluous fees.

If not, they will doctor with the currency conversion rates; financially raping you multiple times before the Bitcoin shows up in your exchange account or off-site wallet.

Hey you. Yes, you. Come closer. Want to know a secret?

Bitcoin Convenience - Stumbling upon Nirvana

While on active duty, I worked and travelled in all parts of Asia. Enjoying it immensely, I opted to retire there. That was over twelve years ago and I don't regret for a minute that I did.

About the secret? Where did I stumble to and why do I say it is "Bitcoin Convenience Nirvana"?

To answer that, first let me ask you these questions:

Have you ever walked into a 7-11, pawn shop, department store, money transfer service or bank and handed over your fiat currency and after sufficient confirmations, received your Bitcoin?

Have you ever presented your Bitcoin to those same places and received local fiat currency?

Do you have an online service that has realtime fiat-Bitcoin and Bitcoin-fiat capabilities?

Does that service offer digital debit cards for banks you are NOT a member of?

Lastly, can you buy cellphone load at a discount, pay your local utility and phone carrier bills, redeem customer loyalty credits and get a 1:1 ratio referral commission (both sponsor and new member recieve the same amounts) when a friend signs up?

Believe it or not, all the above is happening where I reside (at least six months out of the year) - Asia, specifically, the Philippines.

The top two players in this Bitcoin services market are Coins.ph and BuyBitcoin.ph; and I have tried them both with very satisfying results.

I can honestly say that they are truly "Convenient and Inexpensive".

By JaiChai

About the Author

He is a retired U.S. Military veteran.

Believing that school was too boring, he dropped out of High School early; only to earn an AA, BS and MBA in less than four years much later in life – while working full-time as a Navy/Marine Corps Medic. In spite of a fear of heights and deep water, he freefall parachuted out of airplanes and performed diving ops in very deep, open ocean water.

He spends his days on an island paradise with his teenage daughter, longtime girlfriend and three dogs.