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NY-based startup Bitinstant hopes to launch Bitcoin as a debit card system. Bitcoin was originally a virtual monetary system that allowed users to pay anonymously, bypass bank regulations, and avoid transfer and withdrawal fees. The system crashed after a security breach that made it nearly worthless. Now, Bitinstant will act like a prepaid card that can be used to make every day purchases, withdraw money, or transfer amounts to friends and merchants.
The card holds a max of $1000 in Bitcoin credit and a QR code to link users to their accounts. Bitinstant is meant to attract those who have had success at mining Bitcoin. This process also bypasses transfer fees if friends do not bank with the same company, though users are allowed to keep each money transfer as BTU or convert them into US dollars, in which case a conversion fee would be charged.
Own a local business?
No.. Bitcoin is and has been chugging along just fine. The Bitinstant card is an additional service by one of many participants in the Bitcoin industry. It does not change the pseudoanonymous nature of the underlying Bitcoin network. Bitcoin doesn’t need ‘revival’ or ‘reintroduction’ – because it never went away, and never crashed to ‘near worthless’ despite what various media reports said.
[...] Bitinstant to Revive Bitcoin as Debit Card – NY Convergence 0 Posted on : 25-08-2012 | By : admin | In : Bitcoin Buzz [...]
Yeah, I have to agree with Julian Noble on this one. You’ve been misinformed.
Yeah.. Seriously misinformed. The “crash” that I think you’re referring to was when a single exchange (of many on the bitcoin network) was hacked and funds were stolen. If I recall, only a few thousand “dollars” were stolen, but it shook confidence and caused the price to drop. The price at the time had been seriously inflated due to a flash mob of speculation and the following correction reflected that, but it never dropped below where it had been even a month before the flash mod had attacked.
Those of us that had been following it for a while (I started when it was 1.39 cents per bitcoin) didn’t enjoy watching the roller coaster ride, but enjoyed watching it show how resilient the design is.
Wrong on so many levels. No wonder the world is in such a bad way with people relying on articles like this.
[...] Bitinstant to Launch Bitcoin as Debit Card [...]