Bitcoin airline payments

[Spongbob]

I watched an episode of "Inside Man" were Morgan Spurlock attempted to use only Bitcoin for one week. Outside NYC he struggled to find sellers of goods and services who accept Bitcoin as a method of payment.

This got me thinking: are there merits for all airlines to accept Bitcoin (in addition to current payment methods)?

 

[Daver6]

The issue I see for any merchants who accept bitcoin or any other crypto-currency is the wild fluctuations in value. Eg, they take payment to the value of $1000 one day in bitcoin but the next day its worth only $800. Makes it difficult to replenish stock. Obviously if the value moves the other way, they win. Suddenly by accepting bitcoin it makes the merchant a currency speculator too.

Having said all that, I'd love to be able to buy more things, more easily with crypto-currencies. Makes it a tax affordable way to cash profits without needing to incur a capital gain/income and hence pay tax.

 

[samh004]

the wild fluctuations in value

This is what I would have said as well. But I just don’t it’s mainstream enough yet for it to be worth it. You’d need a really youthful hip brand to take it on. Therefore I expect VA to do so.

 

[harvyk]

I'll start of this post by stating up front that I've purchase bitcoin, but I've done so with no intention of actually spending it.
I've purchased it because of the wild fluctuations means that it has the potential to be a wonderfully performing investment, or a dire one. In some ways a bit like gambling, except it's not all over in an instant because it's red and I've bet on black.

Now with that in mind, Airlines are already a fickle business. They say the fastest way to become a millionaire in the airline game is to start off as a billionaire. So if they started accepting bitcoin their healthy balance sheets could turn from wonderful to we're declaring bankruptcy, to we're just sold the most expensive economy fare ever, to go home everyone, we have no money left all before lunchtime.

Bitcoin needs to stabilize (although please not before I've made enough to retire to my own private island) before it can really be considered a viable currency.

 

[JohnK]

This is what I would have said as well. But I just don’t it’s mainstream enough yet for it to be worth it. You’d need a really youthful hip brand to take it on. Therefore I expect VA to do so.

I struggle to understand Bitcoin and don't really want to understand but how can something that can go from $1 million in value one day down to $1000 in value another day become popular with the masses?

 

[Daver6]

I struggle to understand Bitcoin and don't really want to understand but how can something that can go from $1 million in value one day down to $1000 in value another day become popular with the masses?

The fluctuations aren't that wild!

I don't think bitcoin will land up being the dominant crypto-currency in the long run. Etheruem is much more likely given it's more than just a currency, but a smart ledger that allows for smart contracts. In terms of the underworld, I suspect zcash could be a winner due to the anonymity provided which bitcoin does not.

 

[samh004]

I struggle to understand Bitcoin and don't really want to understand but how can something that can go from $1 million in value one day down to $1000 in value another day become popular with the masses?

It's popular because it's good for buying things on the dark web mainly

 

[harvyk]

I struggle to understand Bitcoin and don't really want to understand but how can something that can go from $1 million in value one day down to $1000 in value another day become popular with the masses?

I have to admit, I don't understand the "value" behind a bitcoin, in the early days when 10,000 was about enough to buy a pizza, and these days 10,000 bitcoins are worth roughly AU$50 million. Of course I understand supply and demand, and there are people out there whom want bitcoin, and thus it pushes up it's value, even if the item itself has no value to society, it is based on that that I have decided to get involved (albeit with play money only, which if I lost I wouldn't care about)

FWIW, the fluctuation per days are usually measured in full percentage moves, for example it's value may go up or down 10% within a day, it's been sustained growth over several days of say 10% per day which has allowed it to sky rocket.

The issue with airlines using it is that they are already on raiser tight margins, so if they have too much of their business in bitcoin, those fluctuations, even if the tread is growing, would be enough to sink a business that is already operating in the single digit percentages ranges.

 

[JohnK]

It's popular because it's good for buying things on the dark web mainly

I have no idea what you are referring to as the dark web but from what I understand about Bitcoin (which is not very much) is that I can accept payment as Bitcoin and today that payment is $1000 and tomorrow it could have a value or $800. Surely that would only interest someone who is interested in speculation? I could be totally wrong but what business owner would want to deal with speculative currency?.

Also some stories floating around (scam or not I do not know) that $1000 of bitcoin when it first come out is now worth millions. That to me is not currency.

And I am also receiving Bitcoin spam daily now.

 

[snabbu]

They take bitcoin mining very seriously in China.

 

[cambriamarsh]

It's got a future once govts accept it for tax payments

 

[harvyk]

It's got a future once govts accept it for tax payments

I doubt that will ever happen. I can't exactly imagine the ATO would be too thrilled in accepting my tax payments in USD.
It's got a future once you can spend it as easily as you can spend an AUD or a USD, and the value of a bitcoin compared to other major currencies is relatively static.

Take for example the AUD vs USD. In the last 20 years, our dollar has been worth half a USD to it's worth a little bit more, and whilst the two currencies move up and down each day, the overall effect on a day by day basis is minimal for the sized transactions which the average person does. You really do need to be talking the big end of town for the daily movements between the AUD and USD to be a concern. Bitcoin needs to be the same, the price of a big mac needs to be roughly the same number of bitcoins (or bits) per day, when compared to AUD or USD for it to be taken as a serious currency.

 

[BAM1748]

Unless an airline can buy their supplies and pay employees with it why would they. Increases risk in an already marginal business in most cases.

 

[Jamesaurus]

FYI try Expedia:
Bitcoin Terms & Conditions

 

[drron]

Or WikiLeaks.
They began accepting them in 2010 when the US forced CC issuers to not process payments to WikiLeaks.
And the law of unintended consequences meant they have a lot more wealth now than they would have.

 

[Daver6]

Here's an Australia company that makes paying any bill via BPAY or to a bank account easy. Bitcoin to AUD | Pay to any Bank account | Living Room Of Satoshi

 

[Jamesaurus]

Here's an Australia company that makes paying any bill via BPAY or to a bank account easy. Bitcoin to AUD | Pay to any Bank account | Living Room Of Satoshi

Great website... also note here ATO advice regarding transactions under 10k:
Tax treatment of crypto-currencies in Australia - specifically bitcoin

 

[Daver6]

Great website... also note here ATO advice regarding transactions under 10k:
Tax treatment of crypto-currencies in Australia - specifically bitcoin

So what's the implication if you purchase something as a personal transaction for greater than $10k?

 

[moa999]

Given that Bitcoin doubles every month, why would you actually want to spend any of it
/S

 

[cambriamarsh]

Given that Bitcoin doubles every month, why would you actually want to spend any of it
/S

If you think that will continue for any length of time I've got a great bridge for you!