Dirty F

Servers at the New York City bar EVR spent Sunday night learning how customers can use the virtual currency Bitcoin to pay their bar tabs.

On Monday, the 39th Street nightspot will be ready to test it out.

"When we opened a few months ago, I said that we needed to be the first New York bar to accept Bitcoins," said Charlie Shrem, the 23-year old co-owner of the midtown Manhattan bar.

Bitcoin, a virtual currency that was created four years ago, has been at the center of much media attention recently. Just in the past three weeks, the value of Bitcoins has skyrocketed over 300%. The value of one Bitcoin rose to $194 Monday, from $47 three weeks ago.

The surge was triggered by the botched European Union bailout of Cyprus, and has attracted users who are concerned about the health of government-backed paper currencies like the euro and dollar.

This is how it would work: EVR customers have to tell servers they want to pay in Bitcoins. Servers bring over a tablet with a BitPay app that lets merchants accept Bitcoins as a form of payment. The app converts the dollar value of the bill into Bitcoins and gives customers a bar code.

At its current value, a $15 martini at EVR will cost 0.08 Bitcoin. Customers would use their smart phones to scan the bar code that will deduct the amount from their Bitcoin accounts. BitPay will credit that $15 to the bar. The transaction happens instantaneously, EVR promises.

Currently, more than 100 retailers around the world are using the app to accept Bitcoins as payment, according to Tony Gallippy, co-founder and CEO of BitPay.

Shrem said Bitcoin transactions are cheaper than standard credit card ones; BitPay charges 1%, while credit cards can charge 3% to 5%.

It is also faster for him. BitPay transactions are processed on the same day, while credit card companies can take two weeks, since many customers dispute their bar tabs.

Shrem himself stands to gain if more people use the currency. He is also a founder of BitInstant, a payment processor for exchanges where Bitcoins are traded.

Along with his businesses, Shrem is the co-chairman of Bitcoin Foundation, a group that stands for promoting and standardizing the new currency. The foundation has about 250 members, according to its website. It charges 2.5 Bitcoins for an annual membership and 25 Bitcoins, or $4,750 at Monday's rate, for a lifetime one.

"We're putting up stickers and banners to make sure they know this is the Bitcoin place," Shrem said.

http://money.cnn.com/2013/04/08/inve...new-york-city/

purecane

if you pay for a beer with a currency that doesn't exist, could that be considered stealing????

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L-Pink

What a hassle for such a small amount.


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mineistaken

Its publicity stunt, good exposure for very cheap.

CAHEK

oh nice you can buy alcohol with bit coins maybe soon i can buy pizza like one guy did

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spiederman

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Supz

Frank,

When are you going to come and visit the big city? You better take me out for bitcoins pizza now that its making you all this DOUGH.

epitome

At least he's good with PR!

Sid70

" ...said Charlie Shrem, the 23-year old co-owner of the midtown Manhattan bar."

Sounds true. I also co-owned a Manhattan bar when I was 22.

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Emil

This is fake news. People like seeandsee have already said that Bitcoin only can be used to buy drugs and CP.

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Zeiss

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Dirty F

Yup, it must be fake people. There is also no way to check this ofcourse. It's easy to fake such a thing in the middel of New York where nobody can find you.

Seriously, the bitcoin haters are getting desperate. The more popular Bitcoin gets the more frustrated they get.

woj

so what's the advantage over just pulling the cash out of your pocket? isn't using some app and risk getting hacked (or something else going wrong) in the process, etc, a bit clumsy? or just use a credit card, at least if something goes wrong, it will be credit card company's problem?

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Dirty F

What's the advantage of using cash? Is using a wallet and the risk of losing it or have it stolen (or something else going wrong) in the prcoess, etc, a bit clumsy?

L-Pink

Well ….. if you bought the bitcoin for say $90. and it's worth $150. when you trade part of it for a drink you would need to pay tax on the part of the $60 profit your investment yielded.

Or you just drop a few dollar bills on the bar and walk away. Who the hell wants each small transaction to become a taxable event? Seriously who?

That's the problem for everyday consumer use. As far as an investment? …… If you can mine them or buy low/sell high then go for it. A good investment is a good investment, but don't tell me it's the new way to buy a Heineken.


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mineistaken

Who would tax "anonymous" bitcoins? As far as I know you do not have to provide your real name there. And those cash you are talking about, they would be taxed before for you (when you got them you probably paid taxes for them). So lets say you get 1000$ in cash, that probably means you means you have to pay some tax or you have already paid tax on them. While when you get 1000$ bitcoins you did not pay tax for them.

L-Pink

YOU are responsible for declaring taxes on any investment to the IRS. Any gain on bitcoin value is taxable just like apple or google stock shares. If you wish to become a tax cheat and commit tax fraud when signing your tax return that's your decision.

Who taxes a carpenter when he builds a deck on an "anonymous" customers house? Who taxes an "anonymous" customers motorcycle at a repair shop? It's called declared income. Not declaring tends to bite quite a few people, eventually.


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mineistaken

Thats my point. If you wish you can declare your cash income and bitcoin income. But you post sounded that its better to pay cash because of taxes and declaring, while actually you should declare both.

WarChild

You really are very confused. Cash is not an investment tool. $1USD is still worth $1USD. There's no gain to be taxed.

That being said, that chances of the IRS busting you over a few bitcoins spent at a bar is pretty much slim to none.

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mineistaken

I meant that when you gained that 1$ it was taxed before in some way. If you gained it via employment paycheck it means it was taxed, if you gained it by profiting from shares it was taxed and so on. So if you declare your bitcoins and pay taxes you don't have disadvantage vs paying in cash, because both times your "gain" was taxed.

L-Pink

What happened prior to you earning or taking ownership to money or stock, investments is irrelevant. A share of google stock might have been bought, sold and paid taxes on 50 times prior to you taking ownership of it. All that matters is the profit earned from the point you purchase it.

My point is yes the money you spend in a bar is usually after tax. There is NO PAPERWORK needed for your purchase. A biotcoin on the other hand if it has appreciated in value since it's acquisition then technically tax is owed on that gain. You pay for your bar bill with cash money the transaction is over. You pay for your bar bill with a bitcoin you need to track and pay taxes on any gain. Cash is a much simplier transaction.

I am in no way saying bitcoins are or aren't a good investment. I'm saying using them to pay for small purchases requires bookkeeping that I personally feel isn't worth the time.

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adulttraffic

One could also say the $ dosent exist either. Sure you have a piece of paper but its just as worthless as a bitcoin unless the gov has gold or silver to back up the paper currency dollar for dollar. Somehow I seriously doubt thats the case.

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d-null

it could just be a small bar, it really isn't that difficult to go into business, might have worked for it himself or had a loan from family, it really isn't that huge of a deal like you are making it

Supz

Exactly. I mean. All the grocery stores in NY are owned by Paki and Indian Immigrants. A lot of people in NY have parents who have a lot of money. Sid is just mad he still lives amongst communists.