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[PROPOSAL] MNC -> Giftcards

mincoin giftcards fiat money goods

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#1 sdf

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Posted 15 October 2013 - 11:33 AM

In this thread, I hope to lay out a concept for a way to exchange MNC for giftcards redeemable both online and at physical store locations.

 

It is my opinion that exchanging MNC to giftcards would provide the quickest, most legal way to redeem an alt-currency for something rather identical to fiat.

 

Q: Why is it the quickest?

With a little bit of automation, it is possible for a customer to send MNC- either from a client or from user to user on mcxnow- within a few minutes. Once this transaction is verified, an Amazon giftcard could be purchased in fiat by the business and emailed to the customer. The customer could then redeem that giftcard and spend it at a USD value equivalent to a person paying with a debit card.

 

This has multiple implications.

 

1) A bank account is not required on the customer's end.

No centralization, no arbitrary waiting periods and fees, no personal information, no seizing of assets.

 

2) Since giftcards are not "true fiat" (more below), the business operating this exchange should NOT be required to register with the gov't as a money exchanger.

This is because when you pay $25 for a "$25 gift card", you are paying for a "ticket" to purchase the equivalent of what the store values to be $25. You don't own $25 USD that are backed by the FDIC and a bank when you purchase a gift card. You own a piece of plastic redeemable for whatever is printed on it- it's up to the merchant to accept it or not. Since they were the ones who printed the card, it's probably in their interest to accept it!

 

As a result, this service would be of interest for anyone who is looking to go from MNC -> fiat -> physical goods, as I suspect very few of us out there are interested in holding fiat for a long period of time as a wise investment decision.

 

Q: Why not just make stores that accept MNC?

You do it, then. Until someone has the resources to match the distribution of Amazon, or Applebee's, or Newegg, this system makes the most sense in my mind. It is nice to have small shops that accept crypto, of course! But I don't see these ideas as mutually exclusive.

 

Q: How high would the premium have to be?

That is up to the business risking their fiat short-term to decide. I think while MNC's price remains unstable (0.0015-0.0029 is not stable), a reasonable premium would be 5-15%. It depends on the orderbooks, the status of whales in the market (pumping or dumping?), and the need for the business to cover expenses. There is no overhead in this business model, unless the business is doing some of this on credit. Then they would need to dump a percentage of their coins to cover expenses.

 

When MNC price is stable (whales identified, mining hashrate stable, more competition among services and exchanges), then the premium should be as close to face as possible.

 

Please reply/pm/email me if you have any questions about this content!

 


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#2 clamps

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Posted 19 October 2013 - 04:01 AM

good idee


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#3 5Dzz

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Posted 23 October 2013 - 05:07 AM

Yes. This is a good idea. Hope more ways like this to help people use Mincoin are coming soon too.



#4 sdf

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Posted 23 October 2013 - 08:31 AM

Yes. This is a good idea. Hope more ways like this to help people use Mincoin are coming soon too.

 

we need #damoney$$$ and some faith in a good coin


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#5 CC66

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Posted 25 October 2013 - 09:12 AM

we need #damoney$$$ and some faith in a good coin

I definitely have the faith in that good coin.  Hopefully more of the other in the near future.  ;)



#6 jellyfish420

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Posted 28 October 2013 - 02:03 AM

good idea.



#7 Don247

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Posted 12 November 2013 - 04:26 PM

Wow.. Joseph I would have to say that is a GREAT IDEA. It is just ashamed that the goverment is trying to control virtual currencies. They controlled Enron and look how that ended.



#8 SuperTramp

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Posted 19 November 2013 - 02:53 AM

In this thread, I hope to lay out a concept for a way to exchange MNC for giftcards redeemable both online and at physical store locations.

 

It is my opinion that exchanging MNC to giftcards would provide the quickest, most legal way to redeem an alt-currency for something rather identical to fiat.

 

Q: Why is it the quickest?

With a little bit of automation, it is possible for a customer to send MNC- either from a client or from user to user on mcxnow- within a few minutes. Once this transaction is verified, an Amazon giftcard could be purchased in fiat by the business and emailed to the customer. The customer could then redeem that giftcard and spend it at a USD value equivalent to a person paying with a debit card.

 

This has multiple implications.

 

1) A bank account is not required on the customer's end.

No centralization, no arbitrary waiting periods and fees, no personal information, no seizing of assets.

 

2) Since giftcards are not "true fiat" (more below), the business operating this exchange should NOT be required to register with the gov't as a money exchanger.

This is because when you pay $25 for a "$25 gift card", you are paying for a "ticket" to purchase the equivalent of what the store values to be $25. You don't own $25 USD that are backed by the FDIC and a bank when you purchase a gift card. You own a piece of plastic redeemable for whatever is printed on it- it's up to the merchant to accept it or not. Since they were the ones who printed the card, it's probably in their interest to accept it!

 

As a result, this service would be of interest for anyone who is looking to go from MNC -> fiat -> physical goods, as I suspect very few of us out there are interested in holding fiat for a long period of time as a wise investment decision.

 

Q: Why not just make stores that accept MNC?

You do it, then. Until someone has the resources to match the distribution of Amazon, or Applebee's, or Newegg, this system makes the most sense in my mind. It is nice to have small shops that accept crypto, of course! But I don't see these ideas as mutually exclusive.

 

Q: How high would the premium have to be?

That is up to the business risking their fiat short-term to decide. I think while MNC's price remains unstable (0.0015-0.0029 is not stable), a reasonable premium would be 5-15%. It depends on the orderbooks, the status of whales in the market (pumping or dumping?), and the need for the business to cover expenses. There is no overhead in this business model, unless the business is doing some of this on credit. Then they would need to dump a percentage of their coins to cover expenses.

 

When MNC price is stable (whales identified, mining hashrate stable, more competition among services and exchanges), then the premium should be as close to face as possible.

 

Please reply/pm/email me if you have any questions about this content!

 

Hey buddy, any progress with this concept?


MinCoin, The #1 Crypto-Commodity


#9 sdf

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Posted 19 November 2013 - 11:19 AM

Hey buddy, any progress with this concept?

 

The legal and financial framework are in place, all we need now is network security and for me to automate it :)


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#10 Kaminari

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Posted 26 November 2013 - 10:04 PM

This is an amazing idea! I am looking forward to it, not having to wait hours on BTC to confirm will be so nice.



#11 LongAndShort

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Posted 05 January 2014 - 12:38 PM

Ok, so this is a great idea to be on a back burner...for now, are you still keen to work it mate and can you tell me what needs to be done to implement it when mincoin is ready.

 

..By ready i mean we all have a bit or work to do right now on the logo the website and then pr'ing the coin hard to get miners on it to secure it

 

Let us know so we can help..its time to start working on Mincoin and i hope to see some people step up


“Those who surrender freedom for security will not have, nor do they deserve, either one.”
- Benjamin Franklin





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